COMPENSATION

3 Months Ended

Jun. 30, 2019

Share-based Payment Arrangement [Abstract]

Stock-based Compensation

The Company recognizes the grant-date fair value of stock-based compensation as compensation expense using the straight-line attribution approach over the service period for which the stock-based compensation is expected to vest. The following table summarizes the amount of stock-based compensation included in the condensed consolidated statements of operations:



	Three Months Ended June 30,
(in thousands)	2019		2018
Cost of revenues	$	978	$	963

Research, development, and engineering	3,719		2,222
Selling, general, and administrative	8,207		4,965
Stock-based compensation included in operating expenses	11,926		7,187
Total stock-based compensation	12,904		8,150
Income tax benefit	4		(3,754		)
Total stock-based compensation, net of tax	$	12,908	$	4,396

Long Term Incentive Plan

Prior to the Acquisition of Polycom, certain Polycom employees were granted incentive rights under the Polycom, Inc. 2016 Long-Term Incentive Plan (“2016 LTIP”). As of the date of Acquisition, Plantronics assumed the role of payer to participants of the 2016 LTIP through its payroll but is indemnified by Triangle for obligations under the 2016 LTIP. The Acquisition accelerated vesting under the 2016 LTIP at 75% of awards held by participants in service as of that date and triggered an initial amount due to such participants. The cash purchase price of the Acquisition was reduced by this initial obligation. The remaining 25% of awards will vest upon one-year anniversary of the Acquisition. Any future payments above the initial obligation under the 2016 LTIP, provided that the vesting requirements are satisfied, require Triangle to fund the Company in order to pay participants for any amount in excess of the purchase price reduction.

At July 2, 2018, $7.9 million was recognized in Accrued liabilities assumed from Polycom and was paid in the second quarter of fiscal year 2019. The Company recognized an immaterial amount of compensation expense ratably through the first quarter of fiscal year 2020 in respect of the awards vesting on the one-year anniversary, which will be payable in the second quarter of fiscal year 2020. The amount due as of the date of the Acquisition is based on cash paid to Triangle that was distributed to its parents. Future distributions to its parents of cash made available to Triangle from the release of escrow accounts or the sale of shares issued in the transaction would trigger further compensation due to incentive rights holders under the plan. The Company is indemnified for any obligations in excess of the reduction to purchase price.