Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Aug. 25, 2017 | Dec. 31, 2016 | |
Document And Entity Information | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | SCANSOURCE, INC. | ||
Entity Central Index Key | 918,965 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 25,432,900 | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 1,012,679,122 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 56,094 | $ 61,400 |
Accounts receivable, less allowance of $44,434 at June 30, 2017 and $39,032 at June 30, 2016 | 637,293 | 559,557 |
Inventories | 531,314 | 558,581 |
Prepaid expenses and other current assets | 56,322 | 49,367 |
Total current assets | 1,281,023 | 1,228,905 |
Property and equipment, net | 56,566 | 52,388 |
Goodwill | 200,881 | 92,715 |
Identifiable intangible assets, net | 101,513 | 51,127 |
Deferred income taxes | 29,491 | 28,813 |
Other non-current assets | 48,829 | 37,237 |
Total assets | 1,718,303 | 1,491,185 |
Current liabilities: | ||
Accounts payable | 513,155 | 471,487 |
Accrued expenses and other current liabilities | 104,715 | 98,975 |
Current portion of contingent consideration | 30,675 | 11,594 |
Income taxes payable | 7,730 | 3,056 |
Total current liabilities | 656,275 | 585,112 |
Deferred income taxes | 2,008 | 2,555 |
Long-term debt, net of current portion | 5,429 | 5,429 |
Borrowings under revolving credit facility | 91,871 | 71,427 |
Long-term portion of contingent consideration | 83,361 | 13,058 |
Other long-term liabilities | 42,214 | 39,108 |
Total liabilities | 881,158 | 716,689 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred stock, no par value; 3,000,000 shares authorized, none issued | 0 | 0 |
Common stock, no par value; 45,000,000 shares authorized, 25,431,845 and 25,614,673 shares issued and outstanding at June 30, 2017 and June 30, 2016, respectively | 61,169 | 67,249 |
Retained earnings | 849,180 | 779,934 |
Accumulated other comprehensive loss | (73,204) | (72,687) |
Total shareholders’ equity | 837,145 | 774,496 |
Total liabilities and shareholders’ equity | $ 1,718,303 | $ 1,491,185 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Current assets: | ||
Allowance for accounts receivable | $ 44,434 | $ 39,032 |
Shareholders’ equity: | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 45,000,000 | 45,000,000 |
Common stock, shares issued (in shares) | 25,431,845 | 25,614,673 |
Common stock, shares outstanding (in shares) | 25,431,845 | 25,614,673 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 3,568,186 | $ 3,540,226 | $ 3,218,626 |
Cost of goods sold | 3,184,590 | 3,184,786 | 2,891,536 |
Gross profit | 383,596 | 355,440 | 327,090 |
Selling, general and administrative expenses | 265,178 | 240,115 | 210,985 |
Depreciation expense | 9,444 | 7,326 | 5,356 |
Intangible amortization expense | 15,524 | 9,828 | 6,641 |
Change in fair value of contingent consideration | 5,211 | 1,294 | 2,667 |
Operating income | 88,239 | 96,877 | 101,441 |
Interest expense | 3,215 | 2,124 | 1,797 |
Interest income | (5,329) | (3,448) | (2,638) |
Other (income) expense, net | (11,142) | 2,191 | 2,376 |
Income before income taxes | 101,495 | 96,010 | 99,906 |
Provision for income taxes | 32,249 | 32,391 | 34,487 |
Net income | $ 69,246 | $ 63,619 | $ 65,419 |
Per share data: | |||
Net income per common share, basic (in dollars per share) | $ 2.74 | $ 2.40 | $ 2.29 |
Weighted-average shares outstanding, basic (in shares) | 25,318 | 26,472 | 28,558 |
Net income per common share, diluted (in dollars per share) | $ 2.71 | $ 2.38 | $ 2.27 |
Weighted-average shares outstanding, diluted (in shares) | 25,515 | 26,687 | 28,799 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 69,246 | $ 63,619 | $ 65,419 |
Unrealized gain on hedged transaction, net of tax | 13 | 0 | 0 |
Foreign currency translation adjustment | (530) | (8,185) | (47,802) |
Comprehensive income | $ 68,729 | $ 55,434 | $ 17,617 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning balance, shares at Jun. 30, 2014 | 28,539,481 | |||
Beginning balance, amount at Jun. 30, 2014 | $ 802,643 | $ 168,447 | $ 650,896 | $ (16,700) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 65,419 | 65,419 | ||
Unrealized gain (loss) on hedged transaction, net of tax | 0 | |||
Foreign currency translation adjustment | (47,802) | (47,802) | ||
Exercise of stock options and shares issued under share-based compensation plans, net of shares withheld for employee taxes, shares | 154,497 | |||
Exercise of stock options and shares issued under share-based compensation plans, net of shares withheld for employee taxes | 760 | $ 760 | ||
Common stock repurchased, shares | (479,825) | |||
Common stock repurchased | (18,768) | $ (18,768) | ||
Share based compensation | 6,517 | 6,517 | ||
Tax benefit (shortfall) arising from exercise or vesting of share-based payment arrangements | 216 | $ 216 | ||
Ending balance, shares at Jun. 30, 2015 | 28,214,153 | |||
Ending balance, amount at Jun. 30, 2015 | 808,985 | $ 157,172 | 716,315 | (64,502) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 63,619 | 63,619 | ||
Unrealized gain (loss) on hedged transaction, net of tax | 0 | |||
Foreign currency translation adjustment | (8,185) | (8,185) | ||
Exercise of stock options and shares issued under share-based compensation plans, net of shares withheld for employee taxes, shares | 284,730 | |||
Exercise of stock options and shares issued under share-based compensation plans, net of shares withheld for employee taxes | 3,994 | $ 3,994 | ||
Common stock repurchased, shares | (2,884,210) | |||
Common stock repurchased | (100,751) | $ (100,751) | ||
Share based compensation | 7,093 | 7,093 | ||
Tax benefit (shortfall) arising from exercise or vesting of share-based payment arrangements | $ (259) | $ (259) | ||
Ending balance, shares at Jun. 30, 2016 | 25,614,673 | 25,614,673 | ||
Ending balance, amount at Jun. 30, 2016 | $ 774,496 | $ 67,249 | 779,934 | (72,687) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 69,246 | 69,246 | ||
Unrealized gain (loss) on hedged transaction, net of tax | 13 | 13 | ||
Foreign currency translation adjustment | (530) | (530) | ||
Exercise of stock options and shares issued under share-based compensation plans, net of shares withheld for employee taxes, shares | 394,815 | |||
Exercise of stock options and shares issued under share-based compensation plans, net of shares withheld for employee taxes | $ 8,208 | $ 8,208 | ||
Common stock repurchased, shares | (600,000) | (577,643) | ||
Common stock repurchased | $ (20,335) | $ (20,335) | ||
Share based compensation | 6,578 | 6,578 | ||
Tax benefit (shortfall) arising from exercise or vesting of share-based payment arrangements | $ (531) | $ (531) | ||
Ending balance, shares at Jun. 30, 2017 | 25,431,845 | 25,431,845 | ||
Ending balance, amount at Jun. 30, 2017 | $ 837,145 | $ 61,169 | $ 849,180 | $ (73,204) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 69,246 | $ 63,619 | $ 65,419 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 24,968 | 17,154 | 11,997 |
Amortization of debt issue costs | 290 | 297 | 297 |
Provision for doubtful accounts | 8,901 | 7,571 | 993 |
Share-based compensation | 6,602 | 7,093 | 6,522 |
Deferred income taxes | (1,861) | 1,846 | 3,921 |
Excess tax benefits from share-based payment arrangements | (89) | (101) | (260) |
Change in fair value of contingent consideration | 5,211 | 1,294 | 2,667 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | (66,129) | 14,167 | (14,476) |
Inventories | 28,449 | 2,999 | (37,695) |
Prepaid expenses and other assets | (4,300) | 4,612 | 2,337 |
Other noncurrent assets | (9,540) | (2,186) | 1,431 |
Accounts payable | 19,861 | (71,706) | 28,280 |
Accrued expenses and other liabilities | 8,491 | 6,401 | 7,449 |
Income taxes payable | 4,776 | (849) | (3,360) |
Net cash provided by operating activities | 94,876 | 52,211 | 75,522 |
Cash flows from investing activities: | |||
Capital expenditures | (8,849) | (12,081) | (20,762) |
Cash paid for business acquisitions, net of cash acquired | (83,804) | (61,475) | (59,779) |
Payments for acquisition of intangible assets | (3,583) | 0 | 0 |
Net cash used in investing activities | (96,236) | (73,556) | (80,541) |
Cash flows from financing activities: | |||
Borrowings (repayments) short-term borrowings, net | 0 | 0 | (24,097) |
Borrowings on revolving credit, net of expenses | 1,813,062 | 1,376,620 | 93,579 |
Repayments on revolving credit, net of expenses | (1,792,620) | (1,305,193) | (93,579) |
Repayments on long-term debt | 0 | (2,792) | (9,146) |
Repayments of capital lease obligations | (246) | (223) | (262) |
Debt issuance costs | (876) | 0 | 0 |
Contingent consideration payments | (10,241) | (8,606) | (5,640) |
Exercise of stock options | 8,208 | 3,994 | 760 |
Repurchase of common stock | (20,882) | (100,206) | (18,768) |
Excess tax benefits from share-based payment arrangements | 89 | 101 | 260 |
Net cash used in financing activities | (3,506) | (36,305) | (56,893) |
Effect of exchange rate changes on cash and cash equivalents | (440) | (2,596) | (11,293) |
Decrease in cash and cash equivalents | (5,306) | (60,246) | (73,205) |
Cash and cash equivalents at beginning of period | 61,400 | 121,646 | 194,851 |
Cash and cash equivalents at end of period | 56,094 | 61,400 | 121,646 |
Supplemental disclosure of cash flow information: | |||
Interest paid during the year | 2,831 | 1,706 | 1,075 |
Income taxes paid during the year | $ 31,126 | $ 33,859 | $ 36,272 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Business and Summary of Significant Accounting Policies | Business and Summary of Significant Accounting Policies Business Description ScanSource , Inc. is a leading global provider of technology products and solutions. ScanSource, Inc. and its subsidiaries ("the Company") provide value-added solutions from technology vendors and sell to customers in specialty technology markets through its Worldwide Barcode, Networking & Security segment and Worldwide Communications & Services segment. The Company's two operating segments are based on product, customer and service type. The Company operates in the United States, Canada, Latin America and Europe. The Company sells into the United States and Canada from a facility located in Mississippi; into Latin America principally from facilities located in Florida, Mexico, Brazil, Colombia and Chile; and into Europe from facilities located in Belgium, France, Germany and the United Kingdom. Consolidation Policy The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company accounts and transactions have been eliminated. Related Party Transactions A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. There were no material related party transactions for the fiscal years ended June 30, 2017 , 2016 and 2015 . Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates, including those related to the allowance for uncollectible accounts receivable, contingent consideration and inventory reserves. Management bases its estimates on assumptions that management believes to be reasonable under the circumstances, the results of which form a basis for making judgments about the carrying value of assets and liabilities that are not readily available from other sources. Actual results may differ from these estimates under different assumptions or conditions; however, management believes that its estimates, including those for the above described items, are reasonable and that the actual results will not vary significantly from the estimated amounts. The following significant accounting policies relate to the more significant judgments and estimates used in the preparation of the Consolidated Financial Statements: (a) Allowances for Trade and Notes Receivable The Company maintains an allowance for uncollectible accounts receivable for estimated losses resulting from customers’ failure to make payments on accounts receivable due to the Company. Management determines the estimate of the allowance for uncollectible accounts receivable by considering a number of factors, including: (1) historical experience, (2) aging of the accounts receivable, (3) specific information obtained by the Company on the financial condition and the current creditworthiness of its customers and (4) the current economic and country specific environment. If the financial condition of the Company’s customers were to deteriorate and reduce the ability of the Company’s customers to make payments on their accounts, the Company may be required to increase its allowance by recording additional bad debt expense. Likewise, should the financial condition of the Company’s customers improve and result in payments or settlements of previously reserved amounts, the Company may be required to record a reduction in bad debt expense to reverse the recorded allowance. (b) Inventory Reserves Management determines the inventory reserves required to reduce inventories to the lower of cost or market based principally on the effects of technological changes, quantities of goods and length of time on hand and other factors. An estimate is made of the market value, less cost to dispose, of products whose value is determined to be impaired. If these products are ultimately sold at less than estimated amounts, additional reserves may be required. The estimates used to calculate these reserves are applied consistently. The adjustments are recorded in the period in which the loss of utility of the inventory occurs, which establishes a new cost basis for the inventory. This new cost basis is maintained until such time that the reserved inventory is disposed of, returned to the vendor or sold. To the extent that specifically reserved inventory is sold, cost of goods sold is expensed for the new cost basis of the inventory sold. (c) Purchase Price Allocations For each acquisition, the Company allocates the purchase price to assets acquired, liabilities assumed and goodwill and intangibles in accordance with the FASB's Accounting Standards Codification ("ASC") 805. The Company recognizes assets and liabilities acquired at their estimated fair values. Management uses judgment to (1) identify the acquired assets and liabilities assumed, (2) estimate the fair value of these assets, (3) estimate the useful life of the assets and (4) assess the appropriate method for recognizing depreciation or amortization expense over the asset’s useful life. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less, when purchased, to be cash equivalents. The Company maintains some zero-balance disbursement accounts at various financial institutions in which the Company does not maintain significant depository relationships. Due to the terms of the agreements governing these accounts, the Company does not have the right to offset most if not all outstanding checks written from these accounts against cash on hand and the respective institutions are not legally obligated to honor the checks until sufficient funds are transferred to fund the checks. As a result, checks released but not yet cleared from these accounts in the amounts of $48.5 million and $78.3 million are classified as accounts payable as of June 30, 2017 and 2016 , respectively. The Company maintains its cash with various financial institutions globally that are monitored regularly for credit quality and holds amounts in excess of Federal Deposit Insurance Corporation ("FDIC") limits or other insured limits. Cash and cash equivalents held outside of the United States totaled $47.9 million and $52.7 million as of June 30, 2017 and 2016 , respectively. Concentration of Credit Risk The Company sells to a large base of customers throughout the United States, Canada, Latin America and Europe. The Company performs ongoing credit evaluations of its customers’ financial condition. In certain cases, the Company will accept tangible assets as collateral to increase the trade credit of its customers. In addition, the Company carries credit insurance on certain subsections of the customer portfolio. No single customer accounted for more than 5% of the Company’s net sales for fiscal years 2017 , 2016 or 2015 . In the event that the Company does not collect payment on accounts receivable within the established trade terms for certain customers, the Company may establish arrangements for longer-term financing. The Company accounts for these arrangements by recording them at their historical cost less specific allowances at balance sheet dates. Interest income is recognized in the period earned and is recorded as interest income in the Consolidated Income Statement. Derivative Financial Instruments The Company uses derivative instruments to manage certain exposures related to fluctuations in foreign currency exchange rates and changes in interest rates in connection with borrowing activities. The Company records all derivative instruments as either assets or liabilities in the Consolidated Balance Sheet at fair value. The Company does not use derivative financial instruments for trading or speculative purposes. The Company’s foreign currency exposure results from purchasing and selling internationally in several foreign currencies and from intercompany loans with foreign subsidiaries. The Company's foreign currencies are denominated primarily in Brazilian reais, euros, British pounds, Canadian dollars, Mexican pesos, Colombian pesos, Chilean pesos and Peruvian nuevos sols. The Company may reduce its exposure to fluctuations in foreign exchange rates by creating offsetting positions through the use of derivative financial instruments. The market risk related to the foreign exchange agreements is offset by changes in the valuation of the underlying items. These contracts are generally for a duration of 90 days or less. The Company has elected not to designate its foreign currency contracts as hedging instruments. They are, therefore, marked-to-market with changes in their fair value recorded in the Consolidated Income Statement each period. Derivative financial instruments related to foreign currency exposure are accounted for on an accrual basis with gains or losses on these contracts recorded in income in the period in which their value changes, with the offsetting entry for unsettled positions reflected in either other assets or other liabilities. During the fiscal year ended June 30, 2017, the Company entered into an interest rate swap and designated this instrument as a hedge of the cash flows on certain variable rate debt. To the extent the derivative instrument was effective in offsetting the variability of the hedged cash flows, changes in the fair value of the derivative instrument were not included in current earnings, but were reported as other comprehensive income (loss). There was no ineffective portion to be recorded as an adjustment to earnings for the year ended June 30, 2017 . Investments The Company has investments that are held in a grantor trust formed by the Company related to the ScanSource, Inc. Nonqualified Deferred Compensation Plan and Founder’s Supplemental Executive Retirement Plan ("SERP"). The Company has classified these investments as trading securities, and they are recorded at fair market value with unrealized gains and losses included in the accompanying Consolidated Income Statements. The Company’s obligations under this deferred compensation plan change in concert with the performance of the investments along with contributions to and withdrawals from the plan. The fair value of these investments and the corresponding deferred compensation obligation was $21.4 million and $17.9 million as of June 30, 2017 and June 30, 2016 , respectively. These investments are classified as either prepaid expenses and current assets or other non-current assets in the Consolidated Balance Sheets depending on the timing of planned disbursements. The deferred compensation obligation is classified either within accrued expenses and other current liabilities or other long-term liabilities as well. The amounts of these investments classified as current assets with corresponding current liabilities were $2.7 million and $1.6 million at June 30, 2017 and June 30, 2016 , respectively. Inventories Inventories (consisting entirely of finished goods) are stated at the lower of cost (first-in, first-out method) or market. Vendor Programs The Company receives incentives from vendors related to cooperative advertising allowances, volume rebates and other incentive agreements. These incentives are generally under quarterly, semi-annual or annual agreements with the vendors. Some of these incentives are negotiated on an ad hoc basis to support specific programs mutually developed between the Company and the vendor. Vendors generally require that the Company use the vendors' cooperative advertising allowances for advertising or other marketing programs. Incentives received from vendors for specifically identified incremental cooperative advertising programs are recorded as adjustments to selling, general and administrative expenses. ASC 605 – Revenue Recognition addresses accounting by a customer for certain consideration received from a vendor. This guidance requires that the portion of these vendor funds in excess of our costs be reflected as a reduction of inventory. Such funds are recognized as a reduction of the cost of goods sold when the related inventory is sold. The Company records unrestricted volume rebates received as a reduction of inventory and reduces the cost of goods sold when the related inventory is sold. Amounts received or receivables from vendors that are not yet earned are deferred in the Consolidated Balance Sheets. Vendor receivables are generally collected through reductions to accounts payable authorized by the vendor. In addition, the Company may receive early payment discounts from certain vendors. The Company records early payment discounts received as a reduction of inventory, thereby resulting in a reduction of cost of goods sold when the related inventory is sold. ASC 605 requires management to make certain estimates of the amounts of vendor incentives that will be received. Actual recognition of the vendor consideration may vary from management estimates. Vendor Concentration The Company sells products from many vendors, however, sales of products supplied by, in alphabetical order, Avaya, Cisco and Zebra each constituted more than 10% of the Company’s net sales for the years ended June 30, 2017 and 2016 . Sales of products supplied by, in alphabetical order, Avaya and Zebra constituted more than 10% of the Company's net sales for the year ended June 30, 2015 . Product Warranty The Company’s vendors generally provide a warranty on the products provided by the Company and allow the Company to return defective products, including those that have been returned to the Company by its customers. In three of its product lines, the Company offers a self-branded warranty program, in which management has determined that the Company is the primary obligor. The Company purchases contracts from unrelated third parties, generally the original equipment manufacturers, to fulfill any obligation to service or replace defective product claimed on these warranty programs. As a result, the Company has not recorded a provision for estimated service warranty costs. To maintain customer relations, the Company facilitates returns of defective products from the Company's customers by accepting for exchange, with the Company's prior approval, most defective products within 30 days of invoicing. Property and Equipment Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over estimated useful lives of 3 to 10 years for furniture, equipment and computer software, 25 to 40 years for buildings and 15 years for building improvements. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life. The Company's depreciation expense relates to selling, general and administrative costs, not the cost of selling goods. Maintenance, repairs and minor renewals are charged to expense as incurred. Additions, major renewals and betterments to property and equipment are capitalized. To the extent that the Company has longstanding, "in-process" projects that have not been implemented for their intended operational use, the Company capitalizes the portion of interest expense incurred during the asset's acquisition period that theoretically could have been avoided in accordance with ASC 835. The amount capitalized is determined by applying the appropriate capitalization rate to the average amount of accumulated expenditures for the asset during the reporting period. The capitalization rate used is based on the rates applicable to borrowings outstanding during the reporting period. The Company has not recorded any capitalized interest for the years ended June 30, 2017 and 2016 . Capitalized Software The Company accounts for capitalized software in accordance with ASC 350-40, which provides guidance for computer software developed or obtained for internal use. The Company is required to continually evaluate the stage of the implementation process to determine whether or not costs are expensed or capitalized. Costs incurred during the preliminary project phase or planning and research phase are expensed as incurred. Costs incurred during the development phase, such as material and direct services costs, compensation costs of employees associated with the development and interest cost, are capitalized as incurred. Costs incurred during the post-implementation or operation phase, such as training and maintenance costs, are expensed as incurred. In addition, costs incurred to modify existing software that result in additional functionality are capitalized as incurred. Goodwill The Company accounts for recorded goodwill in accordance with ASC 350, Goodwill and Other Intangible Assets , which requires that goodwill be reviewed annually for impairment or more frequently if impairment indicators exist. Goodwill testing utilizes an impairment analysis, whereby the Company compares the carrying value of each identified reporting unit to its fair value. The carrying value of goodwill is reviewed at a reporting unit level at least annually for impairment, or more frequently if impairment indicators exist. The Company's goodwill reporting units align directly with its operating segments, Worldwide Barcode, Networking & Worldwide Security and Communications & Services. The fair values of the reporting units are estimated using the net present value of discounted cash flows generated by each reporting unit. Considerable judgment is necessary in estimating future cash flows, discount rates and other factors affecting the estimated fair value of the reporting units, including the operating and macroeconomic factors. Historical financial information, internal plans and projections and industry information are used in making such estimates. The Company adopted ASU 2017-04 during the current year, which simplifies testing goodwill for impairment. If fair value is determined to be less than carrying value, an impairment loss is recognized for the amount of the carrying value that exceeds the amount of the reporting units' fair value, not to exceed the total amount of goodwill allocated to the reporting unit. Additionally, the Company would consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The Company also assesses the recoverability of goodwill if facts and circumstances indicate goodwill may be impaired. In its most recent annual test, the Company estimated the fair value of its reporting units primarily based on the income approach utilizing the discounted cash flow method. The Company also utilized fair value estimates derived from the market approach utilizing the public company market multiple method to validate the results of the discounted cash flow method, which required it to make assumptions about the applicability of those multiples to its reporting units. The discounted cash flow method required the Company to estimate future cash flows and discount those amounts to present value. The key assumptions utilized in determining fair value included: • Industry weighted-average cost of capital ("WACC"): The Company utilized a WACC relative to each reporting unit's respective geography and industry as the discount rate for estimated future cash flows. The WACC is intended to represent a rate of return that would be expected by a market place participant in each respective geography. • Operating income: The Company utilized historical and expected revenue growth rates, gross margins and operating expense percentages, which varied based on the projections of each reporting unit being evaluated. • Cash flows from working capital changes: The Company utilized a projected cash flow impact pertaining to expected changes in working capital as each of its goodwill reporting units grow. See Note 6 - Goodwill and Other Identifiable Intangible Assets for more information regarding goodwill and the results of our testing. Intangible Assets Intangible assets consist of customer relationships, trade names, distributor agreements, supplier partner programs and non-compete agreements. Customer relationships, distributor agreements and supplier partner programs are amortized using the straight-line method over their estimated useful lives, which range from 5 to 15 years. Trade names are amortized over a period ranging from 1 to 5 years. Non-compete agreements are amortized over their contract life. The Company's amortization expense relates to selling, general and administrative costs, not the cost of selling goods. These assets are shown in detail in Note 6 - Goodwill and Other Identifiable Intangible Assets. Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset or asset group may not be recoverable. Tests for recoverability of a long-lived asset to be held and used are measured by comparing the carrying amount of the long-lived asset to the sum of the estimated future undiscounted cash flows expected to be generated by the asset. In estimating the future undiscounted cash flows the Company uses projections of cash flows directly associated with, and which are expected to arise as a direct result of, the use and eventual disposition of the assets. If it is determined that a long-lived asset is not recoverable, an impairment loss would be calculated equal to the excess of the carrying amount of the long-lived asset over its fair value. Fair Value of Financial Instruments The fair value of financial instruments is the amount at which the instrument could be exchanged in a current transaction between willing parties. The carrying values of financial instruments such as accounts receivable, accounts payable, accrued liabilities, borrowings under the revolving credit facility and subsidiary lines of credit approximate fair value based upon either short maturities or variable interest rates of these instruments. For additional information related to the fair value of derivatives, please see Note 9 - Fair Value of Financial Instruments . Liability for Contingent Consideration In addition to the initial cash consideration paid to former shareholders of Network1 and Intelisys, the Company is obligated to make additional earnout payments based on future results through a specified date based on a multiple of the subsidiary’s pro forma earnings as defined in the respective purchase agreements. Future payments are to be paid in the functional currency of the acquired entity, which is the Brazilian real for Network1 and USD for Intelisys. The Company paid the final earnout payment to the former shareholders of CDC during fiscal year 2016 and the final earnout payment to Imago during fiscal year 2017. Network1 has two remaining earnout payments to be paid in annual installments during fiscal years 2018 and 2019. Intelisys has four remaining earnout payments to be paid in annual installments during fiscal years 2018 through 2021. In accordance with ASC Topic 805, the Company determines the fair value of this liability for contingent consideration at each reporting date throughout the term of the earnout using a form of a probability weighted discounted cash flow model. Each period the Company will reflect the contingent consideration liability at fair value with changes recorded in the change in fair value of contingent consideration line item on the Consolidated Income Statement. Current and noncurrent portions of the liability are presented in the current portion of contingent consideration and long-term portion of contingent consideration line items on the Consolidated Balance Sheets. Contingencies The Company accrues for contingent obligations, including estimated legal costs, when it is probable that a liability is incurred and the amount is reasonably estimable. As facts concerning contingencies become known, management reassesses its position and makes appropriate adjustments to the financial statements. Estimates that are particularly sensitive to future changes include tax, legal and other regulatory matters, which are subject to change as events evolve and as additional information becomes available during the administrative and litigation process. Revenue Recognition Revenue is recognized once four criteria are met: (1) the Company must have persuasive evidence that an arrangement exists; (2) delivery must occur (this includes the transfer of both title and risk of loss, provided that no significant obligations remain); (3) the price must be fixed and determinable; and (4) collectability must be reasonably assured. The Company allows its customers to return product for exchange or credit subject to certain limitations. Taxes collected from customers and remitted to governmental authorities, such as sales taxes and value added taxes, are excluded from net sales. The Company provides third-party service contracts, typically for product maintenance and support. These service contracts are sold separately from the products, and the Company often serves as the agent for the contract on behalf of the original equipment manufacturer. Since the Company acts as an agent on behalf of most of these service contracts sold, revenue is recognized net of cost at the time of sale. However, the Company provides some self-branded warranty programs and engages a third party (generally the original equipment manufacturer) to cover the fulfillment of any obligations arising from these contracts. These revenues and associated third-party costs are amortized over the life of the contract and presented in net sales and cost of goods sold, respectively. Service revenue associated with third-party service contracts and warranty programs, as mentioned above, along with configuration and marketing services is recognized when the work is complete, and the four criteria discussed above have been met. Service revenue associated with service contracts, warranty programs, configuration, marketing and other services approximates 3% of consolidated net sales for fiscal years 2017 , 2016 and 2015 . Through the Intelisys acquisition, the Company has a recurring revenue model in which the Company acts as a master agent partnering vendors with sales agents to provide telecommunications services to end users. As the Company acts as an agent on behalf of the vendors' services, commission revenue received from the vendor is recognized net of cost associated with the commissions the Company pays to sales agents, at the time of sale. Revenue associated with the recurring revenue model approximates 1.0% of consolidated net sales for fiscal year 2017 . During the fiscal years ended June 30, 2017 , 2016 and 2015 , the Company did not engage in sales transactions involving multiple element arrangements. Shipping Revenue and Costs Shipping revenue is included in net sales, and related costs are included in cost of goods sold. Shipping revenue was $12.8 million for the year ended June 30, 2017 , $13.0 million for the year ended June 30, 2016 and $12.2 million for the year ended June 30, 2015 . Advertising Costs The Company defers advertising-related costs until the advertising is first run in trade or other publications, or in the case of brochures, until the brochures are printed and available for distribution. Advertising costs, included in marketing costs, after vendor reimbursement, were not significant in any of the three fiscal years ended June 30, 2017 , June 30, 2016 and June 30, 2015 . Deferred advertising costs for any of these three fiscal years were also not significant. Foreign Currency The currency effects of translating the financial statements of the Company’s foreign entities that operate in their local currency are included in the cumulative currency translation adjustment component of accumulated other comprehensive income or loss. The Company's functional currencies include U.S. dollars, Brazilian reais, euros, British pounds, Colombian pesos and Canadian dollars. The assets and liabilities of these foreign entities are translated into U.S. dollars using the exchange rate at the end of the respective period. Sales, costs and expenses are translated at average exchange rates effective during the respective period. Foreign currency transactional and re-measurement gains and losses are included in other expense (income) in the Consolidated Income Statements. Such amounts are not significant to any of the periods presented. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred income taxes reflect tax consequences on future years of differences between the tax bases of assets and liabilities and their financial reporting amounts. Valuation allowances are provided against deferred tax assets when it is more likely than not that an asset will not be realized in accordance with ASC 740, Accounting for Income Taxes. In 2016, the Company adopted Accounting Standards Update ("ASU") 2015-17, Balance Sheet Classification of Deferred Taxes and reclassified all current deferred taxes and the related valuation allowances to noncurrent positions on the Consolidated Balance Sheets. The Company has provided for United States income taxes for the current earnings of its Canadian subsidiary. Earnings from all other geographies are considered retained indefinitely for reinvestment. See Note 12 - Income Taxes for further discussion. Additionally, the Company maintains reserves for uncertain tax provisions in accordance with ASC 740. See Note 12 - Income Taxes for more information. Share-Based Payments The Company accounts for share-based compensation using the provisions of ASC 718, Accounting for Stock Compensation , which requires the recognition of the fair value of share-based compensation. Share-based compensation is estimated at the grant date based on the fair value of the awards, in accordance with the provisions of ASC 718. Since this compensation cost is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company has elected to expense grants of awards with graded vesting on a straight-line basis over the requisite service period for each separately vesting portion of the award. Common stock repurchases Repurchases of common stock are accounted for at cost, which includes brokerage fees, and are included as a component of shareholder's equity on the Consolidated Balance Sheets. In August 2014, our Board of Directors authorized a three -year $120 million share repurchase program. Through June 30, 2016 , the Company completed the program, repurchasing 3.4 million shares totaling approximately $119.5 million . In August 2016, the Board of Directors authorized a new three -year $120 million share repurchase program. During the year ended June 30, 2017 , the Company repurchased 0.6 million shares totaling approximately $20.3 million . Comprehensive Income ASC 220, Comprehensive Income , defines comprehensive income as the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The components of comprehensive income for the Company include net income, foreign currency translation adjustments and unrealized gains or losses on hedged transactions, net of tax arising from the consolidation of the Company’s foreign subsidiaries. Business Combinations The Company accounts for business combinations in accordance with ASC 805, Business Combinations . ASC 805 establishes principles and requirements for recognizing the total consideration transferred to and the assets acquired, liabilities assumed and any non-controlling interest in the acquired target in a business combination. ASC 805 also provides guidanc |
Earnings per Share
Earnings per Share | 12 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic earnings per share are computed by dividing net income by the weighted-average number of common shares outstanding. Diluted earnings per share are computed by dividing net income by the weighted-average number of common and potential common shares outstanding. Fiscal Year Ended June 30, 2017 2016 2015 (in thousands, except per share data) Numerator: Net income $ 69,246 63,619 65,419 Denominator: Weighted-average shares, basic 25,318 26,472 28,558 Dilutive effect of share-based payments 197 215 241 Weighted-average shares, diluted 25,515 26,687 28,799 Net income per common share, basic $ 2.74 $ 2.40 $ 2.29 Net income per common share, diluted $ 2.71 $ 2.38 $ 2.27 For the years ended June 30, 2017 , 2016 and 2015 , weighted-average shares outstanding excluded from the computation of diluted earnings per share because their effect would have been antidilutive were 418,325 , 461,090 and 340,697 , respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment is comprised of the following: June 30, 2017 2016 (in thousands) Land $ 3,331 $ 3,009 Buildings and leasehold improvements 21,101 20,473 Computer software and equipment 53,583 46,112 Furniture, fixtures and equipment 26,059 23,316 Construction in progress 4,556 4,897 108,630 97,807 Less accumulated depreciation (52,064 ) (45,419 ) $ 56,566 $ 52,388 During the fiscal year ended June 30, 2017 , the increase in net fixed assets from the prior year is largely due to net assets acquired during the Intelisys acquisition, including the fair value of software assessed on the acquisition date. Depreciation expense was $9.4 million , $7.3 million and $5.4 million for the fiscal years ended 2017 , 2016 and 2015 , respectively, all of which relates to selling, general and administrative costs, not the cost of selling goods, and has been presented as such in the accompanying Consolidated Income Statements. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities is comprised of the following: June 30, 2017 2016 (in thousands) Deferred warranty revenue $ 28,724 $ 29,836 Accrued compensation 21,713 19,917 Other taxes payable 18,440 11,044 Accrued marketing expense 5,914 2,459 Brazilian pre-acquisition contingencies 4,727 2,941 Accrued freight 3,392 3,507 Other accrued liabilities 21,805 29,271 $ 104,715 $ 98,975 |
Acquisitions
Acquisitions | 12 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Intelisys On August 29, 2016, the Company acquired substantially all the assets of Intelisys, a technology services company with voice, data, cable, wireless and cloud services. Intelisys is part of the Company's Worldwide Communications and Services operating segment. With this acquisition, the Company broadens its capabilities in the telecom and cloud services market and generates the opportunity for high-growth recurring revenue. Under the asset purchase agreement, the Company made an initial cash payment of approximately $84.6 million , which consisted of an initial purchase price of $83.6 million and $1.0 million for additional net assets acquired at closing, and agreed to make four additional annual cash installments based on a form of adjusted EBITDA for the periods ending June 30, 2017 through June 30, 2020. The Company acquired $0.8 million of cash as part of the acquisition, resulting in $83.8 million net cash paid for Intelisys initially. A portion of the purchase price was placed into escrow to indemnify the Company for certain pre-acquisition damages. As of June 30, 2017 , the balance available in escrow was $8.5 million . During fiscal years 2017 and 2016, the Company recognized $0.5 million and $0.3 million in acquisition-related cost, respectively, included in selling, general and administrative expenses on the Consolidated Income Statements. The purchase price of this acquisition was allocated to the assets acquired and liabilities assumed based on their estimated fair values on the transaction date. The goodwill balance is primarily attributed to entering the recurring revenue telecom and cloud services market and expanded market opportunities to grow recurring revenue streams. Goodwill and identifiable intangible assets are expected to be fully deductible for tax purposes. Intelisys (in thousands) Receivables, net $ 21,655 Other current assets 1,547 Property and equipment, net 5,298 Goodwill 109,005 Identifiable intangible assets 63,110 Other non-current assets 1,839 $ 202,454 Accounts payable $ 21,063 Accrued expenses and other current liabilities 2,587 Contingent consideration 95,000 Consideration transferred, net of cash acquired 83,804 $ 202,454 Intangible assets acquired include trade names, customer relationships and non-compete agreements. The weighted-average amortization period for these identified intangible assets after purchase accounting adjustments, other than goodwill, was 10 years. Following the August 29, 2016 acquisition date, Intelisys contributed the following results to the Condensed Consolidated Income Statement for the fiscal year ended June 30, 2017 . Fiscal year ended June 30, 2017 (in thousands) Net Sales $ 29,422 Amortization of intangible assets (5,386 ) Change in fair value of contingent consideration (12,117 ) Operating loss (1) (4,204 ) Net loss (1) $ (2,675 ) (1) Operating loss and net loss reflect amortization expense of $5.4 million and expense for change in fair value of contingent consideration of $12.1 million in fiscal year June 30, 2017 . The following tables summarize the Company's unaudited consolidated pro forma results of operations as though the acquisition happened on July 1, 2015. The pro forma consolidated financial statements do not necessarily reflect what the combined company's financial condition or results from operations would have been had the acquisition occurred on the dates indicated. They also may not be useful in predicting the future financial condition and results of operations of the combined company. The actual financial position and results of operations may differ significantly from the pro forma amounts reflected herein due to a variety of factors. For the two months ended August 31, 2016 and the fiscal year ended June 30, 2016, the Company has not provided for a change in fair value of contingent consideration. Fiscal year ended June 30, 2017 Fiscal year ended June 30, 2016 (in thousands, except per share data) (in thousands, except per share data) As Reported, Consolidated Pro forma, Consolidated (1) As Reported, Consolidated Pro forma, Consolidated (2) Net Sales $ 3,568,186 $ 3,573,402 $ 3,540,226 $ 3,568,567 Operating income 88,239 89,691 96,877 102,085 Net Income 69,246 70,331 63,619 66,823 Earnings per share: Basic $ 2.74 $ 2.78 $ 2.40 $ 2.52 Diluted $ 2.71 $ 2.76 $ 2.38 $ 2.50 (1) Pro forma results include actual results from Intelisys for the two months ended August 31, 2016. Adjustments include additional amortization and depreciation expense as if the fair value of identifiable intangible assets, including software, had been recorded on July 1, 2015. On a gross basis, operating income includes additional amortization expense of $1.1 million and additional depreciation expense of $0.2 million for the fiscal year ended June 30, 2017 . Net income, net of tax, includes additional amortization expense of $0.7 million and additional depreciation expense of $0.1 million for the fiscal year ended June 30, 2017 . Adjustments also include additional income tax expense of $0.8 million and adding back acquisition costs of $0.5 million . (2) Includes actual results for Intelisys for the fiscal year ended June 30, 2016 . On a gross basis, operating income includes additional amortization expense of $6.3 million and additional depreciation expense of $1.0 million for the fiscal year ended June 30, 2016 . Net income, net of tax, includes additional amortization expense of $4.0 million and additional depreciation expense of $0.6 million for the fiscal year ended June 30, 2016 . Adjustments also include additional income tax expense of $4.6 million and adding back acquisition costs of $0.3 million . KBZ On September 4, 2015, the Company acquired substantially all the assets of KBZ Communications, Inc., a Cisco Authorized Distributor specializing in video conferencing, services and cloud. KBZ is part of the Company's Worldwide Barcode, Networking & Security operating segment. This acquisition enables the Company to enhance its focus on Cisco’s solutions, combining the strengths of both companies to provide a more robust portfolio of products, solutions and services. The results of operations of KBZ have been included in the consolidated results from the date of acquisition. Under the asset purchase agreement, the Company acquired the assets of KBZ for a cash payment of $64.6 million . The Company acquired $3.1 million of cash during the acquisition, resulting in $61.5 million net cash paid for KBZ. During fiscal year 2016, the Company recorded $0.2 million in acquisition-related costs, included in selling, general and administrative expenses on the Consolidated Income Statements. The purchase price of this acquisition was allocated to the assets acquired and liabilities assumed based on their estimated fair values on the transaction date. Pro forma results of operations have not been presented for this acquisition because the results of this acquisition are not material to our consolidated results. The purchase price allocation is as follows: September 4, 2015 (in thousands) Receivables, net $ 63,131 Inventory 11,227 Other current assets 10,303 Property and equipment, net 677 Goodwill 21,639 Identifiable intangible assets 18,400 Other non-current assets 1,399 $ 126,776 Accounts payable $ 48,271 Accrued expenses and other current liabilities 14,863 Other long-term liabilities 2,167 Consideration transferred, net of cash acquired 61,475 $ 126,776 Intangible assets acquired include trade names, customer relationships and non-compete agreements. The weighted-average amortization period for these identified intangible assets after purchase accounting adjustments, other than goodwill, was 8 years. |
Goodwill and Other Identifiable
Goodwill and Other Identifiable Intangible Assets | 12 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets In accordance with ASC 350, Intangibles - Goodwill and Other Intangible Assets , the Company performs its annual goodwill impairment test during the fourth quarter of each fiscal year, or whenever indicators of impairment are present. The reporting units utilized for goodwill impairment tests align directly with our operating segments, Worldwide Barcode, Networking & Security and Worldwide Communications & Services.The testing includes the determination of each reporting unit's fair value using a discounted cash flows model compared to each reporting unit's carrying value. Key assumptions used in determining fair value include projected growth and operating margin, working capital requirements and discount rates. During fiscal years ended June 30, 2017 , 2016 and 2015 , no impairment charges related to goodwill were recorded. Changes in the carrying amount of goodwill for the years ended June 30, 2017 and 2016 , by reportable segment, are as follows: Worldwide Barcode, Networking & Security Segment Worldwide Communications & Services Segment Total (in thousands) Balance at June 30, 2015 $ 15,535 $ 50,974 $ 66,509 Additions 21,639 8,496 1 30,135 Unrealized gain (loss) on foreign currency translation (740 ) (3,189 ) (3,929 ) Balance at June 30, 2016 $ 36,434 $ 56,281 $ 92,715 Additions — 109,005 2 109,005 Unrealized gain (loss) on foreign currency translation (174 ) (665 ) (839 ) Balance at June 30, 2017 $ 36,260 $ 164,621 $ 200,881 (1) The Company finalized the purchase accounting for the Network1 acquisition during the quarter ended December 31, 2015 and subsequently identified an additional correction in the quarter ended March 31, 2016, which resulted in an increased value assumed for goodwill as compared to June 30, 2015. (2) Additions to goodwill for fiscal year ended June 30, 2016 are due to the Intelisys acquisition. The following table shows the Company’s identifiable intangible assets as of June 30, 2017 and 2016 , respectively. June 30, 2017 June 30, 2016 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value (in thousands) Amortized intangible assets: Customer relationships $ 110,691 $ 27,977 $ 82,714 $ 70,379 $ 26,668 $ 43,711 Trade names 23,256 8,691 14,565 11,270 4,398 6,872 Non-compete agreements 1,160 608 552 1,103 777 326 Distributor agreements 355 158 197 345 127 218 Supplier partner program 3,583 98 3,485 — — — Total intangibles $ 139,045 $ 37,532 $ 101,513 $ 83,097 $ 31,970 $ 51,127 During fiscal year 2017, the Company acquired end user contracts with Intelisys suppliers (classified as customer relationships above), trade names and non-compete agreements related to the acquisition of Intelisys. The Company also completed an asset acquisition through its subsidiary, Intelisys, of supplier partner program assets to enhance its high-growth recurring revenue model. The acquired assets have been recorded as intangible assets in the accompanying Consolidated Balance Sheets with a ten -year amortization period. The Company wrote-off fully amortized customer relationships for our Brazilian entity, CDC, during fiscal year 2017. The weighted-average amortization period for all intangible assets was approximately 10 years for years ended June 30, 2017 , June 30, 2016 and June 30, 2015 , respectively. Amortization expense for the years ended June 30, 2017 , 2016 and 2015 was $15.5 million , $9.8 million and $6.6 million , respectively, all of which relates to selling, general and administrative costs, not the cost of selling goods, and has been presented as such in the accompanying Consolidated Income Statements. Estimated future amortization expense is as follows: Amortization Expense (in thousands) Year Ended June 30, 2018 $ 14,669 2019 12,617 2020 12,011 2021 11,905 2022 10,705 Thereafter 39,606 Total $ 101,513 |
Short-Term Borrowings and Long-
Short-Term Borrowings and Long-Term Debt | 12 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings and Long-Term Debt | Short-Term Borrowings and Long-Term Debt The following table shows the Company’s long term debt as of June 30, 2017 and 2016 , respectively. 2017 2016 (in thousands) Revolving credit facility $ 91,871 $ 71,427 Long term debt 5,429 5,429 Total debt $ 97,300 $ 76,856 Revolving Credit Facility The Company has a multi-currency senior secured revolving credit facility with JPMorgan Chase Bank N.A., as administrative agent, and a syndicate of banks (the “Amended Credit Agreement”) that was scheduled to mature on November 6, 2018 . On April 3, 2017 , the Company amended this credit facility to extended its maturity to April 3, 2022 . On August 8, 2017 , the Company amended this credit facility again to increase the amount from $300 million to $400 million . The Amended Credit Agreement allows for the issuance of up to $50 million for letters of credit and has a $200 million accordion feature that allows the Company to increase the availability to $600 million , subject to obtaining additional credit commitments from the lenders participating in the increase. The Company incurred debt issuance costs of $0.9 million in connection with the April 3, 2017 amendment to the Amended Credit Agreement, which were capitalized to other assets on the Condensed Consolidated Balance Sheets and added to the unamortized debt issuance costs from the previous credit facility. At the Company's option, loans denominated in U.S. dollars under the Amended Credit Agreement, other than swingline loans, bear interest at a rate equal to a spread over the London Interbank Offered Rate ("LIBOR") or alternate base rate depending upon the Company's ratio of total debt (excluding accounts payable and accrued liabilities), measured as of the end of the most recent quarter, to adjusted earnings before interest expense, taxes, depreciation and amortization ("EBITDA") for the most recently completed four quarters (the "Leverage Ratio"). This spread ranges from 1.00% to 2.125% for LIBOR-based loans and 0.00% to 1.125% for alternate base rate loans. The spread in effect as of June 30, 2017 was 1.375% for LIBOR-based loans and 0.375% for alternate base rate loans. Additionally, the Company is assessed commitment fees ranging from 0.175% to 0.35% , depending upon the Leverage Ratio, on non-utilized borrowing availability, excluding swingline loans. The commitment fee rate in effect as of June 30, 2017 was 0.20% . Borrowings under the Amended Credit Agreement are guaranteed by substantially all of the domestic assets of the Company and a pledge of up to 65% of capital stock or other equity interest in certain foreign subsidiaries determined to be either material or a subsidiary borrower as defined in the Amended Credit Agreement. The Company was in compliance with all covenants under the credit facility as of June 30, 2017 . The average daily balance on the revolving credit facility during fiscal year ended June 30, 2017 and 2016 was $126.5 million and $86.6 million , respectively. There was $208.1 million and $228.2 million available for additional borrowings as of June 30, 2017 and 2016 , respectively. There were no letters of credit issued under the multi-currency revolving credit facility as of June 30, 2017 and €0.4 million as of June 30, 2016 . Long-Term Debt On August 1, 2007, the Company entered into an agreement with the State of Mississippi in order to provide financing for the acquisition and installation of certain equipment to be utilized at the Company’s Southaven, Mississippi facility, through the issuance of an industrial development revenue bond. The bond matures on September 1, 2032 and accrues interest at a rate equal to 30-day LIBOR plus a spread of 0.85% . The terms of the bond allow for payment of interest only for the first 10 years of the agreement, and then, starting on September 1, 2018 through 2032, principal and interest payments are due until the maturity date or the redemption of the bond. The agreement also provides the bondholder with a put option, exercisable only within 180 days of each 5 th anniversary of the agreement, requiring the Company to pay back the bonds at 100% of the principal amount outstanding. As of June 30, 2017 , the Company was in compliance with all covenants under this bond. The interest rate at June 30, 2017 and 2016 was 1.926% and 1.32% , respectively. Scheduled maturities of the Company’s revolving credit facility and long-term debt at June 30, 2017 are as follows: Revolving Credit Facility Long-Term Debt (in thousands) Fiscal year: 2018 $ — $ — 2019 — 312 2020 — 319 2021 — 325 2022 91,871 332 Thereafter — 4,141 Total principal payments $ 91,871 $ 5,429 Debt Issuance Costs As of June 30, 2017 , net debt issuance costs associated with the credit facility and bonds totaled $1.3 million and are being amortized on a straight-line basis through the maturity date of each respective debt instrument. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Jun. 30, 2017 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities The Company’s results of operations could be materially impacted by significant changes in foreign currency exchange rates and interest rates. These risks and the management of these risks are discussed in greater detail below. In an effort to manage the exposure to these risks, the Company periodically enters into various derivative instruments. The Company’s accounting policies for these instruments are based on whether the instruments are designated as hedge or non-hedge instruments in accordance with U.S. GAAP. The Company records all derivatives on the balance sheet at fair value. Derivatives that are not designated as hedging instruments or the ineffective portions of cash flow hedges are adjusted to fair value through earnings in other income and expense. Foreign Currency Derivatives – The Company conducts a portion of its business internationally in a variety of foreign currencies. The exposure to market risk for changes in foreign currency exchange rates arises from foreign currency denominated assets and liabilities and transactions arising from non-functional currency financing or trading activities. The Company’s objective is to preserve the economic value of non-functional currency denominated cash flows. The Company attempts to hedge transaction exposures with natural offsets to the fullest extent possible and, once these opportunities have been exhausted, through currency options and forward contracts or other hedging instruments with third parties. These contracts will periodically hedge the exchange of various currencies, including the U.S. dollar, Brazilian real, euro, British pound, Canadian dollar, Mexican peso, Colombian peso, Chilean peso and Peruvian nuevo sol. While the Company utilizes foreign exchange contracts to hedge foreign currency exposure, the Company's foreign exchange policy prohibits the use of derivative financial instruments for speculative purposes. The Company had contracts outstanding with notional amounts of $67.1 million and $46.2 million for the exchange of foreign currencies as of June 30, 2017 and 2016 , respectively. To date, the Company has chosen not to designate these derivatives as hedging instruments, and accordingly, these instruments are adjusted to fair value through earnings in other income and expense. Summarized financial information related to these derivative contracts and changes in the underlying value of the foreign currency exposures are as follows: Fiscal Year Ended June 30, 2017 2016 2015 (in thousands) Net foreign exchange derivative contract (gain) loss $ 146 $ (1,951 ) $ (5,364 ) Net foreign currency transactional and re-measurement (gain) loss 1,773 4,522 8,408 Net foreign currency (gain) loss $ 1,919 $ 2,571 $ 3,044 Net foreign exchange gains and losses consist of foreign currency transactional and functional currency re-measurements, offset by net foreign currency exchange contract gains and losses and are included in other income and expense. Foreign exchange gains and losses are generated as the result of fluctuations in the value of the U.S. dollar versus the Brazilian real, the U.S. dollar versus the euro, British pound versus the euro and other currencies versus the U.S. dollar. Interest Rates – The Company’s earnings are also affected by changes in interest rates due to the impact those changes have on interest expense from floating rate debt instruments. To manage the exposure to interest rates, on June 23, 2017 , the Company entered into an interest rate swap agreement with a notional amount of $50 million scheduled to mature on April 23, 2022 . This swap agreement is designated as a cash flow hedge to hedge the variable rate interest payments on the revolving credit facility. Interest rate differentials paid or received under the swap agreement are recognized as adjustments to interest expense. To the extent the swap is effective in offsetting the variability of the hedged cash flows, changes in the fair value of the swap are not included in current earnings but are reported as other comprehensive income (loss). There was no ineffective portion to be recorded as an adjustment to earnings for fiscal year ended June 30, 2017 . The components of the cash flow hedge included in accumulated other comprehensive income (loss), net of income taxes, in the Consolidated Statements of Shareholders’ Equity, are as follows: Fiscal Year Ended June 30, 2017 (in thousands) Net interest expense recognized as a result of interest rate swap $ 7 Unrealized gain (loss) in fair value of interest swap rates 14 Net increase (decrease) in accumulated other comprehensive income (loss) $ 21 Income tax effect 8 Net increase (decrease) in accumulated other comprehensive income (loss), net of tax $ 13 The Company has the following derivative instruments located on the Consolidated Balance Sheets and Income Statements, utilized for the risk management purposes detailed above: June 30, 2017 Balance Sheet Location Fair Value of Derivatives Designated as Hedge Instruments Fair Value of Derivatives Not Designated as Hedge Instruments (in thousands) Derivative assets: Foreign exchange contracts Prepaid expenses and other current assets $ — $ 35 Interest rate swap agreement Other non-current assets $ 21 $ — Derivative liabilities: Foreign exchange contracts Accrued expenses and other current liabilities $ — $ 131 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Accounting guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Under this guidance, the Company is required to classify certain assets and liabilities based on the fair value hierarchy, which groups fair value-measured assets and liabilities based upon the following levels of inputs: • Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2 – Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; • Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity). The assets and liabilities maintained by the Company that are required to be measured at fair value on a recurring basis include deferred compensation plan investments, forward foreign currency exchange contracts, interest rate swap agreements and contingent consideration owed to the previous owners of Imago, Network1 and Intelisys. The carrying value of debt listed in Note 7 - Short-Term Borrowings and Long Term Debt is considered to approximate fair value, as the Company's debt instruments are indexed to a variable rate using the market approach (Level 2 criteria). The following table summarizes the valuation of the Company's remaining assets and liabilities measured at fair value on a recurring basis as of June 30, 2017 : Total Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (in thousands) Assets: Deferred compensation plan investments, current and non-current portion $ 21,439 $ 21,439 $ — $ — Forward foreign currency exchange contracts 35 — 35 — Interest rate swap agreement 21 — 21 — Total assets at fair value $ 21,495 $ 21,439 $ 56 $ — Liabilities: Deferred compensation plan investments, current and non-current portion $ 21,074 $ 21,074 $ — $ — Forward foreign currency exchange contracts 131 — 131 — Liability for contingent consideration, current and non-current 114,036 — — 114,036 Total liabilities at fair value $ 135,241 $ 21,074 $ 131 $ 114,036 The following table presents assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 : Total Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (in thousands) Assets: Deferred compensation plan investments, current and non-current portion $ 17,893 $ 17,893 $ — $ — Forward foreign currency exchange contracts 33 — 33 — Interest rate swap agreement — — — — Total assets at fair value $ 17,926 $ 17,893 $ 33 $ — Liabilities: Deferred compensation plan investments, current and non-current portion $ 17,893 $ 17,893 $ — $ — Forward foreign currency exchange contracts 551 — 551 — Liability for contingent consideration, current and non-current 24,652 — — 24,652 Total liabilities at fair value $ 43,096 $ 17,893 $ 551 $ 24,652 The investments in the deferred compensation plan are held in a "rabbi trust" and include mutual funds and cash equivalents for payment of non-qualified benefits for certain retired, terminated or active employees. These investments are recorded to prepaid and other current assets or other non-current assets depending on their corresponding, anticipated distributions to recipients, which are reported in accrued expenses and other current liabilities or other long-term non-current liabilities, respectively. Derivative instruments, such as foreign currency forward contracts, are measured using the market approach on a recurring basis considering foreign currency spot rates and forward rates quoted by banks or foreign currency dealers and interest rates quoted by banks (Level 2). See Note 8 - Derivatives and Hedging Activities . Foreign currency contracts are classified in the Consolidated Balance Sheet as prepaid expenses and other current assets or accrued expenses and other current liabilities, depending on the respective instruments' favorable or unfavorable positions. Fair values of interest rate swaps are measured using standard valuation models with inputs that can be derived from observable market transactions, including LIBOR spot and forward rates (Level 2). The effect of nonperformance risk on the fair value of the derivative instruments was not material as of June 30, 2017 . The Company recorded contingent consideration liabilities at the acquisition date of CDC, Imago, Network1 and Intelisys representing the amounts payable to former shareholders, as outlined under the terms of the applicable purchase agreements, based upon the achievement of a projected earnings measure, net of specific pro forma adjustments. The final payment to CDC was paid during fiscal year 2016 and the final payment to Imago was paid during the quarter ended December 31, 2016. The current and non-current portions of these obligations are reported separately on the Consolidated Balance Sheets. The fair value of the contingent considerations (Level 3) are determined using a form of a probability weighted discounted cash flow model. Subsequent changes in the fair value of the contingent consideration liabilities are recorded to the change in fair value of contingent consideration line item in the Consolidated Income Statements. Fluctuations due to foreign currency translation are captured in other comprehensive income through the changes in foreign currency translation adjustments line item as seen in Note 15 - Accumulated Other Comprehensive (Loss) Income . CDC is part of the Company's Worldwide Barcode, Networking & Security Segment, and Imago, Network1 and Intelisys are part of the Company's Worldwide Communications & Services segment. The table below provides a summary of the changes in fair value of the Company’s contingent considerations for the Imago, Network1 and Intelisys earnouts, which is measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the fiscal year ended June 30, 2017 : Contingent Consideration for the Fiscal Year Ended June 30, 2017 Worldwide Barcode, Networking & Security Segment Worldwide Communications & Services Segment Total (in thousands) Fair value at beginning of period $ — $ 24,652 $ 24,652 Issuance of contingent consideration — 95,000 95,000 Payments — (10,241 ) (10,241 ) Change in fair value — 5,211 5,211 Fluctuation due to foreign currency exchange — (586 ) (586 ) Fair value at end of period $ — $ 114,036 $ 114,036 The table below provides a summary of the changes in fair value of the Company’s contingent considerations for the CDC, Imago and Network1 earnouts, which is measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the fiscal year ended June 30, 2016 : Contingent Consideration for the Fiscal Year Ended June 30, 2016 Worldwide Barcode, Networking & Security Segment Worldwide Communications & Services Segment Total (in thousands) Fair value at beginning of period $ 5,109 $ 28,851 $ 33,960 Payments (4,453 ) (4,153 ) (8,606 ) Change in fair value 181 1,113 1,294 Fluctuation due to foreign currency exchange (837 ) (1,159 ) (1,996 ) Fair value at end of period $ — $ 24,652 $ 24,652 The fair values of amounts owed are recorded in the current portion of contingent consideration and the long-term portion of contingent consideration in the Company's Consolidated Balance Sheets. The U.S. dollar amounts of actual disbursements made in conjunction with future earnout payments are subject to change as the liability is denominated in currencies other than the U.S. dollar and subject to foreign exchange fluctuation risk. In accordance with ASC 805, the Company will revalue the contingent consideration liability at each reporting date through the last payment, with changes in the fair value of the contingent consideration reflected in the change in fair value of contingent consideration line item on the Company's Consolidated Income Statement that is included in the calculation of operating income. The fair value of the contingent consideration liability associated with future earnout payments is based on several factors, including: • estimated future results, net of pro forma adjustments set forth in the purchase agreements; • the probability of achieving these results; and • a discount rate reflective of the Company's creditworthiness and market risk premium associated with the United States, Brazilian and European markets. A change in any of these unobservable inputs can significantly change the fair value of the contingent consideration. Valuation techniques and significant observable inputs used in recurring Level 3 fair value measurements for our contingent consideration liabilities as of June 30, 2017 and 2016 were as follows. Reporting Period Valuation Technique Significant Unobservable Inputs Weighted Average Rates June 30, 2017 Discounted cash flow Weighted average cost of capital 14.2 % Adjusted EBITDA growth rate 17.0 % June 30, 2016 Discounted cash flow Weighted average cost of capital 17.1 % Adjusted EBITDA growth rate 40.7 % Worldwide Barcode, Networking & Security Segment CDC The final payment of the contingent consideration related to CDC was paid during the fiscal year ended June 30, 2016 . The change in fair value of the contingent consideration recognized in the Consolidated Income Statements was a loss of $0.2 million for the fiscal year ended June 30, 2016 . The loss was due to the recurring amortization of unrecognized fair value discount. Worldwide Communications & Services Segment Imago The final payment of the contingent consideration related to Imago was paid during the quarter ended December 31, 2016. The change in fair value of the contingent consideration recognized in the Consolidated Income Statements contributed a gain of $1.1 million for the fiscal year ended June 30, 2017 , which was largely driven by actual results that were less-than-expected, including special adjustments as determined by the stock purchase agreement and recurring amortization of the unrecognized fair value discount. In addition, volatility in the foreign exchange rate between the British pound and the U.S. dollar drove changes in the translation of this British pound-denominated liability. As of June 30, 2016 , the fair value of the contingent consideration was $2.9 million , all of which was classified as current. The change in fair value of the contingent consideration recognized in the Consolidated Income Statements was a loss of $0.9 million for the fiscal year ended June 30, 2016 , which was largely driven by the recurring amortization of the unrecognized fair value discount and achievement of better-than-expected actual results. Network1 The fair value of the liability for the contingent consideration related to Network1 recognized at June 30, 2017 was $6.9 million of which $5.4 million is classified as current. The change in fair value of the contingent consideration recognized in the Consolidated Income Statements contributed a gain of $5.8 million for the fiscal year ended June 30, 2017 , which was largely driven by a reduction in projected results and current year less-than-expected actual results, partially offset by the recurring amortization of the unrecognized fair value discount. In addition, volatility in the foreign exchange rate between the Brazilian real and the U.S. dollar drove significant changes in the translation of this Brazilian real-denominated liability. Although there is no contractual limit, total future undiscounted contingent consideration payments are anticipated to range up to $7.5 million , based on the Company’s best estimate of the earnout calculated on a multiple of adjusted earnings. As of June 30, 2016 , the fair value of the contingent consideration was $21.8 million , of which $8.7 million was classified as current. The change in fair value of the contingent consideration recognized in the Consolidated Income Statements was a loss of $0.2 million for the fiscal year ended June 30, 2016 , which was largely driven by the recurring amortization of the unrecognized fair value discount, partially offset by a reduction in future projected results. Intelisys The fair value of the liability for the contingent consideration related to Intelisys recognized at June 30, 2017 was $107.1 million of which $25.3 million is classified as current. The change in fair value of the contingent consideration recognized in the Consolidated Income Statements contributed a loss of $12.1 million for the fiscal year ended June 30, 2017 , which was largely driven by the recurring amortization of the unrecognized fair value discount and improvements in projected results. Although there is no contractual limit, total future undiscounted contingent consideration payments are anticipated to range up to $136.1 million , based on the Company’s best estimate of the earnout calculated on a multiple of adjusted earnings. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jun. 30, 2017 | |
Share-based Compensation [Abstract] | |
Share-Based Compensation | Share-Based Compensation Share-Based Compensation Plans The Company has awards outstanding from two share-based compensation plans (the 2002 Long-Term Incentive Plan and the 2013 Long-Term Incentive Plan). Awards are currently only being granted under the 2013 Long-Term Incentive Plan. As of June 30, 2017 , there were 2,071,216 shares available for future grant under the 2013 Long-Term Incentive Plan. All of the Company’s share-based compensation plans are shareholder approved, and it is the Company’s belief that such awards better align the interests of its employees and directors with those of its shareholders. Under the plans, the Company is authorized to award officers, employees, consultants and non-employee members of the Board of Directors various share-based payment awards, including options to purchase common stock and restricted stock. Restricted stock can be in the form of a restricted stock award ("RSA"), restricted stock unit ("RSU") or a performance unit ("PU"). An RSA is common stock that is subject to risk of forfeiture or other restrictions that lapse upon satisfaction of specified conditions. An RSU represents the right to receive shares of common stock in the future with the right to future delivery of the shares subject to risk of forfeiture or other restrictions that lapse upon satisfaction of specified conditions. The Company accounts for its share-based compensation awards in accordance with ASC 718 – Stock Compensation, which requires all share-based compensation to be recognized in the income statement based on fair value and applies to all awards granted, modified, canceled, or repurchased after the effective date. Total share-based compensation included as a component of selling, general, and administrative expenses in our Consolidated Income Statements was as follows: Fiscal Year Ended June 30, 2017 2016 2015 (in thousands) Share-based compensation related to: Equity classified stock options $ 1,356 $ 1,479 $ 1,480 Equity classified restricted stock 5,246 5,614 5,042 Total share-based compensation $ 6,602 $ 7,093 $ 6,522 Stock Options During the fiscal year ended June 30, 2017 , the Company granted stock options for 77,339 shares to one employee. These options vest annually over 3 years and have a 10 -year contractual life. These options were granted with an exercise price that is no less than 100% of the fair market value of the underlying shares on the date of the grant. The fair value of each option (for purposes of calculation of share-based compensation) was estimated on the date of grant using the Black-Scholes-Merton option pricing formula that uses assumptions determined at the date of grant. Use of this option pricing model requires the input of subjective assumptions. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them ("expected term"), the estimated volatility of the Company's common stock price over the expected term ("expected volatility") and the number of options that will ultimately not complete their vesting requirements ("forfeitures"). Changes in the subjective assumptions can materially affect the estimate of the fair value of share-based compensation and, consequently, the related amount recognized in the Consolidated Income Statements. The Company used the following weighted-average assumptions for the options granted during the following fiscal years: Fiscal Year Ended June 30, 2017 2016 2015 Expected term 5 years 4.02 years 4.02 years Expected volatility 30.88 % 28.70 % 30.06 % Risk-free interest rate 1.84 % 1.47 % 1.22 % Dividend yield 0.00 % 0.00 % 0.00 % Weighted-average fair value per option $ 11.26 $ 9.53 $ 10.51 The weighted-average expected term of the options represents the period of time the options are expected to be outstanding based on historical trends and behaviors of certain groups and individuals receiving these awards. The expected volatility is predominantly based on the historical volatility of our common stock for a period approximating the expected term. The risk-free interest rate reflects the interest rate at grant date on zero-coupon United States governmental bonds that have a remaining life similar to the expected option term. The dividend yield assumption was based on the Company's dividend payment history and management's expectations of future dividend payments. A summary of our stock option plans is presented below: Fiscal Year Ended June 30, 2017 Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding, beginning of year 1,098,165 $ 36.52 Granted during the period 77,339 37.00 Exercised during the period (300,590 ) 33.40 Canceled, forfeited, or expired during the period (1,925 ) 39.12 Outstanding, end of year 872,989 37.63 5.81 $ 2,759,060 Vested and expected to vest at June 30, 2017 872,187 37.63 5.81 $ 2,756,896 Exercisable, end of year 657,019 $ 37.35 4.92 $ 2,321,846 The aggregate intrinsic value was calculated using the market price of the Company's stock on June 30, 2017 and the exercise price for only those options that have an exercise price that is less than the market price of our stock. This amount will change as the market price per share changes. The aggregate intrinsic value of options exercised during the fiscal years ended June 30, 2017 , 2016 and 2015 was $1.6 million , $1.3 million and $0.6 million , respectively. A summary of the status of the Company’s shares subject to unvested options is presented below: Fiscal Year Ended June 30, 2017 Options Weighted Average Exercise Price Weighted Average Grant Date Fair- Value Unvested, beginning of year 278,495 $ 39.96 $ 10.27 Granted 77,339 37.00 11.26 Vested (138,214 ) 40.61 10.60 Canceled or forfeited (1,650 ) 39.53 12.26 Unvested, end of year 215,970 $ 38.48 $ 10.39 As of June 30, 2017 , there was approximately $1.5 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans in the form of stock options. This cost is expected to be recognized over a weighted-average period of 1.00 years. The total fair value of options vested during the fiscal years ended June 30, 2017 , 2016 and 2015 is $1.5 million , $1.5 million and $1.6 million , respectively. The following table summarizes information about stock options outstanding and exercisable as of June 30, 2017 : Options Outstanding Options Exercisable Range of Exercise Prices Shares Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $18.13 - $22.27 2,800 1.43 $ 18.14 2,800 $ 18.14 $22.27 - $26.38 29,991 2.43 24.57 29,991 24.57 $26.38 - $30.49 20,731 5.44 29.80 20,731 29.80 $30.49 - $34.60 82,839 4.99 34.27 82,839 34.27 $34.60 - $38.71 452,179 5.48 36.97 290,360 36.62 $38.71 - $42.82 284,449 7.01 41.79 230,298 41.95 872,989 5.81 $ 37.63 657,019 $ 37.35 The Company issues shares to satisfy the exercise of options. Restricted Stock Grants of Restricted Shares During the fiscal year ended June 30, 2017 , the Company granted 170,368 shares of restricted stock to employees and non-employee directors, all of which were issued in the form of RSUs or PUs: Fiscal Year Ended June 30, 2017 Shares granted Date granted Grant date fair value Vesting period Employees Certain employees based on performance 207 September 2, 2016 $ 35.79 Annually over 3 years Certain employees based on promotion 2,884 September 7, 2016 $ 35.73 Annually over 3 years Certain employees based on performance 433 September 7, 2016 $ 35.73 Annually over 3 years Certain employees based on promotion 721 November 10, 2016 $ 34.20 Annually over 3 years Certain employees 151,623 December 2, 2016 $ 37.00 Annually over 3 years Non-Employee Directors (1) Certain Directors 14,500 December 2, 2016 $ 37.00 6 months (1) Under the 2013 Long-Term Incentive Plan, non-employee directors receive annual awards of restricted stock, as opposed to stock options. The number of shares of restricted stock to be granted is established from time to time by the Board of Directors. Currently, the number of shares of restricted stock awarded annually to each non-employee director generally is determined by dividing $100,000 by the equity award value of the common stock on the date of grant, as defined in the 2013 Long-Term Incentive Plan. The equity award value means the value per share based on a 45 -day averaging of the fair market value of the common stock over a specified period of time, or the fair market value of the common stock on a specified date. These awards will generally vest in full on the day that is six months after the date of grant or upon the earlier occurrence of (i) the director’s termination of service as a director by reason of death, disability or retirement, or (ii) a change in control by the Company. The compensation expense associated with these awards will be recognized on a pro-rata basis over this period. A summary of the status of the Company’s outstanding restricted stock is presented below: Fiscal Year Ended June 30, 2017 Shares Weighted-Average Grant Date Fair Value Outstanding, beginning of year 274,804 $ 39.06 Granted during the period 170,368 36.77 Target shares adjustment during the period (1) (1,008 ) 34.80 Vested during the period (137,894 ) 40.07 Cancelled, forfeited, or expired during the period (38,884 ) 38.18 Outstanding, end of year 267,386 $ 37.86 (1) These target shares granted as RSUs during fiscal year 2015 have service based and performance based vesting conditions. The actual number of shares granted for each of the three tranches, for the period June 1, 2014 through June 30, 2017, is determined after the date of the Company's financial statements. Therefore, the adjustment recognized during fiscal year 2017 represents the variance between the shares assumed to be granted versus at June 30, 2016 the actual shares granted for the second tranche. As of June 30, 2017 , there was approximately $7.3 million of unrecognized compensation cost related to unvested restricted stock awards and restricted stock units granted, which is expected to be recognized over a weighted-average period of 1.13 years. The Company withheld 43,669 shares for income taxes during the fiscal year ended June 30, 2017 . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company has a defined contribution plan under Section 401(k) of the Internal Revenue Code of 1986, as amended that covers all employees located in the United States meeting certain eligibility requirements. The Company provided a matching contribution equal to one-half of each participant’s contribution, up to a maximum matching contribution per participant of $800 . The Company determines its matching contributions annually and can make discretionary contributions in addition to matching contributions. Employer contributions are vested based upon tenure over a five -year period. Fiscal Year Ended June 30, 2017 2016 2015 (in thousands) Matching contributions $ 875 $ 735 $ 626 Discretionary contributions 3,413 3,617 5,350 Total contributions $ 4,288 $ 4,352 $ 5,976 Internationally, the Company contributes to either plans required by local governments or to various employee annuity plans. Additionally, the Company maintains a non-qualified, unfunded, deferred compensation plan that allows eligible executives to defer a portion of their compensation in addition to receiving discretionary matching contributions from the Company. Employer contributions are vested over a five -year period. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense (benefit) consists of: Fiscal Year Ended June 30, 2017 2016 2015 (in thousands) Current: Federal $ 31,149 $ 21,855 $ 24,658 State 2,615 1,652 1,639 Foreign 269 6,100 4,927 Total current 34,033 29,607 31,224 Deferred: Federal (3,832 ) 3,990 2,165 State (397 ) 365 198 Foreign 2,445 (1,571 ) 900 Total deferred (1,784 ) 2,784 3,263 Provision for income taxes $ 32,249 $ 32,391 $ 34,487 A reconciliation of the U.S. Federal income tax expense at a statutory rate of 35% to actual income tax expense, excluding any other taxes related to extraordinary gain is as follows: Fiscal Year Ended June 30, 2017 2016 2015 (in thousands) U.S. Federal income tax at statutory rate $ 35,524 $ 33,603 $ 34,967 Increase (decrease) in income taxes due to: State and local income taxes, net of Federal benefit 1,729 1,578 1,318 Tax credits (1,430 ) (2,517 ) (1,435 ) Valuation allowance 444 541 582 Effect of foreign operations, net (1,477 ) (1,150 ) (1,665 ) Stock compensation (61 ) (62 ) (419 ) Capitalized acquisition costs 231 70 839 Nontaxable income (4,437 ) — — Disallowed interest 2,011 571 — Other (285 ) (243 ) 300 Provision for income taxes $ 32,249 $ 32,391 $ 34,487 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: June 30, 2017 2016 (in thousands) Deferred tax assets derived from: Allowance for accounts receivable $ 11,687 $ 12,458 Inventories 5,235 4,799 Nondeductible accrued expenses 3,968 3,842 Net operating loss carryforwards 3,141 3,036 Tax credits 4,094 3,316 Timing of amortization deduction from goodwill 1,285 2,660 Deferred compensation 7,934 6,733 Stock compensation 5,424 6,014 Timing of amortization deduction from intangible assets 3,032 2,045 Total deferred tax assets 45,800 44,903 Valuation allowance (3,473 ) (3,029 ) Total deferred tax assets, net of allowance 42,327 41,874 Deferred tax liabilities derived from: Timing of depreciation and other deductions from building and equipment (7,778 ) (6,827 ) Timing of amortization deduction from goodwill (5,013 ) (5,815 ) Timing of amortization deduction from intangible assets (2,053 ) (2,974 ) Total deferred tax liabilities (14,844 ) (15,616 ) Net deferred tax assets $ 27,483 $ 26,258 The components of pretax earnings are as follows: Fiscal Year Ended June 30, 2017 2016 2015 (in thousands) Domestic $ 79,871 $ 76,062 $ 79,364 Foreign 21,624 19,948 20,542 Worldwide pretax earnings $ 101,495 $ 96,010 $ 99,906 As of June 30, 2017 , there were (i) gross net operating loss carryforwards of approximately $1.4 million for state income tax purposes; (ii) foreign gross net operating loss carryforwards of approximately $9.3 million ; (iii) state income tax credit carryforwards of approximately $1.4 million that will began to expire in 2019; and (iv) withholding tax credits of approximately $2.9 million ; and (v) foreign tax credits of less than $0.3 million . The Company maintains a valuation allowance of $0.4 million for foreign net operating losses, a less than $0.1 million valuation allowance for state net operating losses, a $2.9 million valuation allowance for withholding tax credits and a $0.1 million valuation allowance for the notional interest deduction, where it was determined that, in accordance with ASC 740, it is more likely than not that they cannot be utilized. The Company has provided for United States income taxes for the current earnings of its Canadian subsidiary. Earnings from all other geographies will continue to be considered retained indefinitely for reinvestment. The Company has not provided U.S. income taxes for undistributed earnings of foreign subsidiaries that are considered to be retained indefinitely for reinvestment. The distribution of these earnings would result in additional foreign withholding taxes and additional U.S. federal income taxes to the extent they are not offset by foreign tax credits. It has been the practice of the Company to reinvest those earnings in the business outside the United States. These undistributed earnings amounted to approximately $118.1 million at June 30, 2017 . If these earnings were remitted to the United States, they would be subject to income tax. The tax, after foreign tax credits, is estimated to be approximately $20.6 million . Financial results in Belgium for the year ended June 30, 2017 produced pre-tax loss of approximately $4.7 million . To the extent the Belgium business does not return to profitability as expected, this could affect the valuation of certain deferred tax assets. However, the Belgium business reported taxable income in the two prior years of the three prior years. In the judgment of management, the conditions that gave rise to the fiscal 2017 and 2016 losses are temporary and that it is more likely than not that the deferred tax asset will be realized. During quarter ended June 30, 2017 , a lawsuit filed by Scansource Brazil with the Brazilian Supreme Court in 2014 regarding the tax treatment of certain Brazilian state-provided tax benefits was settled in Scansource Brazil’s favor. As a result, Scansource Brazil was awarded and will recover a tax settlement. The Company has recorded, discrete to the quarter, the income tax benefit associated with that recovery equal to approximately $4.5 million . As of June 30, 2017 , the Company had gross unrecognized tax benefits of $2.2 million , $1.3 million of which, if recognized, would affect the effective tax rate. This reflects an increase of $0.1 million on a net basis over the prior fiscal year. The Company does not expect that the total amounts of unrecognized tax benefits will significantly increase or decrease within the next twelve months. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying Consolidated Income Statement. Accrued interest and penalties are included within the related tax liability line in the Consolidated Balance Sheet. The total amount of interest and penalties accrued, but excluded from the table below were $1.1 million for the fiscal year ending June 30, 2017 and $1.2 million for the fiscal years ended June 30, 2016 and June 30, 2015 , respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: June 30, 2017 2016 2015 (in thousands) Beginning Balance $ 2,148 $ 1,301 $ 1,153 Additions based on tax positions related to the current year 174 326 262 Additions for tax positions of prior years — 658 — Reduction for tax positions of prior years (146 ) (137 ) (114 ) Ending Balance $ 2,176 $ 2,148 $ 1,301 The Company conducts business globally and, as a result, one or more of its subsidiaries files income tax returns in the United States federal, various state, local and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities in countries in which it operates. With certain exceptions, the Company is no longer subject to state and local, or non-United States income tax examinations by tax authorities for tax years before June 30, 2012 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases The Company leases office and warehouse space under non-cancelable operating leases that expire through 2023. The Company also leases certain equipment under a capital lease that expires in 2020. Lease expense and future minimum lease payments under operating leases and the single capital lease are as follows: Fiscal Year Ended June 30, 2017 2016 2015 (in thousands) Lease expense $ 8,703 $ 7,394 $ 6,168 Operating Lease Payments Capital Lease Payments Total Payments (in thousands) Fiscal Year Ended June 30, 2018 $ 7,873 $ 579 $ 8,452 2019 5,939 579 6,518 2020 4,906 579 5,485 2021 3,952 — 3,952 2022 3,244 — 3,244 Thereafter 13,629 — 13,629 Total future minimum lease payments 39,543 1,737 41,280 Less: amounts representing interest on capital lease — 50 50 Total future minimum principal lease payments $ 39,543 $ 1,687 $ 41,230 On July 6, 2016, the Company entered into an amended agreement to continue to lease approximately 741,000 square feet for distribution, warehousing and storage purposes in a building located in Southaven, Mississippi. The term of the lease is 135 months with 2 consecutive 5 -year extension options. The Company's existing capital lease expired in June 2017. On February 14, 2017, the Company modified an equipment lease transaction for certain information technology infrastructure located in the Greenville, South Carolina facility. The Company determined this lease qualifies as a capital lease and accordingly, has recorded a capital lease obligation equal to the present value of the minimum lease payments of $1.7 million scheduled to begin on July 1, 2017. The lease term is 42 months with an expiration date during 2020. The components of the Company's capital lease as of June 30, 2017 are as follows: Capital Lease Obligations Property & Equipment Accumulated Depreciation Net Book Value Short-Term Long-Term Total (in thousands) IT Infrastructure $ 1,687 $ — $ 1,687 $ 553 $ 1,134 $ 1,687 Commitments and Contingencies A majority of the Company’s net revenues in fiscal years 2017 , 2016 and 2015 were received from the sale of products purchased from the Company’s ten largest vendors. The Company has entered into written agreements with substantially all of its major vendors. While the Company’s agreements with most of its vendors contain standard provisions for periodic renewals, these agreements generally permit termination by either party without cause upon 30 to 120 days' notice. The Company or its subsidiaries are, from time to time, parties to lawsuits arising out of operations. Although there can be no assurance, based upon information known to the Company, the Company believes that any liability resulting from an adverse determination of such lawsuits would not have a material adverse effect on the Company’s financial condition or results of operations. During the current year, the Company recognized $12.8 million in proceeds from a legal settlement, net of attorney fees, included in other income (expense), net on the Consolidated Income Statements. Capital Projects The Company expects total capital expenditures to range from $8.0 million to $11.0 million during fiscal year 2018 primarily for IT investments. Pre-Acquisition Contingencies During the Company's due diligence for the CDC acquisition, several pre-acquisition contingencies were identified regarding various Brazilian federal and state tax exposures. In connection with these contingencies, the Company recorded indemnification receivables that are reported gross of the pre-acquisition contingency liabilities as the funds were escrowed as part of the acquisition. During fiscal year 2016, the Company released $4.1 million from the escrow account to the sellers after the final earnout payment was made. The amount available after the impact of foreign currency translation, as of June 30, 2017 and 2016 for future pre-acquisition contingency settlements or to be released to the sellers, was $3.4 million and $3.5 million , respectively. The table below summarizes the balances and line item presentation of CDC's pre-acquisition contingencies and corresponding indemnification receivables in the Company's consolidated balance sheet: June 30, 2017 June 30, 2016 (in thousands) Assets Prepaid expenses and other assets (current) $ 2,212 $ 2,346 Other assets (noncurrent) $ — $ — Liabilities Other current liabilities $ 2,212 $ 2,346 Other long-term liabilities $ — $ — The change in classification and amounts of the pre-acquisition contingencies is primarily due to foreign currency translation on a weaker Brazilian real against the U.S. dollar and the expiration of the statute of limitations for identified pre-acquisition contingencies. The amount of reasonably possible undiscounted pre-acquisition contingencies as of June 30, 2017 is estimated to range as high as $3.3 million at this time, of which all exposures are indemnifiable under the share purchase and sale agreement. During the Company's due diligence for the Network1 acquisition, several pre-acquisition contingencies were identified regarding various Brazilian federal and state tax exposures. The Company recorded indemnification receivables that are reported gross of the pre-acquisition contingency liabilities as the funds were escrowed as part of the acquisition. The sellers deposited $8.7 million and $1.3 million into the escrow account for the years ended June 30, 2017 and 2016 . The amount available after the impact of foreign currency translation, as of June 30, 2017 and 2016 for future pre-acquisition contingency settlements or to be released to the sellers, was $13.0 million and $4.7 million , respectively. The table below summarizes the balances and line item presentation of Network1's pre-acquisition contingencies and corresponding indemnification receivables in the Company's consolidated balance sheet: June 30, 2017 June 30, 2016 (in thousands) Assets Prepaid expenses and other assets (current) $ 1,294 $ 595 Other assets (noncurrent) $ 8,235 $ 9,837 Liabilities Other current liabilities $ 1,294 $ 595 Other long-term liabilities $ 8,235 $ 9,837 The amount of reasonably possible undiscounted pre-acquisition contingencies as of June 30, 2017 is estimated to range from $10.2 million to $29.9 million at this time, of which all exposures are indemnifiable under the share purchase agreement. |
Segment Information
Segment Information | 12 Months Ended |
Jun. 30, 2017 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Information | Segment Information The Company is a leading provider of technology products and solutions to customers in specialty technology markets. The Company has two reportable segments, based on product, customer and service type. Worldwide Barcode, Networking & Security Segment The Worldwide Barcode, Networking & Security segment focuses on automatic identification and data capture ("AIDC"), point-of-sale ("POS"), networking, electronic physical security, 3D printing technologies and other specialty technologies. We have business units within this segment in North America, Latin America and Europe. We see adjacencies among these technologies in helping our customers develop solutions, such as with networking products. AIDC and POS products interface with computer systems used to automate the collection, processing and communication of information for commercial and industrial applications, including retail sales, distribution, shipping, inventory control, materials handling, warehouse management and health care applications. Electronic physical security products include identification, access control, video surveillance, intrusion-related and wireless and networking infrastructure products. 3D printing solutions replace and complement traditional methods and reduce the time and cost of designing new products by printing real parts directly from digital input. Worldwide Communications & Services Segment The Worldwide Communications & Services segment focuses on communications technologies and services. We have business units within this segment that offer voice, video conferencing, wireless, data networking, cable, collaboration, converged communications solutions, cloud and technology services. We have business units within this segment in North America, Latin America and Europe. As these solutions come together on IP networks, new opportunities are created for customers to move into adjacent solutions for all vertical markets, such as education, healthcare and government. Our teams deliver value-added support programs and services, including education and training, network assessments, custom configuration, implementation and marketing to help customers develop a new technology practice, or to extend their capability and reach. Selected financial information for each business segment is presented below: Fiscal Year Ended June 30, 2017 2016 2015 (in thousands) Sales: Worldwide Barcode, Networking & Security $ 2,389,256 $ 2,361,670 $ 2,118,739 Worldwide Communications & Services 1,178,930 1,178,556 1,099,887 $ 3,568,186 $ 3,540,226 $ 3,218,626 Depreciation and amortization: Worldwide Barcode, Networking & Security $ 6,496 $ 5,651 $ 3,813 Worldwide Communications & Services 15,099 8,543 6,912 Corporate 3,373 2,960 1,272 $ 24,968 $ 17,154 $ 11,997 Operating income: Worldwide Barcode, Networking & Security $ 49,727 $ 52,227 $ 47,985 Worldwide Communications & Services 39,768 45,513 56,710 Corporate (1) (1,256 ) (863 ) (3,254 ) $ 88,239 $ 96,877 $ 101,441 Capital expenditures: Worldwide Barcode, Networking & Security $ 3,796 $ 5,298 $ 733 Worldwide Communications & Services 3,163 3,923 1,448 Corporate 1,890 2,860 18,581 $ 8,849 $ 12,081 $ 20,762 Sales by Geography Category: United States $ 2,719,413 $ 2,655,760 $ 2,391,073 International (2) 882,446 920,098 871,862 Less intercompany sales (33,673 ) (35,632 ) (44,309 ) $ 3,568,186 $ 3,540,226 $ 3,218,626 (1) For the years ended June 30, 2017, 2016 and 2015, the amounts shown above include acquisition costs. (2) For the years ended June 30, 2017, 2016 and 2015, there were no sales in excess of 10% of consolidated net sales to any single international country. June 30, 2017 June 30, 2016 (in thousands) Assets: Worldwide Barcode, Networking & Security $ 885,786 $ 836,674 Worldwide Communications & Services 769,342 595,781 Corporate 63,175 58,730 $ 1,718,303 $ 1,491,185 Property and equipment, net by Geography Category: United States $ 51,853 $ 46,935 International 4,713 5,453 $ 56,566 $ 52,388 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income The components of accumulated other comprehensive (loss) income, net of tax, are as follows: Fiscal Years Ended June 30, 2017 2016 2015 (in thousands) Currency translation adjustment $ (73,217 ) $ (72,687 ) $ (64,502 ) Unrealized gain on fair value of interest rate swap 13 — — Accumulated other comprehensive loss $ (73,204 ) $ (72,687 ) $ (64,502 ) The tax effect of amounts in comprehensive income (loss) reflect a tax expense or benefit as follows: Fiscal years ended June 30, 2017 2016 2015 (in thousands) Tax expense (benefit) $ (396 ) $ 327 $ 2,382 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 31, 2017, the Company completed its acquisition of all of the outstanding shares of POS Portal, Inc. ("POS Portal") a leading provider of payment devices and services primarily to the SMB market segment. Under the purchase agreement, the all-cash transaction includes an initial purchase price of approximately $144.9 million paid in cash at closing ( $13.5 million of which is being held in escrow to cover indemnity claims), subject to working capital and other customary adjustments. The purchase agreement includes a cash earnout payment up to $13.2 million to be made on November 30, 2017 based on POS Portal's earnings before interest expense, taxes, depreciation and amortization for the trailing twelve months ending September 30, 2017. POS Portal joined the Worldwide Barcode, Networking & Security segment. Due to the timing of the acquisition relative to the annual filing, the Company is not able to present initial accounting estimates for the business combination, including purchase price allocation, valuation of tangible and intangible assets (including goodwill) and valuation of the contingent consideration. On August 8, 2017 the Company entered into an amendment to the Amended Credit Facility to increase committed borrowing capacity to $400 million by obtaining additional credit commitments from the lenders participating in the accordion feature. As the Company maintained the $200 million accordion feature, the total availability was increased to $600 million , subject to obtaining additional credit commitments from the lenders participating in the increase. |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Jun. 30, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation And Qualifying Accounts | SCHEDULE II SCANSOURCE, INC. AND SUBSIDIARIES Valuation and Qualifying Accounts (in thousands) Description Balance at Beginning of Period Amounts Charged to Expense Reductions (1) Other (2) Balance at End of Period Allowance for bad debt: Year ended June 30, 2015 $ 26,257 993 (8,288 ) 13,627 $ 32,589 Trade and current note receivable allowance $ 32,589 Year ended June 30, 2016 $ 32,589 7,571 (3,829 ) 2,701 $ 39,032 Trade and current note receivable allowance $ 39,032 Year ended June 30, 2017 $ 39,032 8,901 (3,860 ) 361 $ 44,434 Trade and current note receivable allowance $ 44,434 (1) "Reductions" amounts represent write-offs for the years indicated. (2) "Other" amounts include recoveries and the effect of foreign currency fluctuations for years ended June 30, 2017 , 2016 and 2015 . The amount in 2017 includes $0.6 million of recoveries and $0.3 million of accounts receivable reserves acquired with the Intelisys acquisition on August 29, 2017. In addition, the amount in 2016 includes $1.5 million of recoveries and $1.2 million of accounts receivable acquired with KBZ on September 4, 2016. The amount in 2015 includes $3.9 million of recoveries, $1.1 million of accounts receivable reserves acquired with Imago Group plc on September 19, 2014 and $12.8 million of accounts receivable reserves acquired with Network 1 on January 13, 2015. |
Business and Summary of Signi25
Business and Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Business Description | Business Description ScanSource , Inc. is a leading global provider of technology products and solutions. ScanSource, Inc. and its subsidiaries ("the Company") provide value-added solutions from technology vendors and sell to customers in specialty technology markets through its Worldwide Barcode, Networking & Security segment and Worldwide Communications & Services segment. The Company's two operating segments are based on product, customer and service type. The Company operates in the United States, Canada, Latin America and Europe. The Company sells into the United States and Canada from a facility located in Mississippi; into Latin America principally from facilities located in Florida, Mexico, Brazil, Colombia and Chile; and into Europe from facilities located in Belgium, France, Germany and the United Kingdom. |
Consolidation Policy | Consolidation Policy The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company accounts and transactions have been eliminated. |
Related Party Transactions | Related Party Transactions A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. There were no material related party transactions for the fiscal years ended June 30, 2017 , 2016 and 2015 . |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates, including those related to the allowance for uncollectible accounts receivable, contingent consideration and inventory reserves. Management bases its estimates on assumptions that management believes to be reasonable under the circumstances, the results of which form a basis for making judgments about the carrying value of assets and liabilities that are not readily available from other sources. Actual results may differ from these estimates under different assumptions or conditions; however, management believes that its estimates, including those for the above described items, are reasonable and that the actual results will not vary significantly from the estimated amounts. |
Allowances for Trade and Notes Receivable | Allowances for Trade and Notes Receivable The Company maintains an allowance for uncollectible accounts receivable for estimated losses resulting from customers’ failure to make payments on accounts receivable due to the Company. Management determines the estimate of the allowance for uncollectible accounts receivable by considering a number of factors, including: (1) historical experience, (2) aging of the accounts receivable, (3) specific information obtained by the Company on the financial condition and the current creditworthiness of its customers and (4) the current economic and country specific environment. If the financial condition of the Company’s customers were to deteriorate and reduce the ability of the Company’s customers to make payments on their accounts, the Company may be required to increase its allowance by recording additional bad debt expense. Likewise, should the financial condition of the Company’s customers improve and result in payments or settlements of previously reserved amounts, the Company may be required to record a reduction in bad debt expense to reverse the recorded allowance. |
Inventory Reserves | Inventory Reserves Management determines the inventory reserves required to reduce inventories to the lower of cost or market based principally on the effects of technological changes, quantities of goods and length of time on hand and other factors. An estimate is made of the market value, less cost to dispose, of products whose value is determined to be impaired. If these products are ultimately sold at less than estimated amounts, additional reserves may be required. The estimates used to calculate these reserves are applied consistently. The adjustments are recorded in the period in which the loss of utility of the inventory occurs, which establishes a new cost basis for the inventory. This new cost basis is maintained until such time that the reserved inventory is disposed of, returned to the vendor or sold. To the extent that specifically reserved inventory is sold, cost of goods sold is expensed for the new cost basis of the inventory sold |
Purchase Price Allocations | Purchase Price Allocations For each acquisition, the Company allocates the purchase price to assets acquired, liabilities assumed and goodwill and intangibles in accordance with the FASB's Accounting Standards Codification ("ASC") 805. The Company recognizes assets and liabilities acquired at their estimated fair values. Management uses judgment to (1) identify the acquired assets and liabilities assumed, (2) estimate the fair value of these assets, (3) estimate the useful life of the assets and (4) assess the appropriate method for recognizing depreciation or amortization expense over the asset’s useful life. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less, when purchased, to be cash equivalents. The Company maintains some zero-balance disbursement accounts at various financial institutions in which the Company does not maintain significant depository relationships. Due to the terms of the agreements governing these accounts, the Company does not have the right to offset most if not all outstanding checks written from these accounts against cash on hand and the respective institutions are not legally obligated to honor the checks until sufficient funds are transferred to fund the checks. As a result, checks released but not yet cleared from these accounts in the amounts of $48.5 million and $78.3 million are classified as accounts payable as of June 30, 2017 and 2016 , respectively. The Company maintains its cash with various financial institutions globally that are monitored regularly for credit quality and holds amounts in excess of Federal Deposit Insurance Corporation ("FDIC") limits or other insured limits. Cash and cash equivalents held outside of the United States totaled $47.9 million and $52.7 million as of June 30, 2017 and 2016 , respectively. |
Concentration of Credit Risk | Concentration of Credit Risk The Company sells to a large base of customers throughout the United States, Canada, Latin America and Europe. The Company performs ongoing credit evaluations of its customers’ financial condition. In certain cases, the Company will accept tangible assets as collateral to increase the trade credit of its customers. In addition, the Company carries credit insurance on certain subsections of the customer portfolio. No single customer accounted for more than 5% of the Company’s net sales for fiscal years 2017 , 2016 or 2015 . In the event that the Company does not collect payment on accounts receivable within the established trade terms for certain customers, the Company may establish arrangements for longer-term financing. The Company accounts for these arrangements by recording them at their historical cost less specific allowances at balance sheet dates. Interest income is recognized in the period earned and is recorded as interest income in the Consolidated Income Statement. |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative instruments to manage certain exposures related to fluctuations in foreign currency exchange rates and changes in interest rates in connection with borrowing activities. The Company records all derivative instruments as either assets or liabilities in the Consolidated Balance Sheet at fair value. The Company does not use derivative financial instruments for trading or speculative purposes. The Company’s foreign currency exposure results from purchasing and selling internationally in several foreign currencies and from intercompany loans with foreign subsidiaries. The Company's foreign currencies are denominated primarily in Brazilian reais, euros, British pounds, Canadian dollars, Mexican pesos, Colombian pesos, Chilean pesos and Peruvian nuevos sols. The Company may reduce its exposure to fluctuations in foreign exchange rates by creating offsetting positions through the use of derivative financial instruments. The market risk related to the foreign exchange agreements is offset by changes in the valuation of the underlying items. These contracts are generally for a duration of 90 days or less. The Company has elected not to designate its foreign currency contracts as hedging instruments. They are, therefore, marked-to-market with changes in their fair value recorded in the Consolidated Income Statement each period. Derivative financial instruments related to foreign currency exposure are accounted for on an accrual basis with gains or losses on these contracts recorded in income in the period in which their value changes, with the offsetting entry for unsettled positions reflected in either other assets or other liabilities. During the fiscal year ended June 30, 2017, the Company entered into an interest rate swap and designated this instrument as a hedge of the cash flows on certain variable rate debt. To the extent the derivative instrument was effective in offsetting the variability of the hedged cash flows, changes in the fair value of the derivative instrument were not included in current earnings, but were reported as other comprehensive income (loss). |
Investments | Investments The Company has investments that are held in a grantor trust formed by the Company related to the ScanSource, Inc. Nonqualified Deferred Compensation Plan and Founder’s Supplemental Executive Retirement Plan ("SERP"). The Company has classified these investments as trading securities, and they are recorded at fair market value with unrealized gains and losses included in the accompanying Consolidated Income Statements. The Company’s obligations under this deferred compensation plan change in concert with the performance of the investments along with contributions to and withdrawals from the plan. The fair value of these investments and the corresponding deferred compensation obligation was $21.4 million and $17.9 million as of June 30, 2017 and June 30, 2016 , respectively. These investments are classified as either prepaid expenses and current assets or other non-current assets in the Consolidated Balance Sheets depending on the timing of planned disbursements. The deferred compensation obligation is classified either within accrued expenses and other current liabilities or other long-term liabilities as well. The amounts of these investments classified as current assets with corresponding current liabilities were $2.7 million and $1.6 million at June 30, 2017 and June 30, 2016 , respectively. |
Inventories | Inventories Inventories (consisting entirely of finished goods) are stated at the lower of cost (first-in, first-out method) or market. |
Vendor Programs | Vendor Programs The Company receives incentives from vendors related to cooperative advertising allowances, volume rebates and other incentive agreements. These incentives are generally under quarterly, semi-annual or annual agreements with the vendors. Some of these incentives are negotiated on an ad hoc basis to support specific programs mutually developed between the Company and the vendor. Vendors generally require that the Company use the vendors' cooperative advertising allowances for advertising or other marketing programs. Incentives received from vendors for specifically identified incremental cooperative advertising programs are recorded as adjustments to selling, general and administrative expenses. ASC 605 – Revenue Recognition addresses accounting by a customer for certain consideration received from a vendor. This guidance requires that the portion of these vendor funds in excess of our costs be reflected as a reduction of inventory. Such funds are recognized as a reduction of the cost of goods sold when the related inventory is sold. The Company records unrestricted volume rebates received as a reduction of inventory and reduces the cost of goods sold when the related inventory is sold. Amounts received or receivables from vendors that are not yet earned are deferred in the Consolidated Balance Sheets. Vendor receivables are generally collected through reductions to accounts payable authorized by the vendor. In addition, the Company may receive early payment discounts from certain vendors. The Company records early payment discounts received as a reduction of inventory, thereby resulting in a reduction of cost of goods sold when the related inventory is sold. ASC 605 requires management to make certain estimates of the amounts of vendor incentives that will be received. Actual recognition of the vendor consideration may vary from management estimates. |
Vendor Concentration | Vendor Concentration The Company sells products from many vendors, however, sales of products supplied by, in alphabetical order, Avaya, Cisco and Zebra each constituted more than 10% of the Company’s net sales for the years ended June 30, 2017 and 2016 . Sales of products supplied by, in alphabetical order, Avaya and Zebra constituted more than 10% of the Company's net sales for the year ended June 30, 2015 . |
Product Warranty | Product Warranty The Company’s vendors generally provide a warranty on the products provided by the Company and allow the Company to return defective products, including those that have been returned to the Company by its customers. In three of its product lines, the Company offers a self-branded warranty program, in which management has determined that the Company is the primary obligor. The Company purchases contracts from unrelated third parties, generally the original equipment manufacturers, to fulfill any obligation to service or replace defective product claimed on these warranty programs. As a result, the Company has not recorded a provision for estimated service warranty costs. To maintain customer relations, the Company facilitates returns of defective products from the Company's customers by accepting for exchange, with the Company's prior approval, most defective products within 30 days of invoicing. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over estimated useful lives of 3 to 10 years for furniture, equipment and computer software, 25 to 40 years for buildings and 15 years for building improvements. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life. The Company's depreciation expense relates to selling, general and administrative costs, not the cost of selling goods. Maintenance, repairs and minor renewals are charged to expense as incurred. Additions, major renewals and betterments to property and equipment are capitalized. To the extent that the Company has longstanding, "in-process" projects that have not been implemented for their intended operational use, the Company capitalizes the portion of interest expense incurred during the asset's acquisition period that theoretically could have been avoided in accordance with ASC 835. The amount capitalized is determined by applying the appropriate capitalization rate to the average amount of accumulated expenditures for the asset during the reporting period. The capitalization rate used is based on the rates applicable to borrowings outstanding during the reporting period. |
Capitalized Software | Capitalized Software The Company accounts for capitalized software in accordance with ASC 350-40, which provides guidance for computer software developed or obtained for internal use. The Company is required to continually evaluate the stage of the implementation process to determine whether or not costs are expensed or capitalized. Costs incurred during the preliminary project phase or planning and research phase are expensed as incurred. Costs incurred during the development phase, such as material and direct services costs, compensation costs of employees associated with the development and interest cost, are capitalized as incurred. Costs incurred during the post-implementation or operation phase, such as training and maintenance costs, are expensed as incurred. In addition, costs incurred to modify existing software that result in additional functionality are capitalized as incurred. |
Goodwill | Goodwill The Company accounts for recorded goodwill in accordance with ASC 350, Goodwill and Other Intangible Assets , which requires that goodwill be reviewed annually for impairment or more frequently if impairment indicators exist. Goodwill testing utilizes an impairment analysis, whereby the Company compares the carrying value of each identified reporting unit to its fair value. The carrying value of goodwill is reviewed at a reporting unit level at least annually for impairment, or more frequently if impairment indicators exist. The Company's goodwill reporting units align directly with its operating segments, Worldwide Barcode, Networking & Worldwide Security and Communications & Services. The fair values of the reporting units are estimated using the net present value of discounted cash flows generated by each reporting unit. Considerable judgment is necessary in estimating future cash flows, discount rates and other factors affecting the estimated fair value of the reporting units, including the operating and macroeconomic factors. Historical financial information, internal plans and projections and industry information are used in making such estimates. The Company adopted ASU 2017-04 during the current year, which simplifies testing goodwill for impairment. If fair value is determined to be less than carrying value, an impairment loss is recognized for the amount of the carrying value that exceeds the amount of the reporting units' fair value, not to exceed the total amount of goodwill allocated to the reporting unit. Additionally, the Company would consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The Company also assesses the recoverability of goodwill if facts and circumstances indicate goodwill may be impaired. In its most recent annual test, the Company estimated the fair value of its reporting units primarily based on the income approach utilizing the discounted cash flow method. The Company also utilized fair value estimates derived from the market approach utilizing the public company market multiple method to validate the results of the discounted cash flow method, which required it to make assumptions about the applicability of those multiples to its reporting units. The discounted cash flow method required the Company to estimate future cash flows and discount those amounts to present value. The key assumptions utilized in determining fair value included: • Industry weighted-average cost of capital ("WACC"): The Company utilized a WACC relative to each reporting unit's respective geography and industry as the discount rate for estimated future cash flows. The WACC is intended to represent a rate of return that would be expected by a market place participant in each respective geography. • Operating income: The Company utilized historical and expected revenue growth rates, gross margins and operating expense percentages, which varied based on the projections of each reporting unit being evaluated. • Cash flows from working capital changes: The Company utilized a projected cash flow impact pertaining to expected changes in working capital as each of its goodwill reporting units grow. See Note 6 - Goodwill and Other Identifiable Intangible Assets for more information regarding goodwill and the results of our testing. |
Intangible Assets | Intangible Assets Intangible assets consist of customer relationships, trade names, distributor agreements, supplier partner programs and non-compete agreements. Customer relationships, distributor agreements and supplier partner programs are amortized using the straight-line method over their estimated useful lives, which range from 5 to 15 years. Trade names are amortized over a period ranging from 1 to 5 years. Non-compete agreements are amortized over their contract life. The Company's amortization expense relates to selling, general and administrative costs, not the cost of selling goods. These assets are shown in detail in Note 6 - Goodwill and Other Identifiable Intangible Assets. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset or asset group may not be recoverable. Tests for recoverability of a long-lived asset to be held and used are measured by comparing the carrying amount of the long-lived asset to the sum of the estimated future undiscounted cash flows expected to be generated by the asset. In estimating the future undiscounted cash flows the Company uses projections of cash flows directly associated with, and which are expected to arise as a direct result of, the use and eventual disposition of the assets. If it is determined that a long-lived asset is not recoverable, an impairment loss would be calculated equal to the excess of the carrying amount of the long-lived asset over its fair value. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of financial instruments is the amount at which the instrument could be exchanged in a current transaction between willing parties. The carrying values of financial instruments such as accounts receivable, accounts payable, accrued liabilities, borrowings under the revolving credit facility and subsidiary lines of credit approximate fair value based upon either short maturities or variable interest rates of these instruments. For additional information related to the fair value of derivatives, please see Note 9 - Fair Value of Financial Instruments . |
Liability for Contingent Consideration | Liability for Contingent Consideration In addition to the initial cash consideration paid to former shareholders of Network1 and Intelisys, the Company is obligated to make additional earnout payments based on future results through a specified date based on a multiple of the subsidiary’s pro forma earnings as defined in the respective purchase agreements. Future payments are to be paid in the functional currency of the acquired entity, which is the Brazilian real for Network1 and USD for Intelisys. The Company paid the final earnout payment to the former shareholders of CDC during fiscal year 2016 and the final earnout payment to Imago during fiscal year 2017. Network1 has two remaining earnout payments to be paid in annual installments during fiscal years 2018 and 2019. Intelisys has four remaining earnout payments to be paid in annual installments during fiscal years 2018 through 2021. In accordance with ASC Topic 805, the Company determines the fair value of this liability for contingent consideration at each reporting date throughout the term of the earnout using a form of a probability weighted discounted cash flow model. Each period the Company will reflect the contingent consideration liability at fair value with changes recorded in the change in fair value of contingent consideration line item on the Consolidated Income Statement. Current and noncurrent portions of the liability are presented in the current portion of contingent consideration and long-term portion of contingent consideration line items on the Consolidated Balance Sheets. |
Contingencies | Contingencies The Company accrues for contingent obligations, including estimated legal costs, when it is probable that a liability is incurred and the amount is reasonably estimable. As facts concerning contingencies become known, management reassesses its position and makes appropriate adjustments to the financial statements. Estimates that are particularly sensitive to future changes include tax, legal and other regulatory matters, which are subject to change as events evolve and as additional information becomes available during the administrative and litigation process. |
Revenue Recognition | Revenue Recognition Revenue is recognized once four criteria are met: (1) the Company must have persuasive evidence that an arrangement exists; (2) delivery must occur (this includes the transfer of both title and risk of loss, provided that no significant obligations remain); (3) the price must be fixed and determinable; and (4) collectability must be reasonably assured. The Company allows its customers to return product for exchange or credit subject to certain limitations. Taxes collected from customers and remitted to governmental authorities, such as sales taxes and value added taxes, are excluded from net sales. The Company provides third-party service contracts, typically for product maintenance and support. These service contracts are sold separately from the products, and the Company often serves as the agent for the contract on behalf of the original equipment manufacturer. Since the Company acts as an agent on behalf of most of these service contracts sold, revenue is recognized net of cost at the time of sale. However, the Company provides some self-branded warranty programs and engages a third party (generally the original equipment manufacturer) to cover the fulfillment of any obligations arising from these contracts. These revenues and associated third-party costs are amortized over the life of the contract and presented in net sales and cost of goods sold, respectively. Service revenue associated with third-party service contracts and warranty programs, as mentioned above, along with configuration and marketing services is recognized when the work is complete, and the four criteria discussed above have been met. Service revenue associated with service contracts, warranty programs, configuration, marketing and other services approximates 3% of consolidated net sales for fiscal years 2017 , 2016 and 2015 . Through the Intelisys acquisition, the Company has a recurring revenue model in which the Company acts as a master agent partnering vendors with sales agents to provide telecommunications services to end users. As the Company acts as an agent on behalf of the vendors' services, commission revenue received from the vendor is recognized net of cost associated with the commissions the Company pays to sales agents, at the time of sale. Revenue associated with the recurring revenue model approximates 1.0% of consolidated net sales for fiscal year 2017 . During the fiscal years ended June 30, 2017 , 2016 and 2015 , the Company did not engage in sales transactions involving multiple element arrangements. |
Shipping Revenue and Costs | Shipping Revenue and Costs Shipping revenue is included in net sales, and related costs are included in cost of goods sold. |
Advertising Costs | Advertising Costs The Company defers advertising-related costs until the advertising is first run in trade or other publications, or in the case of brochures, until the brochures are printed and available for distribution. |
Foreign Currency | Foreign Currency The currency effects of translating the financial statements of the Company’s foreign entities that operate in their local currency are included in the cumulative currency translation adjustment component of accumulated other comprehensive income or loss. The Company's functional currencies include U.S. dollars, Brazilian reais, euros, British pounds, Colombian pesos and Canadian dollars. The assets and liabilities of these foreign entities are translated into U.S. dollars using the exchange rate at the end of the respective period. Sales, costs and expenses are translated at average exchange rates effective during the respective period. Foreign currency transactional and re-measurement gains and losses are included in other expense (income) in the Consolidated Income Statements. Such amounts are not significant to any of the periods presented. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred income taxes reflect tax consequences on future years of differences between the tax bases of assets and liabilities and their financial reporting amounts. Valuation allowances are provided against deferred tax assets when it is more likely than not that an asset will not be realized in accordance with ASC 740, Accounting for Income Taxes. In 2016, the Company adopted Accounting Standards Update ("ASU") 2015-17, Balance Sheet Classification of Deferred Taxes and reclassified all current deferred taxes and the related valuation allowances to noncurrent positions on the Consolidated Balance Sheets. The Company has provided for United States income taxes for the current earnings of its Canadian subsidiary. Earnings from all other geographies are considered retained indefinitely for reinvestment. See Note 12 - Income Taxes for further discussion. Additionally, the Company maintains reserves for uncertain tax provisions in accordance with ASC 740. See Note 12 - Income Taxes for more information. |
Share-Based Payments | Share-Based Payments The Company accounts for share-based compensation using the provisions of ASC 718, Accounting for Stock Compensation , which requires the recognition of the fair value of share-based compensation. Share-based compensation is estimated at the grant date based on the fair value of the awards, in accordance with the provisions of ASC 718. Since this compensation cost is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company has elected to expense grants of awards with graded vesting on a straight-line basis over the requisite service period for each separately vesting portion of the award. |
Common Stock Repurchases | Common stock repurchases Repurchases of common stock are accounted for at cost, which includes brokerage fees, and are included as a component of shareholder's equity on the Consolidated Balance Sheets. |
Comprehensive Income | Comprehensive Income ASC 220, Comprehensive Income , defines comprehensive income as the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The components of comprehensive income for the Company include net income, foreign currency translation adjustments and unrealized gains or losses on hedged transactions, net of tax arising from the consolidation of the Company’s foreign subsidiaries. |
Business Combinations | Business Combinations The Company accounts for business combinations in accordance with ASC 805, Business Combinations . ASC 805 establishes principles and requirements for recognizing the total consideration transferred to and the assets acquired, liabilities assumed and any non-controlling interest in the acquired target in a business combination. ASC 805 also provides guidance for recognizing and measuring goodwill acquired in a business combination and requires the acquirer to disclose information that users may need to evaluate and understand the financial impact of the business combination. See Note 5 - Acquisitions for further discussion. |
Reclassifications | Reclassifications Certain reclassifications have been made to prior year amounts in Note 14 - Segment Information , to conform with current period presentation. Depreciation expense and intangible amortization expense have been presented as individual lines on the Consolidated Income Statement in the current year and prior year balances have been reclassified to conform with current year presentation. These reclassifications had no effect on consolidated financial results. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued a comprehensive new revenue recognition standard for contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. The core principle of this standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, the standard provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. This guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The new standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early application is prohibited. The standard permits the use of either the retrospective or cumulative effect transition method. This guidance will be applicable to the Company for the fiscal year beginning July 1, 2018. The Company is currently in the process of evaluating the impact of this guidance on our consolidated financial results to determine the appropriate transition method for the Company. The Company has engaged a third-party consultant to assist with developing a multi-phase plan to assess the impact of adoption. The Company has also begun its initial review and analysis of business processes and current material contracts. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) requiring lessees to reflect most leases on their balance sheets and recognize expenses on their income statements in a manner similar to current guidance. Under the new guidance, lessees will be required to recognize a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis, and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The asset will be measured at the lease liability amount, adjusted for lease prepayments, lease incentives received and the lessee's initial direct costs. For leases with a lease term of 12 months or less, as long as the lease does not include options to purchase the underlying assets, lessees can elect not to recognize a lease liability and right-of-use asset. Under the new guidance, lessor accounting is largely unchanged, and the accounting for sale and leaseback transactions is simplified. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. This guidance will be applicable to the Company for the fiscal year beginning July 1, 2019. The guidance must be adopted using a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. The Company is currently evaluating the impact on its consolidated financial statements upon the adoption of this new guidance. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718) simplifying several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory withholding requirements, as well as classification in the statement of cash flows. Under the new guidance, an entity will recognize all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement. This change eliminates the current practice of recognizing excess tax benefits in additional paid-in-capital ("APIC") and tax deficiencies in APIC to the extent that there is a sufficient APIC pool related to previously recognized excess tax benefits. In addition, excess tax benefits and tax deficiencies are considered discrete items in the reporting period they occur and are not included in the estimate of an entity’s annual effective tax rate. As for classification on the statement of cash flows, excess tax benefits will no longer represent a financing activity since they are recognized in the income statement and will appropriately be classified as an operating activity. The ASU allows an entity to elect as an accounting policy either to continue to estimate the total number of awards for which the requisite service period will not be rendered (as currently required) or to account for forfeitures when they occur. In regards to statutory withholding requirements, the new guidance stipulates that the net settlement of an award would not result, by itself, in liability classification of the award provided that the amount withheld for taxes does not exceed the maximum statutory tax rate in the employees’ relevant tax jurisdictions. The standard is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. If early adoption is elected, all amendments in the ASU that apply must be adopted in the same period. This guidance will be applicable to the Company for the fiscal year beginning July 1, 2017. The Company is currently evaluating the impact on its consolidated financial statements upon the adoption of this new guidance. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) intended to reduce diversity in practice of how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The update addresses eight specific cash flow issues, with the treatment of contingent consideration payments made after a business combination being the most directly applicable to the Company. The update requires that cash payments made approximately three months or less after an acquisition's consummation date should be classified as cash outflows for investing activities. Payment made thereafter up to the amount of the original contingent consideration liability should be classified as cash outflows from financing activities. Payments made in excess of the amount of the original contingent consideration liability should be classified as cash outflows from operating activities. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The standard will be applicable to the Company for the fiscal year beginning July 1, 2018. Early adoption is permitted, provided all eight amendments are adopted in the same period. The guidance requires adoption using a retrospective transition method. The Company is currently evaluating the impact on its consolidated financial statements upon the adoption of this new guidance. In January 2017, the FASB issued guidance clarifying the definition of a business within ASC Topic 850 Business Combinations . The new standard narrows the definition of a business and therefore affects whether an acquisition represents the purchase of a business or an asset. The standard provides for an initial assessment to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, qualifying as an asset, not a business. If the definition of the acquisition is not clear after the initial assessment, the guidance provides framework to determine if the asset(s) acquired include an input and a substantive process that together significantly contribute to the ability to create an output, which constitutes a business. The distinction between a business and an asset is important because asset acquisitions do not result in goodwill, do not require the expensing of transaction costs and do not record contingent consideration at fair value at the acquisition date, as well as other accounting concepts. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted as long as the transaction has not been reported in financial statements that have been issued or made available for issuance. The Company adopted the new standard in connection with an asset acquisition completed during the quarter ended March 31, 2017 (See Note 6- Goodwill and Other Identifiable Intangible Assets ). In January 2017, the FASB issued guidance to simplify the accounting for goodwill impairment. It removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Goodwill impairment will now be calculated as the amount by which a reporting unit’s carrying value exceeds its fair value, not exceeding the carrying amount of goodwill. In addition, income tax effects from any tax deductible goodwill shall also be considered in measuring goodwill impairment loss, if applicable. The guidance is effective for annual and interim periods beginning after December 15, 2019 and should be adopted prospectively. Early adoption is permitted for interim or annual goodwill impairment test performed with a measurement date after January 1, 2017. The Company adopted the guidance prospectively as of April 30, 2017, our fiscal year 2017 impairment testing date. The adoption did not have an impact on the Company's consolidated financial statements. The Company has reviewed other newly issued accounting pronouncements and concluded that they are either not applicable to its business or that no material effect is expected on its consolidated financial statements as a result of future adoption. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Share | Fiscal Year Ended June 30, 2017 2016 2015 (in thousands, except per share data) Numerator: Net income $ 69,246 63,619 65,419 Denominator: Weighted-average shares, basic 25,318 26,472 28,558 Dilutive effect of share-based payments 197 215 241 Weighted-average shares, diluted 25,515 26,687 28,799 Net income per common share, basic $ 2.74 $ 2.40 $ 2.29 Net income per common share, diluted $ 2.71 $ 2.38 $ 2.27 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment is comprised of the following: June 30, 2017 2016 (in thousands) Land $ 3,331 $ 3,009 Buildings and leasehold improvements 21,101 20,473 Computer software and equipment 53,583 46,112 Furniture, fixtures and equipment 26,059 23,316 Construction in progress 4,556 4,897 108,630 97,807 Less accumulated depreciation (52,064 ) (45,419 ) $ 56,566 $ 52,388 |
Accrued Expenses and Other Cu28
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Current Liabilities | Accrued expenses and other current liabilities is comprised of the following: June 30, 2017 2016 (in thousands) Deferred warranty revenue $ 28,724 $ 29,836 Accrued compensation 21,713 19,917 Other taxes payable 18,440 11,044 Accrued marketing expense 5,914 2,459 Brazilian pre-acquisition contingencies 4,727 2,941 Accrued freight 3,392 3,507 Other accrued liabilities 21,805 29,271 $ 104,715 $ 98,975 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Business Acquisition [Line Items] | |
Schedule of Unaudited Consolidated Pro Forma Results of Operations | The following tables summarize the Company's unaudited consolidated pro forma results of operations as though the acquisition happened on July 1, 2015. The pro forma consolidated financial statements do not necessarily reflect what the combined company's financial condition or results from operations would have been had the acquisition occurred on the dates indicated. They also may not be useful in predicting the future financial condition and results of operations of the combined company. The actual financial position and results of operations may differ significantly from the pro forma amounts reflected herein due to a variety of factors. For the two months ended August 31, 2016 and the fiscal year ended June 30, 2016, the Company has not provided for a change in fair value of contingent consideration. Fiscal year ended June 30, 2017 Fiscal year ended June 30, 2016 (in thousands, except per share data) (in thousands, except per share data) As Reported, Consolidated Pro forma, Consolidated (1) As Reported, Consolidated Pro forma, Consolidated (2) Net Sales $ 3,568,186 $ 3,573,402 $ 3,540,226 $ 3,568,567 Operating income 88,239 89,691 96,877 102,085 Net Income 69,246 70,331 63,619 66,823 Earnings per share: Basic $ 2.74 $ 2.78 $ 2.40 $ 2.52 Diluted $ 2.71 $ 2.76 $ 2.38 $ 2.50 (1) Pro forma results include actual results from Intelisys for the two months ended August 31, 2016. Adjustments include additional amortization and depreciation expense as if the fair value of identifiable intangible assets, including software, had been recorded on July 1, 2015. On a gross basis, operating income includes additional amortization expense of $1.1 million and additional depreciation expense of $0.2 million for the fiscal year ended June 30, 2017 . Net income, net of tax, includes additional amortization expense of $0.7 million and additional depreciation expense of $0.1 million for the fiscal year ended June 30, 2017 . Adjustments also include additional income tax expense of $0.8 million and adding back acquisition costs of $0.5 million . (2) Includes actual results for Intelisys for the fiscal year ended June 30, 2016 . On a gross basis, operating income includes additional amortization expense of $6.3 million and additional depreciation expense of $1.0 million for the fiscal year ended June 30, 2016 . Net income, net of tax, includes additional amortization expense of $4.0 million and additional depreciation expense of $0.6 million for the fiscal year ended June 30, 2016 . Adjustments also include additional income tax expense of $4.6 million and adding back acquisition costs of $0.3 million . Following the August 29, 2016 acquisition date, Intelisys contributed the following results to the Condensed Consolidated Income Statement for the fiscal year ended June 30, 2017 . Fiscal year ended June 30, 2017 (in thousands) Net Sales $ 29,422 Amortization of intangible assets (5,386 ) Change in fair value of contingent consideration (12,117 ) Operating loss (1) (4,204 ) Net loss (1) $ (2,675 ) (1) Operating loss and net loss reflect amortization expense of $5.4 million and expense for change in fair value of contingent consideration of $12.1 million in fiscal year June 30, 2017 . |
Intelisys [Member] | |
Business Acquisition [Line Items] | |
Schedule of Purchase Price Allocation | Intelisys (in thousands) Receivables, net $ 21,655 Other current assets 1,547 Property and equipment, net 5,298 Goodwill 109,005 Identifiable intangible assets 63,110 Other non-current assets 1,839 $ 202,454 Accounts payable $ 21,063 Accrued expenses and other current liabilities 2,587 Contingent consideration 95,000 Consideration transferred, net of cash acquired 83,804 $ 202,454 |
KBZ [Member] | |
Business Acquisition [Line Items] | |
Schedule of Purchase Price Allocation | The purchase price allocation is as follows: September 4, 2015 (in thousands) Receivables, net $ 63,131 Inventory 11,227 Other current assets 10,303 Property and equipment, net 677 Goodwill 21,639 Identifiable intangible assets 18,400 Other non-current assets 1,399 $ 126,776 Accounts payable $ 48,271 Accrued expenses and other current liabilities 14,863 Other long-term liabilities 2,167 Consideration transferred, net of cash acquired 61,475 $ 126,776 |
Goodwill and Other Identifiab30
Goodwill and Other Identifiable Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | Changes in the carrying amount of goodwill for the years ended June 30, 2017 and 2016 , by reportable segment, are as follows: Worldwide Barcode, Networking & Security Segment Worldwide Communications & Services Segment Total (in thousands) Balance at June 30, 2015 $ 15,535 $ 50,974 $ 66,509 Additions 21,639 8,496 1 30,135 Unrealized gain (loss) on foreign currency translation (740 ) (3,189 ) (3,929 ) Balance at June 30, 2016 $ 36,434 $ 56,281 $ 92,715 Additions — 109,005 2 109,005 Unrealized gain (loss) on foreign currency translation (174 ) (665 ) (839 ) Balance at June 30, 2017 $ 36,260 $ 164,621 $ 200,881 (1) The Company finalized the purchase accounting for the Network1 acquisition during the quarter ended December 31, 2015 and subsequently identified an additional correction in the quarter ended March 31, 2016, which resulted in an increased value assumed for goodwill as compared to June 30, 2015. (2) Additions to goodwill for fiscal year ended June 30, 2016 are due to the Intelisys acquisition. |
Schedule of Identifiable Intangible Assets | The following table shows the Company’s identifiable intangible assets as of June 30, 2017 and 2016 , respectively. June 30, 2017 June 30, 2016 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value (in thousands) Amortized intangible assets: Customer relationships $ 110,691 $ 27,977 $ 82,714 $ 70,379 $ 26,668 $ 43,711 Trade names 23,256 8,691 14,565 11,270 4,398 6,872 Non-compete agreements 1,160 608 552 1,103 777 326 Distributor agreements 355 158 197 345 127 218 Supplier partner program 3,583 98 3,485 — — — Total intangibles $ 139,045 $ 37,532 $ 101,513 $ 83,097 $ 31,970 $ 51,127 |
Schedule of Estimated Future Amortization Expense | Estimated future amortization expense is as follows: Amortization Expense (in thousands) Year Ended June 30, 2018 $ 14,669 2019 12,617 2020 12,011 2021 11,905 2022 10,705 Thereafter 39,606 Total $ 101,513 |
Short-Term Borrowings and Lon31
Short-Term Borrowings and Long-Term Debt (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | The following table shows the Company’s long term debt as of June 30, 2017 and 2016 , respectively. 2017 2016 (in thousands) Revolving credit facility $ 91,871 $ 71,427 Long term debt 5,429 5,429 Total debt $ 97,300 $ 76,856 |
Schedule of Maturities of Revolving Credit Facility and Long-term Debt | Scheduled maturities of the Company’s revolving credit facility and long-term debt at June 30, 2017 are as follows: Revolving Credit Facility Long-Term Debt (in thousands) Fiscal year: 2018 $ — $ — 2019 — 312 2020 — 319 2021 — 325 2022 91,871 332 Thereafter — 4,141 Total principal payments $ 91,871 $ 5,429 |
Derivatives and Hedging Activ32
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Derivative Contracts and Changes in Underlying Value of the Foreign Currency Exposures | Summarized financial information related to these derivative contracts and changes in the underlying value of the foreign currency exposures are as follows: Fiscal Year Ended June 30, 2017 2016 2015 (in thousands) Net foreign exchange derivative contract (gain) loss $ 146 $ (1,951 ) $ (5,364 ) Net foreign currency transactional and re-measurement (gain) loss 1,773 4,522 8,408 Net foreign currency (gain) loss $ 1,919 $ 2,571 $ 3,044 |
Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The components of the cash flow hedge included in accumulated other comprehensive income (loss), net of income taxes, in the Consolidated Statements of Shareholders’ Equity, are as follows: Fiscal Year Ended June 30, 2017 (in thousands) Net interest expense recognized as a result of interest rate swap $ 7 Unrealized gain (loss) in fair value of interest swap rates 14 Net increase (decrease) in accumulated other comprehensive income (loss) $ 21 Income tax effect 8 Net increase (decrease) in accumulated other comprehensive income (loss), net of tax $ 13 |
Derivative Instruments | The Company has the following derivative instruments located on the Consolidated Balance Sheets and Income Statements, utilized for the risk management purposes detailed above: June 30, 2017 Balance Sheet Location Fair Value of Derivatives Designated as Hedge Instruments Fair Value of Derivatives Not Designated as Hedge Instruments (in thousands) Derivative assets: Foreign exchange contracts Prepaid expenses and other current assets $ — $ 35 Interest rate swap agreement Other non-current assets $ 21 $ — Derivative liabilities: Foreign exchange contracts Accrued expenses and other current liabilities $ — $ 131 |
Fair Value of Financial Instr33
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Short-term Investments and Financial Instruments | The following table summarizes the valuation of the Company's remaining assets and liabilities measured at fair value on a recurring basis as of June 30, 2017 : Total Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (in thousands) Assets: Deferred compensation plan investments, current and non-current portion $ 21,439 $ 21,439 $ — $ — Forward foreign currency exchange contracts 35 — 35 — Interest rate swap agreement 21 — 21 — Total assets at fair value $ 21,495 $ 21,439 $ 56 $ — Liabilities: Deferred compensation plan investments, current and non-current portion $ 21,074 $ 21,074 $ — $ — Forward foreign currency exchange contracts 131 — 131 — Liability for contingent consideration, current and non-current 114,036 — — 114,036 Total liabilities at fair value $ 135,241 $ 21,074 $ 131 $ 114,036 The following table presents assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 : Total Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (in thousands) Assets: Deferred compensation plan investments, current and non-current portion $ 17,893 $ 17,893 $ — $ — Forward foreign currency exchange contracts 33 — 33 — Interest rate swap agreement — — — — Total assets at fair value $ 17,926 $ 17,893 $ 33 $ — Liabilities: Deferred compensation plan investments, current and non-current portion $ 17,893 $ 17,893 $ — $ — Forward foreign currency exchange contracts 551 — 551 — Liability for contingent consideration, current and non-current 24,652 — — 24,652 Total liabilities at fair value $ 43,096 $ 17,893 $ 551 $ 24,652 |
Fair Value, Business Acquisition, Liability for Contingent Consideration | The table below provides a summary of the changes in fair value of the Company’s contingent considerations for the Imago, Network1 and Intelisys earnouts, which is measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the fiscal year ended June 30, 2017 : Contingent Consideration for the Fiscal Year Ended June 30, 2017 Worldwide Barcode, Networking & Security Segment Worldwide Communications & Services Segment Total (in thousands) Fair value at beginning of period $ — $ 24,652 $ 24,652 Issuance of contingent consideration — 95,000 95,000 Payments — (10,241 ) (10,241 ) Change in fair value — 5,211 5,211 Fluctuation due to foreign currency exchange — (586 ) (586 ) Fair value at end of period $ — $ 114,036 $ 114,036 The table below provides a summary of the changes in fair value of the Company’s contingent considerations for the CDC, Imago and Network1 earnouts, which is measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the fiscal year ended June 30, 2016 : Contingent Consideration for the Fiscal Year Ended June 30, 2016 Worldwide Barcode, Networking & Security Segment Worldwide Communications & Services Segment Total (in thousands) Fair value at beginning of period $ 5,109 $ 28,851 $ 33,960 Payments (4,453 ) (4,153 ) (8,606 ) Change in fair value 181 1,113 1,294 Fluctuation due to foreign currency exchange (837 ) (1,159 ) (1,996 ) Fair value at end of period $ — $ 24,652 $ 24,652 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | Valuation techniques and significant observable inputs used in recurring Level 3 fair value measurements for our contingent consideration liabilities as of June 30, 2017 and 2016 were as follows. Reporting Period Valuation Technique Significant Unobservable Inputs Weighted Average Rates June 30, 2017 Discounted cash flow Weighted average cost of capital 14.2 % Adjusted EBITDA growth rate 17.0 % June 30, 2016 Discounted cash flow Weighted average cost of capital 17.1 % Adjusted EBITDA growth rate 40.7 % |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Share-based Compensation [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | Total share-based compensation included as a component of selling, general, and administrative expenses in our Consolidated Income Statements was as follows: Fiscal Year Ended June 30, 2017 2016 2015 (in thousands) Share-based compensation related to: Equity classified stock options $ 1,356 $ 1,479 $ 1,480 Equity classified restricted stock 5,246 5,614 5,042 Total share-based compensation $ 6,602 $ 7,093 $ 6,522 |
Weighted Average Assumptions for the Options Granted During the Following Fiscal Years | The Company used the following weighted-average assumptions for the options granted during the following fiscal years: Fiscal Year Ended June 30, 2017 2016 2015 Expected term 5 years 4.02 years 4.02 years Expected volatility 30.88 % 28.70 % 30.06 % Risk-free interest rate 1.84 % 1.47 % 1.22 % Dividend yield 0.00 % 0.00 % 0.00 % Weighted-average fair value per option $ 11.26 $ 9.53 $ 10.51 |
Stock Option Plans | A summary of our stock option plans is presented below: Fiscal Year Ended June 30, 2017 Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding, beginning of year 1,098,165 $ 36.52 Granted during the period 77,339 37.00 Exercised during the period (300,590 ) 33.40 Canceled, forfeited, or expired during the period (1,925 ) 39.12 Outstanding, end of year 872,989 37.63 5.81 $ 2,759,060 Vested and expected to vest at June 30, 2017 872,187 37.63 5.81 $ 2,756,896 Exercisable, end of year 657,019 $ 37.35 4.92 $ 2,321,846 |
Unvested Shares | A summary of the status of the Company’s shares subject to unvested options is presented below: Fiscal Year Ended June 30, 2017 Options Weighted Average Exercise Price Weighted Average Grant Date Fair- Value Unvested, beginning of year 278,495 $ 39.96 $ 10.27 Granted 77,339 37.00 11.26 Vested (138,214 ) 40.61 10.60 Canceled or forfeited (1,650 ) 39.53 12.26 Unvested, end of year 215,970 $ 38.48 $ 10.39 |
Stock Options Outstanding | The following table summarizes information about stock options outstanding and exercisable as of June 30, 2017 : Options Outstanding Options Exercisable Range of Exercise Prices Shares Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $18.13 - $22.27 2,800 1.43 $ 18.14 2,800 $ 18.14 $22.27 - $26.38 29,991 2.43 24.57 29,991 24.57 $26.38 - $30.49 20,731 5.44 29.80 20,731 29.80 $30.49 - $34.60 82,839 4.99 34.27 82,839 34.27 $34.60 - $38.71 452,179 5.48 36.97 290,360 36.62 $38.71 - $42.82 284,449 7.01 41.79 230,298 41.95 872,989 5.81 $ 37.63 657,019 $ 37.35 |
Restricted Stock Outstanding | During the fiscal year ended June 30, 2017 , the Company granted 170,368 shares of restricted stock to employees and non-employee directors, all of which were issued in the form of RSUs or PUs: Fiscal Year Ended June 30, 2017 Shares granted Date granted Grant date fair value Vesting period Employees Certain employees based on performance 207 September 2, 2016 $ 35.79 Annually over 3 years Certain employees based on promotion 2,884 September 7, 2016 $ 35.73 Annually over 3 years Certain employees based on performance 433 September 7, 2016 $ 35.73 Annually over 3 years Certain employees based on promotion 721 November 10, 2016 $ 34.20 Annually over 3 years Certain employees 151,623 December 2, 2016 $ 37.00 Annually over 3 years Non-Employee Directors (1) Certain Directors 14,500 December 2, 2016 $ 37.00 6 months (1) Under the 2013 Long-Term Incentive Plan, non-employee directors receive annual awards of restricted stock, as opposed to stock options. The number of shares of restricted stock to be granted is established from time to time by the Board of Directors. Currently, the number of shares of restricted stock awarded annually to each non-employee director generally is determined by dividing $100,000 by the equity award value of the common stock on the date of grant, as defined in the 2013 Long-Term Incentive Plan. The equity award value means the value per share based on a 45 -day averaging of the fair market value of the common stock over a specified period of time, or the fair market value of the common stock on a specified date. These awards will generally vest in full on the day that is six months after the date of grant or upon the earlier occurrence of (i) the director’s termination of service as a director by reason of death, disability or retirement, or (ii) a change in control by the Company. The compensation expense associated with these awards will be recognized on a pro-rata basis over this period. A summary of the status of the Company’s outstanding restricted stock is presented below: Fiscal Year Ended June 30, 2017 Shares Weighted-Average Grant Date Fair Value Outstanding, beginning of year 274,804 $ 39.06 Granted during the period 170,368 36.77 Target shares adjustment during the period (1) (1,008 ) 34.80 Vested during the period (137,894 ) 40.07 Cancelled, forfeited, or expired during the period (38,884 ) 38.18 Outstanding, end of year 267,386 $ 37.86 (1) These target shares granted as RSUs during fiscal year 2015 have service based and performance based vesting conditions. The actual number of shares granted for each of the three tranches, for the period June 1, 2014 through June 30, 2017, is determined after the date of the Company's financial statements. Therefore, the adjustment recognized during fiscal year 2017 represents the variance between the shares assumed to be granted versus at June 30, 2016 the actual shares granted for the second tranche. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Employer Contributions | Fiscal Year Ended June 30, 2017 2016 2015 (in thousands) Matching contributions $ 875 $ 735 $ 626 Discretionary contributions 3,413 3,617 5,350 Total contributions $ 4,288 $ 4,352 $ 5,976 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense (Benefit) | Income tax expense (benefit) consists of: Fiscal Year Ended June 30, 2017 2016 2015 (in thousands) Current: Federal $ 31,149 $ 21,855 $ 24,658 State 2,615 1,652 1,639 Foreign 269 6,100 4,927 Total current 34,033 29,607 31,224 Deferred: Federal (3,832 ) 3,990 2,165 State (397 ) 365 198 Foreign 2,445 (1,571 ) 900 Total deferred (1,784 ) 2,784 3,263 Provision for income taxes $ 32,249 $ 32,391 $ 34,487 |
Reconciliation of U.S.Federal Income Tax Expense | A reconciliation of the U.S. Federal income tax expense at a statutory rate of 35% to actual income tax expense, excluding any other taxes related to extraordinary gain is as follows: Fiscal Year Ended June 30, 2017 2016 2015 (in thousands) U.S. Federal income tax at statutory rate $ 35,524 $ 33,603 $ 34,967 Increase (decrease) in income taxes due to: State and local income taxes, net of Federal benefit 1,729 1,578 1,318 Tax credits (1,430 ) (2,517 ) (1,435 ) Valuation allowance 444 541 582 Effect of foreign operations, net (1,477 ) (1,150 ) (1,665 ) Stock compensation (61 ) (62 ) (419 ) Capitalized acquisition costs 231 70 839 Nontaxable income (4,437 ) — — Disallowed interest 2,011 571 — Other (285 ) (243 ) 300 Provision for income taxes $ 32,249 $ 32,391 $ 34,487 |
Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: June 30, 2017 2016 (in thousands) Deferred tax assets derived from: Allowance for accounts receivable $ 11,687 $ 12,458 Inventories 5,235 4,799 Nondeductible accrued expenses 3,968 3,842 Net operating loss carryforwards 3,141 3,036 Tax credits 4,094 3,316 Timing of amortization deduction from goodwill 1,285 2,660 Deferred compensation 7,934 6,733 Stock compensation 5,424 6,014 Timing of amortization deduction from intangible assets 3,032 2,045 Total deferred tax assets 45,800 44,903 Valuation allowance (3,473 ) (3,029 ) Total deferred tax assets, net of allowance 42,327 41,874 Deferred tax liabilities derived from: Timing of depreciation and other deductions from building and equipment (7,778 ) (6,827 ) Timing of amortization deduction from goodwill (5,013 ) (5,815 ) Timing of amortization deduction from intangible assets (2,053 ) (2,974 ) Total deferred tax liabilities (14,844 ) (15,616 ) Net deferred tax assets $ 27,483 $ 26,258 |
Components of Pretax Earnings | The components of pretax earnings are as follows: Fiscal Year Ended June 30, 2017 2016 2015 (in thousands) Domestic $ 79,871 $ 76,062 $ 79,364 Foreign 21,624 19,948 20,542 Worldwide pretax earnings $ 101,495 $ 96,010 $ 99,906 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: June 30, 2017 2016 2015 (in thousands) Beginning Balance $ 2,148 $ 1,301 $ 1,153 Additions based on tax positions related to the current year 174 326 262 Additions for tax positions of prior years — 658 — Reduction for tax positions of prior years (146 ) (137 ) (114 ) Ending Balance $ 2,176 $ 2,148 $ 1,301 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Business Acquisition [Line Items] | |
Lease Expense | Lease expense and future minimum lease payments under operating leases and the single capital lease are as follows: Fiscal Year Ended June 30, 2017 2016 2015 (in thousands) Lease expense $ 8,703 $ 7,394 $ 6,168 |
Future Minimum Lease Payments | Operating Lease Payments Capital Lease Payments Total Payments (in thousands) Fiscal Year Ended June 30, 2018 $ 7,873 $ 579 $ 8,452 2019 5,939 579 6,518 2020 4,906 579 5,485 2021 3,952 — 3,952 2022 3,244 — 3,244 Thereafter 13,629 — 13,629 Total future minimum lease payments 39,543 1,737 41,280 Less: amounts representing interest on capital lease — 50 50 Total future minimum principal lease payments $ 39,543 $ 1,687 $ 41,230 |
Schedule of Capital Leased Assets | The components of the Company's capital lease as of June 30, 2017 are as follows: Capital Lease Obligations Property & Equipment Accumulated Depreciation Net Book Value Short-Term Long-Term Total (in thousands) IT Infrastructure $ 1,687 $ — $ 1,687 $ 553 $ 1,134 $ 1,687 |
CDC Brasil S A [Member] | |
Business Acquisition [Line Items] | |
Schedule of Pre-acquisition Contingencies and Corresponding Indemnifications Receivables | The table below summarizes the balances and line item presentation of CDC's pre-acquisition contingencies and corresponding indemnification receivables in the Company's consolidated balance sheet: June 30, 2017 June 30, 2016 (in thousands) Assets Prepaid expenses and other assets (current) $ 2,212 $ 2,346 Other assets (noncurrent) $ — $ — Liabilities Other current liabilities $ 2,212 $ 2,346 Other long-term liabilities $ — $ — |
Network1 [Member] | |
Business Acquisition [Line Items] | |
Schedule of Pre-acquisition Contingencies and Corresponding Indemnifications Receivables | The table below summarizes the balances and line item presentation of Network1's pre-acquisition contingencies and corresponding indemnification receivables in the Company's consolidated balance sheet: June 30, 2017 June 30, 2016 (in thousands) Assets Prepaid expenses and other assets (current) $ 1,294 $ 595 Other assets (noncurrent) $ 8,235 $ 9,837 Liabilities Other current liabilities $ 1,294 $ 595 Other long-term liabilities $ 8,235 $ 9,837 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Financial Information by Segment | Selected financial information for each business segment is presented below: Fiscal Year Ended June 30, 2017 2016 2015 (in thousands) Sales: Worldwide Barcode, Networking & Security $ 2,389,256 $ 2,361,670 $ 2,118,739 Worldwide Communications & Services 1,178,930 1,178,556 1,099,887 $ 3,568,186 $ 3,540,226 $ 3,218,626 Depreciation and amortization: Worldwide Barcode, Networking & Security $ 6,496 $ 5,651 $ 3,813 Worldwide Communications & Services 15,099 8,543 6,912 Corporate 3,373 2,960 1,272 $ 24,968 $ 17,154 $ 11,997 Operating income: Worldwide Barcode, Networking & Security $ 49,727 $ 52,227 $ 47,985 Worldwide Communications & Services 39,768 45,513 56,710 Corporate (1) (1,256 ) (863 ) (3,254 ) $ 88,239 $ 96,877 $ 101,441 Capital expenditures: Worldwide Barcode, Networking & Security $ 3,796 $ 5,298 $ 733 Worldwide Communications & Services 3,163 3,923 1,448 Corporate 1,890 2,860 18,581 $ 8,849 $ 12,081 $ 20,762 Sales by Geography Category: United States $ 2,719,413 $ 2,655,760 $ 2,391,073 International (2) 882,446 920,098 871,862 Less intercompany sales (33,673 ) (35,632 ) (44,309 ) $ 3,568,186 $ 3,540,226 $ 3,218,626 (1) For the years ended June 30, 2017, 2016 and 2015, the amounts shown above include acquisition costs. (2) For the years ended June 30, 2017, 2016 and 2015, there were no sales in excess of 10% of consolidated net sales to any single international country. June 30, 2017 June 30, 2016 (in thousands) Assets: Worldwide Barcode, Networking & Security $ 885,786 $ 836,674 Worldwide Communications & Services 769,342 595,781 Corporate 63,175 58,730 $ 1,718,303 $ 1,491,185 Property and equipment, net by Geography Category: United States $ 51,853 $ 46,935 International 4,713 5,453 $ 56,566 $ 52,388 |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components Of Accumulated Other Comprehensive Income, Net Of Tax | The components of accumulated other comprehensive (loss) income, net of tax, are as follows: Fiscal Years Ended June 30, 2017 2016 2015 (in thousands) Currency translation adjustment $ (73,217 ) $ (72,687 ) $ (64,502 ) Unrealized gain on fair value of interest rate swap 13 — — Accumulated other comprehensive loss $ (73,204 ) $ (72,687 ) $ (64,502 ) |
Schedule of Other Comprehensive Income (Loss), Tax | The tax effect of amounts in comprehensive income (loss) reflect a tax expense or benefit as follows: Fiscal years ended June 30, 2017 2016 2015 (in thousands) Tax expense (benefit) $ (396 ) $ 327 $ 2,382 |
Business and Summary of Signi40
Business and Summary of Significant Accounting Policies (Narrative) (Details) | 1 Months Ended | 12 Months Ended | 23 Months Ended | ||||
Aug. 31, 2016USD ($) | Aug. 31, 2014USD ($) | Jun. 30, 2017USD ($)product_lineearnout_paymentsegmentshares | Jun. 30, 2016USD ($)shares | Jun. 30, 2015USD ($)shares | Jun. 30, 2016USD ($)shares | Jun. 30, 2014USD ($) | |
Number of reportable segments | segment | 2 | ||||||
Amount of related party transactions | $ 0 | $ 0 | $ 0 | ||||
Cash and cash equivalents | $ 56,094,000 | 61,400,000 | $ 121,646,000 | $ 61,400,000 | $ 194,851,000 | ||
Derivative contract term | 90 days | ||||||
Deferred compensation plan assets | $ 21,439,000 | 17,893,000 | 17,893,000 | ||||
Portion of investment obligation in current liabilities | $ 2,700,000 | $ 1,600,000 | $ 1,600,000 | ||||
Number of product lines with warranty programs | product_line | 3 | ||||||
Product warranty term | 30 days | ||||||
Service revenue as a percent of net sales, maximum | 3.00% | 3.00% | 3.00% | ||||
Service revenue maximum percentage of consolidated net sales for acquisition | 1.00% | ||||||
Shipping revenue | $ 12,800,000 | $ 13,000,000 | $ 12,200,000 | ||||
Period in force for stock repurchase program | 3 years | 3 years | |||||
Value of stock repurchased during period | $ 120,000,000 | $ 120,000,000 | |||||
Shares of stock repurchased during period | shares | 600,000 | 3,400,000 | |||||
Value of stock repurchased during period | $ 20,335,000 | $ 100,751,000 | $ 18,768,000 | $ 119,500,000 | |||
Building Improvements [Member] | |||||||
Property and equipment, estimated useful life (years) | 15 years | ||||||
Minimum [Member] | Furniture [Member] | |||||||
Property and equipment, estimated useful life (years) | 3 years | ||||||
Minimum [Member] | Equipment [Member] | |||||||
Property and equipment, estimated useful life (years) | 3 years | ||||||
Minimum [Member] | Software [Member] | |||||||
Property and equipment, estimated useful life (years) | 3 years | ||||||
Minimum [Member] | Buildings [Member] | |||||||
Property and equipment, estimated useful life (years) | 25 years | ||||||
Minimum [Member] | Customer Relationships [Member] | |||||||
Intangible assets, estimated useful life (years) | 5 years | ||||||
Minimum [Member] | Distribution Rights [Member] | |||||||
Intangible assets, estimated useful life (years) | 5 years | ||||||
Minimum [Member] | Supplier Partner Agreements [Member] | |||||||
Intangible assets, estimated useful life (years) | 5 years | ||||||
Minimum [Member] | Trade Names [Member] | |||||||
Intangible assets, estimated useful life (years) | 1 year | ||||||
Maximum [Member] | Furniture [Member] | |||||||
Property and equipment, estimated useful life (years) | 10 years | ||||||
Maximum [Member] | Equipment [Member] | |||||||
Property and equipment, estimated useful life (years) | 10 years | ||||||
Maximum [Member] | Software [Member] | |||||||
Property and equipment, estimated useful life (years) | 10 years | ||||||
Maximum [Member] | Buildings [Member] | |||||||
Property and equipment, estimated useful life (years) | 40 years | ||||||
Maximum [Member] | Customer Relationships [Member] | |||||||
Intangible assets, estimated useful life (years) | 15 years | ||||||
Maximum [Member] | Distribution Rights [Member] | |||||||
Intangible assets, estimated useful life (years) | 15 years | ||||||
Maximum [Member] | Supplier Partner Agreements [Member] | |||||||
Intangible assets, estimated useful life (years) | 15 years | ||||||
Maximum [Member] | Trade Names [Member] | |||||||
Intangible assets, estimated useful life (years) | 5 years | ||||||
Customer Concentration Risk [Member] | Maximum [Member] | |||||||
Concentration risk percentage | 5.00% | 5.00% | 5.00% | ||||
Supplier Concentration Risk [Member] | Minimum [Member] | |||||||
Concentration risk percentage | 10.00% | 10.00% | 10.00% | ||||
International [Member] | |||||||
Cash and cash equivalents | $ 47,900,000 | $ 52,700,000 | 52,700,000 | ||||
Bank Overdrafts [Member] | |||||||
Outstanding checks | $ 48,500,000 | $ 78,300,000 | $ 78,300,000 | ||||
Network1 [Member] | |||||||
Number of remaining earnout payments | earnout_payment | 2 | ||||||
Intelisys [Member] | |||||||
Number of remaining earnout payments | earnout_payment | 4 | ||||||
Common Stock Including Additional Paid in Capital [Member] | |||||||
Shares of stock repurchased during period | shares | 577,643 | 2,884,210 | 479,825 | ||||
Value of stock repurchased during period | $ 20,335,000 | $ 100,751,000 | $ 18,768,000 | ||||
Interest Rate Swap [Member] | |||||||
Ineffective portion of cash flow hedge | $ 0 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Numerator: | |||
Net income | $ 69,246 | $ 63,619 | $ 65,419 |
Denominator: | |||
Weighted-average shares, basic (in shares) | 25,318,000 | 26,472,000 | 28,558,000 |
Dilutive effect of share-based payments (in shares) | 197,000 | 215,000 | 241,000 |
Weighted-average shares, diluted (in shares) | 25,515,000 | 26,687,000 | 28,799,000 |
Net income per common share, basic (in dollars per share) | $ 2.74 | $ 2.40 | $ 2.29 |
Net income per common share, diluted (in dollars per share) | $ 2.71 | $ 2.38 | $ 2.27 |
Weighted average shares excluded from the computation of diluted earnings per share (in shares) | 418,325 | 461,090 | 340,697 |
Property and Equipment (Compone
Property and Equipment (Components of Property and Equipment) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 3,331 | $ 3,009 |
Buildings and leasehold improvements | 21,101 | 20,473 |
Computer software and equipment | 53,583 | 46,112 |
Furniture, fixtures and equipment | 26,059 | 23,316 |
Construction in progress | 4,556 | 4,897 |
Property and equipment, gross | 108,630 | 97,807 |
Less accumulated depreciation | (52,064) | (45,419) |
Property and equipment, net | $ 56,566 | $ 52,388 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 9,444 | $ 7,326 | $ 5,356 |
Accrued Expenses and Other Cu44
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Payables and Accruals [Abstract] | ||
Deferred warranty revenue | $ 28,724 | $ 29,836 |
Accrued compensation | 21,713 | 19,917 |
Other taxes payable | 18,440 | 11,044 |
Accrued marketing expense | 5,914 | 2,459 |
Brazilian pre-acquisition contingencies | 4,727 | 2,941 |
Accrued freight | 3,392 | 3,507 |
Other accrued liabilities | 21,805 | 29,271 |
Accrued expensed and other current liabilities | $ 104,715 | $ 98,975 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ in Thousands | Aug. 29, 2016USD ($)payment | Sep. 04, 2015USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) |
Business Acquisition [Line Items] | |||||
Cash paid for business acquisitions, net of cash acquired | $ 83,804 | $ 61,475 | $ 59,779 | ||
Weighted average amortization period | 10 years | 10 years | 10 years | ||
Additional amortization expense of intangible assets | $ 15,524 | $ 9,828 | $ 6,641 | ||
Provision for income taxes | 32,249 | 32,391 | $ 34,487 | ||
Intelisys [Member] | |||||
Business Acquisition [Line Items] | |||||
Initial cash payment | $ 84,600 | ||||
Initial purchase price | 83,600 | ||||
Additional net assets acquired | $ 1,000 | ||||
Number of payments | payment | 4 | ||||
Cash acquired in acquisition | $ 800 | ||||
Cash paid for business acquisitions, net of cash acquired | $ 83,804 | ||||
Escrow deposits received from seller | $ 8,500 | ||||
Weighted average amortization period | 10 years | ||||
Additional amortization expense of intangible assets | $ 5,386 | ||||
Change in fair value | (12,117) | ||||
KBZ [Member] | |||||
Business Acquisition [Line Items] | |||||
Initial cash payment | $ 64,600 | ||||
Cash acquired in acquisition | 3,100 | ||||
Cash paid for business acquisitions, net of cash acquired | $ 61,475 | ||||
Acquisition-related costs | 200 | ||||
Weighted average amortization period | 8 years | ||||
Fair Value Adjustment to Intangible Assets [Member] | Intelisys [Member] | |||||
Business Acquisition [Line Items] | |||||
Additional amortization expense of intangible assets | 1,100 | 6,300 | |||
Additional amortization expense of intangible assets, net | 700 | 4,000 | |||
Fair Value Adjustment to Property, Plant and Equipment [Member] | Intelisys [Member] | |||||
Business Acquisition [Line Items] | |||||
Additional depreciation expense | 200 | 1,000 | |||
Additional depreciation expense, net | 100 | 600 | |||
Fair Value Adjustment to Income Tax Expense [Member] | Intelisys [Member] | |||||
Business Acquisition [Line Items] | |||||
Provision for income taxes | 800 | 4,600 | |||
Fair Value Adjustment and Acquisition-related Costs [Member] | Intelisys [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition-related costs | 500 | 300 | |||
Fair Value, Inputs, Level 3 [Member] | |||||
Business Acquisition [Line Items] | |||||
Change in fair value | (5,211) | (1,294) | |||
Fair Value, Inputs, Level 3 [Member] | Communications and Services Products [Member] | |||||
Business Acquisition [Line Items] | |||||
Change in fair value | (5,211) | $ (1,113) | |||
Fair Value, Inputs, Level 3 [Member] | Communications and Services Products [Member] | Intelisys [Member] | |||||
Business Acquisition [Line Items] | |||||
Change in fair value | $ (12,100) |
Acquisitions (Schedule of Purch
Acquisitions (Schedule of Purchase Price Allocations of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Aug. 29, 2016 | Sep. 04, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 200,881 | $ 92,715 | $ 66,509 | ||
Contingent consideration | 114,036 | 24,652 | |||
Consideration transferred, net of cash acquired | $ 83,804 | $ 61,475 | $ 59,779 | ||
Intelisys [Member] | |||||
Business Acquisition [Line Items] | |||||
Receivables, net | $ 21,655 | ||||
Other current assets | 1,547 | ||||
Property and equipment, net | 5,298 | ||||
Goodwill | 109,005 | ||||
Identifiable intangible assets | 63,110 | ||||
Other non-current assets | 1,839 | ||||
Total assets | 202,454 | ||||
Accounts payable | 21,063 | ||||
Accrued expenses and other current liabilities | 2,587 | ||||
Contingent consideration | 95,000 | ||||
Consideration transferred, net of cash acquired | 83,804 | ||||
Total liabilities | $ 202,454 | ||||
KBZ [Member] | |||||
Business Acquisition [Line Items] | |||||
Receivables, net | $ 63,131 | ||||
Inventory | 11,227 | ||||
Other current assets | 10,303 | ||||
Property and equipment, net | 677 | ||||
Goodwill | 21,639 | ||||
Identifiable intangible assets | 18,400 | ||||
Other non-current assets | 1,399 | ||||
Total assets | 126,776 | ||||
Accounts payable | 48,271 | ||||
Accrued expenses and other current liabilities | 14,863 | ||||
Other long-term liabilities | 2,167 | ||||
Consideration transferred, net of cash acquired | 61,475 | ||||
Total liabilities | $ 126,776 |
Acquisitions (Schedule of Unaud
Acquisitions (Schedule of Unaudited Consolidated Pro Forma Results of Operations) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Business Acquisition [Line Items] | |||
Additional amortization expense of intangible assets | $ (15,524) | $ (9,828) | $ (6,641) |
Net Sales, As Reported, Consolidated | 3,568,186 | 3,540,226 | 3,218,626 |
Operating income, As Reported, Consolidated | 88,239 | 96,877 | 101,441 |
Net Income, As Reported, Consolidated | $ 69,246 | $ 63,619 | $ 65,419 |
Earnings per share, Basic, As Reported, Consolidated (in dollars per share) | $ 2.74 | $ 2.40 | $ 2.29 |
Earnings per share, Diluted, As Reported, Consolidated (in dollars per share) | $ 2.71 | $ 2.38 | $ 2.27 |
Intelisys [Member] | |||
Business Acquisition [Line Items] | |||
Net Sales | $ 29,422 | ||
Additional amortization expense of intangible assets | (5,386) | ||
Change in fair value | (12,117) | ||
Operating loss | (4,204) | ||
Net loss | (2,675) | ||
Net Sales, As Reported, Consolidated | 3,568,186 | $ 3,540,226 | |
Net Sales, Pro forma, Consolidated | 3,573,402 | 3,568,567 | |
Operating income, As Reported, Consolidated | 88,239 | 96,877 | |
Operating income, Pro forma, Consolidated | 89,691 | 102,085 | |
Net Income, As Reported, Consolidated | 69,246 | 63,619 | |
Net Income, Pro forma, Consolidated | $ 70,331 | $ 66,823 | |
Earnings per share, Basic, As Reported, Consolidated (in dollars per share) | $ 2.74 | $ 2.40 | |
Earnings per share, Basic, Pro forma, Consolidated (in dollars per share) | 2.78 | 2.52 | |
Earnings per share, Diluted, As Reported, Consolidated (in dollars per share) | 2.71 | 2.38 | |
Earnings per share, Diluted, Pro forma, Consolidated (in dollars per share) | $ 2.76 | $ 2.50 |
Goodwill and Other Identifiab48
Goodwill and Other Identifiable Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average amortization period | 10 years | 10 years | 10 years |
Additional amortization expense of intangible assets | $ 15,524 | $ 9,828 | $ 6,641 |
Supplier Partner Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average amortization period | 10 years |
Goodwill and Other Identifiab49
Goodwill and Other Identifiable Intangible Assets (Changes in the Carrying Amount of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 92,715 | $ 66,509 |
Additions | 109,005 | 30,135 |
Unrealized gain (loss) on foreign currency translation | (839) | (3,929) |
Goodwill, ending balance | 200,881 | 92,715 |
Worldwide Barcode, Networking and Security Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 36,434 | 15,535 |
Additions | 0 | 21,639 |
Unrealized gain (loss) on foreign currency translation | (174) | (740) |
Goodwill, ending balance | 36,260 | 36,434 |
Worldwide Communications and Services Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 56,281 | 50,974 |
Additions | 109,005 | 8,496 |
Unrealized gain (loss) on foreign currency translation | (665) | (3,189) |
Goodwill, ending balance | $ 164,621 | $ 56,281 |
Goodwill and Other Identifiab50
Goodwill and Other Identifiable Intangible Assets (Identifiable Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | $ 139,045 | $ 83,097 |
Amortized intangible assets, accumulated amortization | 37,532 | 31,970 |
Total | 101,513 | 51,127 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | 110,691 | 70,379 |
Amortized intangible assets, accumulated amortization | 27,977 | 26,668 |
Total | 82,714 | 43,711 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | 23,256 | 11,270 |
Amortized intangible assets, accumulated amortization | 8,691 | 4,398 |
Total | 14,565 | 6,872 |
Non-Compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | 1,160 | 1,103 |
Amortized intangible assets, accumulated amortization | 608 | 777 |
Total | 552 | 326 |
Distributor Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | 355 | 345 |
Amortized intangible assets, accumulated amortization | 158 | 127 |
Total | 197 | 218 |
Supplier Partner Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortized intangible assets, gross carrying amount | 3,583 | 0 |
Amortized intangible assets, accumulated amortization | 98 | 0 |
Total | $ 3,485 | $ 0 |
Goodwill and Other Identifiab51
Goodwill and Other Identifiable Intangible Assets (Estimated Future Amortization Expense) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,018 | $ 14,669 | |
2,019 | 12,617 | |
2,020 | 12,011 | |
2,021 | 11,905 | |
2,022 | 10,705 | |
Thereafter | 39,606 | |
Total | $ 101,513 | $ 51,127 |
Short-Term Borrowings and Lon52
Short-Term Borrowings and Long-Term Debt (Long-term Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 91,871 | $ 71,427 |
Long term debt | 5,429 | 5,429 |
Total debt | 97,300 | 76,856 |
Industrial Development Revenue Bond [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt | 5,429 | 5,429 |
Multi-Currency Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 91,871 | $ 71,427 |
Short-Term Borrowings and Lon53
Short-Term Borrowings and Long-Term Debt (Narrative) (Details) | 12 Months Ended | |||||
Jun. 30, 2017USD ($)quarter | Jun. 30, 2016USD ($) | Aug. 08, 2017USD ($) | Jun. 30, 2017EUR (€) | Apr. 03, 2017USD ($) | Jun. 30, 2016EUR (€) | |
Net debt issuance costs of credit facility and bonds | $ 1,300,000 | |||||
Industrial Development Revenue Bond [Member] | ||||||
Percentage spread points on variable rate debt instrument | 0.85% | |||||
Maximum time period of interest (in years) | 10 years | |||||
Debt instrument, exercisable option limitation, period | 180 days | |||||
Debt instrument, anniversary, options exercisable, period | 5 years | |||||
Debt instrument, redemption price, percentage | 100.00% | |||||
Variable interest rate of debt | 1.926% | 1.32% | 1.926% | 1.32% | ||
Multi-Currency Revolving Credit Facility [Member] | ||||||
Borrowing capacity under credit facility | $ 300,000,000 | |||||
Debt issuance costs of credit facility | $ 900,000 | |||||
Debt instrument, covenant requirement, leverage ratio, EBITDA, number of quarters in measurement period | quarter | 4 | |||||
Line of credit facility, unused capacity, commitment fee percentage | 0.20% | |||||
Percentage of capital stock or other equity interest pledged per credit agreement | 65.00% | 65.00% | ||||
Average daily balance on revolving credit facility | $ 126,500,000 | $ 86,600,000 | ||||
Amount available for additional borrowings | $ 208,100,000 | $ 228,200,000 | ||||
Letters of credit outstanding | € | € 0 | € 400,000 | ||||
Multi-Currency Revolving Credit Facility [Member] | Minimum [Member] | ||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.175% | |||||
Multi-Currency Revolving Credit Facility [Member] | Maximum [Member] | ||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.35% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Multi-Currency Revolving Credit Facility [Member] | ||||||
Percentage spread points on variable rate debt instrument | 1.375% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Multi-Currency Revolving Credit Facility [Member] | Minimum [Member] | ||||||
Percentage spread points on variable rate debt instrument | 1.00% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Multi-Currency Revolving Credit Facility [Member] | Maximum [Member] | ||||||
Percentage spread points on variable rate debt instrument | 2.125% | |||||
Alternate Base Rate Loans [Member] | Multi-Currency Revolving Credit Facility [Member] | ||||||
Percentage spread points on variable rate debt instrument | 0.375% | |||||
Alternate Base Rate Loans [Member] | Multi-Currency Revolving Credit Facility [Member] | Minimum [Member] | ||||||
Percentage spread points on variable rate debt instrument | 0.00% | |||||
Alternate Base Rate Loans [Member] | Multi-Currency Revolving Credit Facility [Member] | Maximum [Member] | ||||||
Percentage spread points on variable rate debt instrument | 1.125% | |||||
Subsequent Event [Member] | Multi-Currency Revolving Credit Facility, Amended Credit Agreement [Member] | ||||||
Borrowing capacity under credit facility | $ 400,000,000 | |||||
Subsequent Event [Member] | Letter of Credit [Member] | ||||||
Borrowing capacity under credit facility | 50,000,000 | |||||
Subsequent Event [Member] | Multi-Currency Revolving Credit Facility, Accordion Feature [Member] | ||||||
Borrowing capacity under credit facility | 200,000,000 | |||||
Subsequent Event [Member] | Multi-Currency Revolving Credit Facility, Combined with Accordion Feature [Member] | ||||||
Borrowing capacity under credit facility | $ 600,000,000 |
Short-Term Borrowings and Lon54
Short-Term Borrowings and Long-Term Debt (Maturities of Revolving Credit Facility and Long-term Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Debt Instrument [Line Items] | ||
Total principal payments, revolving credit facility | $ 91,871 | $ 71,427 |
Total principal payments, long-term debt | 5,429 | 5,429 |
Industrial Development Revenue Bond [Member] | ||
Debt Instrument [Line Items] | ||
2,018 | 0 | |
2,019 | 312 | |
2,020 | 319 | |
2,021 | 325 | |
2,022 | 332 | |
Thereafter | 4,141 | |
Total principal payments, long-term debt | 5,429 | 5,429 |
Multi-Currency Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 91,871 | |
Thereafter | 0 | |
Total principal payments, revolving credit facility | $ 91,871 | $ 71,427 |
Derivatives and Hedging Activ55
Derivatives and Hedging Activities (Foreign Currency Derivatives) (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Jun. 30, 2016 |
Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Notional amount of foreign currency contracts outstanding | $ 67.1 | $ 46.2 |
Derivatives and Hedging Activ56
Derivatives and Hedging Activities (Interest Rates) (Narrative) (Details) - Interest Rate Swap [Member] - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 23, 2017 | |
Derivative [Line Items] | ||
Notional amount of interest rate swap agreements outstanding | $ 50,000,000 | |
Ineffective portion of cash flow hedge | $ 0 |
Derivatives and Hedging Activ57
Derivatives and Hedging Activities (Derivative Contracts and Changes in Underlying Value of the Foreign Currency Exposures) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |||
Net foreign exchange derivative contract (gain) loss | $ 146 | $ (1,951) | $ (5,364) |
Net foreign currency transactional and re-measurement (gain) loss | 1,773 | 4,522 | 8,408 |
Net foreign currency (gain) loss | $ 1,919 | $ 2,571 | $ 3,044 |
Derivatives and Hedging Activ58
Derivatives and Hedging Activities (Cash Flow Hedge Included in Accumulated Other Comprehensive Income (Loss)) (Details) - Interest Rate Swap [Member] $ in Thousands | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Net interest expense recognized as a result of interest rate swap | $ 7 |
Unrealized gain (loss) in fair value of interest swap rates | 14 |
Net increase (decrease) in accumulated other comprehensive income (loss) | 21 |
Income tax effect | 8 |
Net increase (decrease) in accumulated other comprehensive income (loss), net of tax | $ 13 |
Derivatives and Hedging Activ59
Derivatives and Hedging Activities (Derivative Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 35 | $ 33 |
Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 21 | $ 0 |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 21 | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 35 | |
Derivative liabilities | 131 | |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 0 |
Fair Value of Financial Instr60
Fair Value of Financial Instruments (Short-term Investments and Financial Instruments at Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Assets: | ||
Deferred compensation plan investments, current and non-current portion | $ 21,439 | $ 17,893 |
Total assets at fair value | 21,495 | 17,926 |
Liabilities: | ||
Deferred compensation plan investments, current and non-current portion | 21,074 | 17,893 |
Forward foreign currency exchange contracts | 131 | 551 |
Liability for contingent consideration, current and non-current | 114,036 | 24,652 |
Total liabilities at fair value | 135,241 | 43,096 |
Quoted Prices in Active Markets (Level 1) [Member] | ||
Assets: | ||
Deferred compensation plan investments, current and non-current portion | 21,439 | 17,893 |
Total assets at fair value | 21,439 | 17,893 |
Liabilities: | ||
Deferred compensation plan investments, current and non-current portion | 21,074 | 17,893 |
Forward foreign currency exchange contracts | 0 | 0 |
Liability for contingent consideration, current and non-current | 0 | 0 |
Total liabilities at fair value | 21,074 | 17,893 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Deferred compensation plan investments, current and non-current portion | 0 | 0 |
Total assets at fair value | 56 | 33 |
Liabilities: | ||
Deferred compensation plan investments, current and non-current portion | 0 | 0 |
Forward foreign currency exchange contracts | 131 | 551 |
Liability for contingent consideration, current and non-current | 0 | 0 |
Total liabilities at fair value | 131 | 551 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Deferred compensation plan investments, current and non-current portion | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Deferred compensation plan investments, current and non-current portion | 0 | 0 |
Forward foreign currency exchange contracts | 0 | 0 |
Liability for contingent consideration, current and non-current | 114,036 | 24,652 |
Total liabilities at fair value | 114,036 | 24,652 |
Foreign Exchange Contract [Member] | ||
Assets: | ||
Forward foreign currency exchange contracts | 35 | 33 |
Foreign Exchange Contract [Member] | Quoted Prices in Active Markets (Level 1) [Member] | ||
Assets: | ||
Forward foreign currency exchange contracts | 0 | 0 |
Foreign Exchange Contract [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Forward foreign currency exchange contracts | 35 | 33 |
Foreign Exchange Contract [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Forward foreign currency exchange contracts | 0 | 0 |
Interest Rate Swap [Member] | ||
Assets: | ||
Forward foreign currency exchange contracts | 21 | 0 |
Interest Rate Swap [Member] | Quoted Prices in Active Markets (Level 1) [Member] | ||
Assets: | ||
Forward foreign currency exchange contracts | 0 | 0 |
Interest Rate Swap [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Forward foreign currency exchange contracts | 21 | 0 |
Interest Rate Swap [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Forward foreign currency exchange contracts | $ 0 | $ 0 |
Fair Value of Financial Instr61
Fair Value of Financial Instruments (Fair Value, Business Acquisition, Liability for Contingent Consideration) (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value at beginning of period | $ 24,652 | $ 33,960 |
Issuance of contingent consideration | 95,000 | 0 |
Payments | (10,241) | (8,606) |
Change in fair value | 5,211 | 1,294 |
Fluctuation due to foreign currency exchange | (586) | (1,996) |
Fair value at end of period | 114,036 | 24,652 |
Worldwide Barcode, Networking and Security Segment [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value at beginning of period | 0 | 5,109 |
Issuance of contingent consideration | 0 | 0 |
Payments | 0 | (4,453) |
Change in fair value | 0 | 181 |
Fluctuation due to foreign currency exchange | 0 | (837) |
Fair value at end of period | 0 | 0 |
Worldwide Communications and Services Segment [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value at beginning of period | 24,652 | 28,851 |
Issuance of contingent consideration | 95,000 | 0 |
Payments | (10,241) | (4,153) |
Change in fair value | 5,211 | 1,113 |
Fluctuation due to foreign currency exchange | (586) | (1,159) |
Fair value at end of period | $ 114,036 | $ 24,652 |
Fair Value of Financial Instr62
Fair Value of Financial Instruments (Valuation Techniques and Significant Observable Inputs) (Details) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | ||
Weighted average cost of capital | 14.20% | 17.10% |
Adjusted EBITDA growth rate | 17.00% | 40.70% |
Fair Value of Financial Instr63
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current portion of contingent consideration | $ 30,675 | $ 11,594 | |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loss (gain) due to change in fair value of contingent consideration | 5,211 | 1,294 | |
Fair value of liability for contingent consideration | 114,036 | 24,652 | $ 33,960 |
Intelisys [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loss (gain) due to change in fair value of contingent consideration | 12,117 | ||
Worldwide Barcode, Networking and Security Segment [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loss (gain) due to change in fair value of contingent consideration | 0 | 181 | |
Fair value of liability for contingent consideration | 0 | 0 | 5,109 |
Worldwide Communications and Services Segment [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loss (gain) due to change in fair value of contingent consideration | 5,211 | 1,113 | |
Fair value of liability for contingent consideration | 114,036 | 24,652 | $ 28,851 |
Worldwide Communications and Services Segment [Member] | Imago [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loss (gain) due to change in fair value of contingent consideration | (1,100) | 900 | |
Fair value of liability for contingent consideration | 2,900 | ||
Current portion of contingent consideration | 2,900 | ||
Worldwide Communications and Services Segment [Member] | Network1 [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loss (gain) due to change in fair value of contingent consideration | (5,800) | 200 | |
Fair value of liability for contingent consideration | 6,900 | 21,800 | |
Current portion of contingent consideration | 5,400 | $ 8,700 | |
Undiscounted contingent consideration payments, maximum | 7,500 | ||
Worldwide Communications and Services Segment [Member] | Intelisys [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loss (gain) due to change in fair value of contingent consideration | 12,100 | ||
Fair value of liability for contingent consideration | 107,100 | ||
Current portion of contingent consideration | 25,300 | ||
Undiscounted contingent consideration payments, maximum | $ 136,100 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) | Dec. 02, 2016shares | Jun. 30, 2017USD ($)planstrancheshares | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of share-based compensation plans | plans | 2 | |||
Options granted during period (in shares) | 77,339 | |||
Total aggregate intrinsic value of options exercised | $ | $ 1,600,000 | $ 1,300,000 | $ 600,000 | |
Fair value of options vested during period | $ | $ 1,500,000 | $ 1,500,000 | $ 1,600,000 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted during period (in shares) | 77,339 | |||
Vesting period (years) | 3 years | |||
Contractual life (years) | 10 years | |||
Exercise price percentage of fair market value at grant date | 100.00% | |||
Unrecognized compensation cost | $ | $ 1,500,000 | |||
Weighted-average period of recognition of unrecognized compensation cost (years) | 1 year | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ | $ 7,300,000 | |||
Weighted-average period of recognition of unrecognized compensation cost (years) | 1 year 1 month 17 days | |||
Shares granted (in shares) | 170,368 | |||
Number of tranches | tranche | 3 | |||
Shares withheld for income taxes for share based compensation (in shares) | 43,669 | |||
2013 Long-Term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for future grant | 2,071,216 | |||
Non-Employee Directors, Certain Directors [Member] | 2013 Long-Term Incentive Plan [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (years) | 6 months | |||
Shares granted (in shares) | 14,500 | |||
Amount to be divided by fair market value of common stock | $ | $ 100,000 | |||
Number of days to calculate average value per share | 45 days |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule of Share-Based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation [Abstract] | |||
Equity classified stock options | $ 1,356 | $ 1,479 | $ 1,480 |
Equity classified restricted stock | 5,246 | 5,614 | 5,042 |
Total share-based compensation | $ 6,602 | $ 7,093 | $ 6,522 |
Share-Based Compensation (Weigh
Share-Based Compensation (Weighted Average Assumptions for Options Granted) (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation [Abstract] | |||
Expected term (years) | 5 years | 4 years 8 days | 4 years 8 days |
Expected volatility | 30.88% | 28.70% | 30.06% |
Risk-free interest rate | 1.84% | 1.47% | 1.22% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted-average fair value per option (in dollars per share) | $ 11.26 | $ 9.53 | $ 10.51 |
Share-Based Compensation (Stock
Share-Based Compensation (Stock Option Plans) (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, beginning of year (in shares) | 1,098,165 | ||
Granted during the period (in shares) | 77,339 | ||
Exercised during the period (in shares) | (300,590) | ||
Canceled, forfeited or expired during the period (in shares) | (1,925) | ||
Outstanding, end of year (in shares) | 872,989 | 1,098,165 | |
Vested and expected to vest at June 30, 2017 (in shares) | 872,187 | ||
Exercisable, end of year (in shares) | 657,019 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Outstanding, beginning of year, Weighted-Average Exercise Price (in dollars per share) | $ 36.52 | ||
Granted during the period, Weighted-Average Exercise Price (in dollars per share) | 37 | ||
Exercised during the period, Weighted-Average Exercise Price (in dollars per share) | 33.40 | ||
Canceled, forfeited, or expired during the period, Weighted-Average Exercise Price (in dollars per share) | 39.12 | ||
Outstanding, end of year, Weighted-Average Exercise Price (in dollars per share) | 37.63 | $ 36.52 | |
Vested and expected to vest, Weighted-Average Exercise Price (in dollars per share) | 37.63 | ||
Exercisable, end of year, Weighted-Average Exercise Price (in dollars per share) | $ 37.35 | ||
Outstanding, end of year, Weighted-Average Remaining Contractual Life (years) | 5 years 9 months 21 days | ||
Vested and expected to vest, Weighted-Average Remaining Contractual Life (years) | 5 years 9 months 21 days | ||
Exercisable, end of year, Weighted-Average Remaining Contractual Life (years) | 4 years 11 months | ||
Outstanding, end of year, Aggregate Intrinsic Value | $ 2,759,060 | ||
Vested and expected to vest, Aggregate Intrinsic Value | 2,756,896 | ||
Exercisable, end of year, Aggregate Intrinsic Value | $ 2,321,846 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Granted, weighted-average grant date fair value (in dollars per share) | $ 11.26 | 9.53 | $ 10.51 |
Unvested Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Granted during the period (in shares) | 77,339 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Outstanding, beginning of year, Weighted-Average Exercise Price (in dollars per share) | $ 39.96 | ||
Granted during the period, Weighted-Average Exercise Price (in dollars per share) | 37 | ||
Exercised during the period, Weighted-Average Exercise Price (in dollars per share) | 40.61 | ||
Canceled, forfeited, or expired during the period, Weighted-Average Exercise Price (in dollars per share) | 39.53 | ||
Outstanding, end of year, Weighted-Average Exercise Price (in dollars per share) | $ 38.48 | $ 39.96 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested, beginning of year (in shares) | 278,495 | ||
Vested during period (in shares) | (138,214) | ||
Canceled or forfeited during period (in shares) | (1,650) | ||
Nonvested, end of year (in shares) | 215,970 | 278,495 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Unvested, beginning of year, weighted-average grant date fair value (in dollars per share) | $ 10.27 | ||
Granted, weighted-average grant date fair value (in dollars per share) | 11.26 | ||
Vested during period, weighted-average grant date fair value (in dollars per share) | 10.60 | ||
Canceled or forfeited during period, weighted-average grant date fair value (in dollars per share) | 12.26 | ||
Unvested, end of period, weighted-average grant date fair value (in dollars per share) | $ 10.39 | $ 10.27 |
Share-Based Compensation (Sto68
Share-Based Compensation (Stock Options Outstanding) (Details) | 12 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, shares outstanding (in shares) | shares | 872,989 |
Options outstanding, weighted average remaining contractual life (in years) | 5 years 9 months 22 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 37.63 |
Options exercisable, number exercisable (in shares) | shares | 657,019 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 37.35 |
Range One [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, lower limit | 18.13 |
Range of exercise prices, upper limit | $ 22.27 |
Options outstanding, shares outstanding (in shares) | shares | 2,800 |
Options outstanding, weighted average remaining contractual life (in years) | 1 year 5 months 5 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 18.14 |
Options exercisable, number exercisable (in shares) | shares | 2,800 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 18.14 |
Range Two [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, lower limit | 22.27 |
Range of exercise prices, upper limit | $ 26.38 |
Options outstanding, shares outstanding (in shares) | shares | 29,991 |
Options outstanding, weighted average remaining contractual life (in years) | 2 years 5 months 5 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 24.57 |
Options exercisable, number exercisable (in shares) | shares | 29,991 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 24.57 |
Range Three [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, lower limit | 26.38 |
Range of exercise prices, upper limit | $ 30.49 |
Options outstanding, shares outstanding (in shares) | shares | 20,731 |
Options outstanding, weighted average remaining contractual life (in years) | 5 years 5 months 10 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 29.80 |
Options exercisable, number exercisable (in shares) | shares | 20,731 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 29.80 |
Range Four [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, lower limit | 30.49 |
Range of exercise prices, upper limit | $ 34.60 |
Options outstanding, shares outstanding (in shares) | shares | 82,839 |
Options outstanding, weighted average remaining contractual life (in years) | 4 years 11 months 25 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 34.27 |
Options exercisable, number exercisable (in shares) | shares | 82,839 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 34.27 |
Range Five [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, lower limit | 34.60 |
Range of exercise prices, upper limit | $ 38.71 |
Options outstanding, shares outstanding (in shares) | shares | 452,179 |
Options outstanding, weighted average remaining contractual life (in years) | 5 years 5 months 22 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 36.97 |
Options exercisable, number exercisable (in shares) | shares | 290,360 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 36.62 |
Range Six [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, lower limit | 38.71 |
Range of exercise prices, upper limit | $ 42.82 |
Options outstanding, shares outstanding (in shares) | shares | 284,449 |
Options outstanding, weighted average remaining contractual life (in years) | 7 years 5 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 41.79 |
Options exercisable, number exercisable (in shares) | shares | 230,298 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 41.95 |
Share-Based Compensation (Restr
Share-Based Compensation (Restricted Stock Granted) (Details) - Restricted Stock [Member] - $ / shares | Dec. 02, 2016 | Nov. 10, 2016 | Sep. 07, 2016 | Sep. 02, 2016 | Jun. 30, 2017 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Shares granted (in shares) | 170,368 | ||||
Grant date fair value (in dollars per share) | $ 36.77 | ||||
Employees, Certain Employees Based On Performance [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Shares granted (in shares) | 433 | 207 | |||
Grant date fair value (in dollars per share) | $ 35.73 | $ 35.79 | |||
Vesting period (years) | 3 years | ||||
Employees, Certain Employees Based On Promotion [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Shares granted (in shares) | 721 | 2,884 | |||
Grant date fair value (in dollars per share) | $ 34.20 | $ 35.73 | |||
Vesting period (years) | 3 years | ||||
Certain Employees [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Shares granted (in shares) | 151,623 | ||||
Grant date fair value (in dollars per share) | $ 37 | ||||
Vesting period (years) | 3 years | ||||
2013 Long-Term Incentive Plan [Member] | Non-Employee Directors, Certain Directors [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Shares granted (in shares) | 14,500 | ||||
Grant date fair value (in dollars per share) | $ 37 | ||||
Vesting period (years) | 6 months |
Share-Based Compensation (Res70
Share-Based Compensation (Restricted Stock Outstanding) (Details) - Restricted Stock [Member] | 12 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding, beginning of year (in shares) | shares | 274,804 |
Granted during the period (in shares) | shares | 170,368 |
Target shares adjustment during the period (in shares) | shares | (1,008) |
Vested during period (in shares) | shares | (137,894) |
Canceled, forfeited, or expired during the period (in shares) | shares | (38,884) |
Outstanding, end of year (in shares) | shares | 267,386 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding, beginning of year, Weighted Average Grant Date Fair-Value (in dollars per share) | $ / shares | $ 39.06 |
Grant date fair value (in dollars per share) | $ / shares | 36.77 |
Target shares adjustment during the period, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 34.80 |
Vested, Weighted Average Grant Date Fair-Value (in dollars per share) | $ / shares | 40.07 |
Canceled, forfeited or expired, Weighted Average Grant Date Fair-Value (in dollars per share) | $ / shares | 38.18 |
Outstanding, end of year, Weighted Average Grant Date Fair-Value (in dollars per share) | $ / shares | $ 37.86 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Employer matching contribution, percent of participant's contribution | 50.00% |
Employer contribution per participant | $ 800 |
Defined benefit plan, employer contributions, vesting period (in years) | 5 years |
Deferred compensation plan, employer contributions, vesting period (in years) | 5 years |
Employee Benefit Plans (Employe
Employee Benefit Plans (Employer Contributions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |||
Matching contributions | $ 875 | $ 735 | $ 626 |
Discretionary contributions | 3,413 | 3,617 | 5,350 |
Total contributions | $ 4,288 | $ 4,352 | $ 5,976 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statutory rate percentage of federal income tax expense | 35.00% | ||||
Valuation allowance, amount | $ 3,473 | $ 3,473 | $ 3,029 | ||
Income (loss) before income taxes | 101,495 | 96,010 | $ 99,906 | ||
Gross unrecognized tax benefits | 2,176 | 2,176 | 2,148 | 1,301 | $ 1,153 |
Unrecognized tax benefits that would impact effective tax rate if recognized | 1,300 | 1,300 | |||
Unrecognized tax benefits, period increase | 100 | ||||
Income tax penalties and interest accrued | 1,100 | 1,100 | $ 1,200 | $ 1,200 | |
State and Local [Member] | |||||
Operating loss carry forwards | 1,400 | 1,400 | |||
Tax credit carry forwards | 1,400 | 1,400 | |||
Operating loss carry forwards, valuation allowance | 100 | 100 | |||
Foreign [Member] | |||||
Operating loss carry forwards | 9,300 | 9,300 | |||
Tax credit carry forwards | 300 | 300 | |||
Operating loss carry forwards, valuation allowance | 400 | 400 | |||
Undistributed earnings of foreign subsidiaries | 118,100 | 118,100 | |||
Undistributed earnings of foreign subsidiaries, tax effect | 20,600 | 20,600 | |||
Withholding Tax Credits [Member] | |||||
Tax credit carry forwards | 2,900 | 2,900 | |||
Valuation allowance, amount | 2,900 | 2,900 | |||
Notional Interest Deduction [Member] | |||||
Valuation allowance, amount | 100 | $ 100 | |||
Minimum [Member] | |||||
Open tax year | 2,012 | ||||
ScanSource Europe SPRL [Member] | |||||
Income (loss) before income taxes | $ (4,700) | ||||
ScanSource Brazil [Member] | |||||
Provision for income taxes | $ (4,500) |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Current: | |||
Federal | $ 31,149 | $ 21,855 | $ 24,658 |
State | 2,615 | 1,652 | 1,639 |
Foreign | 269 | 6,100 | 4,927 |
Total current | 34,033 | 29,607 | 31,224 |
Deferred: | |||
Federal | (3,832) | 3,990 | 2,165 |
State | (397) | 365 | 198 |
Foreign | 2,445 | (1,571) | 900 |
Total deferred | (1,784) | 2,784 | 3,263 |
Provision for income taxes | $ 32,249 | $ 32,391 | $ 34,487 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of U.S.Federal Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S. Federal income tax at statutory rate | $ 35,524 | $ 33,603 | $ 34,967 |
State and local income taxes, net of Federal benefit | 1,729 | 1,578 | 1,318 |
Tax credits | (1,430) | (2,517) | (1,435) |
Valuation allowance | 444 | 541 | 582 |
Effect of foreign operations, net | (1,477) | (1,150) | (1,665) |
Stock compensation | (61) | (62) | (419) |
Capitalized acquisition costs | 231 | 70 | 839 |
Nontaxable income | (4,437) | 0 | 0 |
Disallowed interest | 2,011 | 571 | 0 |
Other | (285) | (243) | 300 |
Provision for income taxes | $ 32,249 | $ 32,391 | $ 34,487 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Deferred tax assets derived from: | ||
Allowance for accounts receivable | $ 11,687 | $ 12,458 |
Inventories | 5,235 | 4,799 |
Nondeductible accrued expenses | 3,968 | 3,842 |
Net operating loss carryforwards | 3,141 | 3,036 |
Tax credits | 4,094 | 3,316 |
Timing of amortization deduction from goodwill | 1,285 | 2,660 |
Deferred compensation | 7,934 | 6,733 |
Stock compensation | 5,424 | 6,014 |
Timing of amortization deduction from intangible assets | 3,032 | 2,045 |
Total deferred tax assets | 45,800 | 44,903 |
Valuation allowance | (3,473) | (3,029) |
Total deferred tax assets, net of allowance | 42,327 | 41,874 |
Deferred tax liabilities derived from: | ||
Timing of depreciation and other deductions from building and equipment | (7,778) | (6,827) |
Timing of amortization deduction from goodwill | (5,013) | (5,815) |
Timing of amortization deduction from intangible assets | (2,053) | (2,974) |
Total deferred tax liabilities | (14,844) | (15,616) |
Net deferred tax assets | $ 27,483 | $ 26,258 |
Income Taxes (Components of Pre
Income Taxes (Components of Pretax Earnings) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 79,871 | $ 76,062 | $ 79,364 |
Foreign | 21,624 | 19,948 | 20,542 |
Income before income taxes | $ 101,495 | $ 96,010 | $ 99,906 |
Income Taxes (Reconciliation 78
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 2,148 | $ 1,301 | $ 1,153 |
Additions based on tax positions related to the current year | 174 | 326 | 262 |
Additions for tax positions of prior years | 0 | 658 | 0 |
Reduction for tax positions of prior years | (146) | (137) | (114) |
Ending Balance | $ 2,176 | $ 2,148 | $ 1,301 |
Commitments and Contingencies79
Commitments and Contingencies (Narrative) (Details) $ in Thousands | Feb. 14, 2017 | Jul. 06, 2016ft²extension | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($)vendor | Jun. 30, 2016USD ($)vendor | Jun. 30, 2015USD ($)vendor |
Long-term Purchase Commitment [Line Items] | ||||||
Term of lease (in months) | 42 months | 135 months | ||||
Number of lease extension options | extension | 2 | |||||
Length of lease extension options | 5 years | |||||
Minimum lease payments | $ 1,687 | |||||
Proceeds from legal settlement | 12,800 | |||||
Capital expenditures | $ 8,849 | $ 12,081 | $ 20,762 | |||
Minimum [Member] | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Termination period under terms of distribution agreement (days) | 30 days | |||||
Maximum [Member] | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Termination period under terms of distribution agreement (days) | 120 days | |||||
Supplier Concentration Risk [Member] | Sales [Member] | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Concentration risk, supplier | vendor | 10 | 10 | 10 | |||
Current Square Footage [Member] | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Area leased under lease agreement (in square feet) | ft² | 741,000 | |||||
CDC Brasil S A [Member] | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Escrow deposit disbursements to seller | $ 4,100 | |||||
Cash held in escrow | 3,400 | $ 3,500 | ||||
Undiscounted pre-acquisition contingencies, maximum | 3,300 | |||||
Prepaid expenses and other assets (current) | 2,212 | 2,346 | ||||
Other assets (noncurrent) | 0 | 0 | ||||
Other current liabilities | 2,212 | 2,346 | ||||
Other long-term liabilities | 0 | 0 | ||||
Network1 [Member] | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Cash held in escrow | 13,000 | 4,700 | ||||
Undiscounted pre-acquisition contingencies, maximum | 29,900 | |||||
Escrow deposits received from seller | 8,700 | 1,300 | ||||
Undiscounted pre-acquisition contingencies, minimum | 10,200 | |||||
Prepaid expenses and other assets (current) | 1,294 | 595 | ||||
Other assets (noncurrent) | 8,235 | 9,837 | ||||
Other current liabilities | 1,294 | 595 | ||||
Other long-term liabilities | $ 8,235 | $ 9,837 | ||||
Scenario, Forecast [Member] | Minimum [Member] | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Capital expenditures | $ 8,000 | |||||
Scenario, Forecast [Member] | Maximum [Member] | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Capital expenditures | $ 11,000 |
Commitments and Contingencies80
Commitments and Contingencies (Lease Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Lease expense | $ 8,703 | $ 7,394 | $ 6,168 |
Commitments and Contingencies81
Commitments and Contingencies (Future Minimum Lease Payments) (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,018 | $ 7,873 |
2,019 | 5,939 |
2,020 | 4,906 |
2,021 | 3,952 |
2,022 | 3,244 |
Thereafter | 13,629 |
Total future minimum lease payments | 39,543 |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,018 | 579 |
2,019 | 579 |
2,020 | 579 |
2,021 | 0 |
2,022 | 0 |
Thereafter | 0 |
Total future minimum lease payments | 1,737 |
Less: amounts representing interest on capital lease | 50 |
Total future minimum principal lease payments | 1,687 |
Operating and Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,018 | 8,452 |
2,019 | 6,518 |
2,020 | 5,485 |
2,021 | 3,952 |
2,022 | 3,244 |
Thereafter | 13,629 |
Total future minimum lease payments | 41,280 |
Total future minimum principal lease payments | $ 41,230 |
Commitments and Contingencies82
Commitments and Contingencies (Capital Lease Components) (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Property & Equipment | $ 1,687 |
Accumulated Depreciation | 0 |
Net Book Value | 1,687 |
Capital Lease Obligations, Short-Term | 553 |
Capital Lease Obligations, Long-Term | 1,134 |
Capital Lease Obligations, Total | $ 1,687 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2017segment | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Number of technology business segments | 2 |
Segment Information (Financial
Segment Information (Financial Information by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Sales | $ 3,568,186 | $ 3,540,226 | $ 3,218,626 |
Depreciation and amortization | 24,968 | 17,154 | 11,997 |
Operating income | 88,239 | 96,877 | 101,441 |
Capital expenditures | 8,849 | 12,081 | 20,762 |
Assets | 1,718,303 | 1,491,185 | |
Property and equipment, net | 56,566 | 52,388 | |
Operating Segments [Member] | Worldwide Barcode, Networking and Security Segment [Member] | |||
Sales | 2,389,256 | 2,361,670 | 2,118,739 |
Depreciation and amortization | 6,496 | 5,651 | 3,813 |
Operating income | 49,727 | 52,227 | 47,985 |
Capital expenditures | 3,796 | 5,298 | 733 |
Assets | 885,786 | 836,674 | |
Operating Segments [Member] | Worldwide Communications and Services Segment [Member] | |||
Sales | 1,178,930 | 1,178,556 | 1,099,887 |
Depreciation and amortization | 15,099 | 8,543 | 6,912 |
Operating income | 39,768 | 45,513 | 56,710 |
Capital expenditures | 3,163 | 3,923 | 1,448 |
Assets | 769,342 | 595,781 | |
Corporate, Non-Segment [Member] | |||
Depreciation and amortization | 3,373 | 2,960 | 1,272 |
Operating income | (1,256) | (863) | (3,254) |
Capital expenditures | 1,890 | 2,860 | 18,581 |
Assets | 63,175 | 58,730 | |
Intersegment Eliminations [Member] | |||
Sales | (33,673) | (35,632) | (44,309) |
United States [Member] | Operating Segments [Member] | |||
Sales | 2,719,413 | 2,655,760 | 2,391,073 |
Property and equipment, net | 51,853 | 46,935 | |
International [Member] | Operating Segments [Member] | |||
Sales | 882,446 | 920,098 | $ 871,862 |
Property and equipment, net | $ 4,713 | $ 5,453 |
Accumulated Other Comprehensi85
Accumulated Other Comprehensive Income (Loss) (Components Of Accumulated Other Comprehensive Income, Net Of Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Currency translation adjustment | $ (73,217) | $ (72,687) | $ (64,502) |
Unrealized gain on fair value of interest rate swap | 13 | 0 | 0 |
Accumulated other comprehensive loss | (73,204) | (72,687) | (64,502) |
Tax expense (benefit) | $ (396) | $ 327 | $ 2,382 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) | Jul. 31, 2017 | Aug. 08, 2017 |
POS Portal [Member] | ||
Subsequent Event [Line Items] | ||
Initial cash payment | $ 144,900,000 | |
Purchase price amount held in escrow | 13,500,000 | |
Undiscounted contingent consideration payments, maximum | $ 13,200,000 | |
Multi-Currency Revolving Credit Facility, Amended Credit Agreement [Member] | ||
Subsequent Event [Line Items] | ||
Borrowing capacity under credit facility | $ 400,000,000 | |
Multi-Currency Revolving Credit Facility, Accordion Feature [Member] | ||
Subsequent Event [Line Items] | ||
Borrowing capacity under credit facility | 200,000,000 | |
Multi-Currency Revolving Credit Facility, Combined with Accordion Feature [Member] | ||
Subsequent Event [Line Items] | ||
Borrowing capacity under credit facility | $ 600,000,000 |
Valuation And Qualifying Acco87
Valuation And Qualifying Accounts (Schedule Of Valuation and Qualifying Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Intelisys [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Recoveries | $ 600 | ||
Reserves of businesses acquired | 300 | ||
KBZ [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Recoveries | $ 1,500 | ||
Reserves of businesses acquired | 1,200 | ||
Imago [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Recoveries | $ 3,900 | ||
Reserves of businesses acquired | 1,100 | ||
Network1 [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Reserves of businesses acquired | 12,800 | ||
Allowance for Trade Receivables [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 39,032 | 32,589 | 26,257 |
Amounts Charged to Expense | 8,901 | 7,571 | 993 |
Reductions | (3,860) | (3,829) | (8,288) |
Other | 361 | 2,701 | 13,627 |
Balance at End of Period | $ 44,434 | $ 39,032 | $ 32,589 |