Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Aug. 24, 2018 | Dec. 31, 2017 | |
Document And Entity Information | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
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 | 25,593,917 | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 910,611,127 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 25,530 | $ 56,094 |
Accounts receivable, less allowance of $45,561 at June 30, 2018 and $44,434 at June 30, 2017 | 678,940 | 637,293 |
Inventories | 595,948 | 531,314 |
Prepaid expenses and other current assets | 61,744 | 56,322 |
Total current assets | 1,362,162 | 1,281,023 |
Property and equipment, net | 73,042 | 56,566 |
Goodwill | 298,174 | 200,881 |
Identifiable intangible assets, net | 136,806 | 101,513 |
Deferred income taxes | 22,199 | 29,491 |
Other non-current assets | 52,912 | 48,829 |
Total assets | 1,945,295 | 1,718,303 |
Current liabilities: | ||
Accounts payable | 562,564 | 513,155 |
Accrued expenses and other current liabilities | 90,873 | 104,715 |
Current portion of contingent consideration | 42,975 | 30,675 |
Income taxes payable | 13,348 | 7,730 |
Current portion of long-term debt | 551 | 0 |
Total current liabilities | 710,311 | 656,275 |
Deferred income taxes | 1,769 | 2,008 |
Long-term debt, net of current portion | 4,878 | 5,429 |
Borrowings under revolving credit facility | 244,000 | 91,871 |
Long-term portion of contingent consideration | 65,258 | 83,361 |
Other long-term liabilities | 52,703 | 42,214 |
Total liabilities | 1,078,919 | 881,158 |
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, 25,593,122 and 25,431,845 shares issued and outstanding at June 30, 2018 and June 30, 2017, respectively | 68,220 | 61,169 |
Retained earnings | 882,333 | 849,180 |
Accumulated other comprehensive loss | (84,177) | (73,204) |
Total shareholders’ equity | 866,376 | 837,145 |
Total liabilities and shareholders’ equity | $ 1,945,295 | $ 1,718,303 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Current assets: | ||
Allowance for accounts receivable | $ 45,561 | $ 44,434 |
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) | 25,593,122 | 25,431,845 |
Common stock, shares outstanding (in shares) | 25,593,122 | 25,431,845 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 3,846,260 | $ 3,568,186 | $ 3,540,226 |
Cost of goods sold | 3,410,135 | 3,184,590 | 3,184,786 |
Gross profit | 436,125 | 383,596 | 355,440 |
Selling, general and administrative expenses | 297,475 | 265,178 | 240,115 |
Depreciation expense | 13,311 | 9,444 | 7,326 |
Intangible amortization expense | 20,657 | 15,524 | 9,828 |
Change in fair value of contingent consideration | 37,043 | 5,211 | 1,294 |
Operating income | 67,639 | 88,239 | 96,877 |
Interest expense | 9,149 | 3,215 | 2,124 |
Interest income | (3,713) | (5,329) | (3,448) |
Other (income) expense, net | 1,278 | (11,142) | 2,191 |
Income before income taxes | 60,925 | 101,495 | 96,010 |
Provision for income taxes | 27,772 | 32,249 | 32,391 |
Net income | $ 33,153 | $ 69,246 | $ 63,619 |
Per share data: | |||
Net income per common share, basic (in dollars per share) | $ 1.30 | $ 2.74 | $ 2.40 |
Weighted-average shares outstanding, basic (in shares) | 25,522 | 25,318 | 26,472 |
Net income per common share, diluted (in dollars per share) | $ 1.29 | $ 2.71 | $ 2.38 |
Weighted-average shares outstanding, diluted (in shares) | 25,624 | 25,515 | 26,687 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 33,153 | $ 69,246 | $ 63,619 |
Unrealized gain on hedged transaction, net of tax | 1,089 | 13 | 0 |
Foreign currency translation adjustment | (12,062) | (530) | (8,185) |
Comprehensive income | $ 22,180 | $ 68,729 | $ 55,434 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Jun. 30, 2015 | 28,214,153 | |||
Beginning 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 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 (in 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 (in shares) | (2,884,210) | |||
Common stock repurchased | (100,751) | $ (100,751) | ||
Share based compensation | 7,093 | 7,093 | ||
Tax shortfall from exercise or vesting of share-based payment arrangements | (259) | $ (259) | ||
Ending balance (in shares) at Jun. 30, 2016 | 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 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 (in 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 (in shares) | (600,000) | (577,643) | ||
Common stock repurchased | $ (20,335) | $ (20,335) | ||
Share based compensation | 6,578 | 6,578 | ||
Tax shortfall from exercise or vesting of share-based payment arrangements | $ (531) | $ (531) | ||
Ending balance (in 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) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 33,153 | 33,153 | ||
Unrealized gain on hedged transaction, net of tax | 1,089 | 1,089 | ||
Foreign currency translation adjustment | (12,062) | (12,062) | ||
Exercise of stock options and shares issued under share-based compensation plans, net of shares withheld for employee taxes (in shares) | 161,277 | |||
Exercise of stock options and shares issued under share-based compensation plans, net of shares withheld for employee taxes | $ 636 | $ 636 | ||
Common stock repurchased (in shares) | 0 | |||
Share based compensation | $ 6,415 | $ 6,415 | ||
Ending balance (in shares) at Jun. 30, 2018 | 25,593,122 | 25,593,122 | ||
Ending balance, amount at Jun. 30, 2018 | $ 866,376 | $ 68,220 | $ 882,333 | $ (84,177) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 33,153 | $ 69,246 | $ 63,619 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 37,495 | 24,968 | 17,154 |
Amortization of debt issue costs | 326 | 290 | 297 |
Provision for doubtful accounts | 7,075 | 8,901 | 7,571 |
Share-based compensation | 6,459 | 6,602 | 7,093 |
Deferred income taxes | (22,286) | (1,861) | 1,846 |
Excess tax benefits from share-based payment arrangements | 0 | (89) | (101) |
Change in fair value of contingent consideration | 37,043 | 5,211 | 1,294 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | (46,766) | (66,129) | 14,167 |
Inventories | (59,498) | 28,449 | 2,999 |
Prepaid expenses and other assets | (6,366) | (4,300) | 4,612 |
Other noncurrent assets | (6,361) | (9,540) | (2,186) |
Accounts payable | 44,464 | 19,861 | (71,706) |
Accrued expenses and other liabilities | (11,540) | 8,491 | 6,401 |
Income taxes payable | 14,673 | 4,776 | (849) |
Net cash provided by operating activities | 27,871 | 94,876 | 52,211 |
Cash flows from investing activities: | |||
Capital expenditures | (8,159) | (8,849) | (12,081) |
Cash paid for business acquisitions, net of cash acquired | (143,768) | (83,804) | (61,475) |
Payments for acquisition of intangible assets | 0 | (3,583) | 0 |
Net cash used in investing activities | (151,927) | (96,236) | (73,556) |
Cash flows from financing activities: | |||
Borrowings on revolving credit, net of expenses | 2,301,443 | 1,813,062 | 1,376,620 |
Repayments on revolving credit, net of expenses | (2,149,659) | (1,792,620) | (1,305,193) |
Repayments on long-term debt | 0 | 0 | (2,792) |
Repayments of capital lease obligations | (591) | (246) | (223) |
Debt issuance costs | (296) | (876) | 0 |
Contingent consideration payments | (54,025) | (10,241) | (8,606) |
Exercise of stock options | 2,273 | 9,969 | 5,542 |
Taxes paid on settlement of equity awards | (1,637) | (1,761) | (1,548) |
Repurchase of common stock | 0 | (20,882) | (100,206) |
Excess tax benefits from share-based payment arrangements | 0 | 89 | 101 |
Net cash provided by (used in) financing activities | 97,508 | (3,506) | (36,305) |
Effect of exchange rate changes on cash and cash equivalents | (4,016) | (440) | (2,596) |
Decrease in cash and cash equivalents | (30,564) | (5,306) | (60,246) |
Cash and cash equivalents at beginning of period | 56,094 | 61,400 | 121,646 |
Cash and cash equivalents at end of period | 25,530 | 56,094 | 61,400 |
Supplemental disclosure of cash flow information: | |||
Interest paid during the year | 8,544 | 2,831 | 1,706 |
Income taxes paid during the year | $ 38,330 | $ 31,126 | $ 33,859 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Business and Summary of Significant Accounting Policies | Business and Summary of Significant Accounting Policies Business Description ScanSource, Inc. (together with its subsidiaries referred to as “the Company” or “ScanSource”) is at the center of the solution delivery channel, connecting businesses and providing technology solutions. The Company brings technology solutions and services from the world’s leading suppliers of point-of-sale (POS), payments, barcode, physical security, unified communications and collaboration and cloud and telecom services to market. The Company operates in the Unites States, Canada, Latin America and Europe. The Company's two operating segments, Worldwide Barcode, Networking & Security and Worldwide Communications & Services, are based on product, customer and service type. 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, 2018 , 2017 and 2016 . Use of Estimates The preparation of financial statements in conformity with US 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 net realizable value based principally on the effects of technological changes, quantities of goods, length of time on hand and other factors. An estimate is made of the net realizable 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 supplier 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. (d) Goodwill Fair Value The Company estimates the fair value of its goodwill reporting units primarily based on the income approach utilizing the discounted cash flow method. The Company also utilizes 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 requires it to make assumptions about the applicability of those multiples to its reporting units. The discounted cash flow method requires the Company to estimate future cash flows, using key assumptions such as the weighted average cost of capital, revenue growth rates, projected gross margin and operating margin percentage growth, expected working capital changes and a related cash flow impact from working capital changes, and then discount those amounts to present value. 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 $5.7 million and $8.3 million are classified as accounts payable as of June 30, 2018 and 2017 , 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 $20.3 million and $47.9 million as of June 30, 2018 and 2017 , 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 6% of the Company’s net sales for fiscal years 2018 . No single customer accounted for more than 5% of the Company's net sales for fiscal 2017 or 2016 . 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. The Company's earnings are 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, the Company has entered into an interest rate swap agreement 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, 2018 . 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 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 $23.4 million and $21.4 million as of June 30, 2018 and June 30, 2017 , 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 $1.6 million and $2.7 million at June 30, 2018 and June 30, 2017 , respectively. Inventories Inventories (consisting entirely of finished goods) are stated at the lower of cost (first-in, first-out method) or net realizable value. Supplier Programs The Company receives incentives from suppliers related to cooperative advertising allowances, volume rebates and other incentive agreements. These incentives are generally under quarterly, semi-annual or annual agreements with the suppliers. Some of these incentives are negotiated on an ad hoc basis to support specific programs mutually developed between the Company and the supplier. Suppliers generally require that the Company use the suppliers' cooperative advertising allowances for advertising or other marketing programs. Incentives received from suppliers 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 supplier. This guidance requires that the portion of these supplier 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 suppliers that are not yet earned are deferred in the Consolidated Balance Sheets. Supplier receivables are generally collected through reductions to accounts payable authorized by the supplier. In addition, the Company may receive early payment discounts from certain suppliers. 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 supplier incentives that will be received. Actual recognition of the supplier consideration may vary from management estimates. Supplier Concentration The Company sells products from many suppliers, however, sales of products supplied by Avaya, Cisco and Zebra each constituted more than 10% of the Company’s net sales for the years ended June 30, 2018 , 2017 and 2016 . Product Warranty The Company’s suppliers 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. 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, 2018 and 2017 . 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 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. Under ASU 2017-04 if fair value of goodwill 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 corroborated the fair value estimates derived from the income approach by considering the implied market multiples of comparable transactions and companies. 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 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. • Other cash flow adjustments: The Company utilized a projected cash flow impact pertaining to depreciation, capital expenditures and 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, intellectual property, non-compete agreements and an encryption key library. Customer relationships, distributor agreements, supplier partner programs and the encryption key library 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. 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 U.S. dollars 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. The Company also made a single earnout payment to the former shareholders of POS Portal during fiscal year 2018 in accordance with the share purchase agreement. Network1 has one remaining earnout payment to be paid during fiscal year 2019. Intelisys has three remaining earnout payments to be paid in annual installments during fiscal years 2019 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 2018 , 2017 and 2016 . The Company provides hardware and value added services for point of sale and payment equipment. This includes terminals, related accessories, financing, device configuration as well as software licenses, professional services and hardware support programs. The Company is the primary obligor for all hardware, software and services sold and recognizes such revenue and cost of goods sold on a gross basis. The revenue associated with rental offerings to customers is recognized in net sales and the cost associated with such offering is recognized as depreciation on the capitalized equipment in cost of goods sold in the Consolidated Income Statements. Through the Intelisys acquisition, the Company has a recurring revenue model in which the Company acts as a master agent partnering suppliers with sales agents to provide telecommunications and cloud services to end-users. As the Company acts as an agent on behalf of the suppliers' services, commission revenue received from the supplier 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% of consolidated net sales for fiscal year 2018 . During the fiscal years ended June 30, 2018 , 2017 and 2016 , 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 $19.9 million , $12.8 million and $13.0 million for the years ended June 30, 2018 , 2017 and 2016 . 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 or posted online. Advertising costs, net of supplier reimbursement are included in selling, general and administrative expenses, were not significant in any of the three fiscal years ended June 30, 2018 , 2017 and 2016 . 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. In accordance with ASC 740, Accounting for Income Taxes valuation allowances are provided against deferred tax assets when it is more likely than not that an asset will not be realized . Additionally, the Company maintains reserves for uncertain tax provisions. On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act (the "Tax Act"). The Company has accounted for changes in the tax provision in accordance with the new law. In response to the Tax Act, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) that provides guidance on accounting for the impact of the Tax Act. SAB 118 allows companies to record provisional amounts to the extent reasonably estimable and adjust them over time as more information becomes available, not to extend beyond the measurement period of one year from the enactment of the Tax Act. Accordingly, the Company has recorded provisional amounts for the one-time transition tax on the deemed repatriation of undistributed foreign earnings and the remeasurment of deferred tax assets and liabilities. The final impact from the enactment of the Tax Act may differ from the estimates provided for a number of reasons including, but not limited to, the issuance of final regulations, interpretation of the law and refinement of the Company's ongoing analysis of the new tax positions. Any changes in the provisional amount recognized will be reflected in the income tax expense in the period they are identified. See Note 12 - Income Taxes for further discussion. 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. Furthermore, the Company adopted ASU 2016-09 which simplified several aspects of the accounting share-based compensation, including income tax effects, forfeitures, statutory withholding requirements and cash flow statement classifications. Share-based compensation is estimated at the grant date based on the fair value of the awards. Since this compensation cost is |
Earnings per Share
Earnings per Share | 12 Months Ended |
Jun. 30, 2018 | |
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, 2018 2017 2016 (in thousands, except per share data) Numerator: Net income $ 33,153 $ 69,246 $ 63,619 Denominator: Weighted-average shares, basic 25,522 25,318 26,472 Dilutive effect of share-based payments 102 197 215 Weighted-average shares, diluted 25,624 25,515 26,687 Net income per common share, basic $ 1.30 $ 2.74 $ 2.40 Net income per common share, diluted $ 1.29 $ 2.71 $ 2.38 For the years ended June 30, 2018 , 2017 and 2016 , weighted-average shares outstanding excluded from the computation of diluted earnings per share because their effect would have been antidilutive were 551,320 , 418,325 and 461,090 , respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment is comprised of the following: June 30, 2018 2017 (in thousands) Land $ 3,331 $ 3,331 Buildings and leasehold improvements 21,384 21,101 Computer software and equipment 74,220 53,583 Furniture, fixtures and equipment 27,077 26,059 Construction in progress 1,584 4,556 Rental equipment 13,817 — 141,413 108,630 Less accumulated depreciation (68,371 ) (52,064 ) $ 73,042 $ 56,566 During the fiscal year ended June 30, 2018 , the increase in net fixed assets from the prior year is largely due to net assets acquired during the POS Portal acquisition. Depreciation expense recorded as selling, general and administrative costs in the accompanying Consolidated Income Statements was $13.3 million , $9.4 million and $7.3 million for the fiscal years ended 2018 , 2017 and 2016 , respectively. Depreciation expense recorded as cost of goods sold in the accompanying Consolidated Income Statements was $3.5 million for the fiscal year ended June 30, 2018 . There was no depreciation expense recorded as cost of goods sold prior to the acquisition of POS Portal on July 31, 2017. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Jun. 30, 2018 | |
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, 2018 2017 (in thousands) Deferred warranty revenue $ 21,065 $ 24,813 Accrued compensation 22,378 21,713 Other taxes payable 18,560 18,440 Accrued marketing expense 4,457 5,914 Brazilian pre-acquisition contingencies 1,385 3,506 Accrued freight 3,849 3,392 Other accrued liabilities 19,179 26,937 $ 90,873 $ 104,715 |
Acquisitions
Acquisitions | 12 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions POS Portal On July 31, 2017, the Company acquired all of the outstanding shares of POS Portal a leading provider of payment devices and services primarily to the small and midsized ("SMB") market segment in the United States. POS Portal joined the Worldwide Barcode, Networking & Security segment. Under the share purchase agreement, the all-cash transaction included an initial purchase price of approximately $144.9 million paid in cash at closing. The Company paid an additional $3.4 million for customary closing adjustments during the six months ended December 31, 2017. The Company acquired $4.6 million in cash, net of debt payoff and other customary closing adjustments, resulting in $143.8 million net cash paid for POS Portal. The agreement also included a cash earn-out payment up to $13.2 million based on POS Portal's earnings before interest expense, taxes, depreciation and amortization (EBITDA) for the trailing twelve months (TTM) ended September 30, 2017, which was paid in full during the quarter ended December 31, 2017. A portion of the purchase price was placed into escrow to indemnify the Company for certain pre-acquisition damages. A portion of the escrow was released during the quarter ended December 31, 2017. As of June 30, 2018 , the balance available in escrow was $13.1 million . In connection with the POS Portal acquisition during fiscal 2018, the Company recognized $0.2 million in acquisition-related cost 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. Purchase accounting for this acquisition was finalized during the quarter ended December 31, 2017. The goodwill balance is primarily attributed to expanding the Company's high-value capabilities and market reach across all payment channels. Goodwill, identifiable intangible assets and the related deferred tax liability are not deductible for tax purposes. Pro forma results of operations have not been presented for the acquisition of POS Portal because such results are not material to our consolidated results. POS Portal (in thousands) Receivables $ 8,914 Inventory 8,352 Other current assets 917 Property and equipment, net 24,963 Goodwill 101,198 Identifiable intangible assets 57,000 Other non-current assets 100 $ 201,444 Accounts payable $ 10,897 Accrued expenses and other current liabilities 5,130 Contingent consideration 13,098 Other long-term liabilities 102 Long-term deferred taxes payable 28,449 Consideration transferred, net of cash acquired 143,768 $ 201,444 Intangible assets acquired include trade names, customer relationships, non-compete agreements and an encryption key library. The weighted-average amortization period for these identified assets after purchase accounting adjustments, other than goodwill, was 10 years. 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 & Services operating segment. With this acquisition, the Company broadened its capabilities in the telecom and cloud services market and expands its opportunities 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, 2018 , 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 , respectively, in acquisition-related cost 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 customer relationships, trade names, intellectual property and non-compete agreements. The weighted-average amortization period for these identified intangible assets after purchase accounting adjustments, other than goodwill, was 10 years. |
Goodwill and Other Identifiable
Goodwill and Other Identifiable Intangible Assets | 12 Months Ended |
Jun. 30, 2018 | |
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, 2018 , 2017 and 2016 , no impairment charges related to goodwill were recorded. Changes in the carrying amount of goodwill for the years ended June 30, 2018 and 2017 , by reportable segment, are set forth in the table below. Additions to goodwill for fiscal years 2018 and 2017 are due to the acquisitions of POS Portal and Intelisys, respectively. Worldwide Barcode, Networking & Security Segment Worldwide Communications & Services Segment Total (in thousands) Balance at June 30, 2016 $ 36,434 $ 56,281 $ 92,715 Additions — 109,005 109,005 Unrealized loss on foreign currency translation (174 ) (665 ) (839 ) Balance at June 30, 2017 $ 36,260 $ 164,621 $ 200,881 Additions 101,198 — 101,198 Unrealized loss on foreign currency translation (244 ) (3,661 ) (3,905 ) Balance at June 30, 2018 $ 137,214 $ 160,960 $ 298,174 The following table shows the Company’s identifiable intangible assets as of June 30, 2018 and 2017 , respectively. June 30, 2018 June 30, 2017 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value (in thousands) Amortized intangible assets: Customer relationships $ 139,479 $ 40,337 $ 99,142 $ 110,691 $ 27,977 $ 82,714 Trade names 27,123 12,224 14,899 23,256 8,691 14,565 Non-compete agreements 3,064 1,221 1,843 1,160 608 552 Distributor agreements 363 188 175 355 158 197 Supplier partner program 3,583 456 3,127 3,583 98 3,485 Encryption key library 19,900 2,280 17,620 — — — Total intangibles $ 193,512 $ 56,706 $ 136,806 $ 139,045 $ 37,532 $ 101,513 During fiscal year 2018, the Company acquired customer relationships, trade names, intellectual property, non-compete agreements and an encryption key library related to the acquisition of POS Portal. The weighted-average amortization period for all intangible assets was approximately 10 years for years ended June 30, 2018 , 2017 and 2016 , respectively. Amortization expense for the years ended June 30, 2018 , 2017 and 2016 was $20.7 million , $15.5 million and $9.8 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, 2019 $ 18,920 2020 18,308 2021 18,200 2022 16,564 2023 15,591 Thereafter 49,223 Total $ 136,806 |
Short-Term Borrowings and Long-
Short-Term Borrowings and Long-Term Debt | 12 Months Ended |
Jun. 30, 2018 | |
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, 2018 and 2017 , respectively. 2018 2017 (in thousands) Current portion of long-term debt $ 551 $ — Long term debt, net of current portion 4,878 5,429 Borrowings under revolving credit facility 244,000 91,871 Total debt $ 249,429 $ 97,300 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”). On April 3, 2017 , the Company amended this credit facility to extend its maturity to April 3, 2022 . On August 8, 2017 , the Company amended this credit facility to increase the committed 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 and $0.3 million in connection with the amendments to the Amended Credit Agreement on April 3, 2017 and August 8, 2017 , respectively. These costs 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. 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. 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 spread in effect as of June 30, 2018 was 1.625% for LIBOR-based loans and 0.625% for alternate base rate loans. The commitment fee rate in effect as of June 30, 2018 was 0.25% . The Company was in compliance with all covenants under the credit facility as of June 30, 2018 . The average daily balance on the revolving credit facility during the fiscal years ended June 30, 2018 and 2017 was $269.5 million and $126.5 million , respectively. There was $156.0 million and $208.1 million available for additional borrowings as of June 30, 2018 and 2017 , respectively. There were no letters of credit issued under the multi-currency revolving credit facility as of June 30, 2018 and June 30, 2017 . 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, 2018 , the Company was in compliance with all covenants under this bond. The interest rate at June 30, 2018 and 2017 was 2.855% and 1.926% , respectively. Scheduled maturities of the Company’s revolving credit facility and long-term debt at June 30, 2018 are as follows: Revolving Credit Facility Long-Term Debt (in thousands) Fiscal year: 2019 $ — $ 551 2020 — 338 2021 — 342 2022 244,000 347 2023 — 351 Thereafter — 3,500 Total principal payments $ 244,000 $ 5,429 Debt Issuance Costs As of June 30, 2018 , 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, 2018 | |
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. 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 consolidated 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 the Company uses 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 $74.6 million and $67.1 million for the exchange of foreign currencies as of June 30, 2018 and 2017 , 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, 2018 2017 2016 (in thousands) Net foreign exchange derivative contract loss (gain) $ 386 $ 146 $ (1,951 ) Net foreign currency transactional and re-measurement loss 1,710 1,773 4,522 Net foreign currency loss $ 2,096 $ 1,919 $ 2,571 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, the Company entered into an interest rate swap agreement with a notional amount of $50 million scheduled to mature on April 3, 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 years ended June 30, 2018 and 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, 2018 June 30, 2017 (in thousands) Net interest expense recognized as a result of interest rate swap $ 161 $ 7 Unrealized gain in fair value of interest swap rates 1,422 14 Net increase in accumulated other comprehensive income (loss) $ 1,583 $ 21 Income tax effect 494 8 Net increase in accumulated other comprehensive income (loss), net of tax $ 1,089 $ 13 The Company has the following derivative instruments located on the Consolidated Balance Sheets and Income Statements as of June 30, 2018 , utilized for the risk management purposes detailed above: June 30, 2018 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 $ — $ 157 Interest rate swap agreement Other current assets $ 1,604 $ — Derivative liabilities: Foreign exchange contracts Accrued expenses and other current liabilities $ — $ 156 The Company has the following derivative instruments located on the Consolidated Balance Sheets and Income Statements as of June 30, 2017 , 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 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, 2018 | |
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 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, 2018 : 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 $ 23,352 $ 23,352 $ — $ — Forward foreign currency exchange contracts 157 — 157 — Interest rate swap agreement 1,604 — 1,604 — Total assets at fair value $ 25,113 $ 23,352 $ 1,761 $ — Liabilities: Deferred compensation plan investments, current and non-current portion $ 23,352 $ 23,352 $ — $ — Forward foreign currency exchange contracts 156 — 156 — Liability for contingent consideration, current and non-current 108,233 — — 108,233 Total liabilities at fair value $ 131,741 $ 23,352 $ 156 $ 108,233 The following table presents 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 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). 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). Foreign currency contracts and interest rate swap agreements 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. See Note 8 - Derivatives and Hedging Activities . The Company recorded contingent consideration liabilities at the acquisition date of Network1, Intelisys and POS Portal 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 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 . POS Portal is part of the Company's Worldwide Barcode, Networking & Security Segment. 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 Network1, Intelisys and POS Portal earnouts, which is measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the fiscal year ended June 30, 2018 . The contingent consideration due to the former shareholders of POS Portal was paid in full during the quarter ended December 31, 2017. Contingent Consideration for the Fiscal Year Ended June 30, 2018 Worldwide Barcode, Networking & Security Segment Worldwide Communications & Services Segment Total (in thousands) Fair value at beginning of period $ — $ 114,036 $ 114,036 Issuance of contingent consideration 13,098 — 13,098 Payments (13,167 ) (40,858 ) (54,025 ) Adjustments to contingent consideration (1) — (779 ) (779 ) Change in fair value 69 36,974 37,043 Fluctuation due to foreign currency exchange — (1,140 ) (1,140 ) Fair value at end of period $ — $ 108,233 $ 108,233 (1) The contingent consideration payable to the former shareholders of Network1 has been reduced by payments the Company made to settle pre-acquisition contingencies during the quarter ended June 30, 2018 . 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 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 and Brazilian 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, 2018 and 2017 were as follows. Reporting Period Valuation Technique Significant Unobservable Inputs Weighted Average Rates June 30, 2018 Discounted cash flow Weighted average cost of capital 8.6 % Adjusted EBITDA growth rate 18.2 % June 30, 2017 Discounted cash flow Weighted average cost of capital 14.2 % Adjusted EBITDA growth rate 17.0 % The weighted average cost of capital ("WACC") decreased year-over-year largely due to the reduction in the WACC used for the Network1 contingent consideration liability as the earnout period is complete as of June 30, 2018. Worldwide Barcode, Networking & Security Segment POS Portal The contingent consideration due to the former shareholders of POS Portal was paid in full during the quarter ended December 31, 2017. As such, no liability is recorded as of this reporting date. The change in the fair value of the contingent consideration recognized in the Consolidated Income Statements for the fiscal year ended June 30, 2018 was a loss less than $0.1 million . 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 Network1 The fair value of the liability for the contingent consideration related to Network1 recognized at June 30, 2018 was $10.7 million of which the entire balance is classified as current. The change in fair value of the contingent consideration recognized in the Consolidated Income Statements contributed a loss of $21.0 million for the fiscal year ended June 30, 2018 , which is primarily due to a change in estimate of the current year payment to the former shareholders of Network1, additional agreed upon adjustments to the projected final settlement and improved actual results for the fiscal year. In addition, volatility in the foreign exchange between the Brazilian real and the U.S. dollar has driven changes in the translation of this Brazilian real denominated liability. As of June 30, 2017 , the fair value of the contingent consideration was $6.9 million , of which $5.4 million was classified as current. The change in fair value of the contingent consideration recognized in the Consolidated Income Statements was a gain of $5.8 million for the fiscal year ended June 30, 2017 , which was largely driven by a reduction in future projected results and less-than-expected actual results, partially offset by the recurring amortization of the unrecognized fair value discount. Intelisys The fair value of the liability for the contingent consideration related to Intelisys recognized at June 30, 2018 was $97.5 million of which $32.2 million is classified as current. The change in fair value of the contingent consideration recognized in the Consolidated Income Statements contributed a loss of $16.0 million for the fiscal year ended June 30, 2018 , which was primarily due to the recurring amortization of the unrecognized fair value discount and an adjustment to the probability weights in the discounted cash flow model. Although there is no contractual limit, total future undiscounted contingent consideration payments are anticipated to range up to $115.3 million , based on the Company’s best estimate of the earnout calculated on a multiple of adjusted earnings. 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. 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 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 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. Scheduled maturities of the Company’s contingent considerations at June 30, 2018 are as follows: Contingent Consideration (in thousands) Fiscal year: 2019 $ 42,975 2020 32,239 2021 33,019 Total contingent consideration payments $ 108,233 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jun. 30, 2018 | |
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, 2018 , there were 3,786,727 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 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, 2018 2017 2016 (in thousands) Share-based compensation related to: Equity classified stock options $ 1,184 $ 1,356 $ 1,479 Equity classified restricted stock 5,275 5,246 5,614 Total share-based compensation $ 6,459 $ 6,602 $ 7,093 Stock Options During the fiscal year ended June 30, 2018 , the Company granted stock options for 119,132 shares. 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, 2018 2017 2016 Expected term 5 years 5 years 4.02 years Expected volatility 30.70 % 30.88 % 28.70 % Risk-free interest rate 2.17 % 1.84 % 1.47 % Dividend yield 0.00 % 0.00 % 0.00 % Weighted-average fair value per option $ 10.60 $ 11.26 $ 9.53 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 activity under our stock option plans is presented below: Fiscal Year Ended June 30, 2018 Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding, beginning of year 872,989 $ 37.63 Granted during the period 119,132 34.27 Exercised during the period (62,701 ) 35.72 Canceled, forfeited, or expired during the period (32,300 ) 37.17 Outstanding, end of year 897,120 37.33 5.95 $ 3,089,365 Vested and expected to vest at June 30, 2018 895,187 37.34 5.94 $ 3,078,179 Exercisable, end of year 685,554 $ 37.84 5.07 $ 2,113,769 The aggregate intrinsic value was calculated using the market price of the Company's stock on June 30, 2018 , 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, 2018 , 2017 and 2016 was $0.5 million , $1.6 million and $1.3 million , respectively. A summary of the status of the Company’s shares subject to unvested options is presented below: Fiscal Year Ended June 30, 2018 Options Weighted Average Exercise Price Weighted Average Grant Date Fair- Value Unvested, beginning of year 215,970 $ 38.48 $ 10.39 Granted 119,132 34.27 10.60 Vested (123,536 ) 39.20 10.33 Unvested, end of year 211,566 $ 35.69 $ 10.54 As of June 30, 2018 , there was approximately $1.6 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 1.12 years. The total fair value of options vested during the fiscal years ended June 30, 2018 , 2017 and 2016 is $1.3 million , $1.5 million and $1.5 million , respectively. The following table summarizes information about stock options outstanding and exercisable as of June 30, 2018 : 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 0.43 $ 18.14 2,800 $ 18.14 $22.27 - $26.38 25,000 1.43 24.57 25,000 24.57 $26.38 - $30.49 20,731 4.44 29.80 20,731 29.80 $30.49 - $34.60 197,971 7.17 34.21 82,839 34.27 $34.60 - $38.71 371,169 5.67 37.04 274,735 36.87 $38.71 - $42.82 279,449 6.02 41.83 279,449 41.83 897,120 5.95 $ 37.33 685,554 $ 37.84 The Company issues shares to satisfy the exercise of options. Restricted Stock Grants of Restricted Shares During the fiscal year ended June 30, 2018 , the Company granted 138,665 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, 2018 Shares granted Date granted Grant date fair value Vesting period Employees Certain employees based on performance 92,469 December 8, 2017 $ 34.35 Annually over 3 years Certain employees based on performance (1) 31,296 February 1, 2018 $ 34.95 January 1, 2018 through December 31, 2020 Non-Employee Directors (2) Certain Directors 500 September 11, 2017 $ 37.75 6 months Certain Directors 14,400 December 8, 2017 $ 34.35 6 months (1) The RSU's granted on February 1, 2018 contains both service and performance-based vesting conditions for the period January 1, 2018 through December 31, 2020 (the "performance cycle") as determined by the Compensation Committee of the Company's Board of Directors. The total number for target shares granted could differ from the actual shares vested at the conclusion of the performance cycle. See the Company's 2018 Proxy Statement for more information about these grants. (2) 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, 2018 Shares Weighted-Average Grant Date Fair Value Outstanding, beginning of year 267,386 $ 37.86 Granted during the period 138,665 34.50 Target shares adjustment during the period (1) (216 ) 36.33 Vested during the period (146,046 ) 38.16 Cancelled, forfeited, or expired during the period (6,270 ) 34.77 Outstanding, end of year 253,519 $ 35.93 (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 2018 represents the variance between the shares assumed to be granted versus at June 30, 2017 the actual shares granted for the third tranche. As of June 30, 2018 , there was approximately $6.6 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 1.23 years. The Company withheld 47,470 shares for income taxes during the fiscal year ended June 30, 2018 . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company has defined contribution plans under Section 401(k) of the Internal Revenue Code of 1986. One plan governs all employees located in the United States, excluding POS Portal employees, that meet certain eligibility requirements and provides a matching contribution equal to one-half of each participant’s contribution, up to a maximum matching contribution per participant of $800 . Employer contributions are vested based upon tenure over a five -year period. The Company also assumed POS Portal's defined contribution plan upon acquisition, which provides a matching contribution equal to 100% of each participant's contribution, up to a maximum of 4% . The Company's employer contributions under the POS Portal plan vest immediately. Fiscal Year Ended June 30, 2018 2017 2016 (in thousands) Matching contributions $ 1,163 $ 875 $ 735 Discretionary contributions 4,700 3,413 3,617 Total contributions $ 5,863 $ 4,288 $ 4,352 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, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act reduces the corporate federal tax rate from 35% to 21% effective January 1, 2018 and implements a modified territorial tax system. Since the Company has a June 30th fiscal year-end, the lower tax rate resulted in a blended U.S. statutory federal rate of approximately 28% for the fiscal year ended June 30, 2018. The U.S. statutory federal rate will be 21% for subsequent fiscal years. As part of of the Tax Act, U.S. companies are required to pay a one-time transition tax on the deemed repatriation of undistributed foreign earnings and to remeasure deferred tax assets and liabilities. In response to the Tax Act, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) that provides guidance on accounting for the impact of the Tax Act. SAB 118 allows companies to record provisional amounts to the extent reasonably estimable and adjust them over time as more information becomes available, not to extend beyond the measurement period of one year from the enactment of the Tax Act. Accordingly, the Company has recorded provisional amounts for the one-time transition tax on the deemed repatriation of undistributed foreign earnings and the remeasurement of deferred tax assets and liabilities. The final impact from the enactment of the Tax Act may differ from the estimates provided for a number of reasons including, but not limited to, the issuance of final regulations, interpretation of the law and refinement of the Company's ongoing analysis of the new tax positions. Any changes in the provisional amount recognized will be reflected in the income tax expense in the period they are identified. The Tax Act includes a mandatory deemed repatriation of all undistributed foreign earnings that are subject to a U.S. income tax as part of the transition. For the fiscal year ended June 30, 2018 , the Company recognized provisional income tax expense of $9.6 million for a one-time transition tax liability on total post-1986 foreign subsidiaries’ earnings and profits (“E&P”) that were previously deferred from U.S. income taxes. No additional income tax expense has been provided for any remaining undistributed foreign earnings not subject to the transition tax and any additional outside basis difference inherent for these entities as such amounts continue to be indefinitely reinvested in foreign operations. As part of accounting for the Tax Act, the Company remeasured certain deferred tax assets and liabilities based on the rates at which such deferred taxes are expected to reverse in the future, which is generally 21% . For the fiscal year ended June 30, 2018 the Company recognized provisional income tax benefit of $1.6 million for the remeasurement of the Company’s deferred tax asset and liability balances. Income tax expense (benefit) consists of: Fiscal Year Ended June 30, 2018 2017 2016 (in thousands) Current: Federal $ 38,263 $ 31,149 $ 21,855 State 3,503 2,615 1,652 Foreign 9,203 269 6,100 Total current 50,969 34,033 29,607 Deferred: Federal (9,987 ) (3,832 ) 3,990 State (1,962 ) (397 ) 365 Foreign (11,248 ) 2,445 (1,571 ) Total deferred (23,197 ) (1,784 ) 2,784 Provision for income taxes $ 27,772 $ 32,249 $ 32,391 A reconciliation of the U.S. Federal income tax expense at a blended statutory rate of 28% for the fiscal year ended June 30, 2018 and a statutory rate of 35% for the June 30, 2017 and 2016 fiscal years to actual income tax expense is as follows: Fiscal Year Ended June 30, 2018 2017 2016 (in thousands) U.S. statutory rate 28.0 % 35.0 % 35.0 % U.S. Federal income tax at statutory rate $ 17,094 $ 35,524 $ 33,603 Increase (decrease) in income taxes due to: State and local income taxes, net of Federal benefit 1,883 1,729 1,578 Tax credits (1,825 ) (1,430 ) (2,517 ) Valuation allowance 1,530 444 541 Effect of foreign operations, net (1,396 ) (1,477 ) (1,150 ) Stock compensation 1,049 (61 ) (62 ) Capitalized acquisition costs 48 231 70 Nontaxable income (9 ) (4,437 ) — Disallowed interest 1,888 2,011 571 Other (1,438 ) (285 ) (243 ) U.S. Tax Reform transition tax 9,609 — — U.S. Tax Reform impact of rate change on deferred taxes (1,615 ) — — Belgium Tax Reform impact of rate change on deferred taxes 1,040 — — Other jurisdictions impact of rate change on deferred taxes (86 ) — — Provision for income taxes $ 27,772 $ 32,249 $ 32,391 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: June 30, 2018 2017 (in thousands) Deferred tax assets derived from: Allowance for accounts receivable $ 12,874 $ 11,687 Inventories 4,060 5,235 Nondeductible accrued expenses 7,426 3,968 Net operating loss carryforwards 5,350 3,141 Tax credits 5,795 4,094 Timing of amortization deduction from goodwill 5,756 1,285 Deferred compensation 5,696 7,934 Stock compensation 2,809 5,424 Timing of amortization deduction from intangible assets 2,510 3,032 Total deferred tax assets 52,276 45,800 Valuation allowance (5,098 ) (3,473 ) Total deferred tax assets, net of allowance 47,178 42,327 Deferred tax liabilities derived from: Timing of depreciation and other deductions from building and equipment (7,468 ) (7,778 ) Timing of amortization deduction from goodwill (1,782 ) (5,013 ) Timing of amortization deduction from intangible assets (17,498 ) (2,053 ) Total deferred tax liabilities (26,748 ) (14,844 ) Net deferred tax assets $ 20,430 $ 27,483 The components of pretax earnings are as follows: Fiscal Year Ended June 30, 2018 2017 2016 (in thousands) Domestic $ 66,416 $ 79,871 $ 76,062 Foreign (5,491 ) 21,624 19,948 Worldwide pretax earnings $ 60,925 $ 101,495 $ 96,010 As of June 30, 2018 , there were (i) gross net operating loss carryforwards of approximately $2.4 million for U.S. federal income tax purposes; (ii) gross state net operating loss carryforwards of approximately $4.1 million ; (iii) foreign gross net operating loss carryforwards of approximately $17.8 million ; (iv) state income tax credit carryforwards of approximately $2.2 million that will began to expire in the 2018 tax year; and (v) withholding tax credits of approximately $3.5 million ; and (vi) foreign tax credits of $0.6 million . The Company maintains a valuation allowance of $0.6 million for foreign net operating losses, a less than $0.1 million valuation allowance for state net operating losses, a $3.5 million valuation allowance for withholding tax credits, a $0.6 million valuation allowance for foreign tax credits, and $0.3 million valuation allowance for state income tax credits, and a less than $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 adopted ASU 2016-09 during fiscal year 2018 which required the Company to recognize excess tax benefits and tax deficiencies as income tax expense or benefit for stock award settlements that were previously recognized as additional paid-in-capital. As a result of these changes, the Company recognized net tax expense of $1.0 million for the fiscal year ended June 30, 2018. The one-time transition tax is based on the total post-1986 foreign subsidiaries’ earnings and profits (“E&P”) were previously deferred from U.S. income taxes. Prior to the passage of the Tax Act, the Company did not provide for U.S. income taxes for undistributed earnings of foreign subsidiaries that were considered to be retained indefinitely for reinvestment. The Company will continue to distribute the earnings of its Canadian subsidiary, but earnings from all other geographies will continue to be considered retained indefinitely for reinvestment. It has been the practice of the Company to reinvest those earnings in the business outside the United States. Apart from the one-time transition tax, any incremental deferred income taxes on the unremitted foreign earnings are not expected to be material. As of June 30, 2018 , the Company had gross unrecognized tax benefits of $2.1 million , $1.4 million of which, if recognized, would affect the effective tax rate. This reflects a decrease of $0.1 million on a gross 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 $1.2 million for the fiscal year ending June 30, 2018 and $1.1 million for the fiscal year ended June 30, 2017 and $1.2 million for the fiscal year ended June 30, 2016 , respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: June 30, 2018 2017 2016 (in thousands) Beginning Balance $ 2,176 $ 2,148 $ 1,301 Additions based on tax positions related to the current year 157 174 326 Additions for tax positions of prior years — — 658 Reduction for tax positions of prior years (280 ) (146 ) (137 ) Ending Balance $ 2,053 $ 2,176 $ 2,148 Financial results for the Belgium business produced pre-tax loss of approximately $5.3 million for the year ended June 30, 2018 . 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 cumulative taxable income for two of the four prior years. In the judgment of management, the conditions that gave rise to the fiscal current year and prior year pre-tax losses are temporary and that it is more likely than not that the deferred tax asset will be realized. A corporate tax reform law was enacted in Belgium on December 25, 2017, which reduces the corporate tax rate from 33% to 25% over a three-year period. The company remeasured certain deferred tax assets and liabilities based on the rates at which such deferred taxes are expected to reverse in the future. As a result, the Company recognized income tax expense of $1.0 million during the year ended June 30, 2018 . During the 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 recovered a tax settlement. The Company recorded, discrete to the June 30, 2017 quarter, the income tax benefit associated with that recovery equal to approximately $4.5 million . 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, 2013 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2018 | |
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 capital leases are as follows: Fiscal Year Ended June 30, 2018 2017 2016 (in thousands) Lease expense $ 9,824 $ 8,703 $ 7,394 Operating Lease Payments Capital Lease Payments Total Payments (in thousands) Fiscal Year Ended June 30, 2019 $ 8,196 $ 675 $ 8,871 2020 6,160 675 6,835 2021 5,316 — 5,316 2022 4,185 — 4,185 2023 3,404 — 3,404 Thereafter 10,817 — 10,817 Total future minimum lease payments 38,078 1,350 39,428 Less: amounts representing interest on capital lease — 30 30 Total future minimum principal lease payments $ 38,078 $ 1,320 $ 39,398 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. On December 7, 2017 the Company entered into a new lease agreement and amended an existing lease agreement for certain information technology infrastructure located in the Greenville, South Carolina facility expiring in 2020. The Company determined each lease qualified as a capital lease and recorded a capital lease obligation equal to the present value of the minimum lease payments of $1.9 million in accordance. The components of the Company's capital lease as of June 30, 2018 are as follows: Capital Lease Obligations Property & Equipment Accumulated Depreciation Net Book Value Short-Term Long-Term Total (in thousands) IT Infrastructure $ 1,583 $ (259 ) $ 1,324 $ 653 $ 667 $ 1,320 Commitments and Contingencies A majority of the Company’s net revenues in fiscal years 2018 , 2017 and 2016 were received from the sale of products purchased from the Company’s ten largest suppliers. The Company has entered into written agreements with substantially all of its major suppliers. While the Company’s agreements with most of its suppliers 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 fiscal year ended June 30, 2018 , the Company recognized $2.9 million in proceeds from a legal tax settlement, net of attorney fees, in Brazil. Of the total settlement, $2.5 million is included in selling, general and administrative expenses and $0.4 million is included in interest income on the Consolidated Income Statements. During the fiscal year ended June 30, 2017 , 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 $10.0 million to $15.0 million during fiscal year 2019 primarily for rental equipment investments and facility improvements. 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. The Company settled the single remaining pre-acquisition contingency of approximately $2.3 million for CDC during the quarter ended March 31, 2018 and paid the remaining escrow balance to the former shareholders of CDC. 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, 2018 June 30, 2017 (in thousands) Assets Prepaid expenses and other assets (current) $ — $ 2,212 Other assets (noncurrent) $ — $ — Liabilities Other current liabilities $ — $ 2,212 Other long-term liabilities $ — $ — 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 $12.3 million and $8.7 million into the escrow account for the years ended June 30, 2018 and 2017 . The amount available after the impact of foreign currency translation, as of June 30, 2018 and 2017 , for future pre-acquisition contingency settlements or to be released to the sellers was $24.1 million and $13.0 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, 2018 June 30, 2017 (in thousands) Assets Prepaid expenses and other assets (current) $ 1,385 $ 1,294 Other assets (noncurrent) $ 5,700 $ 8,235 Liabilities Other current liabilities $ 1,385 $ 1,294 Other long-term liabilities $ 5,700 $ 8,235 The net decline in the value of pre-acquisition contingencies for Network1 is primarily due to 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, 2018 is estimated to range from $6.7 million to $23.0 million at this time, of which all exposures are indemnifiable under the share purchase agreement. |
Segment Information
Segment Information | 12 Months Ended |
Jun. 30, 2018 | |
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 includes a portfolio of solutions primarily for enterprise mobile computing, data capture, barcode printing, POS, payments, networking, electronic physical security, cyber security and other 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. Data capture and POS solutions 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. Worldwide Communications & Services Segment The Worldwide Communications & Services segment includes a portfolio of solutions primarily for communications technologies and services. We have business units within this segment in North America, Latin America and Europe. These offerings include voice, video conferencing, wireless, data networking, cable, unified communications and collaboration, cloud and technology services. As these solutions come together on IP networks, new opportunities are created to move into adjacent solutions for all vertical markets, such as education, healthcare and government. Selected financial information for each business segment is presented below: Fiscal Year Ended June 30, 2018 2017 2016 (in thousands) Sales: Worldwide Barcode, Networking & Security $ 2,628,988 $ 2,389,256 $ 2,361,670 Worldwide Communications & Services 1,217,272 1,178,930 1,178,556 $ 3,846,260 $ 3,568,186 $ 3,540,226 Depreciation and amortization: Worldwide Barcode, Networking & Security $ 18,233 $ 6,496 $ 5,651 Worldwide Communications & Services 15,769 15,099 8,543 Corporate 3,493 3,373 2,960 $ 37,495 $ 24,968 $ 17,154 Operating income: Worldwide Barcode, Networking & Security $ 56,911 $ 49,727 $ 52,227 Worldwide Communications & Services 10,900 39,768 45,513 Corporate (1) (172 ) (1,256 ) (863 ) $ 67,639 $ 88,239 $ 96,877 Capital expenditures: Worldwide Barcode, Networking & Security $ 4,841 $ 3,796 $ 5,298 Worldwide Communications & Services 1,964 3,163 3,923 Corporate 1,354 1,890 2,860 $ 8,159 $ 8,849 $ 12,081 Sales by Geography Category: United States $ 2,877,225 $ 2,719,413 $ 2,655,760 International (2) 999,245 882,446 920,098 Less intercompany sales (30,210 ) (33,673 ) (35,632 ) $ 3,846,260 $ 3,568,186 $ 3,540,226 (1) For the years ended June 30, 2018, 2017 and 2016, the amounts shown above include acquisition costs. (2) For the years ended June 30, 2018, 2017 and 2016, there were no sales in excess of 10% of consolidated net sales to any single international country. June 30, 2018 June 30, 2017 (in thousands) Assets: Worldwide Barcode, Networking & Security $ 1,062,143 $ 885,786 Worldwide Communications & Services 841,490 769,342 Corporate 41,662 63,175 $ 1,945,295 $ 1,718,303 Property and equipment, net by Geography Category: United States $ 69,032 $ 51,853 International 4,010 4,713 $ 73,042 $ 56,566 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Jun. 30, 2018 | |
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, 2018 2017 2016 (in thousands) Currency translation adjustment $ (85,279 ) $ (73,217 ) $ (72,687 ) Unrealized gain on fair value of interest rate swap, net of tax 1,102 13 — Accumulated other comprehensive loss $ (84,177 ) $ (73,204 ) $ (72,687 ) The tax effect of amounts in comprehensive income (loss) reflect a tax expense or benefit as follows: Fiscal years ended June 30, 2018 2017 2016 (in thousands) Tax expense (benefit) $ 1,993 $ (396 ) $ 327 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On August 20, 2018 , the Company acquired Canpango, a global Salesforce implementation and consulting partner with deep knowledge of CRM and integration with telecom systems. Canpango’s professional services are complementary to our cloud services offerings. Canpango joins the Company's Worldwide Communications & Services operating segment. |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Jun. 30, 2018 | |
SEC Schedule, 12-09, 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, 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 Year ended June 30, 2018 $ 44,434 7,075 (5,610 ) (338 ) $ 45,561 Trade and current note receivable allowance $ 45,561 (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, 2018 , 2017 and 2016 . The amount in 2018 includes $0.1 million in accounts receivable reserves acquired with the POS Portal acquisition on July 31, 2017. 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 reserves acquired with KBZ on September 4, 2016. |
Business and Summary of Signi25
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Business Description | Business Description ScanSource, Inc. (together with its subsidiaries referred to as “the Company” or “ScanSource”) is at the center of the solution delivery channel, connecting businesses and providing technology solutions. The Company brings technology solutions and services from the world’s leading suppliers of point-of-sale (POS), payments, barcode, physical security, unified communications and collaboration and cloud and telecom services to market. The Company operates in the Unites States, Canada, Latin America and Europe. The Company's two operating segments, Worldwide Barcode, Networking & Security and Worldwide Communications & Services, are based on product, customer and service type. |
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. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with US 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 net realizable value based principally on the effects of technological changes, quantities of goods, length of time on hand and other factors. An estimate is made of the net realizable 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 supplier 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. |
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 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. Under ASU 2017-04 if fair value of goodwill 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 corroborated the fair value estimates derived from the income approach by considering the implied market multiples of comparable transactions and companies. 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 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. • Other cash flow adjustments: The Company utilized a projected cash flow impact pertaining to depreciation, capital expenditures and expected changes in working capital as each of its goodwill reporting units grow. Goodwill Fair Value The Company estimates the fair value of its goodwill reporting units primarily based on the income approach utilizing the discounted cash flow method. The Company also utilizes 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 requires it to make assumptions about the applicability of those multiples to its reporting units. The discounted cash flow method requires the Company to estimate future cash flows, using key assumptions such as the weighted average cost of capital, revenue growth rates, projected gross margin and operating margin percentage growth, expected working capital changes and a related cash flow impact from working capital changes, and then discount those amounts to present value. |
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 $5.7 million and $8.3 million are classified as accounts payable as of June 30, 2018 and 2017 , 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. |
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 6% of the Company’s net sales for fiscal years 2018 . No single customer accounted for more than 5% of the Company's net sales for fiscal 2017 or 2016 . 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. The Company's earnings are 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, the Company has entered into an interest rate swap agreement 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 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 $23.4 million and $21.4 million as of June 30, 2018 and June 30, 2017 , 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. |
Inventories | Inventories Inventories (consisting entirely of finished goods) are stated at the lower of cost (first-in, first-out method) or net realizable value. |
Supplier Programs | Supplier Programs The Company receives incentives from suppliers related to cooperative advertising allowances, volume rebates and other incentive agreements. These incentives are generally under quarterly, semi-annual or annual agreements with the suppliers. Some of these incentives are negotiated on an ad hoc basis to support specific programs mutually developed between the Company and the supplier. Suppliers generally require that the Company use the suppliers' cooperative advertising allowances for advertising or other marketing programs. Incentives received from suppliers 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 supplier. This guidance requires that the portion of these supplier 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 suppliers that are not yet earned are deferred in the Consolidated Balance Sheets. Supplier receivables are generally collected through reductions to accounts payable authorized by the supplier. In addition, the Company may receive early payment discounts from certain suppliers. 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 supplier incentives that will be received. Actual recognition of the supplier consideration may vary from management estimates. |
Supplier Concentration | Supplier Concentration The Company sells products from many suppliers, however, sales of products supplied by Avaya, Cisco and Zebra each constituted more than 10% of the Company’s net sales for the years ended June 30, 2018 , 2017 and 2016 . |
Product Warranty | Product Warranty The Company’s suppliers 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. 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. |
Intangible Assets | Intangible Assets Intangible assets consist of customer relationships, trade names, distributor agreements, supplier partner programs, intellectual property, non-compete agreements and an encryption key library. Customer relationships, distributor agreements, supplier partner programs and the encryption key library 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. |
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. |
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 U.S. dollars 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. The Company also made a single earnout payment to the former shareholders of POS Portal during fiscal year 2018 in accordance with the share purchase agreement. Network1 has one remaining earnout payment to be paid during fiscal year 2019. Intelisys has three remaining earnout payments to be paid in annual installments during fiscal years 2019 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 2018 , 2017 and 2016 . The Company provides hardware and value added services for point of sale and payment equipment. This includes terminals, related accessories, financing, device configuration as well as software licenses, professional services and hardware support programs. The Company is the primary obligor for all hardware, software and services sold and recognizes such revenue and cost of goods sold on a gross basis. The revenue associated with rental offerings to customers is recognized in net sales and the cost associated with such offering is recognized as depreciation on the capitalized equipment in cost of goods sold in the Consolidated Income Statements. Through the Intelisys acquisition, the Company has a recurring revenue model in which the Company acts as a master agent partnering suppliers with sales agents to provide telecommunications and cloud services to end-users. As the Company acts as an agent on behalf of the suppliers' services, commission revenue received from the supplier is recognized net of cost associated with the commissions the Company pays to sales agents, at the time of sale. |
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 or posted online. Advertising costs, net of supplier reimbursement are included in selling, general and administrative expenses, were not significant in any of the three fiscal years ended June 30, 2018 , 2017 and 2016 . |
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. In accordance with ASC 740, Accounting for Income Taxes valuation allowances are provided against deferred tax assets when it is more likely than not that an asset will not be realized . Additionally, the Company maintains reserves for uncertain tax provisions. On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act (the "Tax Act"). The Company has accounted for changes in the tax provision in accordance with the new law. In response to the Tax Act, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) that provides guidance on accounting for the impact of the Tax Act. SAB 118 allows companies to record provisional amounts to the extent reasonably estimable and adjust them over time as more information becomes available, not to extend beyond the measurement period of one year from the enactment of the Tax Act. Accordingly, the Company has recorded provisional amounts for the one-time transition tax on the deemed repatriation of undistributed foreign earnings and the remeasurment of deferred tax assets and liabilities. The final impact from the enactment of the Tax Act may differ from the estimates provided for a number of reasons including, but not limited to, the issuance of final regulations, interpretation of the law and refinement of the Company's ongoing analysis of the new tax positions. Any changes in the provisional amount recognized will be reflected in the income tax expense in the period they are identified. |
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. Furthermore, the Company adopted ASU 2016-09 which simplified several aspects of the accounting share-based compensation, including income tax effects, forfeitures, statutory withholding requirements and cash flow statement classifications. Share-based compensation is estimated at the grant date based on the fair value of the awards. Since this compensation cost is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. ASU 2016-09 allows companies to elect an accounting policy either to continue to estimate the total number of awards for which the requisite service period will not be rendered or to account for forfeitures when they occur. The Company has elected to maintain its current accounting policy, estimate the total number of awards expected to be forfeited at the time of grant and revise such estimates, if necessary, in subsequent periods if actual forfeitures differ. 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, unrealized gains or losses on hedged transactions, net of tax and foreign currency translation adjustments 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. |
Reclassifications | Reclassifications Certain reclassifications have been made on the Consolidated Statements of Cash Flows to show taxes paid on settlement of equity awards separately from exercise of stock options under cash flows from financing activities. 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. The standard permits the use of either the retrospective or cumulative effect transition method. The Company adopted this guidance for the fiscal year beginning July 1, 2018 using the full retrospective transition method. The Company engaged a third-party consultant to assist with developing a multi-phase plan to assess the impact of adoption. The Company does not expect the adoption of ASC 606 to have a material impact to the financial statements and is currently in the process of finalizing policy and procedure documentation around the adoption of the standard. Additionally, the Company is in the process of evaluating the impact of the expanded disclosure requirements. 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 can be adopted using a modified retrospective approach or a cumulative-effect adjustment to the opening balance sheet of retained earnings in the period of adoption 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 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 and early adoption is permitted. The standard will be applicable to the Company for the fiscal year beginning July 1, 2018. The guidance requires adoption using a retrospective transition method. Upon adoption, the Company expects to retroactively reclassify cash outflows between financing activities and operating activities related to contingent consideration payments in excess of the originally valued contingent consideration liability at the date of acquisition. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) that amends and simplifies guidance related to hedge accounting to more accurately portray the economics of an entity’s risk management activities in its financial statements. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted in any interim or annual period. This guidance will be applicable to the Company for the fiscal year beginning July 1, 2019. The guidance requires adoption using a modified retrospective approach. The presentation and disclosure requirements apply prospectively. The Company is currently evaluating the impact on its consolidated financial statements upon the adoption of this new guidance. 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, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Share | Fiscal Year Ended June 30, 2018 2017 2016 (in thousands, except per share data) Numerator: Net income $ 33,153 $ 69,246 $ 63,619 Denominator: Weighted-average shares, basic 25,522 25,318 26,472 Dilutive effect of share-based payments 102 197 215 Weighted-average shares, diluted 25,624 25,515 26,687 Net income per common share, basic $ 1.30 $ 2.74 $ 2.40 Net income per common share, diluted $ 1.29 $ 2.71 $ 2.38 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment is comprised of the following: June 30, 2018 2017 (in thousands) Land $ 3,331 $ 3,331 Buildings and leasehold improvements 21,384 21,101 Computer software and equipment 74,220 53,583 Furniture, fixtures and equipment 27,077 26,059 Construction in progress 1,584 4,556 Rental equipment 13,817 — 141,413 108,630 Less accumulated depreciation (68,371 ) (52,064 ) $ 73,042 $ 56,566 |
Accrued Expenses and Other Cu28
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Current Liabilities | Accrued expenses and other current liabilities is comprised of the following: June 30, 2018 2017 (in thousands) Deferred warranty revenue $ 21,065 $ 24,813 Accrued compensation 22,378 21,713 Other taxes payable 18,560 18,440 Accrued marketing expense 4,457 5,914 Brazilian pre-acquisition contingencies 1,385 3,506 Accrued freight 3,849 3,392 Other accrued liabilities 19,179 26,937 $ 90,873 $ 104,715 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
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 POS Portal (in thousands) Receivables $ 8,914 Inventory 8,352 Other current assets 917 Property and equipment, net 24,963 Goodwill 101,198 Identifiable intangible assets 57,000 Other non-current assets 100 $ 201,444 Accounts payable $ 10,897 Accrued expenses and other current liabilities 5,130 Contingent consideration 13,098 Other long-term liabilities 102 Long-term deferred taxes payable 28,449 Consideration transferred, net of cash acquired 143,768 $ 201,444 |
Goodwill and Other Identifiab30
Goodwill and Other Identifiable Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | Changes in the carrying amount of goodwill for the years ended June 30, 2018 and 2017 , by reportable segment, are set forth in the table below. Additions to goodwill for fiscal years 2018 and 2017 are due to the acquisitions of POS Portal and Intelisys, respectively. Worldwide Barcode, Networking & Security Segment Worldwide Communications & Services Segment Total (in thousands) Balance at June 30, 2016 $ 36,434 $ 56,281 $ 92,715 Additions — 109,005 109,005 Unrealized loss on foreign currency translation (174 ) (665 ) (839 ) Balance at June 30, 2017 $ 36,260 $ 164,621 $ 200,881 Additions 101,198 — 101,198 Unrealized loss on foreign currency translation (244 ) (3,661 ) (3,905 ) Balance at June 30, 2018 $ 137,214 $ 160,960 $ 298,174 |
Schedule of Identifiable Intangible Assets | The following table shows the Company’s identifiable intangible assets as of June 30, 2018 and 2017 , respectively. June 30, 2018 June 30, 2017 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value (in thousands) Amortized intangible assets: Customer relationships $ 139,479 $ 40,337 $ 99,142 $ 110,691 $ 27,977 $ 82,714 Trade names 27,123 12,224 14,899 23,256 8,691 14,565 Non-compete agreements 3,064 1,221 1,843 1,160 608 552 Distributor agreements 363 188 175 355 158 197 Supplier partner program 3,583 456 3,127 3,583 98 3,485 Encryption key library 19,900 2,280 17,620 — — — Total intangibles $ 193,512 $ 56,706 $ 136,806 $ 139,045 $ 37,532 $ 101,513 |
Schedule of Estimated Future Amortization Expense | Estimated future amortization expense is as follows: Amortization Expense (in thousands) Year Ended June 30, 2019 $ 18,920 2020 18,308 2021 18,200 2022 16,564 2023 15,591 Thereafter 49,223 Total $ 136,806 |
Short-Term Borrowings and Lon31
Short-Term Borrowings and Long-Term Debt (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | The following table shows the Company’s long term debt as of June 30, 2018 and 2017 , respectively. 2018 2017 (in thousands) Current portion of long-term debt $ 551 $ — Long term debt, net of current portion 4,878 5,429 Borrowings under revolving credit facility 244,000 91,871 Total debt $ 249,429 $ 97,300 |
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, 2018 are as follows: Revolving Credit Facility Long-Term Debt (in thousands) Fiscal year: 2019 $ — $ 551 2020 — 338 2021 — 342 2022 244,000 347 2023 — 351 Thereafter — 3,500 Total principal payments $ 244,000 $ 5,429 |
Derivatives and Hedging Activ32
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
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, 2018 2017 2016 (in thousands) Net foreign exchange derivative contract loss (gain) $ 386 $ 146 $ (1,951 ) Net foreign currency transactional and re-measurement loss 1,710 1,773 4,522 Net foreign currency loss $ 2,096 $ 1,919 $ 2,571 |
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, 2018 June 30, 2017 (in thousands) Net interest expense recognized as a result of interest rate swap $ 161 $ 7 Unrealized gain in fair value of interest swap rates 1,422 14 Net increase in accumulated other comprehensive income (loss) $ 1,583 $ 21 Income tax effect 494 8 Net increase in accumulated other comprehensive income (loss), net of tax $ 1,089 $ 13 |
Derivative Instruments | The Company has the following derivative instruments located on the Consolidated Balance Sheets and Income Statements as of June 30, 2018 , utilized for the risk management purposes detailed above: June 30, 2018 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 $ — $ 157 Interest rate swap agreement Other current assets $ 1,604 $ — Derivative liabilities: Foreign exchange contracts Accrued expenses and other current liabilities $ — $ 156 The Company has the following derivative instruments located on the Consolidated Balance Sheets and Income Statements as of June 30, 2017 , 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 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, 2018 | |
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, 2018 : 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 $ 23,352 $ 23,352 $ — $ — Forward foreign currency exchange contracts 157 — 157 — Interest rate swap agreement 1,604 — 1,604 — Total assets at fair value $ 25,113 $ 23,352 $ 1,761 $ — Liabilities: Deferred compensation plan investments, current and non-current portion $ 23,352 $ 23,352 $ — $ — Forward foreign currency exchange contracts 156 — 156 — Liability for contingent consideration, current and non-current 108,233 — — 108,233 Total liabilities at fair value $ 131,741 $ 23,352 $ 156 $ 108,233 The following table presents 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 |
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 Network1, Intelisys and POS Portal earnouts, which is measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the fiscal year ended June 30, 2018 . The contingent consideration due to the former shareholders of POS Portal was paid in full during the quarter ended December 31, 2017. Contingent Consideration for the Fiscal Year Ended June 30, 2018 Worldwide Barcode, Networking & Security Segment Worldwide Communications & Services Segment Total (in thousands) Fair value at beginning of period $ — $ 114,036 $ 114,036 Issuance of contingent consideration 13,098 — 13,098 Payments (13,167 ) (40,858 ) (54,025 ) Adjustments to contingent consideration (1) — (779 ) (779 ) Change in fair value 69 36,974 37,043 Fluctuation due to foreign currency exchange — (1,140 ) (1,140 ) Fair value at end of period $ — $ 108,233 $ 108,233 (1) The contingent consideration payable to the former shareholders of Network1 has been reduced by payments the Company made to settle pre-acquisition contingencies during the quarter ended June 30, 2018 . 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 Scheduled maturities of the Company’s contingent considerations at June 30, 2018 are as follows: Contingent Consideration (in thousands) Fiscal year: 2019 $ 42,975 2020 32,239 2021 33,019 Total contingent consideration payments $ 108,233 |
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, 2018 and 2017 were as follows. Reporting Period Valuation Technique Significant Unobservable Inputs Weighted Average Rates June 30, 2018 Discounted cash flow Weighted average cost of capital 8.6 % Adjusted EBITDA growth rate 18.2 % June 30, 2017 Discounted cash flow Weighted average cost of capital 14.2 % Adjusted EBITDA growth rate 17.0 % |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
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, 2018 2017 2016 (in thousands) Share-based compensation related to: Equity classified stock options $ 1,184 $ 1,356 $ 1,479 Equity classified restricted stock 5,275 5,246 5,614 Total share-based compensation $ 6,459 $ 6,602 $ 7,093 |
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, 2018 2017 2016 Expected term 5 years 5 years 4.02 years Expected volatility 30.70 % 30.88 % 28.70 % Risk-free interest rate 2.17 % 1.84 % 1.47 % Dividend yield 0.00 % 0.00 % 0.00 % Weighted-average fair value per option $ 10.60 $ 11.26 $ 9.53 |
Stock Option Plans | A summary of activity under our stock option plans is presented below: Fiscal Year Ended June 30, 2018 Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding, beginning of year 872,989 $ 37.63 Granted during the period 119,132 34.27 Exercised during the period (62,701 ) 35.72 Canceled, forfeited, or expired during the period (32,300 ) 37.17 Outstanding, end of year 897,120 37.33 5.95 $ 3,089,365 Vested and expected to vest at June 30, 2018 895,187 37.34 5.94 $ 3,078,179 Exercisable, end of year 685,554 $ 37.84 5.07 $ 2,113,769 |
Unvested Shares | A summary of the status of the Company’s shares subject to unvested options is presented below: Fiscal Year Ended June 30, 2018 Options Weighted Average Exercise Price Weighted Average Grant Date Fair- Value Unvested, beginning of year 215,970 $ 38.48 $ 10.39 Granted 119,132 34.27 10.60 Vested (123,536 ) 39.20 10.33 Unvested, end of year 211,566 $ 35.69 $ 10.54 |
Stock Options Outstanding | The following table summarizes information about stock options outstanding and exercisable as of June 30, 2018 : 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 0.43 $ 18.14 2,800 $ 18.14 $22.27 - $26.38 25,000 1.43 24.57 25,000 24.57 $26.38 - $30.49 20,731 4.44 29.80 20,731 29.80 $30.49 - $34.60 197,971 7.17 34.21 82,839 34.27 $34.60 - $38.71 371,169 5.67 37.04 274,735 36.87 $38.71 - $42.82 279,449 6.02 41.83 279,449 41.83 897,120 5.95 $ 37.33 685,554 $ 37.84 |
Restricted Stock Outstanding | During the fiscal year ended June 30, 2018 , the Company granted 138,665 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, 2018 Shares granted Date granted Grant date fair value Vesting period Employees Certain employees based on performance 92,469 December 8, 2017 $ 34.35 Annually over 3 years Certain employees based on performance (1) 31,296 February 1, 2018 $ 34.95 January 1, 2018 through December 31, 2020 Non-Employee Directors (2) Certain Directors 500 September 11, 2017 $ 37.75 6 months Certain Directors 14,400 December 8, 2017 $ 34.35 6 months (1) The RSU's granted on February 1, 2018 contains both service and performance-based vesting conditions for the period January 1, 2018 through December 31, 2020 (the "performance cycle") as determined by the Compensation Committee of the Company's Board of Directors. The total number for target shares granted could differ from the actual shares vested at the conclusion of the performance cycle. See the Company's 2018 Proxy Statement for more information about these grants. (2) 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, 2018 Shares Weighted-Average Grant Date Fair Value Outstanding, beginning of year 267,386 $ 37.86 Granted during the period 138,665 34.50 Target shares adjustment during the period (1) (216 ) 36.33 Vested during the period (146,046 ) 38.16 Cancelled, forfeited, or expired during the period (6,270 ) 34.77 Outstanding, end of year 253,519 $ 35.93 (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 2018 represents the variance between the shares assumed to be granted versus at June 30, 2017 the actual shares granted for the third tranche. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Employer Contributions | Fiscal Year Ended June 30, 2018 2017 2016 (in thousands) Matching contributions $ 1,163 $ 875 $ 735 Discretionary contributions 4,700 3,413 3,617 Total contributions $ 5,863 $ 4,288 $ 4,352 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense (Benefit) | Income tax expense (benefit) consists of: Fiscal Year Ended June 30, 2018 2017 2016 (in thousands) Current: Federal $ 38,263 $ 31,149 $ 21,855 State 3,503 2,615 1,652 Foreign 9,203 269 6,100 Total current 50,969 34,033 29,607 Deferred: Federal (9,987 ) (3,832 ) 3,990 State (1,962 ) (397 ) 365 Foreign (11,248 ) 2,445 (1,571 ) Total deferred (23,197 ) (1,784 ) 2,784 Provision for income taxes $ 27,772 $ 32,249 $ 32,391 |
Reconciliation of U.S.Federal Income Tax Expense | A reconciliation of the U.S. Federal income tax expense at a blended statutory rate of 28% for the fiscal year ended June 30, 2018 and a statutory rate of 35% for the June 30, 2017 and 2016 fiscal years to actual income tax expense is as follows: Fiscal Year Ended June 30, 2018 2017 2016 (in thousands) U.S. statutory rate 28.0 % 35.0 % 35.0 % U.S. Federal income tax at statutory rate $ 17,094 $ 35,524 $ 33,603 Increase (decrease) in income taxes due to: State and local income taxes, net of Federal benefit 1,883 1,729 1,578 Tax credits (1,825 ) (1,430 ) (2,517 ) Valuation allowance 1,530 444 541 Effect of foreign operations, net (1,396 ) (1,477 ) (1,150 ) Stock compensation 1,049 (61 ) (62 ) Capitalized acquisition costs 48 231 70 Nontaxable income (9 ) (4,437 ) — Disallowed interest 1,888 2,011 571 Other (1,438 ) (285 ) (243 ) U.S. Tax Reform transition tax 9,609 — — U.S. Tax Reform impact of rate change on deferred taxes (1,615 ) — — Belgium Tax Reform impact of rate change on deferred taxes 1,040 — — Other jurisdictions impact of rate change on deferred taxes (86 ) — — Provision for income taxes $ 27,772 $ 32,249 $ 32,391 |
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, 2018 2017 (in thousands) Deferred tax assets derived from: Allowance for accounts receivable $ 12,874 $ 11,687 Inventories 4,060 5,235 Nondeductible accrued expenses 7,426 3,968 Net operating loss carryforwards 5,350 3,141 Tax credits 5,795 4,094 Timing of amortization deduction from goodwill 5,756 1,285 Deferred compensation 5,696 7,934 Stock compensation 2,809 5,424 Timing of amortization deduction from intangible assets 2,510 3,032 Total deferred tax assets 52,276 45,800 Valuation allowance (5,098 ) (3,473 ) Total deferred tax assets, net of allowance 47,178 42,327 Deferred tax liabilities derived from: Timing of depreciation and other deductions from building and equipment (7,468 ) (7,778 ) Timing of amortization deduction from goodwill (1,782 ) (5,013 ) Timing of amortization deduction from intangible assets (17,498 ) (2,053 ) Total deferred tax liabilities (26,748 ) (14,844 ) Net deferred tax assets $ 20,430 $ 27,483 |
Components of Pretax Earnings | The components of pretax earnings are as follows: Fiscal Year Ended June 30, 2018 2017 2016 (in thousands) Domestic $ 66,416 $ 79,871 $ 76,062 Foreign (5,491 ) 21,624 19,948 Worldwide pretax earnings $ 60,925 $ 101,495 $ 96,010 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: June 30, 2018 2017 2016 (in thousands) Beginning Balance $ 2,176 $ 2,148 $ 1,301 Additions based on tax positions related to the current year 157 174 326 Additions for tax positions of prior years — — 658 Reduction for tax positions of prior years (280 ) (146 ) (137 ) Ending Balance $ 2,053 $ 2,176 $ 2,148 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease Expense | Lease expense and future minimum lease payments under operating leases and capital leases are as follows: Fiscal Year Ended June 30, 2018 2017 2016 (in thousands) Lease expense $ 9,824 $ 8,703 $ 7,394 |
Future Minimum Lease Payments | Operating Lease Payments Capital Lease Payments Total Payments (in thousands) Fiscal Year Ended June 30, 2019 $ 8,196 $ 675 $ 8,871 2020 6,160 675 6,835 2021 5,316 — 5,316 2022 4,185 — 4,185 2023 3,404 — 3,404 Thereafter 10,817 — 10,817 Total future minimum lease payments 38,078 1,350 39,428 Less: amounts representing interest on capital lease — 30 30 Total future minimum principal lease payments $ 38,078 $ 1,320 $ 39,398 |
Schedule of Capital Leased Assets | The components of the Company's capital lease as of June 30, 2018 are as follows: Capital Lease Obligations Property & Equipment Accumulated Depreciation Net Book Value Short-Term Long-Term Total (in thousands) IT Infrastructure $ 1,583 $ (259 ) $ 1,324 $ 653 $ 667 $ 1,320 |
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, 2018 June 30, 2017 (in thousands) Assets Prepaid expenses and other assets (current) $ 1,385 $ 1,294 Other assets (noncurrent) $ 5,700 $ 8,235 Liabilities Other current liabilities $ 1,385 $ 1,294 Other long-term liabilities $ 5,700 $ 8,235 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, 2018 June 30, 2017 (in thousands) Assets Prepaid expenses and other assets (current) $ — $ 2,212 Other assets (noncurrent) $ — $ — Liabilities Other current liabilities $ — $ 2,212 Other long-term liabilities $ — $ — |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Financial Information by Segment | Selected financial information for each business segment is presented below: Fiscal Year Ended June 30, 2018 2017 2016 (in thousands) Sales: Worldwide Barcode, Networking & Security $ 2,628,988 $ 2,389,256 $ 2,361,670 Worldwide Communications & Services 1,217,272 1,178,930 1,178,556 $ 3,846,260 $ 3,568,186 $ 3,540,226 Depreciation and amortization: Worldwide Barcode, Networking & Security $ 18,233 $ 6,496 $ 5,651 Worldwide Communications & Services 15,769 15,099 8,543 Corporate 3,493 3,373 2,960 $ 37,495 $ 24,968 $ 17,154 Operating income: Worldwide Barcode, Networking & Security $ 56,911 $ 49,727 $ 52,227 Worldwide Communications & Services 10,900 39,768 45,513 Corporate (1) (172 ) (1,256 ) (863 ) $ 67,639 $ 88,239 $ 96,877 Capital expenditures: Worldwide Barcode, Networking & Security $ 4,841 $ 3,796 $ 5,298 Worldwide Communications & Services 1,964 3,163 3,923 Corporate 1,354 1,890 2,860 $ 8,159 $ 8,849 $ 12,081 Sales by Geography Category: United States $ 2,877,225 $ 2,719,413 $ 2,655,760 International (2) 999,245 882,446 920,098 Less intercompany sales (30,210 ) (33,673 ) (35,632 ) $ 3,846,260 $ 3,568,186 $ 3,540,226 (1) For the years ended June 30, 2018, 2017 and 2016, the amounts shown above include acquisition costs. (2) For the years ended June 30, 2018, 2017 and 2016, there were no sales in excess of 10% of consolidated net sales to any single international country. June 30, 2018 June 30, 2017 (in thousands) Assets: Worldwide Barcode, Networking & Security $ 1,062,143 $ 885,786 Worldwide Communications & Services 841,490 769,342 Corporate 41,662 63,175 $ 1,945,295 $ 1,718,303 Property and equipment, net by Geography Category: United States $ 69,032 $ 51,853 International 4,010 4,713 $ 73,042 $ 56,566 |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
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, 2018 2017 2016 (in thousands) Currency translation adjustment $ (85,279 ) $ (73,217 ) $ (72,687 ) Unrealized gain on fair value of interest rate swap, net of tax 1,102 13 — Accumulated other comprehensive loss $ (84,177 ) $ (73,204 ) $ (72,687 ) |
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, 2018 2017 2016 (in thousands) Tax expense (benefit) $ 1,993 $ (396 ) $ 327 |
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, 2018USD ($)product_lineearnout_paymentsegmentshares | Jun. 30, 2017USD ($)shares | Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($)shares | Jun. 30, 2015USD ($) | |
Number of reportable segments | segment | 2 | ||||||
Amount of related party transactions | $ 0 | $ 0 | $ 0 | ||||
Cash and cash equivalents | $ 25,530,000 | 56,094,000 | $ 61,400,000 | $ 61,400,000 | $ 121,646,000 | ||
Derivative contract term | 90 days | ||||||
Deferred compensation plan assets | $ 23,352,000 | 21,439,000 | |||||
Portion of investment obligation in current liabilities | $ 1,600,000 | $ 2,700,000 | |||||
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% | ||||
Intelisys service revenue maximum percentage of consolidated net sales | 1.00% | ||||||
Shipping revenue | $ 3,846,260,000 | $ 3,568,186,000 | $ 3,540,226,000 | ||||
Period in force for stock repurchase program | 3 years | 3 years | |||||
Value of stock repurchase program approval | $ 120,000,000 | $ 120,000,000 | |||||
Shares of stock repurchased during period (in shares) | shares | 0 | 600,000 | 3,400,000 | ||||
Value of stock repurchased during period | $ 20,335,000 | $ 100,751,000 | $ 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] | Encryption Key Library [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] | Encryption Key Library [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 | 6.00% | 5.00% | |||||
Supplier Concentration Risk [Member] | Minimum [Member] | |||||||
Concentration risk percentage | 10.00% | 10.00% | 10.00% | ||||
International [Member] | |||||||
Cash and cash equivalents | $ 20,300,000 | $ 47,900,000 | |||||
Bank Overdrafts [Member] | |||||||
Outstanding checks | $ 5,700,000 | 8,300,000 | |||||
Network1 [Member] | |||||||
Number of remaining earnout payments | earnout_payment | 1 | ||||||
Intelisys [Member] | |||||||
Number of remaining earnout payments | earnout_payment | 3 | ||||||
Interest Rate Swap [Member] | |||||||
Ineffective portion of cash flow hedge | $ 0 | 0 | |||||
Shipping and Handling [Member] | |||||||
Shipping revenue | $ 19,900,000 | $ 12,800,000 | $ 13,000,000 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Numerator: | |||
Net income | $ 33,153 | $ 69,246 | $ 63,619 |
Denominator: | |||
Weighted-average shares, basic (in shares) | 25,522,000 | 25,318,000 | 26,472,000 |
Dilutive effect of share-based payments (in shares) | 102,000 | 197,000 | 215,000 |
Weighted-average shares, diluted (in shares) | 25,624,000 | 25,515,000 | 26,687,000 |
Net income per common share, basic (in dollars per share) | $ 1.30 | $ 2.74 | $ 2.40 |
Net income per common share, diluted (in dollars per share) | $ 1.29 | $ 2.71 | $ 2.38 |
Weighted average shares excluded from the computation of diluted earnings per share (in shares) | 551,320 | 418,325 | 461,090 |
Property and Equipment (Compone
Property and Equipment (Components of Property and Equipment) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 141,413 | $ 108,630 |
Less accumulated depreciation | (68,371) | (52,064) |
Property and equipment, net | 73,042 | 56,566 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,331 | 3,331 |
Buildings and leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 21,384 | 21,101 |
Computer software and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 74,220 | 53,583 |
Furniture, fixtures and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 27,077 | 26,059 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,584 | 4,556 |
Rental Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 13,817 | $ 0 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 13,311 | $ 9,444 | $ 7,326 |
Deprecation expense recorded as cost of goods sold | $ 3,500 |
Accrued Expenses and Other Cu44
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Payables and Accruals [Abstract] | ||
Deferred warranty revenue | $ 21,065 | $ 24,813 |
Accrued compensation | 22,378 | 21,713 |
Other taxes payable | 18,560 | 18,440 |
Accrued marketing expense | 4,457 | 5,914 |
Brazilian pre-acquisition contingencies | 1,385 | 3,506 |
Accrued freight | 3,849 | 3,392 |
Other accrued liabilities | 19,179 | 26,937 |
Accrued expensed and other current liabilities | $ 90,873 | $ 104,715 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ in Thousands | Jul. 31, 2017USD ($) | Aug. 29, 2016USD ($)payment | Dec. 31, 2016USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) |
Business Acquisition [Line Items] | ||||||
Cash paid for business acquisitions, net of cash acquired | $ 143,768 | $ 83,804 | $ 61,475 | |||
Liability for contingent consideration, current and non-current | $ 108,233 | $ 114,036 | ||||
Weighted average amortization period | 10 years | 10 years | 10 years | |||
POS Portal [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Initial purchase price | $ 144,900 | |||||
Additional customary closing costs paid | $ 3,400 | |||||
Cash acquired in acquisition | 4,600 | |||||
Cash paid for business acquisitions, net of cash acquired | 143,768 | |||||
Liability for contingent consideration, current and non-current | 13,098 | |||||
Escrow deposits received from seller | $ 13,100 | |||||
Acquisition-related costs | $ 200 | |||||
Weighted average amortization period | 10 years | |||||
Intelisys [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Initial purchase price | $ 83,600 | |||||
Cash acquired in acquisition | 800 | |||||
Cash paid for business acquisitions, net of cash acquired | 83,804 | |||||
Liability for contingent consideration, current and non-current | 95,000 | |||||
Escrow deposits received from seller | $ 8,500 | |||||
Weighted average amortization period | 10 years | |||||
Initial cash payment | 84,600 | |||||
Additional net assets acquired | $ 1,000 | |||||
Number of payments | payment | 4 | |||||
Fair Value Adjustment To Acquisition-related Costs [Member] | Intelisys [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition-related costs | $ 500 | $ 300 | ||||
Maximum [Member] | POS Portal [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Liability for contingent consideration, current and non-current | $ 13,200 |
Acquisitions (Schedule of Purch
Acquisitions (Schedule of Purchase Price Allocations of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Aug. 29, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 298,174 | $ 200,881 | $ 92,715 | ||
Contingent consideration | 108,233 | 114,036 | |||
Consideration transferred, net of cash acquired | $ 143,768 | $ 83,804 | $ 61,475 | ||
POS Portal [Member] | |||||
Business Acquisition [Line Items] | |||||
Receivables, net | $ 8,914 | ||||
Inventory | 8,352 | ||||
Other current assets | 917 | ||||
Property and equipment, net | 24,963 | ||||
Goodwill | 101,198 | ||||
Identifiable intangible assets | 57,000 | ||||
Other non-current assets | 100 | ||||
Total assets | 201,444 | ||||
Accounts payable | 10,897 | ||||
Accrued expenses and other current liabilities | 5,130 | ||||
Contingent consideration | 13,098 | ||||
Other long-term liabilities | 102 | ||||
Long-term deferred taxes payable | 28,449 | ||||
Consideration transferred, net of cash acquired | 143,768 | ||||
Total liabilities | $ 201,444 | ||||
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 |
Goodwill and Other Identifiab47
Goodwill and Other Identifiable Intangible Assets (Changes in the Carrying Amount of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 200,881 | $ 92,715 |
Additions | 101,198 | 109,005 |
Unrealized loss on foreign currency translation | (3,905) | (839) |
Goodwill, ending balance | 298,174 | 200,881 |
Worldwide Barcode, Networking and Security Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 36,260 | 36,434 |
Additions | 101,198 | 0 |
Unrealized loss on foreign currency translation | (244) | (174) |
Goodwill, ending balance | 137,214 | 36,260 |
Worldwide Communications and Services Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 164,621 | 56,281 |
Additions | 0 | 109,005 |
Unrealized loss on foreign currency translation | (3,661) | (665) |
Goodwill, ending balance | $ 160,960 | $ 164,621 |
Goodwill and Other Identifiab48
Goodwill and Other Identifiable Intangible Assets (Identifiable Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 193,512 | $ 139,045 |
Accumulated Amortization | 56,706 | 37,532 |
Total | 136,806 | 101,513 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 139,479 | 110,691 |
Accumulated Amortization | 40,337 | 27,977 |
Total | 99,142 | 82,714 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 27,123 | 23,256 |
Accumulated Amortization | 12,224 | 8,691 |
Total | 14,899 | 14,565 |
Non-Compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,064 | 1,160 |
Accumulated Amortization | 1,221 | 608 |
Total | 1,843 | 552 |
Distributor Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 363 | 355 |
Accumulated Amortization | 188 | 158 |
Total | 175 | 197 |
Supplier Partner Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,583 | 3,583 |
Accumulated Amortization | 456 | 98 |
Total | 3,127 | 3,485 |
Encryption Key Library [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 19,900 | 0 |
Accumulated Amortization | 2,280 | 0 |
Total | $ 17,620 | $ 0 |
Goodwill and Other Identifiab49
Goodwill and Other Identifiable Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average amortization period | 10 years | 10 years | 10 years |
Additional amortization expense of intangible assets | $ 20,657 | $ 15,524 | $ 9,828 |
Goodwill and Other Identifiab50
Goodwill and Other Identifiable Intangible Assets (Estimated Future Amortization Expense) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,019 | $ 18,920 | |
2,020 | 18,308 | |
2,021 | 18,200 | |
2,022 | 16,564 | |
2,023 | 15,591 | |
Thereafter | 49,223 | |
Total | $ 136,806 | $ 101,513 |
Short-Term Borrowings and Lon51
Short-Term Borrowings and Long-Term Debt (Long-term Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ 551 | $ 0 |
Long term debt, net of current portion | 4,878 | 5,429 |
Borrowings under revolving credit facility | 244,000 | 91,871 |
Total debt | 249,429 | 97,300 |
Industrial Development Revenue Bond [Member] | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | 551 | 0 |
Long term debt, net of current portion | 4,878 | 5,429 |
Multi-Currency Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Borrowings under revolving credit facility | $ 244,000 | $ 91,871 |
Short-Term Borrowings and Lon52
Short-Term Borrowings and Long-Term Debt (Narrative) (Details) | 12 Months Ended | |||
Jun. 30, 2018USD ($)quarter | Jun. 30, 2017USD ($) | Aug. 08, 2017USD ($) | Aug. 03, 2017USD ($) | |
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 | 2.855% | 1.926% | ||
Multi-Currency Revolving Credit Facility [Member] | ||||
Borrowing capacity under credit facility | $ 300,000,000 | |||
Debt issuance costs of credit facility | 300,000 | $ 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 | 0.25% | |||
Percentage of capital stock or other equity interest pledged per credit agreement | 65.00% | |||
Average daily balance on revolving credit facility | $ 269,500,000 | $ 126,500,000 | ||
Amount available for additional borrowings | 156,000,000 | 208,100,000 | ||
Letters of credit outstanding | $ 0 | $ 0 | ||
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% | |||
Multi-Currency Revolving Credit Facility, Amended Credit Agreement [Member] | ||||
Borrowing capacity under credit facility | 400,000,000 | |||
Letter of Credit [Member] | ||||
Borrowing capacity under credit facility | 50,000,000 | |||
Multi-Currency Revolving Credit Facility, Accordion Feature [Member] | ||||
Borrowing capacity under credit facility | 200,000,000 | |||
Multi-Currency Revolving Credit Facility, Combined with Accordion Feature [Member] | ||||
Borrowing capacity under credit facility | $ 600,000,000 | |||
London Interbank Offered Rate (LIBOR) [Member] | Multi-Currency Revolving Credit Facility [Member] | ||||
Percentage spread points on variable rate debt instrument | 1.625% | |||
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 | 0.625% | |||
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% |
Short-Term Borrowings and Lon53
Short-Term Borrowings and Long-Term Debt (Maturities of Revolving Credit Facility and Long-term Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Debt Instrument [Line Items] | ||
Total principal payments, revolving credit facility | $ 244,000 | $ 91,871 |
Industrial Development Revenue Bond [Member] | ||
Debt Instrument [Line Items] | ||
2,019 | 551 | |
2,020 | 338 | |
2,021 | 342 | |
2,022 | 347 | |
2,023 | 351 | |
Thereafter | 3,500 | |
Total principal payments, long-term debt | 5,429 | |
Multi-Currency Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 244,000 | |
2,023 | 0 | |
Thereafter | 0 | |
Total principal payments, revolving credit facility | $ 244,000 | $ 91,871 |
Derivatives and Hedging Activ54
Derivatives and Hedging Activities (Foreign Currency Derivatives Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Notional amount of foreign currency contracts outstanding | $ 74.6 | $ 67.1 |
Derivatives and Hedging Activ55
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, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |||
Net foreign exchange derivative contract loss (gain) | $ 386 | $ 146 | $ (1,951) |
Net foreign currency transactional and re-measurement loss | 1,710 | 1,773 | 4,522 |
Net foreign currency loss | $ 2,096 | $ 1,919 | $ 2,571 |
Derivatives and Hedging Activ56
Derivatives and Hedging Activities (Interest Rates Narrative) (Details) - Interest Rate Swap [Member] - USD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative [Line Items] | ||
Notional amount of interest rate swap agreements outstanding | $ 50,000,000 | |
Ineffective portion of cash flow hedge | $ 0 | $ 0 |
Derivatives and Hedging Activ57
Derivatives and Hedging Activities (Cash Flow Hedge Included in Accumulated Other Comprehensive Income (Loss)) (Details) - Interest Rate Swap [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net interest expense recognized as a result of interest rate swap | $ 161 | $ 7 |
Unrealized gain in fair value of interest swap rates | 1,422 | 14 |
Net increase in accumulated other comprehensive income (loss) | 1,583 | 21 |
Income tax effect | 494 | 8 |
Net increase in accumulated other comprehensive income (loss), net of tax | $ 1,089 | $ 13 |
Derivatives and Hedging Activ58
Derivatives and Hedging Activities (Derivative Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 157 | $ 35 |
Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 1,604 | 21 |
Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Prepaid Expenses and Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 157 | 35 |
Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 1,604 | 21 |
Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Accrued Liabilities And Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 0 |
Accrued Liabilities And Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 156 | $ 131 |
Fair Value of Financial Instr59
Fair Value of Financial Instruments (Short-term Investments and Financial Instruments at Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Assets: | ||
Deferred compensation plan investments, current and non-current portion | $ 23,352 | $ 21,439 |
Total assets at fair value | 25,113 | 21,495 |
Liabilities: | ||
Deferred compensation plan investments, current and non-current portion | 23,352 | 21,074 |
Liability for contingent consideration, current and non-current | 108,233 | 114,036 |
Total liabilities at fair value | 131,741 | 135,241 |
Quoted Prices in Active Markets (Level 1) [Member] | ||
Assets: | ||
Deferred compensation plan investments, current and non-current portion | 23,352 | 21,439 |
Total assets at fair value | 23,352 | 21,439 |
Liabilities: | ||
Deferred compensation plan investments, current and non-current portion | 23,352 | 21,074 |
Liability for contingent consideration, current and non-current | 0 | 0 |
Total liabilities at fair value | 23,352 | 21,074 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Deferred compensation plan investments, current and non-current portion | 0 | 0 |
Total assets at fair value | 1,761 | 56 |
Liabilities: | ||
Deferred compensation plan investments, current and non-current portion | 0 | 0 |
Liability for contingent consideration, current and non-current | 0 | 0 |
Total liabilities at fair value | 156 | 131 |
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 |
Liability for contingent consideration, current and non-current | 108,233 | 114,036 |
Total liabilities at fair value | 108,233 | 114,036 |
Foreign Exchange Contract [Member] | ||
Assets: | ||
Derivative assets | 157 | 35 |
Liabilities: | ||
Forward foreign currency exchange contracts | 156 | 131 |
Foreign Exchange Contract [Member] | Quoted Prices in Active Markets (Level 1) [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Forward foreign currency exchange contracts | 0 | 0 |
Foreign Exchange Contract [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Derivative assets | 157 | 35 |
Liabilities: | ||
Forward foreign currency exchange contracts | 156 | 131 |
Foreign Exchange Contract [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Forward foreign currency exchange contracts | 0 | 0 |
Interest Rate Swap [Member] | ||
Assets: | ||
Derivative assets | 1,604 | 21 |
Interest Rate Swap [Member] | Quoted Prices in Active Markets (Level 1) [Member] | ||
Assets: | ||
Derivative assets | 0 | 0 |
Interest Rate Swap [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Derivative assets | 1,604 | 21 |
Interest Rate Swap [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Derivative assets | $ 0 | $ 0 |
Fair Value of Financial Instr60
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, 2018 | Jun. 30, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value at beginning of period | $ 114,036 | $ 24,652 |
Issuance of contingent consideration | 13,098 | 95,000 |
Payments | (54,025) | (10,241) |
Adjustments to contingent consideration | (779) | |
Change in fair value | 37,043 | 5,211 |
Fluctuation due to foreign currency exchange | (1,140) | (586) |
Fair value at end of period | 108,233 | 114,036 |
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 | 0 |
Issuance of contingent consideration | 13,098 | 0 |
Payments | (13,167) | 0 |
Adjustments to contingent consideration | 0 | |
Change in fair value | 69 | 0 |
Fluctuation due to foreign currency exchange | 0 | 0 |
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 | 114,036 | 24,652 |
Issuance of contingent consideration | 0 | 95,000 |
Payments | (40,858) | (10,241) |
Adjustments to contingent consideration | (779) | |
Change in fair value | 36,974 | 5,211 |
Fluctuation due to foreign currency exchange | (1,140) | (586) |
Fair value at end of period | $ 108,233 | $ 114,036 |
Fair Value of Financial Instr61
Fair Value of Financial Instruments (Valuation Techniques and Significant Observable Inputs) (Details) | Jun. 30, 2018 | Jun. 30, 2017 |
Weighted average cost of capital [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration, liability, measurement input | 0.086 | 0.142 |
Adjusted EBITDA growth rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration, liability, measurement input | 0.182 | 0.170 |
Fair Value of Financial Instr62
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Current portion of contingent consideration | $ 42,975 | $ 42,975 | $ 30,675 | |
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 | 37,043 | 5,211 | ||
Fair value of liability for contingent consideration | 108,233 | 108,233 | 114,036 | $ 24,652 |
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 | 69 | 0 | ||
Fair value of liability for contingent consideration | 0 | 0 | 0 | 0 |
Worldwide Barcode, Networking and Security Segment [Member] | POS Portal [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 | 100 | |||
Worldwide Barcode, Networking and Security Segment [Member] | CDC Brasil S A [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 | 200 | |||
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 | 36,974 | 5,211 | ||
Fair value of liability for contingent consideration | 108,233 | 108,233 | 114,036 | $ 24,652 |
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 | 21,000 | (5,800) | ||
Fair value of liability for contingent consideration | 10,700 | 10,700 | 6,900 | |
Current portion of contingent consideration | 5,400 | |||
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 | 16,000 | 12,100 | ||
Fair value of liability for contingent consideration | 97,500 | 97,500 | 107,100 | |
Current portion of contingent consideration | 32,200 | 32,200 | 25,300 | |
Undiscounted contingent consideration payments, maximum | $ 115,300 | $ 115,300 | ||
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) |
Fair Value of Financial Instr63
Fair Value of Financial Instruments Fair Value of Financial Instruments (Schedule of Maturities of Contingent Consideration) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Fair Value Disclosures [Abstract] | ||
2,019 | $ 42,975 | |
2,020 | 32,239 | |
2,021 | 33,019 | |
Total contingent consideration payments | $ 108,233 | $ 114,036 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) | Dec. 08, 2017shares | Sep. 11, 2017shares | Jun. 30, 2018USD ($)plantrancheshares | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of share-based compensation plans | plan | 2 | ||||
Options granted during period (in shares) | 119,132 | ||||
Total aggregate intrinsic value of options exercised | $ | $ 500,000 | $ 1,600,000 | $ 1,300,000 | ||
Fair value of options vested during period | $ | $ 1,300,000 | $ 1,500,000 | $ 1,500,000 | ||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options granted during period (in shares) | 119,132 | ||||
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 | $ | $ 1,600,000 | ||||
Weighted-average period of recognition of unrecognized compensation cost (years) | 1 year 1 month 13 days | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | $ | $ 6,600,000 | ||||
Weighted-average period of recognition of unrecognized compensation cost (years) | 1 year 2 months 23 days | ||||
Shares granted (in shares) | 138,665 | ||||
Number of tranches | tranche | 3 | ||||
Shares withheld for income taxes for share based compensation (in shares) | 47,470 | ||||
2013 Long-Term Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for future grant (in shares) | 3,786,727 | ||||
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 | 6 months | |||
Shares granted (in shares) | 14,400 | 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, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation [Abstract] | |||
Equity classified stock options | $ 1,184 | $ 1,356 | $ 1,479 |
Equity classified restricted stock | 5,275 | 5,246 | 5,614 |
Total share-based compensation | $ 6,459 | $ 6,602 | $ 7,093 |
Share-Based Compensation (Weigh
Share-Based Compensation (Weighted Average Assumptions for Options Granted) (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation [Abstract] | |||
Expected term (years) | 5 years | 5 years | 4 years 8 days |
Expected volatility | 30.70% | 30.88% | 28.70% |
Risk-free interest rate | 2.17% | 1.84% | 1.47% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted-average fair value per option (in dollars per share) | $ 10.60 | $ 11.26 | $ 9.53 |
Share-Based Compensation (Stock
Share-Based Compensation (Stock Option Plans) (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Options | |||
Outstanding, beginning of year (in shares) | 872,989 | ||
Granted during the period (in shares) | 119,132 | ||
Exercised during the period (in shares) | (62,701) | ||
Canceled, forfeited or expired during the period (in shares) | (32,300) | ||
Outstanding, end of year (in shares) | 897,120 | 872,989 | |
Vested and expected to vest at June 30, 2018 (in shares) | 895,187 | ||
Exercisable, end of year (in shares) | 685,554 | ||
Weighted- Average Exercise Price | |||
Outstanding, beginning of year, Weighted-Average Exercise Price (in dollars per share) | $ 37.63 | ||
Granted during the period, Weighted-Average Exercise Price (in dollars per share) | 34.27 | ||
Exercised during the period, Weighted-Average Exercise Price (in dollars per share) | 35.72 | ||
Canceled, forfeited, or expired during the period, Weighted-Average Exercise Price (in dollars per share) | 37.17 | ||
Outstanding, end of year, Weighted-Average Exercise Price (in dollars per share) | 37.33 | $ 37.63 | |
Vested and expected to vest, Weighted-Average Exercise Price (in dollars per share) | 37.34 | ||
Exercisable, end of year, Weighted-Average Exercise Price (in dollars per share) | $ 37.84 | ||
Outstanding, end of year, Weighted-Average Remaining Contractual Life (years) | 5 years 11 months 12 days | ||
Vested and expected to vest, Weighted-Average Remaining Contractual Life (years) | 5 years 11 months 10 days | ||
Exercisable, end of year, Weighted-Average Remaining Contractual Life (years) | 5 years 25 days | ||
Outstanding, end of year, Aggregate Intrinsic Value | $ 3,089,365 | ||
Vested and expected to vest, Aggregate Intrinsic Value | 3,078,179 | ||
Exercisable, end of year, Aggregate Intrinsic Value | $ 2,113,769 | ||
Weighted Average Grant Date Fair- Value | |||
Granted, weighted-average grant date fair value (in dollars per share) | $ 10.60 | 11.26 | $ 9.53 |
Unvested Shares [Member] | |||
Options | |||
Granted during the period (in shares) | 119,132 | ||
Weighted- Average Exercise Price | |||
Outstanding, beginning of year, Weighted-Average Exercise Price (in dollars per share) | $ 38.48 | ||
Granted during the period, Weighted-Average Exercise Price (in dollars per share) | 34.27 | ||
Exercised during the period, Weighted-Average Exercise Price (in dollars per share) | 39.20 | ||
Outstanding, end of year, Weighted-Average Exercise Price (in dollars per share) | $ 35.69 | $ 38.48 | |
Options | |||
Nonvested, beginning of year (in shares) | 215,970 | ||
Vested during period (in shares) | (123,536) | ||
Nonvested, end of year (in shares) | 211,566 | 215,970 | |
Weighted Average Grant Date Fair- Value | |||
Unvested, beginning of year, weighted-average grant date fair value (in dollars per share) | $ 10.39 | ||
Granted, weighted-average grant date fair value (in dollars per share) | 10.60 | ||
Vested during period, weighted-average grant date fair value (in dollars per share) | 10.33 | ||
Unvested, end of period, weighted-average grant date fair value (in dollars per share) | $ 10.54 | $ 10.39 |
Share-Based Compensation (Sto68
Share-Based Compensation (Stock Options Outstanding) (Details) | 12 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, shares outstanding (in shares) | shares | 897,120 |
Options outstanding, weighted average remaining contractual life (in years) | 5 years 11 months 12 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 37.33 |
Options exercisable, number exercisable (in shares) | shares | 685,554 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 37.84 |
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) | 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 | 25,000 |
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) | $ 24.57 |
Options exercisable, number exercisable (in shares) | shares | 25,000 |
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) | 4 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 | 197,971 |
Options outstanding, weighted average remaining contractual life (in years) | 7 years 1 month 30 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 34.21 |
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 | 371,169 |
Options outstanding, weighted average remaining contractual life (in years) | 5 years 7 months 30 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 37.04 |
Options exercisable, number exercisable (in shares) | shares | 274,735 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 36.87 |
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 | 279,449 |
Options outstanding, weighted average remaining contractual life (in years) | 6 years 7 days |
Options outstanding, weighted average exercise price (in dollars per share) | $ 41.83 |
Options exercisable, number exercisable (in shares) | shares | 279,449 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 41.83 |
Share-Based Compensation (Restr
Share-Based Compensation (Restricted Stock Granted) (Details) - Restricted Stock [Member] - $ / shares | Feb. 01, 2018 | Dec. 08, 2017 | Sep. 11, 2017 | Jun. 30, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted (in shares) | 138,665 | |||
Grant date fair value (in dollars per share) | $ 34.50 | |||
Employees, Certain Employees Based On Performance [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (years) | 3 years | |||
2013 Long-Term Incentive Plan [Member] | Employees, Certain Employees Based On Performance [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted (in shares) | 31,296 | 92,469 | ||
Grant date fair value (in dollars per share) | $ 34.95 | $ 34.35 | ||
2013 Long-Term Incentive Plan [Member] | Non-Employee Directors, Certain Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted (in shares) | 14,400 | 500 | ||
Grant date fair value (in dollars per share) | $ 34.35 | $ 37.75 | ||
Vesting period (years) | 6 months | 6 months |
Share-Based Compensation (Res70
Share-Based Compensation (Restricted Stock Outstanding) (Details) - Restricted Stock [Member] | 12 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Shares | |
Outstanding, beginning of year (in shares) | shares | 267,386 |
Granted during the period (in shares) | shares | 138,665 |
Target shares adjustment during the period (in shares) | shares | (216) |
Vested during period (in shares) | shares | (146,046) |
Canceled, forfeited, or expired during the period (in shares) | shares | (6,270) |
Outstanding, end of year (in shares) | shares | 253,519 |
Weighted Average Grant Date Fair- Value | |
Outstanding, beginning of year, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 37.86 |
Granted during the period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares | 34.50 |
Target shares adjustment during the period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares | 36.33 |
Vested during the period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares | 38.16 |
Canceled, forfeited or expired during the period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares | 34.77 |
Outstanding, end of year, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 35.93 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2018USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Deferred compensation plan, employer contributions, vesting period (in years) | 5 years |
ScanSource Defined Contribution Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Employer contribution per participant | $ 800 |
Defined benefit plan, employer contributions, vesting period (in years) | 5 years |
Employer matching contribution, percent of participant's contribution | 50.00% |
POS Portal's Defined Contribution Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Employer matching contribution, percent of participant's contribution | 100.00% |
Employer matching contribution, percent of employees' gross pay | 4.00% |
Employee Benefit Plans (Employe
Employee Benefit Plans (Employer Contributions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |||
Matching contributions | $ 1,163 | $ 875 | $ 735 |
Discretionary contributions | 4,700 | 3,413 | 3,617 |
Total contributions | $ 5,863 | $ 4,288 | $ 4,352 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
U.S. statutory rate | 28.00% | 35.00% | 35.00% | ||
Provisional income tax expense for one-time transition tax | $ 0 | $ 0 | |||
Valuation allowance, amount | $ 3,473 | $ 5,098 | 3,473 | ||
Net tax expense due to stock award settlements | 1,000 | ||||
Gross unrecognized tax benefits | 2,176 | 2,053 | 2,176 | 2,148 | $ 1,301 |
Unrecognized tax benefits that would impact effective tax rate if recognized | 1,400 | ||||
Unrecognized tax benefits, period increase | 100 | ||||
Income tax penalties and interest accrued | 1,100 | 1,200 | 1,100 | 1,200 | |
Income (loss) before income taxes | 60,925 | 101,495 | 96,010 | ||
Domestic Tax Authority [Member] | |||||
Operating loss carry forwards | 2,400 | ||||
State and Local [Member] | |||||
Operating loss carry forwards | 4,100 | ||||
Tax credit carry forwards | 2,200 | ||||
Operating loss carry forwards, valuation allowance | 100 | ||||
Valuation allowance, amount | 300 | ||||
Foreign [Member] | |||||
Operating loss carry forwards | 17,800 | ||||
Tax credit carry forwards | 600 | ||||
Operating loss carry forwards, valuation allowance | 600 | ||||
Valuation allowance, amount | 600 | ||||
Withholding Tax Credits [Member] | |||||
Tax credit carry forwards | 3,500 | ||||
Valuation allowance, amount | 3,500 | ||||
Notional Interest Deduction [Member] | |||||
Valuation allowance, amount | $ 100 | ||||
Minimum [Member] | |||||
Open tax year | 2,013 | ||||
ScanSource Europe SPRL [Member] | |||||
Income (loss) before income taxes | $ (5,300) | ||||
ScanSource Brazil [Member] | |||||
Provision for income taxes | $ 4,500 | ||||
Internal Revenue Service (IRS) [Member] | |||||
Provisional income tax expense for one-time transition tax | 9,609 | ||||
Provisional income tax benefit due to the remeasurement of net deferred tax liabilities | (1,615) | 0 | 0 | ||
Administration of the Treasury, Belgium [Member] | |||||
Provisional income tax benefit due to the remeasurement of net deferred tax liabilities | $ 1,040 | $ 0 | $ 0 |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Current: | |||
Federal | $ 38,263 | $ 31,149 | $ 21,855 |
State | 3,503 | 2,615 | 1,652 |
Foreign | 9,203 | 269 | 6,100 |
Total current | 50,969 | 34,033 | 29,607 |
Deferred: | |||
Federal | (9,987) | (3,832) | 3,990 |
State | (1,962) | (397) | 365 |
Foreign | (11,248) | 2,445 | (1,571) |
Total deferred | (23,197) | (1,784) | 2,784 |
Provision for income taxes | $ 27,772 | $ 32,249 | $ 32,391 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of U.S.Federal Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Contingency [Line Items] | |||
U.S. statutory rate | 28.00% | 35.00% | 35.00% |
U.S. Federal income tax at statutory rate | $ 17,094 | $ 35,524 | $ 33,603 |
State and local income taxes, net of Federal benefit | 1,883 | 1,729 | 1,578 |
Tax credits | (1,825) | (1,430) | (2,517) |
Valuation allowance | 1,530 | 444 | 541 |
Effect of foreign operations, net | (1,396) | (1,477) | (1,150) |
Stock compensation | 1,049 | (61) | (62) |
Capitalized acquisition costs | 48 | 231 | 70 |
Nontaxable income | (9) | (4,437) | 0 |
Disallowed interest | 1,888 | 2,011 | 571 |
Other | (1,438) | (285) | (243) |
U.S. Tax Reform transition tax | 0 | 0 | |
Provision for income taxes | 27,772 | 32,249 | 32,391 |
Internal Revenue Service (IRS) [Member] | |||
Income Tax Contingency [Line Items] | |||
U.S. Tax Reform transition tax | 9,609 | ||
Impact of rate change on deferred taxes | (1,615) | 0 | 0 |
Administration of the Treasury, Belgium [Member] | |||
Income Tax Contingency [Line Items] | |||
Impact of rate change on deferred taxes | 1,040 | 0 | 0 |
Other Jurisdiction [Member] | |||
Income Tax Contingency [Line Items] | |||
Impact of rate change on deferred taxes | $ (86) | $ 0 | $ 0 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Deferred tax assets derived from: | ||
Allowance for accounts receivable | $ 12,874 | $ 11,687 |
Inventories | 4,060 | 5,235 |
Nondeductible accrued expenses | 7,426 | 3,968 |
Net operating loss carryforwards | 5,350 | 3,141 |
Tax credits | 5,795 | 4,094 |
Timing of amortization deduction from goodwill | 5,756 | 1,285 |
Deferred compensation | 5,696 | 7,934 |
Stock compensation | 2,809 | 5,424 |
Timing of amortization deduction from intangible assets | 2,510 | 3,032 |
Total deferred tax assets | 52,276 | 45,800 |
Valuation allowance | (5,098) | (3,473) |
Total deferred tax assets, net of allowance | 47,178 | 42,327 |
Deferred tax liabilities derived from: | ||
Timing of depreciation and other deductions from building and equipment | (7,468) | (7,778) |
Timing of amortization deduction from goodwill | (1,782) | (5,013) |
Timing of amortization deduction from intangible assets | (17,498) | (2,053) |
Total deferred tax liabilities | (26,748) | (14,844) |
Net deferred tax assets | $ 20,430 | $ 27,483 |
Income Taxes (Components of Pre
Income Taxes (Components of Pretax Earnings) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 66,416 | $ 79,871 | $ 76,062 |
Foreign | (5,491) | 21,624 | 19,948 |
Income before income taxes | $ 60,925 | $ 101,495 | $ 96,010 |
Income Taxes (Reconciliation 78
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 2,176 | $ 2,148 | $ 1,301 |
Additions based on tax positions related to the current year | 157 | 174 | 326 |
Additions for tax positions of prior years | 0 | 0 | 658 |
Reduction for tax positions of prior years | (280) | (146) | (137) |
Ending Balance | $ 2,053 | $ 2,176 | $ 2,148 |
Commitments and Contingencies79
Commitments and Contingencies (Lease Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Lease expense | $ 9,824 | $ 8,703 | $ 7,394 |
Commitments and Contingencies80
Commitments and Contingencies (Narrative) (Details) ft² in Thousands, $ in Thousands | Jul. 06, 2016ft²extension | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($)vendor | Jun. 30, 2017USD ($)vendor | Jun. 30, 2016USD ($)vendor | Mar. 31, 2018USD ($) | Dec. 07, 2017USD ($) |
Long-term Purchase Commitment [Line Items] | |||||||
Term of lease (in months) | 135 months | ||||||
Number of lease extension options | extension | 2 | ||||||
Length of lease extension options | 5 years | ||||||
Minimum lease payments | $ 1,583 | $ 1,900 | |||||
Proceeds from legal settlement | 2,900 | $ 12,800 | |||||
Capital expenditures | $ 8,159 | $ 8,849 | $ 12,081 | ||||
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 | ||||||
CDC Brasil S A [Member] | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Cash held in escrow | $ 2,300 | ||||||
Network1 [Member] | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Cash held in escrow | $ 24,100 | $ 13,000 | |||||
Escrow deposits received from seller | 12,300 | $ 8,700 | |||||
Undiscounted pre-acquisition contingencies, minimum | 6,700 | ||||||
Undiscounted pre-acquisition contingencies, maximum | 23,000 | ||||||
Scenario, Forecast [Member] | Minimum [Member] | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Capital expenditures | $ 10,000 | ||||||
Scenario, Forecast [Member] | Maximum [Member] | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Capital expenditures | $ 15,000 | ||||||
Selling, General and Administrative Expenses [Member] | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Proceeds from legal settlement | 2,500 | ||||||
Interest Income [Member] | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Proceeds from legal settlement | $ 400 |
Commitments and Contingencies81
Commitments and Contingencies (Future Minimum Lease Payments) (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Operating Lease Payments | |
2,019 | $ 8,196 |
2,020 | 6,160 |
2,021 | 5,316 |
2,022 | 4,185 |
2,023 | 3,404 |
Thereafter | 10,817 |
Total future minimum lease payments | 38,078 |
Capital Lease Payments | |
2,019 | 675 |
2,020 | 675 |
2,021 | 0 |
2,022 | 0 |
2,023 | 0 |
Thereafter | 0 |
Total future minimum lease payments | 1,350 |
Less: amounts representing interest on capital lease | 30 |
Total future minimum principal lease payments | 1,320 |
Total Payments | |
2,019 | 8,871 |
2,020 | 6,835 |
2,021 | 5,316 |
2,022 | 4,185 |
2,023 | 3,404 |
Thereafter | 10,817 |
Total future minimum lease payments | 39,428 |
Total future minimum principal lease payments | $ 39,398 |
Commitments and Contingencies82
Commitments and Contingencies (Capital Lease Components) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 07, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Property & Equipment | $ 1,583 | $ 1,900 |
Accumulated Depreciation | (259) | |
Net Book Value | 1,324 | |
Capital Lease Obligations, Short-Term | 653 | |
Capital Lease Obligations, Long-Term | 667 | |
Capital Lease Obligations, Total | $ 1,320 |
Commitments and Contingencies83
Commitments and Contingencies (Pre-Acquisition Contingencies and Receivables) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
CDC Brasil S A [Member] | ||
Assets | ||
Prepaid expenses and other assets (current) | $ 0 | $ 2,212 |
Other assets (noncurrent) | 0 | 0 |
Liabilities | ||
Other current liabilities | 0 | 2,212 |
Other long-term liabilities | 0 | 0 |
Network1 [Member] | ||
Assets | ||
Prepaid expenses and other assets (current) | 1,385 | 1,294 |
Other assets (noncurrent) | 5,700 | 8,235 |
Liabilities | ||
Other current liabilities | 1,385 | 1,294 |
Other long-term liabilities | $ 5,700 | $ 8,235 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2018segment | |
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, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net sales | $ 3,846,260 | $ 3,568,186 | $ 3,540,226 |
Depreciation and amortization | 37,495 | 24,968 | 17,154 |
Operating income | 67,639 | 88,239 | 96,877 |
Capital expenditures | 8,159 | 8,849 | 12,081 |
Assets | 1,945,295 | 1,718,303 | |
Property and equipment, net | 73,042 | 56,566 | |
Operating Segments [Member] | Worldwide Barcode, Networking and Security Segment [Member] | |||
Net sales | 2,628,988 | 2,389,256 | 2,361,670 |
Depreciation and amortization | 18,233 | 6,496 | 5,651 |
Operating income | 56,911 | 49,727 | 52,227 |
Capital expenditures | 4,841 | 3,796 | 5,298 |
Assets | 1,062,143 | 885,786 | |
Operating Segments [Member] | Worldwide Communications and Services Segment [Member] | |||
Net sales | 1,217,272 | 1,178,930 | 1,178,556 |
Depreciation and amortization | 15,769 | 15,099 | 8,543 |
Operating income | 10,900 | 39,768 | 45,513 |
Capital expenditures | 1,964 | 3,163 | 3,923 |
Assets | 841,490 | 769,342 | |
Corporate, Non-Segment [Member] | |||
Depreciation and amortization | 3,493 | 3,373 | 2,960 |
Operating income | (172) | (1,256) | (863) |
Capital expenditures | 1,354 | 1,890 | 2,860 |
Assets | 41,662 | 63,175 | |
Intersegment Eliminations [Member] | |||
Net sales | (30,210) | (33,673) | (35,632) |
United States [Member] | Operating Segments [Member] | |||
Net sales | 2,877,225 | 2,719,413 | 2,655,760 |
Property and equipment, net | 69,032 | 51,853 | |
International [Member] | Operating Segments [Member] | |||
Net sales | 999,245 | 882,446 | $ 920,098 |
Property and equipment, net | $ 4,010 | $ 4,713 |
Accumulated Other Comprehensi86
Accumulated Other Comprehensive Income (Loss) (Components Of Accumulated Other Comprehensive Income, Net Of Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | $ 866,376 | $ 837,145 | $ 774,496 | $ 808,985 |
Tax expense (benefit) | 1,993 | (396) | 327 | |
Currency translation adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (85,279) | (73,217) | (72,687) | |
Unrealized gain on fair value of interest rate swap, net of tax [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | 1,102 | 13 | 0 | |
Accumulated other comprehensive loss [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | $ (84,177) | $ (73,204) | $ (72,687) | $ (64,502) |
Valuation And Qualifying Acco87
Valuation And Qualifying Accounts (Schedule Of Valuation and Qualifying Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
POS Portal [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Reserves of businesses acquired | $ 100 | ||
Intelisys [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Reserves of businesses acquired | $ 300 | ||
Recoveries | 600 | ||
KBZ [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Reserves of businesses acquired | $ 1,200 | ||
Recoveries | 1,500 | ||
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 44,434 | 39,032 | 32,589 |
Amounts Charged to Expense | 7,075 | 8,901 | 7,571 |
Reductions | (5,610) | (3,860) | (3,829) |
Other | (338) | 361 | 2,701 |
Balance at End of Period | $ 45,561 | $ 44,434 | $ 39,032 |