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· | Hardware with software essential to the functionality of the hardware device delivered at the time of sale; |
· | Non-essential software; |
· | Maintenance for essential and non essential software including future, when-and-if-available unspecified upgrades; and |
· | Other services including training and installation |
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· | Level 1 – Quoted prices in active markets for identical assets or liabilities. |
· | Level 2 – Observable inputs other than quoted market prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. |
· | Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. |
December 31, 2010 | March 31, 2010 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Cash and cash equivalents | $ | 460,726 | $ | - | $ | - | $ | 319,944 | $ | - | $ | - | ||||||||||||
Trading investments | 12,179 | - | - | - | - | - | ||||||||||||||||||
Investment securities | - | - | 994 | - | - | 994 | ||||||||||||||||||
Foreign exchange derivative assets | 109 | - | - | 599 | - | - | ||||||||||||||||||
Total assets at fair value | $ | 473,014 | $ | - | $ | 994 | $ | 320,543 | $ | - | $ | 994 | ||||||||||||
Foreign exchange derivative liabilities | $ | 738 | $ | - | $ | - | $ | 366 | $ | - | $ | - | ||||||||||||
Total liabilities at fair value | $ | 738 | $ | - | $ | - | $ | 366 | $ | - | $ | - | ||||||||||||
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December 31, | March 31, | |||||||
2010 | 2010 | |||||||
Accounts receivable: | ||||||||
Accounts receivable | $ | 525,095 | $ | 349,722 | ||||
Allowance for doubtful accounts | (3,702 | ) | (5,870 | ) | ||||
Allowance for returns | (26,965 | ) | (23,657 | ) | ||||
Cooperative marketing arrangements | (32,740 | ) | (17,527 | ) | ||||
Customer incentive programs | (58,859 | ) | (44,306 | ) | ||||
Pricing programs | (66,731 | ) | (63,115 | ) | ||||
$ | 336,098 | $ | 195,247 | |||||
Inventories: | ||||||||
Raw materials | $ | 32,003 | $ | 31,630 | ||||
Work-in-process | 13 | 86 | ||||||
Finished goods | 268,614 | 187,877 | ||||||
$ | 300,630 | $ | 219,593 | |||||
Other current assets: | ||||||||
Tax and VAT refund receivables | $ | 17,098 | $ | 20,305 | ||||
Deferred taxes | 26,358 | 27,064 | ||||||
Prepaid expenses and other | 15,013 | 11,508 | ||||||
$ | 58,469 | $ | 58,877 | |||||
Property, plant and equipment: | ||||||||
Plant and buildings | $ | 52,086 | $ | 58,629 | ||||
Equipment | 134,084 | 112,454 | ||||||
Computer equipment | 60,519 | 53,576 | ||||||
Computer software | 82,225 | 78,156 | ||||||
328,914 | 302,815 | |||||||
Less: accumulated depreciation | (250,191 | ) | (224,485 | ) | ||||
78,723 | 78,330 | |||||||
Construction-in-progress | 4,239 | 9,751 | ||||||
Land | 2,871 | 3,148 | ||||||
$ | 85,833 | $ | 91,229 | |||||
Other assets: | ||||||||
Deferred taxes | $ | 49,468 | $ | 45,257 | ||||
Cash surrender value of life insurance contracts | - | 11,097 | ||||||
Trading investments | 12,179 | - | ||||||
Deposits and other | 9,565 | 9,576 | ||||||
$ | 71,212 | $ | 65,930 | |||||
Accrued liabilities: | ||||||||
Accrued personnel expenses | $ | 58,376 | $ | 48,617 | ||||
Accrued marketing expenses | 42,886 | 28,052 | ||||||
Accrued freight and duty | 17,696 | 12,696 | ||||||
Income taxes payable - current | 6,165 | 8,875 | ||||||
Non-retirement post-employment benefit obligations | 3,298 | 2,761 | ||||||
Accrued restructuring | 26 | 399 | ||||||
Other accrued liabilities | 84,723 | 80,936 | ||||||
$ | 213,170 | $ | 182,336 | |||||
Long-term liabilities: | ||||||||
Income taxes payable - non-current | $ | 121,165 | $ | 116,456 | ||||
Obligation for management deferred compensation | 12,268 | 10,307 | ||||||
Defined benefit pension plan liability | 21,402 | 19,343 | ||||||
Other long-term liabilities | 14,078 | 13,566 | ||||||
$ | 168,913 | $ | 159,672 | |||||
December 31, | ||||||||
2010 | 2009 | |||||||
Balance as of March 31 | $ | 5,870 | $ | 6,705 | ||||
Bad debt expense | 422 | (1,194 | ) | |||||
Write-offs net of recoveries | (597 | ) | 446 | |||||
Balance as of June 30 | $ | 5,695 | $ | 5,957 | ||||
Bad debt expense | (140 | ) | 599 | |||||
Write-offs net of recoveries | (1,621 | ) | (158 | ) | ||||
Balance as of September 30 | $ | 3,934 | $ | 6,398 | ||||
Bad debt expense | 1 | 505 | ||||||
Write-offs net of recoveries | (233 | ) | (215 | ) | ||||
Balance as of December 31 | $ | 3,702 | $ | 6,688 |
|
December 31, | ||||
2010 | ||||
Balance as of March 31, 2010 | $ | 553,462 | ||
Additions | 332 | |||
Balance as of December 31, 2010 | $ | 553,794 | ||
December 31, 2010 | March 31, 2010 | |||||||||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | Gross Carrying | Accumulated | Net Carrying | |||||||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||||||||||||
Trademark/tradename | $ | 32,148 | $ | (22,642 | ) | $ | 9,506 | $ | 32,051 | $ | (20,421 | ) | $ | 11,630 | ||||||||||
Technology | 94,968 | (48,485 | ) | 46,483 | 87,968 | (36,033 | ) | 51,935 | ||||||||||||||||
Customer contracts | 38,538 | (13,276 | ) | 25,262 | 38,517 | (6,686 | ) | 31,831 | ||||||||||||||||
$ | 165,654 | $ | (84,403 | ) | $ | 81,251 | $ | 158,536 | $ | (63,140 | ) | $ | 95,396 |
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Total | Termination Benefits | Contract Termination Costs | Other | |||||||||||||
Balance at March 31, 2009 | $ | 3,794 | $ | 3,779 | $ | 15 | $ | - | ||||||||
Charges | 1,449 | 1,366 | 83 | - | ||||||||||||
Cash payments | (4,245 | ) | (4,220 | ) | (25 | ) | - | |||||||||
Other | (8 | ) | (4 | ) | (4 | ) | - | |||||||||
Foreign exchange | 91 | 91 | - | - | ||||||||||||
Balance at June 30, 2009 | $ | 1,081 | $ | 1,012 | $ | 69 | $ | - | ||||||||
Charges | 45 | (22 | ) | 9 | 58 | |||||||||||
Cash payments | (718 | ) | (698 | ) | (20 | ) | - | |||||||||
Other | (4 | ) | 63 | - | (67 | ) | ||||||||||
Foreign exchange | 19 | 19 | - | - | ||||||||||||
Balance at September 30, 2009 | 423 | 374 | 58 | (9 | ) | |||||||||||
Cash payments | (200 | ) | (180 | ) | (20 | ) | - | |||||||||
Other | (6 | ) | (6 | ) | - | - | ||||||||||
Foreign exchange | (7 | ) | (4 | ) | - | (3 | ) | |||||||||
Balance at December 31, 2009 | $ | 210 | $ | 184 | $ | 38 | $ | (12 | ) | |||||||
Balance at March 31, 2010 | $ | 399 | $ | 158 | $ | 334 | $ | (93 | ) | |||||||
Cash payments | (168 | ) | - | (168 | ) | - | ||||||||||
Other | (74 | ) | (149 | ) | - | 75 | ||||||||||
Foreign exchange | (3 | ) | - | - | (3 | ) | ||||||||||
Balance at June 30, 2010 | $ | 154 | $ | 9 | $ | 166 | $ | (21 | ) | |||||||
Cash payments | (73 | ) | - | (73 | ) | - | ||||||||||
Balance at September 30, 2010 | 81 | 9 | 93 | (21 | ) | |||||||||||
Cash payments | (55 | ) | (9 | ) | (67 | ) | 21 | |||||||||
Balance at December 31, 2010 | $ | 26 | $ | - | $ | 26 | $ | - | ||||||||
|
Three months ended | Nine months ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Cost of goods sold | $ | 1,000 | $ | 709 | $ | 2,910 | $ | 2,135 | ||||||||
Share-based compensation expense included in gross profit | 1,000 | 709 | 2,910 | 2,135 | ||||||||||||
Operating expenses: | ||||||||||||||||
Marketing and selling | 2,115 | 2,018 | 8,283 | 5,931 | ||||||||||||
Research and development | 1,842 | 1,139 | 5,394 | 3,048 | ||||||||||||
General and administrative | 2,299 | 2,217 | 7,389 | 6,135 | ||||||||||||
Share-based compensation expense included in | ||||||||||||||||
operating expenses | 6,256 | 5,374 | 21,066 | 15,114 | ||||||||||||
Total share-based compensation expense | 7,256 | 6,083 | 23,976 | 17,249 | ||||||||||||
Income tax benefit | (1,189 | ) | (3,324 | ) | (5,526 | ) | (4,157 | ) | ||||||||
Share-based compensation expense, net of income tax | $ | 6,067 | $ | 2,759 | $ | 18,450 | $ | 13,092 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||||||
Purchase Plans | Stock Options | Purchase Plans | Stock Options | |||||||||||||||||||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||||||||||
Expected life | 6 months | 6 months | 4.0 years | 2.9 years | 6 months | 6 months | 4.0 years | 3.4 years | ||||||||||||||||||||||||
Expected volatility | 36 | % | 59 | % | 48 | % | 53 | % | 35 | % | 70 | % | 48 | % | 50 | % | ||||||||||||||||
Risk-free interest rate | 0.17 | % | 0.07 | % | 1.22 | % | 1.28 | % | 0.16 | % | 0.21 | % | 1.57 | % | 1.72 | % | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||||||
Purchase Plans | Stock Options | Purchase Plans | Stock Options | |||||||||||||||||||||||||||||
Weighted average grant-date | ||||||||||||||||||||||||||||||||
fair value of options granted | $ | 3.96 | $ | 5.29 | $ | 7.81 | $ | 9.10 | $ | 4.07 | $ | 4.25 | $ | 6.11 | $ | 7.14 | ||||||||||||||||
Expected forfeitures | 0 | % | 0 | % | 9 | % | 10 | % | 0 | % | 0 | % | 9 | % | 10 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||||||||||
Number | Exercise Price | Number | Exercise Price | Number | Exercise Price | Number | Exercise Price | |||||||||||||||||||||||||
Outstanding, beginning of period | 18,543 | $ | 18 | 19,130 | $ | 18 | 20,037 | $ | 18 | 18,897 | $ | 18 | ||||||||||||||||||||
Granted | 40 | $ | 20 | 2,179 | $ | 11 | 294 | $ | 16 | 4,568 | $ | 12 | ||||||||||||||||||||
Exercised | (1,141 | ) | $ | 10 | (275 | ) | $ | 10 | (2,149 | ) | $ | 10 | (1,310 | ) | $ | 8 | ||||||||||||||||
Cancelled or expired | (125 | ) | $ | 22 | (191 | ) | $ | 22 | (866 | ) | $ | 22 | (1,312 | ) | $ | 21 | ||||||||||||||||
Outstanding, end of period | 17,317 | $ | 19 | 20,843 | $ | 17 | 17,316 | $ | 19 | 20,843 | $ | 17 | ||||||||||||||||||||
Exercisable, end of period | 11,754 | $ | 20 | 11,751 | $ | 16 | 11,754 | $ | 20 | 11,751 | $ | 16 | ||||||||||||||||||||
FY 2011 Grants | FY 2010 Grants | |||||||
Dividend yield | 0 | % | 0 | % | ||||
Expected life | 3 years | 2 years | ||||||
Expected volatility | 51 | % | 58 | % | ||||
Risk-free interest rate | 0.81 | % | 1.11 | % | ||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||||||||||
Number | Grant-Date Fair Value | Number | Grant-Date Fair Value | Number | Grant-Date Fair Value | Number | Grant-Date Fair Value | |||||||||||||||||||||||||
Outstanding, beginning of period | 378 | $ | 16 | 264 | $ | 15 | 513 | $ | 18 | - | $ | - | ||||||||||||||||||||
Granted | 1,935 | $ | 22 | 54 | $ | 14 | 2,010 | $ | 22 | 320 | $ | 12 | ||||||||||||||||||||
Vested | (6 | ) | $ | 14 | - | $ | - | (124 | ) | $ | 16 | - | $ | - | ||||||||||||||||||
Cancelled or expired | (17 | ) | $ | 19 | (3 | ) | $ | 14 | (109 | ) | $ | 25 | (5 | ) | $ | 14 | ||||||||||||||||
Outstanding, end of period | 2,290 | $ | 21 | 315 | $ | 12 | 2,290 | $ | 21 | 315 | $ | 12 | ||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Service cost | $ | 1,130 | $ | 1,026 | $ | 3,230 | $ | 2,968 | ||||||||
Interest cost | 449 | 369 | 1,276 | 1,067 | ||||||||||||
Expected return on plan assets | (471 | ) | (312 | ) | (1,330 | ) | (898 | ) | ||||||||
Amortization of net transition | ||||||||||||||||
obligation and prior service cost | 38 | 35 | 111 | 105 | ||||||||||||
Recognized net actuarial loss | 97 | 221 | 276 | 635 | ||||||||||||
Net periodic benefit cost | $ | 1,243 | $ | 1,339 | $ | 3,563 | $ | 3,877 |
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Asset Derivatives | Liability Derivatives | |||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||
December 31, | March 31, | December 31, | March 31, | |||||||||||||||
Location | 2010 | 2010 | Location | 2010 | 2010 | |||||||||||||
Derivatives designated as hedging | ||||||||||||||||||
instruments: | ||||||||||||||||||
Cash Flow Hedges | Other assets | $ | - | $ | 136 | Other liabilities | $ | 272 | $ | 10 | ||||||||
- | 136 | 272 | 10 | |||||||||||||||
Derivatives not designated as hedging | ||||||||||||||||||
instruments: | ||||||||||||||||||
Foreign Exchange Forward Contracts | Other assets | 109 | 11 | Other liabilities | - | - | ||||||||||||
Foreign Exchange Swap Contracts | Other assets | - | 452 | Other liabilities | 466 | 356 | ||||||||||||
109 | 463 | 466 | 356 | |||||||||||||||
$ | 109 | $ | 599 | $ | 738 | $ | 366 | |||||||||||
Net amount of gain (loss) deferred as a component of accumulated other comprehensive loss | Location of gain (loss) reclassified from accumulated other comprehensive loss into income | Amount of gain (loss) reclassified from accumulated other comprehensive loss into income | Location of gain (loss) recognized in income immediately | Amount of gain (loss) recognized in income immediately | ||||||||||
Derivatives designated as hedging | ||||||||||||||
instruments: | ||||||||||||||
Cash Flow Hedges | $ | 6,113 | Cost of goods sold | $ | 5,283 | Other income/expense | $ | (70 | ) | |||||
6,113 | 5,283 | (70 | ) | |||||||||||
Derivatives not designated as hedging | ||||||||||||||
instruments: | ||||||||||||||
Foreign Exchange Forward Contracts | - | - | Other income/expense | 103 | ||||||||||
Foreign Exchange Swap Contracts | - | - | Other income/expense | (425 | ) | |||||||||
- | - | (322 | ) | |||||||||||
$ | 6,113 | $ | 5,283 | $ | (392 | ) | ||||||||
Net amount of gain (loss) deferred as a component of accumulated other comprehensive loss | Location of gain (loss) reclassified from accumulated other comprehensive loss into income | Amount of gain (loss) reclassified from accumulated other comprehensive loss into income | Location of gain (loss) recognized in income immediately | Amount of gain (loss) recognized in income immediately | ||||||||||
Derivatives designated as hedging | ||||||||||||||
instruments: | ||||||||||||||
Cash Flow Hedges | $ | (3,913 | ) | Cost of goods sold | $ | 3,364 | Other income/expense | $ | 17 | |||||
(3,913 | ) | 3,364 | 17 | |||||||||||
Derivatives not designated as hedging | ||||||||||||||
instruments: | ||||||||||||||
Foreign Exchange Forward Contracts | - | - | Other income/expense | 228 | ||||||||||
Foreign Exchange Swap Contracts | - | - | Other income/expense | (2,676 | ) | |||||||||
- | - | (2,448 | ) | |||||||||||
$ | (3,913 | ) | $ | 3,364 | $ | (2,431 | ) | |||||||
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Three months ended | Nine months ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Retail - Pointing Devices | $ | 186,507 | $ | 166,703 | $ | 472,222 | $ | 387,550 | ||||||||
Retail - Keyboards & Desktops | 113,929 | 104,624 | 285,546 | 242,539 | ||||||||||||
Retail - Audio | 155,239 | 147,945 | 370,848 | 341,066 | ||||||||||||
Retail - Video | 77,445 | 67,321 | 193,293 | 168,398 | ||||||||||||
Retail - Gaming | 46,634 | 36,359 | 81,460 | 82,001 | ||||||||||||
Retail - Digital Home (1) | 78,638 | 41,306 | 138,609 | 69,172 | ||||||||||||
OEM | 59,563 | 50,502 | 178,749 | 148,237 | ||||||||||||
Peripherals | 717,955 | 614,760 | 1,720,727 | 1,438,963 | ||||||||||||
LifeSize | 36,099 | 2,341 | 94,541 | 2,341 | ||||||||||||
Total net sales | $ | 754,054 | $ | 617,101 | $ | 1,815,268 | $ | 1,441,304 |
Three months ended | Nine months ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
EMEA | $ | 309,937 | $ | 309,800 | $ | 691,832 | $ | 664,347 | ||||||||
Americas | 318,189 | 217,454 | 780,256 | 515,395 | ||||||||||||
Asia Pacific | 125,928 | 89,847 | 343,180 | 261,562 | ||||||||||||
Total net sales | $ | 754,054 | $ | 617,101 | $ | 1,815,268 | $ | 1,441,304 |
December 31, | March 31, | |||||||
2010 | 2010 | |||||||
EMEA | $ | 10,229 | $ | 11,053 | ||||
Americas | 33,886 | 40,165 | ||||||
Asia Pacific | 46,301 | 43,765 | ||||||
Total long-lived assets | $ | 90,416 | $ | 94,983 |
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