Revision of Previously Issued Financial Statements |
Revision of Previously Issued Financial Statements As disclosed in the Company’s Annual Report on Form 10-K for the year ended March 31, 2014 and in the audited consolidated financial statements contained therein, the Company has restated and revised its financial statements for the fiscal years ended March 31, 2012 and 2013, respectively. The impact of the adjustments also immaterially impact the financial statements for the first three quarters of the fiscal year ended March 31, 2014 as previously included in the Company’s quarterly reports on Form 10-Q for Fiscal 2014. The financial statements for the three and nine months ended December 31, 2013 included in this Form 10-Q are revised as described below for those adjustments and should be read in conjunction with Item 8, “Financial Statements and Supplementary Data” disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2014, filed with the SEC on November 13, 2014. The adjustments included in these financial statements for the three and nine months ended December 31, 2013 primarily related to a correction to revenue that was previously recorded as an out-of-period adjustment and is now being reported in the correct period, capitalization of property, plant and equipment which was previously incorrectly expensed, pension obligation, other misstatements, and the tax impact of these adjustments.
Consolidated Statements of Operations. The following table presents the impact of the correcting adjustments on the Company’s previously reported consolidated statement of operations for the three and nine months ended December 31, 2013 (in thousands, except for per share amount): | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended December 31, 2013 | | Nine Months Ended December 31, 2013 | | | As Reported | | Adjustments* | | As Revised | | As Reported | | Adjustments* | | As Revised | Net sales | | $ | 627,890 |
| | $ | 829 |
| | $ | 628,719 |
| | $ | 1,637,786 |
| | $ | 606 |
| | $ | 1,638,392 |
| Cost of goods sold | | 414,528 |
| | (110 | ) | | 414,418 |
| | 1,072,656 |
| | (789 | ) | | 1,071,867 |
| Gross profit | | 213,362 |
| | 939 |
| | 214,301 |
| | 565,130 |
| | 1,395 |
| | 566,525 |
| Operating expenses: | | |
| | |
| | |
| | |
| | |
| | |
| Marketing and selling | | 93,624 |
| | 649 |
| | 94,273 |
| | 287,969 |
| | 848 |
| | 288,817 |
| Research and development | | 34,103 |
| | 474 |
| | 34,577 |
| | 107,927 |
| | 662 |
| | 108,589 |
| General and administrative | | 31,560 |
| | 438 |
| | 31,998 |
| | 90,103 |
| | 144 |
| | 90,247 |
| Restructuring charges, net | | 822 |
| | — |
| | 822 |
| | 8,621 |
| | — |
| | 8,621 |
| Total operating expenses | | 160,109 |
| | 1,561 |
| | 161,670 |
| | 494,620 |
| | 1,654 |
| | 496,274 |
| Operating income | | 53,253 |
| | (622 | ) | | 52,631 |
| | 70,510 |
| | (259 | ) | | 70,251 |
| Interest expense, net | | (1,022 | ) | | — |
| | (1,022 | ) | | (862 | ) | | — |
| | (862 | ) | Other income, net | | 1,082 |
| | — |
| | 1,082 |
| | 1,361 |
| | — |
| | 1,361 |
| Income before income taxes | | 53,313 |
| | (622 | ) | | 52,691 |
| | 71,009 |
| | (259 | ) | | 70,750 |
| Provision for income taxes | | 4,810 |
| | (3 | ) | | 4,807 |
| | 7,065 |
| | (1 | ) | | 7,064 |
| Net income | | $ | 48,503 |
| | $ | (619 | ) | | $ | 47,884 |
| | $ | 63,944 |
| | $ | (258 | ) | | $ | 63,686 |
| | | | | | | | | | | | | | Net income per share: | | |
| | |
| | |
| | |
| | |
| | |
| Basic | | $ | 0.30 |
| | $ | — |
| | $ | 0.30 |
| | $ | 0.40 |
| | $ | — |
| | $ | 0.40 |
| Diluted | | $ | 0.30 |
| | $ | (0.01 | ) | | $ | 0.29 |
| | $ | 0.40 |
| | $ | (0.01 | ) | | $ | 0.39 |
| | | | | | | | | | | | | | Shares used to compute net income per share: | | |
| | | | |
| | |
| | | | |
| Basic | | 160,871 |
| | — |
| | 160,871 |
| | 160,051 |
| | — |
| | 160,051 |
| Diluted | | 163,388 |
| | — |
| | 163,388 |
| | 161,509 |
| | — |
| | 161,509 |
|
* The adjustments included in these financial statements for the three and nine months ended December 31, 2013 primarily related to a correction to revenue that was previously recorded as an out-of-period adjustment and is now being reported in the correct period, capitalization of property, plant and equipment which was previously incorrectly expensed, pension obligation, other misstatements, and the tax impact of these adjustments.
Consolidated Statements of Comprehensive Income The following table presents the impact of the correcting adjustments on the Company’s previously reported consolidated statement of comprehensive income for the three and nine months ended December 31, 2013 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended December 31, 2013 | | Nine Months Ended December 31, 2013 | | | As Reported | | Adjustments* | | As Revised | | As Reported | | Adjustments* | | As Revised | Net income | | $ | 48,503 |
| | $ | (619 | ) | | $ | 47,884 |
| | $ | 63,944 |
| | $ | (258 | ) | | $ | 63,686 |
| Other comprehensive income: | | |
| | |
| | |
| | |
| | |
| | |
| Foreign currency translation gain | | 682 |
| | — |
| | 682 |
| | 3,511 |
| | 598 |
| | 4,109 |
| Defined benefit pension plans: | | |
| | |
| | |
| | |
| | | | | Net loss and prior service costs, net of taxes | | (384 | ) | | — |
| | (384 | ) | | (1,384 | ) | | 761 |
| | (623 | ) | Amortization included in operating expenses | | 318 |
| | — |
| | 318 |
| | 933 |
| | 779 |
| | 1,712 |
| Hedging gain (loss): | | |
| | |
| | |
| | |
| | |
| | |
| Unrealized hedging loss | | (1,198 | ) | | — |
| | (1,198 | ) | | (3,484 | ) | | — |
| | (3,484 | ) | Reclassification of hedging loss included in cost of goods sold | | 1,342 |
| | — |
| | 1,342 |
| | 1,526 |
| | — |
| | 1,526 |
| Other comprehensive income: | | 760 |
| | — |
| | 760 |
| | 1,102 |
| | 2,138 |
| | 3,240 |
| Total comprehensive income | | $ | 49,263 |
| | $ | (619 | ) | | $ | 48,644 |
| | $ | 65,046 |
| | $ | 1,880 |
| | $ | 66,926 |
|
* The adjustments included in these financial statements for the three and nine months ended December 31, 2013 primarily related to a correction to revenue that was previously recorded as an out-of-period adjustment and is now being reported in the correct period, capitalization of property, plant and equipment which was previously incorrectly expensed, pension obligation, other misstatements, and the tax impact of these adjustments.
Consolidated Statement of Cash Flows The following table presents the impact of the correcting adjustments on the Company’s previously reported consolidated statement of cash flows for the nine months ended December 31, 2013 (in thousands): | | | | | | | | | | | | | | | | Nine Months Ended December 31, 2013 | | | As Reported | | Adjustments* | | As Revised | Cash flows from operating activities: | | |
| | |
| | |
| Net income | | $ | 63,944 |
| | (258 | ) | | $ | 63,686 |
| Adjustments to reconcile net income to net cash provided by operating activities: | | |
| | |
| | |
| Depreciation | | 28,756 |
| | 3,999 |
| | 32,755 |
| Amortization of other intangible assets | | 14,990 |
| | — |
| | 14,990 |
| Share-based compensation expense | | 17,412 |
| | — |
| | 17,412 |
| Impairment of investments | | 568 |
| | — |
| | 568 |
| Loss on disposal of property, plant and equipment | | 3,878 |
| | — |
| | 3,878 |
| Excess tax benefits from share- based compensation | | (572 | ) | | — |
| | (572 | ) | Deferred income taxes | | (3,559 | ) | | (2 | ) | | (3,561 | ) | Changes in assets and liabilities, net of acquisitions: | | |
| | |
| | |
| Accounts receivable, net | | (130,265 | ) | | (606 | ) | | (130,871 | ) | Inventories | | 14,652 |
| | (1,156 | ) | | 13,496 |
| Other assets | | (2,968 | ) | | — |
| | (2,968 | ) | Accounts payable | | 62,931 |
| | (1,508 | ) | | 61,423 |
| Accrued and other liabilities | | 38,118 |
| | 2,345 |
| | 40,463 |
| Net cash provided by operating activities | | 107,885 |
| | 2,814 |
| | 110,699 |
| Cash flows from investing activities: | | |
| | |
| | |
| Purchases of property, plant and equipment | | (32,096 | ) | | (2,814 | ) | | (34,910 | ) | Acquisitions, net of cash acquired | | (650 | ) | | — |
| | (650 | ) | Proceeds from return of investment from strategic investment | | 261 |
| | — |
| | 261 |
| Purchases of trading investments | | (7,831 | ) | | — |
| | (7,831 | ) | Proceeds from sales of trading investments | | 8,311 |
| | — |
| | 8,311 |
| Net cash used in investing activities | | (32,005 | ) | | (2,814 | ) | | (34,819 | ) | Cash flows from financing activities: | | |
| | |
| | |
| Payment of cash dividends | | (36,123 | ) | | — |
| | (36,123 | ) | Proceeds from sales of shares upon exercise of options and purchase rights | | 8,465 |
| | — |
| | 8,465 |
| Tax withholdings related to net share settlements of restricted stock units | | (2,937 | ) | | — |
| | (2,937 | ) | Excess tax benefits from share-based compensation | | 572 |
| | — |
| | 572 |
| Net cash used in financing activities | | (30,023 | ) | | — |
| | (30,023 | ) | Effect of exchange rate changes on cash and cash equivalents | | 184 |
| | — |
| | 184 |
| Net increase in cash and cash equivalents | | 46,041 |
| | — |
| | 46,041 |
| Cash and cash equivalents at beginning of period | | 333,824 |
| | — |
| | 333,824 |
| Cash and cash equivalents at end of period | | $ | 379,865 |
| | $ | — |
| | $ | 379,865 |
| Property, plant and equipment purchased during the period and included in period end liability accounts | | $ | 4,134 |
| | $ | — |
| | $ | 4,134 |
|
* The adjustments included in these financial statements for the nine months ended December 31, 2013 primarily related to a correction to revenue that was previously recorded as an out-of-period adjustment and is now being reported in the correct period, capitalization of property, plant and equipment which was previously incorrectly expensed, pension obligation, other misstatements, and the tax impact of these adjustments. |