LOGITECH INTERNATIONAL SA, 10-Q filed on 10/23/2015
Quarterly Report
Document and Entity Information
6 Months Ended
Sep. 30, 2015
Oct. 14, 2015
Document and Entity Information
 
 
Entity Registrant Name
LOGITECH INTERNATIONAL SA 
 
Entity Central Index Key
0001032975 
 
Document Type
10-Q 
 
Document Period End Date
Sep. 30, 2015 
 
Amendment Flag
false 
 
Current Fiscal Year End Date
--03-31 
 
Entity Current Reporting Status
Yes 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
162,381,177 
Document Fiscal Year Focus
2016 
 
Document Fiscal Period Focus
Q2 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(USD ($))
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Income Statement [Abstract]
 
 
 
 
Net sales
$ 539,862 
$ 530,311 
$ 1,010,182 
$ 1,012,514 
Cost of goods sold
353,851 
325,533 
652,442 
625,984 
Gross profit
186,011 
204,778 
357,740 
386,530 
Operating expenses:
 
 
 
 
Marketing and selling
89,877 
95,862 
177,304 
186,908 
Research and development
34,898 
32,325 
68,731 
63,641 
General and administrative
26,851 
34,470 
57,355 
71,149 
Restructuring charges, net
8,696 
21,691 
Total operating expenses
160,322 
162,657 
325,081 
321,698 
Operating income
25,689 
42,121 
32,659 
64,832 
Interest income, net
192 
355 
456 
613 
Other expense, net
(780)
(885)
(1,901)
(1,083)
Income before income taxes
25,101 
41,591 
31,214 
64,362 
Provision for income taxes
7,004 
5,501 
5,680 
8,596 
Net income
$ 18,097 
$ 36,090 
$ 25,534 
$ 55,766 
Net income per share:
 
 
 
 
Basic (in dollars per share)
$ 0.11 
$ 0.22 
$ 0.16 
$ 0.34 
Diluted (in dollars per share)
$ 0.11 
$ 0.22 
$ 0.15 
$ 0.34 
Weighted average shares used to compute net income per share :
 
 
 
 
Basic (in shares)
163,515 
163,230 
163,957 
163,121 
Diluted (in shares)
165,841 
166,065 
166,352 
165,949 
Cash dividends per share (in dollars per share)
$ 0.53 
$ 0 
$ 0.53 
$ 0 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net income
$ 18,097 
$ 36,090 
$ 25,534 
$ 55,766 
Other comprehensive income (loss):
 
 
 
 
Currency translation gain (loss), net of taxes
(8)
(3,852)
2,610 
(3,651)
Defined benefit pension plans:
 
 
 
 
Net gain and prior service costs, net of taxes
1,322 
807 
192 
946 
Amortization included in operating expenses
417 
109 
833 
222 
Hedging gain (loss):
 
 
 
 
Deferred hedging gain (loss), net of taxes
1,088 
3,505 
(1,174)
3,753 
Reclassification of hedging loss (gain) included in cost of goods sold
(28)
(215)
(2,488)
185 
Other comprehensive income (loss):
2,791 
354 
(27)
1,455 
Total comprehensive income
$ 20,888 
$ 36,444 
$ 25,507 
$ 57,221 
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Mar. 31, 2015
Current assets:
 
 
Cash and cash equivalents
$ 365,774 
$ 537,038 
Accounts receivable, net
274,730 
179,823 
Inventories
328,054 
270,730 
Other current assets
73,504 
64,429 
Total current assets
1,042,062 
1,052,020 
Non-current assets:
 
 
Property, plant and equipment, net
108,184 
91,593 
Goodwill
218,207 
218,213 
Other intangible assets
666 
1,866 
Other assets
60,656 
62,988 
Total assets
1,429,775 
1,426,680 
Current liabilities:
 
 
Accounts payable
356,686 
299,995 
Accrued and other current liabilities
231,688 
194,912 
Total current liabilities
588,374 
494,907 
Non-current liabilities:
 
 
Income taxes payable
74,374 
72,107 
Other non-current liabilities
98,054 
101,532 
Total liabilities
760,802 
668,546 
Commitments and contingencies (Note 9)
   
   
Shareholders’ equity:
 
 
Registered shares, CHF 0.25 par value: Issued and authorized shares - 173,106 at September 30 and March 31, 2015 Conditionally authorized shares - 50,000 at September 30 and March 31, 2015
30,148 
30,148 
Additional paid-in capital
1,633 
Less shares in treasury, at cost — 10,729 at September 30, 2015 and 8,625 at March 31, 2015
(119,337)
(88,951)
Retained earnings
869,793 
930,174 
Accumulated other comprehensive loss
(113,264)
(113,237)
Total shareholders’ equity
668,973 
758,134 
Total liabilities and shareholders’ equity
$ 1,429,775 
$ 1,426,680 
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (CHF)
Sep. 30, 2015
Mar. 31, 2015
Statement of Financial Position [Abstract]
 
 
Shares, par value (in CHF per share)
 0.25 
 0.25 
Shares, issued
173,106,000 
173,106,000 
Shares, authorized
173,106,000 
173,106,000 
Shares, conditionally authorized
50,000,000 
50,000,000 
Treasury, at cost, shares
10,729,000 
8,625,000 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Operating activities:
 
 
Net income
$ 25,534 
$ 55,766 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation
22,237 
19,692 
Amortization of other intangible assets
1,226 
5,358 
Share-based compensation expense
13,257 
12,999 
Impairment of investment
180 
105 
Gain on disposal of property, plant and equipment
(10)
Excess tax benefits from share-based compensation
(1,163)
(666)
Deferred income taxes
952 
(2,358)
Changes in operating assets and liabilities, net of acquisitions:
 
 
Accounts receivable, net
(95,403)
(73,561)
Inventories
(55,442)
(26,984)
Other assets
(8,511)
(5,640)
Accounts payable
50,361 
60,112 
Accrued and other liabilities
31,910 
15,891 
Net cash provided by (used in) operating activities
(14,862)
60,704 
Investing activities:
 
 
Purchases of property, plant and equipment
(31,277)
(24,964)
Investment in privately held companies
(480)
(2,550)
Purchase of trading investments
(2,649)
(2,230)
Proceeds from sales of trading investments
2,855 
2,545 
Net cash used in investing activities
(31,551)
(27,199)
Financing activities:
 
 
Payment of cash dividends
(85,915)
Contingent consideration related to prior acquisition
(100)
Repurchases of ESPP awards
(1,078)
Purchases of treasury shares
(48,802)
Proceeds from sales of shares upon exercise of options and purchase rights
11,103 
1,533 
Tax withholdings related to net share settlements of restricted stock units
(3,502)
(1,323)
Excess tax benefits from share-based compensation
1,163 
666 
Net cash used in financing activities
(125,953)
(302)
Effect of exchange rate changes on cash and cash equivalents
1,102 
(2,393)
Net increase (decrease) in cash and cash equivalents
(171,264)
30,810 
Cash and cash equivalents, beginning of the period
537,038 
469,412 
Cash and cash equivalents, end of the period
365,774 
500,222 
Non-cash investing activities:
 
 
Property, plant and equipment purchased during the period and included in period end liability accounts
$ 12,981 
$ 1,568 
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $)
In Thousands, unless otherwise specified
Total
Registered Shares
Additional Paid-in Capital
Treasury Shares
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Balance at Mar. 31, 2014
$ 804,128 
$ 30,148 
$ 0 
$ (116,510)
$ 976,292 
$ (85,802)
Balance (in shares) at Mar. 31, 2014
 
173,106 
 
10,206 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
 
 
 
Total comprehensive income (loss)
57,221 
 
 
 
55,766 
1,455 
Tax effects from share-based awards
825 
 
825 
 
 
 
Sales of shares upon exercise of options and purchase rights
1,533 
 
(881)
2,414 
 
 
Sales of shares upon exercise of options and purchase rights (in shares)
 
 
 
(134)
 
 
Issuance of shares upon vesting of restricted stock units
(1,323)
 
(5,443)
4,120 
 
 
Issuance of shares upon vesting of restricted stock units (in shares)
 
 
 
(225)
 
 
Share-based compensation expense
13,055 
 
13,055 
 
 
 
Repurchase of ESPP awards
(1,078)
 
(1,078)
 
 
 
Balance at Sep. 30, 2014
874,361 
30,148 
6,478 
(109,976)
1,032,058 
(84,347)
Balance (in shares) at Sep. 30, 2014
 
173,106 
 
9,847 
 
 
Balance at Mar. 31, 2015
758,134 
30,148 
(88,951)
930,174 
(113,237)
Balance (in shares) at Mar. 31, 2015
 
173,106 
 
8,625 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
 
 
 
Total comprehensive income (loss)
25,507 
 
 
 
25,534 
(27)
Tax effects from share-based awards
(727)
 
(727)
 
 
 
Sales of shares upon exercise of options and purchase rights
11,103 
 
(2,452)
13,555 
 
 
Sales of shares upon exercise of options and purchase rights (in shares)
 
 
 
(987)
 
 
Issuance of shares upon vesting of restricted stock units
(3,502)
 
(8,363)
4,861 
 
 
Issuance of shares upon vesting of restricted stock units (in shares)
 
 
 
(411)
 
 
Share-based compensation expense
13,175 
 
13,175 
 
 
 
Purchases of treasury shares
(48,802)
 
 
(48,802)
 
 
Purchases of treasury shares (in shares)
 
 
 
3,502 
 
 
Cash dividends
(85,915)
 
 
 
(85,915)
 
Balance at Sep. 30, 2015
$ 668,973 
$ 30,148 
$ 1,633 
$ (119,337)
$ 869,793 
$ (113,264)
Balance (in shares) at Sep. 30, 2015
 
173,106 
 
10,729 
 
 
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
 
Basis of Presentation
 
The condensed consolidated interim financial statements include the accounts of Logitech and its subsidiaries. All intercompany balances and transactions have been eliminated. The condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and therefore do not include all the information required by GAAP for complete financial statements. They should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year ended March 31, 2015, included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on June 5, 2015.  In the opinion of management, these condensed consolidated financial statements include all adjustments, consisting of only normal and recurring adjustments, necessary and in all material aspects, for a fair statement of the results of operations, financial position, comprehensive income, cash flows and changes in shareholders' equity for the periods presented. Operating results for the three and six months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2016, or any future periods.
 
Fiscal Year
 
The Company’s fiscal year ends on March 31. Interim quarter ends on last Friday of each quarter.  For purposes of presentation, the Company has indicated its quarterly periods as ending on the quarter end.
 
Changes in Significant Accounting Policies
 
There have been no substantial changes in the Company’s significant accounting policies during the six months ended September 30, 2015 compared with the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended March 31, 2015.
 
Use of Estimates
 
The preparation of financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Examples of significant estimates and assumptions made by management involve the fair value of goodwill, warranty liabilities, accruals for discretionary customer programs, sales return reserves, allowance for doubtful accounts, inventory valuation, restructuring charges, contingent liabilities, uncertain tax positions, and valuation allowances for deferred tax assets. Although these estimates are based on management’s best knowledge of current events and actions that may impact the Company in the future, actual results could differ materially from those estimates.
 
Recent Accounting Pronouncements 

In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2015-11, "Simplifying the Measurement of Inventory (Topic 330)", ("ASU 2015-11"). Topic 330, Inventory, currently requires an entity to measure inventory at the lower of cost or market, with market value represented by replacement cost, net realizable value or net realizable value less a normal profit margin. The amendments in ASU 2015-11 require an entity to measure inventory at the lower of cost or net realizable value. ASU 2015-11 is effective in the first quarter of fiscal year 2018 for the Company, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements.

In May 2014, the FASB issued Accounting Standards Update No. 2014-9, "Revenue from Contracts with Customers (Topic 606)," ("ASU 2014-9"). ASU 2014-9 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 was originally to be effective for the Company on April 1, 2017. In July 2015, the FASB affirmed a one-year deferral of the effective date of the new revenue standard. The new standard will become effective for the Company on April 1, 2018. Early application is permitted but not before the original effective date of annual periods beginning after December 15, 2016. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. The Company has not yet selected a transition method nor has it determined the impact of the new standard on its condensed consolidated financial statements.
Net Income per Share
Net Income per Share
Net Income per Share
 
The computations of basic and diluted net income per share for the Company were as follows (in thousands, except per share amounts):
 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
 
2015
 
2014
 
2015
 
2014
Net income
 
$
18,097

 
$
36,090

 
$
25,534

 
$
55,766

Shares used in net income per share computation:
 
 

 
 

 
 

 
 

Weighted average shares outstanding - basic
 
163,515

 
163,230

 
163,957

 
163,121

Effect of potentially dilutive equivalent shares
 
2,326

 
2,835

 
2,395

 
2,828

Weighted average shares outstanding - diluted
 
165,841

 
166,065

 
166,352

 
165,949

Net income per share:
 
 

 
 

 
 

 
 

Basic
 
$
0.11

 
$
0.22

 
$
0.16

 
$
0.34

Diluted
 
$
0.11

 
$
0.22

 
$
0.15

 
$
0.34


 
Share equivalents attributable to outstanding stock options and restricted stock units (RSUs) of 7.8 million and 8.3 million for the three months ended September 30, 2015 and 2014, respectively, and 7.6 million and 8.1 million for the six months ended September 30, 2015 and 2014, were anti-dilutive and excluded from the calculation of diluted net income per share.
Employee Benefit Plans
Employee Benefit Plans
Employee Benefit Plans
 
Employee Share Purchase Plans and Stock Incentive Plans
 
As of September 30, 2015, the Company offers the 2006 ESPP (2006 Employee Share Purchase Plan (Non-U.S.)), the 1996 ESPP (1996 Employee Share Purchase Plan (U.S.)), the 2006 Plan (2006 Stock Incentive Plan) and the 2012 Plan (2012 Stock Inducement Equity Plan).

The following table summarizes the share-based compensation expense and related tax benefit recognized for the three and six months ended September 30, 2015 and 2014 (in thousands):
 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
 
2015
 
2014
 
2015
 
2014
Cost of goods sold
 
$
580

 
$
627

 
$
1,185

 
$
1,165

Marketing and selling
 
2,062

 
1,653

 
4,180

 
4,209

Research and development
 
756

 
552

 
1,543

 
1,396

General and administrative
 
3,110

 
3,229

 
6,342

 
6,229

Restructuring
 

 

 
7

 

Total share-based compensation expense
 
6,508

 
6,061

 
13,257

 
12,999

Income tax provision (benefit)
 
304

 
(1,913
)
 
(1,033
)
 
(3,097
)
Total share-based compensation expense, net of income tax
 
$
6,812

 
$
4,148

 
$
12,224

 
$
9,902


 
As of September 30, 2015 and March 31, 2015, the Company capitalized $0.4 million and $0.5 million of stock-based compensation expenses as inventory, respectively.
 
Defined Benefit Plans
 
Certain of the Company’s subsidiaries sponsor defined benefit pension plans or non-retirement post-employment benefits covering substantially all of their employees. Benefits are provided based on employees’ years of service and earnings, or in accordance with applicable employee benefit regulations. The Company’s practice is to fund amounts sufficient to meet the requirements set forth in the applicable employee benefit and tax regulations. The cost recorded of $2.9 million and $1.9 million for the three months ended September 30, 2015 and 2014, respectively, and $5.8 million and $3.9 million for the six months ended September 30, 2015 and 2014, respectively, was primarily related to service costs.
Income Taxes
Income Taxes
Income Taxes
 
The Company is incorporated in Switzerland but operates in various countries with differing tax laws and rates. Further, a portion of the Company’s income before taxes and the provision for (benefit from) income taxes are generated outside of Switzerland.
 
The income tax provision for the three months ended September 30, 2015 was $7.0 million based on an effective income tax rate of 27.9% of pre-tax income, compared to an income tax provision of $5.5 million based on an effective income tax rate of 13.2% of pre-tax income for the three months ended September 30, 2014. The income tax provision for the six months ended September 30, 2015 was $5.7 million based on an effective income tax rate of 18.2% of pre-tax income, compared to an income tax provision of $8.6 million based on an effective income tax rate of 13.4% of pre-tax income for the six months ended September 30, 2014.

The change in the effective income tax rate for the three and six months ended September 30, 2015, compared to the three and six months ended September 30, 2014, is due to the mix of income and losses in the various tax jurisdictions in which the Company operates. In addition, in determining the annual effective tax rate of fiscal year 2016, there is no tax benefit recognized for ordinary losses related to the video conferencing business as realization of the tax benefit of the losses is not assured beyond any reasonable doubt. In the three months ended September 30, 2015, a discrete tax provision of $1.5 million resulting from a write-off to a deferred tax asset related to stock equity awards for the video conferencing business was largely offset by a discrete tax benefit from the reversal of uncertain tax positions from the expiration of statutes of limitations. In the three months ended September 30, 2014, there was a discrete tax benefit of $1.7 million, primarily from the reversal of uncertain tax positions resulting from the expiration of statues of limitations and audit settlements in certain jurisdictions.

There was a discrete tax benefit of $2.2 million and $0.8 million in the six months ended September 30, 2015 and 2014, respectively, resulting from the preferential income tax rate reduction pursuant to the High and New Technology Enterprise Program in China.

As of September 30 and March 31, 2015, the total amount of unrecognized tax benefits due to uncertain tax positions was $80.4 million and $79.0 million, respectively, all of which would affect the effective income tax rate if recognized.
 
The Company had $74.4 million in non-current income taxes payable and $0.1 million in current income taxes payable, including interest and penalties, related to our income tax liability for uncertain tax positions as of September 30, 2015, compared to $72.1 million in non-current income taxes payable and $0.1 million in current income taxes payable as of March 31, 2015.
 
The Company recognizes interest and penalties related to unrecognized tax positions in income tax expense. As of September 30 and March 31, 2015, the Company had $4.7 million and $4.9 million of accrued interest and penalties related to uncertain tax positions, respectively.
 
Although the Company has adequately provided for uncertain tax positions, the provisions on these positions may change as revised estimates are made or the underlying matters are settled or otherwise resolved. During fiscal year 2016, the Company will continue to review its tax positions and provide for or reverse unrecognized tax benefits as issues arise. During the next 12 months, it is reasonably possible that the amount of unrecognized tax benefits could increase or decrease significantly due to changes in tax law in various jurisdictions, new tax audits and changes in the U.S. dollar as compared to other currencies. Excluding these factors, uncertain tax positions may decrease by as much as $17.2 million from the lapse of the statutes of limitations in various jurisdictions during the next 12 months.
Balance Sheet Components
Balance Sheet Components
Balance Sheet Components
 
The following table presents the components of certain balance sheet asset amounts as of September 30 and March 31, 2015 (in thousands): 
 
 
September 30,
2015
 
March 31,
2015
Accounts receivable, net:
 
 

 
 

Accounts receivable
 
$
492,274

 
$
344,455

Allowance for doubtful accounts
 
(1,078
)
 
(1,093
)
Allowance for sales returns
 
(20,185
)
 
(17,901
)
Allowance for cooperative marketing arrangements
 
(34,938
)
 
(25,700
)
Allowance for customer incentive programs
 
(65,055
)
 
(48,497
)
Allowance for pricing programs
 
(96,288
)
 
(71,441
)
 
 
$
274,730

 
$
179,823

Inventories:
 
 

 
 

Raw materials
 
$
59,286

 
$
36,376

Finished goods
 
268,768

 
234,354

 
 
$
328,054

 
$
270,730

Other current assets:
 
 

 
 

Income tax and value-added tax receivables
 
$
25,662

 
$
19,403

Deferred tax assets
 
28,879

 
27,790

Prepaid expenses and other assets
 
18,963

 
17,236

 
 
$
73,504

 
$
64,429

Property, plant and equipment, net:
 
 

 
 

Property, plant and equipment
 
376,795

 
349,235

Less: accumulated depreciation and amortization
 
(268,611
)
 
(257,642
)
 
 
$
108,184

 
$
91,593

Other assets:
 
 

 
 

Deferred tax assets
 
$
36,799

 
$
39,310

Trading investments for deferred compensation plan
 
15,577

 
17,237

Other assets
 
8,280

 
6,441

 
 
$
60,656

 
$
62,988







The following table presents the components of certain balance sheet liability amounts as of September 30 and March 31, 2015 (in thousands): 
 
 
September 30,
2015
 
March 31,
2015
Accrued and other current liabilities:
 
 

 
 

Accrued personnel expenses
 
$
55,703

 
$
50,015

Indirect customer incentive programs
 
26,660

 
19,730

Accrued restructuring
 
11,661

 
966

Deferred revenue
 
24,552

 
24,987

Warranty accrual
 
12,091

 
12,630

Employee benefit plan obligation
 
1,717

 
1,232

Income taxes payable
 
4,264

 
5,794

Other current liabilities
 
95,040

 
79,558

 
 
$
231,688

 
$
194,912

Non-current liabilities:
 
 

 
 

Warranty accrual
 
$
8,308

 
$
9,080

Obligation for deferred compensation plan
 
15,577

 
17,237

Long term restructuring
 
71

 
73

Employee benefit plan obligation
 
50,195

 
51,181

Deferred rent
 
10,767

 
11,519

Deferred tax liability
 
1,823

 
1,936

Long term deferred revenue
 
9,663

 
9,109

Other non-current liabilities
 
1,650

 
1,397

 
 
$
98,054

 
$
101,532

Fair Value Measurements
Fair Value Measurements
Fair Value Measurements
 
Fair Value Measurements
 
The Company considers fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Company utilizes the following three-level fair value hierarchy to establish the priorities of the inputs used to measure fair value:
 
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.

The following table presents the Company’s financial assets and liabilities, that were accounted for at fair value, excluding assets related to the Company’s defined benefit pension plans, classified by the level within the fair value hierarchy (in thousands): 
 
 
September 30, 2015
 
March 31, 2015
 
 
Level 1
 
Level 2
 
Level 1
 
Level 2
Cash equivalents:
 
 

 
 
 
 

 
 

Cash equivalents
 
$
35,050

 
$

 
$
264,647

 
$

 
 
$
35,050

 
$

 
$
264,647

 
$

Trading investments for deferred compensation plan:
 
 

 
 
 
 

 
 

Money market funds
 
$
3,326

 
$

 
$
2,936

 
$

Mutual funds
 
12,251

 

 
14,301

 

 
 
$
15,577

 
$

 
$
17,237

 
$

Foreign exchange derivative assets
 
$

 
$
806

 
$

 
$
2,080

Foreign exchange derivative liabilities
 
$

 
$
88

 
$

 
$
75


 
There were no material Level 3 financial assets as of September 30 or March 31, 2015.
 
Investment Securities
 
The marketable securities for the Company's deferred compensation plan are recorded at a fair value of $15.6 million and $17.2 million as of September 30, 2015 and March 31, 2015, respectively, based on quoted market prices. Quoted market prices are observable inputs that are classified as Level 1 within the fair value hierarchy. Unrealized trading gains / (losses) related to trading securities for the three or six months ended September 30, 2015 and 2014 were not significant and are included in other expense, net.
 
Derivative Financial Instruments
 
Under certain agreements with the respective counterparties to the Company’s derivative contracts, subject to applicable requirements, the Company is allowed to net settle transactions of the same type with a single net amount payable by one party to the other. However, the Company presents its derivative assets and derivative liabilities on a gross basis on the Condensed Consolidated Balance Sheets as of September 30, 2015 and March 31, 2015.

The fair values of the Company’s derivative instruments not designated as hedging instruments were not material as of September 30, 2015 or March 31, 2015. The following table presents the fair values of the Company’s derivative instruments designated as hedging instruments and their accounting line presentation on its Condensed Consolidated Balance Sheets as of September 30, 2015 and March 31, 2015 (in thousands):
 
 
Derivatives
 
 
Asset
 
 
September 30,
2015
 
March 31,
2015
Cash flow hedges
 
$
806

 
$
2,080


 
The amount of gain (loss) recognized on derivatives not designated as hedging instruments were not material in all periods presented herein. The following table presents the amounts of gains (losses) on the Company’s derivative instruments designated as hedging instruments and their locations on its condensed consolidated statements of operations and condensed consolidated statements of comprehensive income for the three and six months ended September 30, 2015 and 2014 (in thousands):

 
 
Three Months Ended
September 30,
 
 
Amount of
Gain (Loss) Deferred as 
a Component of 
Accumulated Other 
Comprehensive Loss After Reclassification to Costs of Goods Sold
 
Amount of Loss (Gain)
Reclassified from Accumulated Other Comprehensive Loss to
Costs of Goods Sold
 
Amount of Gain (Loss) Immediately Recognized in
Other Expense, Net
 
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
Cash flow hedges
 
$
1,060

 
$
3,290

 
$
(28
)
 
$
(215
)
 
$
75

 
$
(1
)


 
 
Six Months Ended
September 30,
 
 
Amount of
Gain (Loss) Deferred as 
a Component of 
Accumulated Other 
Comprehensive Loss After Reclassification to Costs of Goods Sold
 
Amount of Loss (Gain)
Reclassified from Accumulated Other Comprehensive Loss to
Costs of Goods Sold
 
Amount of Gain (Loss) Immediately Recognized in
Other Expense, Net
 
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
Cash flow hedges
 
$
(3,662
)
 
$
3,938

 
$
(2,488
)
 
$
185

 
$
143

 
$
(56
)

 
Cash Flow Hedges
 
The Company enters into currency exchange forward contracts to hedge against exposure to changes in currency exchange rates related to its subsidiaries’ forecasted inventory purchases. The Company has one entity with a euro functional currency that purchases inventory in U.S. Dollars. The primary risk managed by using derivative instruments is the currency exchange rate risk. However, there can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in currency exchange rates. The Company has designated these derivatives as cash flow hedges. These hedging contracts mature within four months, and are denominated in the same currency as the underlying transactions. Gains and losses in the fair value of the effective portion of the hedges are deferred as a component of accumulated other comprehensive loss until the hedged inventory purchases are sold, at which time the gains or losses are reclassified to cost of goods sold. The Company assesses the effectiveness of the hedges by comparing changes in the spot rate of the currency underlying the forward contract with changes in the spot rate of the currency in which the forecasted transaction will be consummated. If the underlying transaction being hedged fails to occur or if a portion of the hedge does not generate offsetting changes in the currency exposure of forecasted inventory purchases, the Company immediately recognizes the gain or loss on the associated financial instrument in other expense, net. Such gains and losses were not material during the three or six months ended September 30, 2015 and 2014. Cash flows from such hedges are classified as operating activities in the condensed consolidated statements of cash flows. The notional amounts of currency exchange forward contracts outstanding related to forecasted inventory purchases were $63.4 million and $43.5 million at September 30, 2015 and March 31, 2015, respectively. The Company estimates that $0.3 million of net gains related to its cash flow hedges included in accumulated other comprehensive loss as of September 30, 2015 will be reclassified into earnings within the next 12 months.
 
Other Derivatives
 
The Company also enters into currency exchange forward and swap contracts to reduce the short-term effects of currency exchange rate fluctuations on certain foreign currency receivables or payables. These contracts generally mature within one month. The primary risk managed by using forward and swap contracts is the currency exchange rate risk. The gains or losses on currency exchange contracts are recognized in other expense, net based on the changes in fair value.
 
The notional amounts of currency exchange forward and swap contracts outstanding as of September 30 and March 31, 2015 relating to foreign currency receivables or payables were $60.8 million and $61.7 million, respectively. Open forward and swap contracts outstanding at September 30, 2015 and March 31, 2015 consisted of contracts in Mexican Pesos, Japanese Yen, British Pounds, Taiwanese Dollars and Australian Dollars to be settled at future dates at pre-determined exchange rates.
 
The fair value of all currency exchange forward and swap contracts is determined based on observable market transactions of spot currency rates and forward rates. Cash flows from these contracts are classified as operating activities in the Condensed Consolidated Statements of Cash Flows.
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
  
In accordance with ASC Topic 350-10 (“ASC 350-10”), the Company conducts a goodwill impairment analysis annually at December 31 and as necessary if changes in facts and circumstances indicate that it is more likely than not that the fair value of the Company’s reporting units may be less than its carrying amount. There have been no events or circumstances during the six months ended September 30, 2015 that have required the Company to perform an interim assessment of goodwill.
 
As of September 30, 2015 and March 31, 2015, all of the Company's goodwill is related to the Peripheral reporting unit. The following table summarizes the activity in the Company’s goodwill balance during the six months ended September 30, 2015 (in thousands):
As of March 31, 2015
 
$
218,213

Currency impact
 
(6
)
As of September 30, 2015
 
$
218,207



Other Intangible Assets

Amortization expense for other intangible assets was $0.5 million and $2.6 million for the three months ended September 30, 2015 and 2014, respectively, and $1.2 million and $5.4 million for the six months ended September 30, 2015 and 2014, respectively.
Financing Arrangements
Financing Arrangements
Financing Arrangements
 
The Company had several uncommitted, unsecured bank lines of credit aggregating $46.7 million as of September 30, 2015. There are no financial covenants under these lines of credit with which the Company must comply. As of September 30, 2015, the Company had outstanding bank guarantees of $18.2 million under these lines of credit. There was no borrowing outstanding under these lines of credit as of September 30, 2015 or March 31, 2015.
Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies
 
Product Warranties
 
All of the Company’s peripherals products are covered by warranty to be free from defects in material and workmanship for periods ranging from one year to five years. At the time of sale, the Company accrues a warranty liability for estimated costs to provide products, parts or services to repair or replace products in satisfaction of the warranty obligation. The Company’s estimate of costs to fulfill its warranty obligations is based on historical experience and expectations of future conditions. When the Company experiences changes in warranty claim activity or costs associated with fulfilling those claims, the warranty liability is adjusted accordingly.
 
Changes in the Company’s warranty liability for the three and six months ended September 30, 2015 and 2014 were as follows (in thousands): 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Beginning of the period
$
21,284

 
$
23,420

 
$
21,710

 
$
24,380

Provision
1,792

 
2,020

 
3,934

 
4,226

Settlements
(2,677
)
 
(3,236
)
 
(5,245
)
 
(6,402
)
End of the period
$
20,399

 
$
22,204

 
$
20,399

 
$
22,204


 
Other Contingencies
 
The Company is subject to an ongoing formal investigation by the Enforcement Division of the U.S. Securities and Exchange Commission ("SEC"), relating to certain issues including the accounting for Revue inventory valuation reserves that resulted in the restatement described in the Fiscal 2014 Form 10-K, revision to the Company’s consolidated financial statements concerning warranty accruals and amortization of intangible assets presented in the Company’s Amended Annual Report on Form10-K/A, filed on August 7, 2013, and the Company’s transactions with a distributor for Fiscal Year 2007 through Fiscal Year 2009. The Company has entered into an agreement with the Enforcement Staff to extend the statute of limitations. The Company is cooperating with the investigation and, after discussions with the Enforcement Staff, the Company recently made an offer of settlement to resolve the matter, which is subject to approval by the SEC.  The proposed settlement would be entered into by the Company without admitting or denying the SEC’s findings and would resolve alleged violations of certain provisions of the Securities Exchange Act of 1934 and related rules, including the anti-fraud provisions.  Under the terms of the proposed settlement, the Company would pay $7.5 million in a civil penalty and agree not to commit or cause any violations of certain provisions of the Securities Exchange Act of 1934 and related rules. There is no assurance that the proposal will be approved by the SEC. In accordance with U.S. GAAP, the Company has made a corresponding accrual in its financial statements.
 
Guarantees
 
Logitech Europe S.A. guaranteed payments of certain third-party contract manufacturers’ purchase obligations. As of September 30, 2015, the maximum amount of this guarantee was $3.8 million, of which $0.9 million of guaranteed purchase obligations were outstanding.

Indemnifications
 
The Company indemnifies certain of its suppliers and customers for losses arising from matters such as intellectual property disputes and product safety defects, subject to certain restrictions. The scope of these indemnities varies, but in some instances, includes indemnification for damages and expenses, including reasonable attorneys’ fees. As of September 30, 2015, no amounts have been accrued for these indemnification provisions. The Company does not believe, based on historical experience and information currently available, that it is probable that any material amounts will be required to be paid under its indemnification arrangements.
 
The Company also indemnifies its current and former directors and certain of its current and former officers. Certain costs incurred for providing such indemnification may be recoverable under various insurance policies. The Company is unable to reasonably estimate the maximum amount that could be payable under these arrangements because these exposures are not limited, the obligations are conditional in nature and the facts and circumstances involved in any situation that might arise are variable.
 
Legal Proceedings
 
From time to time the Company is involved in claims and legal proceedings that arise in the ordinary course of its business. The Company is currently subject to several such claims and a small number of legal proceedings. The Company believes that these matters lack merit and intends to vigorously defend against them. Based on currently available information, the Company does not believe that resolution of pending matters will have a material adverse effect on its financial condition, cash flows or results of operations. However, litigation is subject to inherent uncertainties, and there can be no assurances that the Company’s defenses will be successful or that any such lawsuit or claim would not have a material adverse impact on the Company’s business, financial condition, cash flows or results of operations in a particular period. Any claims or proceedings against the Company, whether meritorious or not, can have an adverse impact because of defense costs, diversion of management and operational resources, negative publicity and other factors. Any failure to obtain necessary license or other rights, or litigation arising out of intellectual property claims, could adversely affect the Company’s business.
Shareholders' Equity
Shareholders' Equity
Shareholders’ Equity
 
Share Repurchase Program

In March 2014, the Company’s Board of Directors approved the 2014 share buyback program, which authorizes the Company to use up to $250.0 million to purchase its own shares. The Company’s share buyback program is expected to remain in effect for a period of three years. Shares may be repurchased from time to time on the open market with consideration given to Logitech’s stock price, market conditions and other factors. During the three and six months ended September 30, 2015, 2.9 million and 3.5 million shares were repurchased for $40.0 million and $48.8 million, respectively. There were no share repurchases during the three or six months ended September 30, 2014.
 
Cash Dividends on Shares of Common Stock

During the three and six months ended September 30, 2015, the Company declared and paid cash dividends of CHF0.51 (USD equivalent of $0.53 ) per common share, totaling $85.9 million, on the Company’s outstanding common stock.

Any future dividends will be subject to the approval of the Company's shareholders.

Accumulated Other Comprehensive Income (Loss)
 
The components of accumulated other comprehensive income (loss) was as follows (in thousands):
 
 
Accumulated Other Comprehensive Income (Loss)
 
 
Cumulative
Translation
Adjustment (1)
 
Defined
Benefit
Plan (1)
 
Deferred
Hedging
Gains (Losses)
 
Total
March 31, 2015
 
$
(90,224
)
 
$
(26,964
)
 
$
3,951

 
$
(113,237
)
Other comprehensive income (loss)
 
2,610

 
1,025

 
(3,662
)
 
(27
)
September 30, 2015
 
$
(87,614
)
 
$
(25,939
)
 
$
289

 
$
(113,264
)
 
(1)        Tax effect was not significant as of September 30 or March 31, 2015.
Segment Information
Segment Information
Segment Information
 
The Company has two reporting segments, peripherals and video conferencing, based on product markets and internal organizational structure. The peripherals segment encompasses the design, manufacturing and marketing of peripherals for PCs, tablets and other digital platforms. The video conferencing segment offers scalable high-definition, or HD, video communication endpoints, HD video conferencing systems with integrated monitors, video bridges, a cloud-based video conferencing solution and other infrastructure software and hardware to support large-scale video deployments and services to support these products. The Company’s reporting segments do not record revenue on sales between segments.
 
Operating performance measures for the peripherals segment and the video conferencing segment are reported separately to the Company's Chief Executive Officer (“CEO”), who is considered to be the Company’s Chief Operating Decision Maker (“CODM”). The CEO periodically reviews information such as net sales and operating income (loss) for each operating segment to make business decisions. These operating performance measures do not include restructuring charges, net, share-based compensation expense and amortization of intangible assets, which are presented in the following financial information by operating segment as “other income (expense)”. Assets by operating segment are not presented since the Company does not present such data to the CODM.

Net sales and operating income (loss) for the Company’s operating segments for the three and six months ended September 30, 2015 and 2014 were as follows (in thousands): 
 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
 
2015
 
2014
 
2015
 
2014
Net sales:
 
 

 
 

 
 

 
 

Peripherals
 
$
518,494

 
$
501,857

 
$
966,180

 
$
958,303

Video conferencing
 
21,368

 
28,454

 
44,002

 
54,211

 
 
$
539,862

 
$
530,311

 
$
1,010,182

 
$
1,012,514

Segment operating income (loss):
 
 

 
 

 
 

 
 

Peripherals
 
$
46,191

 
$
50,587

 
$
78,031

 
$
84,154

Video conferencing
 
(4,804
)
 
171

 
(9,205
)
 
(965
)
 
 
41,387

 
50,758

 
68,826

 
83,189

Other income (expense):
 
 

 
 

 
 

 
 

Restructuring charges, net
 
(8,696
)
 

 
(21,691
)
 

Share-based compensation
 
(6,508
)
 
(6,061
)
 
(13,250
)
 
(12,999
)
Amortization of intangibles
 
(494
)
 
(2,576
)
 
(1,226
)
 
(5,358
)
Interest income, net
 
192

 
355

 
456

 
613

Other expense, net
 
(780
)
 
(885
)
 
(1,901
)
 
(1,083
)
Income before income taxes
 
$
25,101

 
$
41,591

 
$
31,214

 
$
64,362



Restructuring charges for Peripherals and Video conferencing segments were $3.2 million and $5.5 million, respectively, for the three months ended September 30, 2015. Restructuring charges for Peripherals and Video conferencing segments were $14.7 million and $7.0 million, respectively, for the six months ended September 30, 2015.

Net sales by product categories and sales channels, excluding intercompany transactions, for the three and six months ended September 30, 2015 and 2014 were as follows (in thousands):
 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
 
2015
 
2014
 
2015
 
2014
Peripherals:
 
 

 
 

 
 

 
 

Mobile Speakers
 
$
80,550

 
$
48,538

 
$
121,094

 
$
77,367

Gaming
 
67,624

 
47,506

 
111,294

 
94,382

Video Collaboration
 
20,059

 
13,808

 
41,235

 
29,033

Tablet & Other Accessories
 
18,549

 
28,158

 
37,358

 
59,874

Growth
 
186,782

 
138,010

 
310,981

 
260,656

Pointing Devices
 
124,668

 
127,693

 
241,653

 
240,735

Keyboards & Combos
 
102,098

 
105,677

 
207,927

 
211,166

Audio-PC & Wearables
 
46,342

 
57,191

 
92,041

 
105,739

PC Webcams
 
23,360

 
25,282

 
45,041

 
45,745

Home Control
 
12,610

 
18,776

 
22,864

 
31,108

Profit Maximization
 
309,078

 
334,619

 
609,526

 
634,493

Retail Strategic Sales
 
495,860

 
472,629

 
920,507

 
895,149

Non-Strategic
 
403

 
834

 
1,144

 
2,127

Retail
 
496,263

 
473,463

 
921,651

 
897,276

OEM
 
22,231

 
28,394

 
44,529

 
61,027

 
 
518,494

 
501,857

 
966,180

 
958,303

Video conferencing
 
21,368

 
28,454

 
44,002

 
54,211

 
 
$
539,862

 
$
530,311

 
$
1,010,182

 
$
1,012,514



Certain products within the retail product categories presented in prior periods have been reclassified to conform to the current periods' presentation.
 
Net sales to unaffiliated customers by geographic region (based on the customers’ location) for the three and six months ended September 30, 2015 and 2014 were as follows (in thousands):
 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
 
2015
 
2014
 
2015
 
2014
Americas
 
$
239,742

 
$
226,091

 
$
466,429

 
$
437,622

EMEA
 
173,148

 
189,571

 
300,514

 
343,271

Asia Pacific
 
126,972

 
114,649

 
243,239

 
231,621

Total net sales
 
$
539,862

 
$
530,311

 
$
1,010,182

 
$
1,012,514


 
Sales are attributed to countries on the basis of the customers’ locations. The United States represented 37% and 36% of the Company’s total consolidated net sales for the three months ended September 30, 2015 and 2014, respectively. No other single country represented more than 10% of the Company’s total consolidated net sales during those periods. One customer group of the Company’s peripheral operating segment represented 15% and 17% of sales for the three months ended September 30, 2015 and 2014, respectively.

The United States represented 38% and 36% of the Company’s total consolidated net sales for the six months ended September 30, 2015 and 2014, respectively. No other single country represented more than 10% of the Company’s total consolidated net sales during those periods. One customer group of the Company’s peripheral operating segment represented 14% and 16% of sales for the six months ended September 30, 2015 and 2014, respectively.

Revenues from sales to customers in Switzerland, the Company’s home domicile, represented 2% of the Company’s total consolidated net sales for all the periods presented herein.
 
Long-lived assets by geographic region were as follows (in thousands):
 
 
September 30,
2015
 
March 31,
2015
Americas
 
$
46,990

 
$
48,527

EMEA
 
2,993

 
3,584

Asia Pacific
 
58,201

 
39,482

 
 
$
108,184

 
$
91,593


 
Long-lived assets in the United States and China were $46.8 million and $53.5 million as of September 30, 2015, respectively, and $48.3 million and $34.0 million at March 31, 2015, respectively. No other countries represented more than 10% of the Company’s total consolidated long-lived assets as of September 30 or March 31, 2015. Long-lived assets in Switzerland, the Company’s home domicile, were $1.3 million and $1.5 million at September 30 and March 31, 2015, respectively.
Restructuring
Restructuring
Restructuring

Restructuring Charges
 
During the first quarter of fiscal year 2016, the Company implemented a restructuring plan to exit the OEM business, reorganize Lifesize to sharpen its focus on its cloud-based offering, and streamline the Company's overall cost structure through product, overhead and infrastructure cost reductions with a targeted resource realignment. Restructuring charges incurred during the six months ended September 30, 2015 under this plan primarily consisted of severance and other ongoing and one-time termination benefits. Charges and other costs related to the workforce reduction and structure realignment are presented as restructuring charges in the Condensed Consolidated Statements of Operations. The Company expects to incur approximately $22 million to $25 million under this restructuring plan, including approximately $20.3 million to 23.3 million for cash severance and other personnel costs, and expects to substantially complete this restructuring within the next 6 months.

The following tables summarize restructuring related activities during the three and six months ended September 30, 2015:

 
 
Restructuring
 
 
Termination
Benefits
 
Lease Exit
Costs
 
Other
 
Total
Accrual balance at March 31, 2015
 
$

 
$
1,039

 
$

 
$
1,039

Charges, net
 
12,794

 

 
201

 
12,995

Cash payments
 
(4,675
)
 
(796
)
 
(151
)
 
(5,622
)
Accrual balance at June 30, 2015
 
$
8,119

 
$
243

 
$
50

 
$
8,412

Charges, net
 
8,566

 
38

 
92

 
8,696

Cash payments
 
(5,112
)
 
(122
)
 
(142
)
 
(5,376
)
Accrual balance at September 30, 2015
 
$
11,573

 
$
159

 
$

 
$
11,732

Summary of Significant Accounting Policies (Policies)
Basis of Presentation
 
The condensed consolidated interim financial statements include the accounts of Logitech and its subsidiaries. All intercompany balances and transactions have been eliminated. The condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and therefore do not include all the information required by GAAP for complete financial statements. They should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year ended March 31, 2015, included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on June 5, 2015.  In the opinion of management, these condensed consolidated financial statements include all adjustments, consisting of only normal and recurring adjustments, necessary and in all material aspects, for a fair statement of the results of operations, financial position, comprehensive income, cash flows and changes in shareholders' equity for the periods presented. Operating results for the three and six months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2016, or any future periods.
Fiscal Year
 
The Company’s fiscal year ends on March 31. Interim quarter ends on last Friday of each quarter.  For purposes of presentation, the Company has indicated its quarterly periods as ending on the quarter end.
Use of Estimates
 
The preparation of financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Examples of significant estimates and assumptions made by management involve the fair value of goodwill, warranty liabilities, accruals for discretionary customer programs, sales return reserves, allowance for doubtful accounts, inventory valuation, restructuring charges, contingent liabilities, uncertain tax positions, and valuation allowances for deferred tax assets. Although these estimates are based on management’s best knowledge of current events and actions that may impact the Company in the future, actual results could differ materially from those estimates.
Recent Accounting Pronouncements 

In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2015-11, "Simplifying the Measurement of Inventory (Topic 330)", ("ASU 2015-11"). Topic 330, Inventory, currently requires an entity to measure inventory at the lower of cost or market, with market value represented by replacement cost, net realizable value or net realizable value less a normal profit margin. The amendments in ASU 2015-11 require an entity to measure inventory at the lower of cost or net realizable value. ASU 2015-11 is effective in the first quarter of fiscal year 2018 for the Company, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements.

In May 2014, the FASB issued Accounting Standards Update No. 2014-9, "Revenue from Contracts with Customers (Topic 606)," ("ASU 2014-9"). ASU 2014-9 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 was originally to be effective for the Company on April 1, 2017. In July 2015, the FASB affirmed a one-year deferral of the effective date of the new revenue standard. The new standard will become effective for the Company on April 1, 2018. Early application is permitted but not before the original effective date of annual periods beginning after December 15, 2016. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. The Company has not yet selected a transition method nor has it determined the impact of the new standard on its condensed consolidated financial statements.
Net Income Per Share (Tables)
Schedule of computations of basic and diluted net income per share
The computations of basic and diluted net income per share for the Company were as follows (in thousands, except per share amounts):
 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
 
2015
 
2014
 
2015
 
2014
Net income
 
$
18,097

 
$
36,090

 
$
25,534

 
$
55,766

Shares used in net income per share computation:
 
 

 
 

 
 

 
 

Weighted average shares outstanding - basic
 
163,515

 
163,230

 
163,957

 
163,121

Effect of potentially dilutive equivalent shares
 
2,326

 
2,835

 
2,395

 
2,828

Weighted average shares outstanding - diluted
 
165,841

 
166,065

 
166,352

 
165,949

Net income per share:
 
 

 
 

 
 

 
 

Basic
 
$
0.11

 
$
0.22

 
$
0.16

 
$
0.34

Diluted
 
$
0.11

 
$
0.22

 
$
0.15

 
$
0.34

Employee Benefit Plans (Tables)
Summary of share-based compensation expense and related tax benefit recognized
The following table summarizes the share-based compensation expense and related tax benefit recognized for the three and six months ended September 30, 2015 and 2014 (in thousands):
 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
 
2015
 
2014
 
2015
 
2014
Cost of goods sold
 
$
580

 
$
627

 
$
1,185

 
$
1,165

Marketing and selling
 
2,062

 
1,653

 
4,180

 
4,209

Research and development
 
756

 
552

 
1,543

 
1,396

General and administrative
 
3,110

 
3,229

 
6,342

 
6,229

Restructuring
 

 

 
7

 

Total share-based compensation expense
 
6,508

 
6,061

 
13,257

 
12,999

Income tax provision (benefit)
 
304

 
(1,913
)
 
(1,033
)
 
(3,097
)
Total share-based compensation expense, net of income tax
 
$
6,812

 
$
4,148

 
$
12,224

 
$
9,902

Balance Sheet Components (Tables)
The following table presents the components of certain balance sheet asset amounts as of September 30 and March 31, 2015 (in thousands): 
 
 
September 30,
2015
 
March 31,
2015
Accounts receivable, net:
 
 

 
 

Accounts receivable
 
$
492,274

 
$
344,455

Allowance for doubtful accounts
 
(1,078
)
 
(1,093
)
Allowance for sales returns
 
(20,185
)
 
(17,901
)
Allowance for cooperative marketing arrangements
 
(34,938
)
 
(25,700
)
Allowance for customer incentive programs
 
(65,055
)
 
(48,497
)
Allowance for pricing programs
 
(96,288
)
 
(71,441
)
 
 
$
274,730

 
$
179,823

Inventories:
 
 

 
 

Raw materials
 
$
59,286

 
$
36,376

Finished goods
 
268,768

 
234,354

 
 
$
328,054

 
$
270,730

Other current assets:
 
 

 
 

Income tax and value-added tax receivables
 
$
25,662

 
$
19,403

Deferred tax assets
 
28,879

 
27,790

Prepaid expenses and other assets
 
18,963

 
17,236

 
 
$
73,504

 
$
64,429

Property, plant and equipment, net:
 
 

 
 

Property, plant and equipment
 
376,795

 
349,235

Less: accumulated depreciation and amortization
 
(268,611
)
 
(257,642
)
 
 
$
108,184

 
$
91,593

Other assets:
 
 

 
 

Deferred tax assets
 
$
36,799

 
$
39,310

Trading investments for deferred compensation plan
 
15,577

 
17,237

Other assets
 
8,280

 
6,441

 
 
$
60,656

 
$
62,988

The following table presents the components of certain balance sheet liability amounts as of September 30 and March 31, 2015 (in thousands): 
 
 
September 30,
2015
 
March 31,
2015
Accrued and other current liabilities:
 
 

 
 

Accrued personnel expenses
 
$
55,703

 
$
50,015

Indirect customer incentive programs
 
26,660

 
19,730

Accrued restructuring
 
11,661

 
966

Deferred revenue
 
24,552

 
24,987

Warranty accrual
 
12,091

 
12,630

Employee benefit plan obligation
 
1,717

 
1,232

Income taxes payable
 
4,264

 
5,794

Other current liabilities
 
95,040

 
79,558

 
 
$
231,688

 
$
194,912

Non-current liabilities:
 
 

 
 

Warranty accrual
 
$
8,308

 
$
9,080

Obligation for deferred compensation plan
 
15,577

 
17,237

Long term restructuring
 
71

 
73

Employee benefit plan obligation
 
50,195

 
51,181

Deferred rent
 
10,767

 
11,519

Deferred tax liability
 
1,823

 
1,936

Long term deferred revenue
 
9,663

 
9,109

Other non-current liabilities
 
1,650

 
1,397

 
 
$
98,054

 
$
101,532

Fair Value Measurements (Tables)
The following table presents the Company’s financial assets and liabilities, that were accounted for at fair value, excluding assets related to the Company’s defined benefit pension plans, classified by the level within the fair value hierarchy (in thousands): 
 
 
September 30, 2015
 
March 31, 2015
 
 
Level 1
 
Level 2
 
Level 1
 
Level 2
Cash equivalents:
 
 

 
 
 
 

 
 

Cash equivalents
 
$
35,050

 
$

 
$
264,647

 
$

 
 
$
35,050

 
$

 
$
264,647

 
$

Trading investments for deferred compensation plan:
 
 

 
 
 
 

 
 

Money market funds
 
$
3,326

 
$

 
$
2,936

 
$

Mutual funds
 
12,251

 

 
14,301

 

 
 
$
15,577

 
$

 
$
17,237

 
$

Foreign exchange derivative assets
 
$

 
$
806

 
$

 
$
2,080

Foreign exchange derivative liabilities
 
$

 
$
88

 
$

 
$
75

The following table presents the fair values of the Company’s derivative instruments designated as hedging instruments and their accounting line presentation on its Condensed Consolidated Balance Sheets as of September 30, 2015 and March 31, 2015 (in thousands):
 
 
Derivatives
 
 
Asset
 
 
September 30,
2015
 
March 31,
2015
Cash flow hedges
 
$
806

 
$
2,080

The following table presents the amounts of gains (losses) on the Company’s derivative instruments designated as hedging instruments and their locations on its condensed consolidated statements of operations and condensed consolidated statements of comprehensive income for the three and six months ended September 30, 2015 and 2014 (in thousands):

 
 
Three Months Ended
September 30,
 
 
Amount of
Gain (Loss) Deferred as 
a Component of 
Accumulated Other 
Comprehensive Loss After Reclassification to Costs of Goods Sold
 
Amount of Loss (Gain)
Reclassified from Accumulated Other Comprehensive Loss to
Costs of Goods Sold
 
Amount of Gain (Loss) Immediately Recognized in
Other Expense, Net
 
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
Cash flow hedges
 
$
1,060

 
$
3,290

 
$
(28
)
 
$
(215
)
 
$
75

 
$
(1
)


 
 
Six Months Ended
September 30,
 
 
Amount of
Gain (Loss) Deferred as 
a Component of 
Accumulated Other 
Comprehensive Loss After Reclassification to Costs of Goods Sold
 
Amount of Loss (Gain)
Reclassified from Accumulated Other Comprehensive Loss to
Costs of Goods Sold
 
Amount of Gain (Loss) Immediately Recognized in
Other Expense, Net
 
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
Cash flow hedges
 
$
(3,662
)
 
$
3,938

 
$
(2,488
)
 
$
185

 
$
143

 
$
(56
)
Goodwill and Other Intangible Assets (Tables)
Summary of activity in the goodwill account
The following table summarizes the activity in the Company’s goodwill balance during the six months ended September 30, 2015 (in thousands):
As of March 31, 2015
 
$
218,213

Currency impact
 
(6
)
As of September 30, 2015
 
$
218,207

Commitments and Contingencies (Tables)
Schedule of warranty liability
Changes in the Company’s warranty liability for the three and six months ended September 30, 2015 and 2014 were as follows (in thousands): 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Beginning of the period
$
21,284

 
$
23,420

 
$
21,710

 
$
24,380

Provision
1,792

 
2,020

 
3,934

 
4,226

Settlements
(2,677
)
 
(3,236
)
 
(5,245
)
 
(6,402
)
End of the period
$
20,399

 
$
22,204

 
$
20,399

 
$
22,204


Shareholders' Equity (Tables)
Schedule of components of accumulated other comprehensive income (loss)
The components of accumulated other comprehensive income (loss) was as follows (in thousands):
 
 
Accumulated Other Comprehensive Income (Loss)
 
 
Cumulative
Translation
Adjustment (1)
 
Defined
Benefit
Plan (1)
 
Deferred
Hedging
Gains (Losses)
 
Total
March 31, 2015
 
$
(90,224
)
 
$
(26,964
)
 
$
3,951

 
$
(113,237
)
Other comprehensive income (loss)
 
2,610

 
1,025

 
(3,662
)
 
(27
)
September 30, 2015
 
$
(87,614
)
 
$
(25,939
)
 
$
289

 
$
(113,264
)
 
(1)        Tax effect was not significant as of September 30 or March 31, 2015.
Segment Information (Tables)
Net sales and operating income (loss) for the Company’s operating segments for the three and six months ended September 30, 2015 and 2014 were as follows (in thousands): 
 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
 
2015
 
2014
 
2015
 
2014
Net sales:
 
 

 
 

 
 

 
 

Peripherals
 
$
518,494

 
$
501,857

 
$
966,180

 
$
958,303

Video conferencing
 
21,368

 
28,454

 
44,002

 
54,211

 
 
$
539,862

 
$
530,311

 
$
1,010,182

 
$
1,012,514

Segment operating income (loss):
 
 

 
 

 
 

 
 

Peripherals
 
$
46,191

 
$
50,587

 
$
78,031

 
$
84,154

Video conferencing
 
(4,804
)
 
171

 
(9,205
)
 
(965
)
 
 
41,387

 
50,758

 
68,826

 
83,189

Other income (expense):
 
 

 
 

 
 

 
 

Restructuring charges, net
 
(8,696
)
 

 
(21,691
)
 

Share-based compensation
 
(6,508
)
 
(6,061
)
 
(13,250
)
 
(12,999
)
Amortization of intangibles
 
(494
)
 
(2,576
)
 
(1,226
)
 
(5,358
)
Interest income, net
 
192

 
355

 
456

 
613

Other expense, net
 
(780
)
 
(885
)
 
(1,901
)
 
(1,083
)
Income before income taxes
 
$
25,101

 
$
41,591

 
$
31,214

 
$
64,362

Net sales by product categories and sales channels, excluding intercompany transactions, for the three and six months ended September 30, 2015 and 2014 were as follows (in thousands):
 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
 
2015
 
2014
 
2015
 
2014
Peripherals:
 
 

 
 

 
 

 
 

Mobile Speakers
 
$
80,550

 
$
48,538

 
$
121,094

 
$
77,367

Gaming
 
67,624

 
47,506

 
111,294

 
94,382

Video Collaboration
 
20,059

 
13,808

 
41,235

 
29,033

Tablet & Other Accessories
 
18,549

 
28,158

 
37,358

 
59,874

Growth
 
186,782

 
138,010

 
310,981

 
260,656

Pointing Devices
 
124,668

 
127,693

 
241,653

 
240,735

Keyboards & Combos
 
102,098

 
105,677

 
207,927

 
211,166

Audio-PC & Wearables
 
46,342

 
57,191

 
92,041

 
105,739

PC Webcams
 
23,360

 
25,282

 
45,041

 
45,745

Home Control
 
12,610

 
18,776

 
22,864

 
31,108

Profit Maximization
 
309,078

 
334,619

 
609,526

 
634,493

Retail Strategic Sales
 
495,860

 
472,629

 
920,507

 
895,149

Non-Strategic
 
403

 
834

 
1,144

 
2,127

Retail
 
496,263

 
473,463

 
921,651

 
897,276

OEM
 
22,231

 
28,394

 
44,529

 
61,027

 
 
518,494

 
501,857

 
966,180

 
958,303

Video conferencing
 
21,368

 
28,454

 
44,002

 
54,211

 
 
$
539,862

 
$
530,311

 
$
1,010,182

 
$
1,012,514

Net sales to unaffiliated customers by geographic region (based on the customers’ location) for the three and six months ended September 30, 2015 and 2014 were as follows (in thousands):
 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
 
2015
 
2014
 
2015
 
2014
Americas
 
$
239,742

 
$
226,091

 
$
466,429

 
$
437,622

EMEA
 
173,148

 
189,571

 
300,514

 
343,271

Asia Pacific
 
126,972

 
114,649

 
243,239

 
231,621

Total net sales
 
$
539,862

 
$
530,311

 
$
1,010,182

 
$
1,012,514

Long-lived assets by geographic region were as follows (in thousands):
 
 
September 30,
2015
 
March 31,
2015
Americas
 
$
46,990

 
$
48,527

EMEA
 
2,993

 
3,584

Asia Pacific
 
58,201

 
39,482

 
 
$
108,184

 
$
91,593

Restructuring (Tables)
Summary of restructuring related activities
The following tables summarize restructuring related activities during the three and six months ended September 30, 2015:

 
 
Restructuring
 
 
Termination
Benefits
 
Lease Exit
Costs
 
Other
 
Total
Accrual balance at March 31, 2015
 
$

 
$
1,039

 
$

 
$
1,039

Charges, net
 
12,794

 

 
201

 
12,995

Cash payments
 
(4,675
)
 
(796
)
 
(151
)
 
(5,622
)
Accrual balance at June 30, 2015
 
$
8,119

 
$
243

 
$
50

 
$
8,412

Charges, net
 
8,566

 
38

 
92

 
8,696

Cash payments
 
(5,112
)
 
(122
)
 
(142
)
 
(5,376
)
Accrual balance at September 30, 2015
 
$
11,573

 
$
159

 
$

 
$
11,732

Net Income Per Share- Computation of Basic and Diluted Net Income per Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Earnings Per Share [Abstract]
 
 
 
 
Net income
$ 18,097 
$ 36,090 
$ 25,534 
$ 55,766 
Shares used in net income per share computation:
 
 
 
 
Weighted average shares outstanding - basic
163,515,000 
163,230,000 
163,957,000 
163,121,000 
Effect of potentially dilutive equivalent shares
2,326,000 
2,835,000 
2,395,000 
2,828,000 
Weighted average shares outstanding - diluted
165,841,000 
166,065,000 
166,352,000 
165,949,000 
Net income per share:
 
 
 
 
Basic (in dollars per share)
$ 0.11 
$ 0.22 
$ 0.16 
$ 0.34 
Diluted (in dollars per share)
$ 0.11 
$ 0.22 
$ 0.15 
$ 0.34 
Anti-dilutive equivalents shares excluded
7,800,000 
8,300,000 
7,600,000 
8,100,000 
Employee Benefit Plans- Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 30, 2015
Mar. 31, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Share-based Compensation
 
 
 
 
 
Share-based compensation expenses capitalized as inventory
$ 0.4 
$ 0.5 
 
 
 
Defined benefit plans
 
 
 
 
 
Net periodic benefit cost
$ 2.9 
 
$ 1.9 
$ 5.8 
$ 3.9 
Income Taxes- Additional Information (Details) (USD $)
3 Months Ended 6 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Mar. 31, 2015
Income Tax Disclosure [Line Items]
 
 
 
 
 
Provision for income taxes
$ 7,004,000 
$ 5,501,000 
$ 5,680,000 
$ 8,596,000 
 
Effective income tax rates (as a percent)
27.90% 
13.20% 
18.20% 
13.40% 
 
Tax benefit from reversal of uncertain tax positions
 
1,700,000 
 
 
 
Unrecognized tax benefits
80,400,000 
 
80,400,000 
 
79,000,000 
Unrecognized tax benefits that would impact effective tax rate
80,400,000 
 
80,400,000 
 
79,000,000 
Accrued interest and penalties related to uncertain tax positions
4,700,000 
 
4,700,000 
 
4,900,000 
Expected decrease in uncertain tax positions
17,200,000 
 
17,200,000 
 
 
China
 
 
 
 
 
Income Tax Disclosure [Line Items]
 
 
 
 
 
Discrete tax benefit due to preferential income tax rate reduction
 
 
2,200,000 
800,000 
 
Stock Compensation |
Video conferencing
 
 
 
 
 
Income Tax Disclosure [Line Items]
 
 
 
 
 
Adjustment of deferred Tax Asset
1,500,000 
 
 
 
 
Non-current income tax payable
 
 
 
 
 
Income Tax Disclosure [Line Items]
 
 
 
 
 
Unrecognized tax benefits
74,400,000 
 
74,400,000 
 
72,100,000 
Current income tax payable
 
 
 
 
 
Income Tax Disclosure [Line Items]
 
 
 
 
 
Unrecognized tax benefits
$ 100,000 
 
$ 100,000 
 
$ 100,000 
Balance Sheet Components- Components of Certain Balance Sheet Asset Amounts (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Mar. 31, 2015
Accounts receivable, net:
 
 
Accounts receivable
$ 492,274 
$ 344,455 
Allowance for doubtful accounts
(1,078)
(1,093)
Allowance for sales returns
(20,185)
(17,901)
Allowance for cooperative marketing arrangements
(34,938)
(25,700)
Allowance for customer incentive programs
(65,055)
(48,497)
Allowance for pricing programs
(96,288)
(71,441)
Accounts receivable, net
274,730 
179,823 
Inventories:
 
 
Raw materials
59,286 
36,376 
Finished goods
268,768 
234,354 
Inventory, net
328,054 
270,730 
Other current assets:
 
 
Income tax and value-added tax receivables
25,662 
19,403 
Deferred tax assets
28,879 
27,790 
Prepaid expenses and other assets
18,963 
17,236 
Other current assets, total
73,504 
64,429 
Property, plant and equipment, net:
 
 
Property, plant and equipment, gross
376,795 
349,235 
Less: accumulated depreciation and amortization
(268,611)
(257,642)
Property, plant and equipment, net
108,184 
91,593 
Other assets:
 
 
Deferred tax assets
36,799 
39,310 
Trading investments for deferred compensation plan
15,577 
17,237 
Other assets
8,280 
6,441 
Other assets, total
$ 60,656 
$ 62,988 
Balance Sheet Components (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Mar. 31, 2015
Accrued and other current liabilities:
 
 
Accrued personnel expenses
$ 55,703 
$ 50,015 
Indirect customer incentive programs
26,660 
19,730 
Accrued restructuring
11,661 
966 
Deferred revenue
24,552 
24,987 
Warranty accrual
12,091 
12,630 
Employee benefit plan obligation
1,717 
1,232 
Income taxes payable
4,264 
5,794 
Other current liabilities
95,040 
79,558 
Accrued and other current liabilities
231,688 
194,912 
Non-current liabilities:
 
 
Warranty accrual
8,308 
9,080 
Obligation for deferred compensation plan
15,577 
17,237 
Long term restructuring
71 
73 
Employee benefit plan obligation
50,195 
51,181 
Deferred rent
10,767 
11,519 
Deferred tax liability
1,823 
1,936 
Long term deferred revenue
9,663 
9,109 
Other non-current liabilities
1,650 
1,397 
Non-current liabilities
$ 98,054 
$ 101,532 
Fair Value Measurements- Financial Assets and Liabilities, Classified by Level (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Mar. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading investments for deferred compensation plan
$ 15,577 
$ 17,237 
Level 1
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
35,050 
264,647 
Trading investments for deferred compensation plan
15,577 
17,237 
Level 1 |
Money market funds
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading investments for deferred compensation plan
3,326 
2,936 
Level 1 |
Mutual funds
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading investments for deferred compensation plan
12,251 
14,301 
Level 2
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
Trading investments for deferred compensation plan
Level 2 |
Money market funds
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading investments for deferred compensation plan
Level 2 |
Mutual funds
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading investments for deferred compensation plan
Foreign exchange contracts |
Level 1
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign exchange derivative assets
Foreign exchange derivative liabilities
Foreign exchange contracts |
Level 2
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign exchange derivative assets
806 
2,080 
Foreign exchange derivative liabilities
$ 88 
$ 75 
Fair Value Measurements- Additional Information (Details) (USD $)
6 Months Ended
Sep. 30, 2015
Mar. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading investments for deferred compensation plan
$ 15,577,000 
$ 17,237,000 
Foreign exchange forward contract |
Not designated as hedging instruments
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Notional amounts of foreign exchange forward contracts outstanding
60,800,000 
61,700,000 
Cash Flow Hedges |
Foreign exchange forward contract |
Designated as hedging instruments
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Average maturity
4 months 
 
Notional amounts of foreign exchange forward contracts outstanding
63,400,000 
43,500,000 
Gain (loss) to be reclassified within twelve months
$ 300,000 
 
Fair Value Measurements- Fair Values of Company Derivative Instruments (Details) (Designated as hedging instruments, Cash Flow Hedges, USD $)
In Thousands, unless otherwise specified
Sep. 30, 2015
Mar. 31, 2015
Designated as hedging instruments |
Cash Flow Hedges
 
 
Derivative Financial Instruments
 
 
Asset
$ 806 
$ 2,080 
Fair Value Measurements- Gains and Losses on Derivative Instruments (Details) (Designated as hedging instruments, Cash Flow Hedges, USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Amounts of gains and losses on the derivative instruments
 
 
 
 
Amount of?Gain (Loss) Deferred as ?a Component of ?Accumulated Other ?Comprehensive Loss After Reclassification to Costs of Goods Sold
$ 1,060 
$ 3,290 
$ (3,662)
$ 3,938 
Cost of goods sold
 
 
 
 
Amounts of gains and losses on the derivative instruments
 
 
 
 
Amount of Loss (Gain) Reclassified from Accumulated Other Comprehensive Loss to Costs of Goods Sold
(28)
(215)
(2,488)
185 
Other Income (Expense), Net
 
 
 
 
Amounts of gains and losses on the derivative instruments
 
 
 
 
Amount of Gain (Loss) Immediately Recognized in Other Expense, Net
$ 75 
$ (1)
$ 143 
$ (56)
Goodwill and Other Intangible Assets- Summary of Activity In Goodwill Balance (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Sep. 30, 2015
Goodwill
 
Balance at the beginning of the period
$ 218,213 
Currency impact
(6)
Balance at the end of the period
$ 218,207 
Goodwill and Other Intangible Assets- Additional Information (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Amortization expense
 
 
 
 
Amortization of other intangible assets
$ 500 
$ 2,600 
$ 1,226 
$ 5,358 
Financing Arrangements (Details) (USD $)
Sep. 30, 2015
Mar. 31, 2015
Financing Arrangements
 
 
Outstanding borrowings
$ 0 
$ 0 
Unsecured bank lines of credit
 
 
Financing Arrangements
 
 
Maximum borrowing capacity
46,700,000.0 
 
Outstanding bank guarantees
$ 18,200,000 
 
Commitments and Contingencies- Changes in Warranty Liability (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Changes in the warranty liability:
 
 
 
 
Beginning of the period
$ 21,284 
$ 23,420 
$ 21,710 
$ 24,380 
Provision
1,792 
2,020 
3,934 
4,226 
Settlements
(2,677)
(3,236)
(5,245)
(6,402)
End of the period
$ 20,399 
$ 22,204 
$ 20,399 
$ 22,204 
Commitments and Contingencies- Additional Information (Details) (USD $)
6 Months Ended
Sep. 30, 2015
Parent guarantee for purchase obligation of third party contract manufacturer
 
Other Commitments [Line Items]
 
Maximum amount of the guarantees
$ 3,800,000 
Guarantees outstanding
900,000 
Indemnification agreement
 
Other Commitments [Line Items]
 
Amount accrued for indemnification provisions
Minimum
 
Other Commitments [Line Items]
 
Warranty period
1 year 
Maximum
 
Other Commitments [Line Items]
 
Warranty period
5 years 
SEC Investigation
 
Other Commitments [Line Items]
 
Possible payment to SEC
$ 7,500,000 
Shareholders' Equity- Additional Information (Details)
1 Months Ended 3 Months Ended 6 Months Ended
Mar. 31, 2014
USD ($)
Sep. 30, 2015
USD ($)
Sep. 30, 2015
CHF
Sep. 30, 2014
USD ($)
Sep. 30, 2015
USD ($)
Sep. 30, 2015
CHF
Sep. 30, 2014
USD ($)
Stockholders' Equity Note [Abstract]
 
 
 
 
 
 
 
Authorized amount in buyback program
$ 250,000,000.0 
 
 
 
 
 
 
Period to complete share repurchase program
3 years 
 
 
 
 
 
 
Repurchase of shares (in shares)
 
2,900,000 
2,900,000 
3,500,000 
3,500,000 
Repurchase of shares, value
 
40,000,000 
 
 
48,800,000 
 
 
Cash Dividends on Shares of Common Stock
 
 
 
 
 
 
 
Cash dividends per share
 
$ 0.53 
 0.51 
$ 0 
$ 0.53 
 0.51 
$ 0 
Payment of cash dividends
 
$ 85,900,000 
 
 
$ 85,915,000 
 
$ 0 
Shareholders' Equity- Components of Accumulated Other Comprehensive Income (Loss) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
 
 
Balance at the beginning of the period
 
 
$ (113,237)
 
Other comprehensive income (loss)
2,791 
354 
(27)
1,455 
Balance at the end of the period
(113,264)
 
(113,264)
 
Cumulative Translation Adjustment
 
 
 
 
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
 
 
Balance at the beginning of the period
 
 
(90,224)1
 
Other comprehensive income (loss)
 
 
2,610 1
 
Balance at the end of the period
(87,614)1
 
(87,614)1
 
Defined Benefit Plan
 
 
 
 
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
 
 
Balance at the beginning of the period
 
 
(26,964)1
 
Other comprehensive income (loss)
 
 
1,025 1
 
Balance at the end of the period
(25,939)1
 
(25,939)1
 
Deferred Hedging Gains (Losses)
 
 
 
 
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
 
 
Balance at the beginning of the period
 
 
3,951 
 
Other comprehensive income (loss)
 
 
(3,662)
 
Balance at the end of the period
$ 289 
 
$ 289 
 
Segment Information- Net Sales and Operating Income by Operating Segments (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 30, 2015
Jun. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Segment Reporting Information [Line Items]
 
 
 
 
 
Net sales
$ 539,862 
 
$ 530,311 
$ 1,010,182 
$ 1,012,514 
Operating income (loss)
25,689 
 
42,121 
32,659 
64,832 
Other income (expense):
 
 
 
 
 
Restructuring charges, net
(8,696)
(12,995)
(21,691)
Share-based compensation
(6,508)
 
(6,061)
(13,257)
(12,999)
Amortization of intangibles
(500)
 
(2,600)
(1,226)
(5,358)
Interest income, net
192 
 
355 
456 
613 
Other expense, net
(780)
 
(885)
(1,901)
(1,083)
Income before income taxes
25,101 
 
41,591 
31,214 
64,362 
Operating Segments
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Operating income (loss)
41,387 
 
50,758 
68,826 
83,189 
Segment Reconciling Items
 
 
 
 
 
Other income (expense):
 
 
 
 
 
Restructuring charges, net
(8,696)
 
(21,691)
Share-based compensation
(6,508)
 
(6,061)
(13,250)
(12,999)
Amortization of intangibles
(494)
 
(2,576)
(1,226)
(5,358)
Interest income, net
192 
 
355 
456 
613 
Other expense, net
(780)
 
(885)
(1,901)
(1,083)
Peripherals
 
 
 
 
 
Other income (expense):
 
 
 
 
 
Restructuring charges, net
(3,200)
 
 
(14,700)
 
Peripherals |
Operating Segments
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Net sales
518,494 
 
501,857 
966,180 
958,303 
Operating income (loss)
46,191 
 
50,587 
78,031 
84,154 
Video conferencing
 
 
 
 
 
Other income (expense):
 
 
 
 
 
Restructuring charges, net
(5,500)
 
 
(7,000)
 
Video conferencing |
Operating Segments
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Net sales
21,368 
 
28,454 
44,002 
54,211 
Operating income (loss)
$ (4,804)
 
$ 171 
$ (9,205)
$ (965)
Segment Information- Net Sales by Product Family- Excluding Intercompany Transactions (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
$ 539,862 
$ 530,311 
$ 1,010,182 
$ 1,012,514 
Peripherals |
Operating Segments
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
518,494 
501,857 
966,180 
958,303 
Video conferencing |
Operating Segments
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
21,368 
28,454 
44,002 
54,211 
Growth |
Peripherals |
Operating Segments
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
186,782 
138,010 
310,981 
260,656 
Profit Maximization |
Peripherals |
Operating Segments
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
309,078 
334,619 
609,526 
634,493 
Retail Strategic |
Peripherals |
Operating Segments
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
495,860 
472,629 
920,507 
895,149 
Non-Strategic |
Peripherals |
Operating Segments
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
403 
834 
1,144 
2,127 
Mobile Speakers |
Growth |
Peripherals |
Operating Segments
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
80,550 
48,538 
121,094 
77,367 
Gaming |
Growth |
Peripherals |
Operating Segments
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
67,624 
47,506 
111,294 
94,382 
Video Collaboration |
Growth |
Peripherals |
Operating Segments
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
20,059 
13,808 
41,235 
29,033 
Tablet & Other Accessories |
Growth |
Peripherals |
Operating Segments
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
18,549 
28,158 
37,358 
59,874 
Pointing Devices |
Profit Maximization |
Peripherals |
Operating Segments
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
124,668 
127,693 
241,653 
240,735 
Keyboards & Combos |
Profit Maximization |
Peripherals |
Operating Segments
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
102,098 
105,677 
207,927 
211,166 
Audio-PC & Wearables |
Profit Maximization |
Peripherals |
Operating Segments
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
46,342 
57,191 
92,041 
105,739 
PC Webcams |
Profit Maximization |
Peripherals |
Operating Segments
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
23,360 
25,282 
45,041 
45,745 
Home Control |
Profit Maximization |
Peripherals |
Operating Segments
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
12,610 
18,776 
22,864 
31,108 
Retail |
Peripherals |
Operating Segments
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
496,263 
473,463 
921,651 
897,276 
OEM |
Peripherals |
Operating Segments
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
$ 22,231 
$ 28,394 
$ 44,529 
$ 61,027 
Segment Information- Net Sales and Long-Lived Assets by Geographic Region (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Mar. 31, 2015
Net sales to unaffiliated customers and long-lived assets by geographic region
 
 
 
 
 
Net sales
$ 539,862 
$ 530,311 
$ 1,010,182 
$ 1,012,514 
 
Long lived assets
108,184 
 
108,184 
 
91,593 
Americas |
Operating Segments
 
 
 
 
 
Net sales to unaffiliated customers and long-lived assets by geographic region
 
 
 
 
 
Net sales
239,742 
226,091 
466,429 
437,622 
 
Long lived assets
46,990 
 
46,990 
 
48,527 
EMEA |
Operating Segments
 
 
 
 
 
Net sales to unaffiliated customers and long-lived assets by geographic region
 
 
 
 
 
Net sales
173,148 
189,571 
300,514 
343,271 
 
Long lived assets
2,993 
 
2,993 
 
3,584 
Asia Pacific |
Operating Segments
 
 
 
 
 
Net sales to unaffiliated customers and long-lived assets by geographic region
 
 
 
 
 
Net sales
126,972 
114,649 
243,239 
231,621 
 
Long lived assets
$ 58,201 
 
$ 58,201 
 
$ 39,482 
Segment Information- Additional Information (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 30, 2015
customer
Jun. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
segment
customer
Sep. 30, 2014
Mar. 31, 2015
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Charges, net
$ 8,696 
$ 12,995 
$ 0 
$ 21,691 
$ 0 
 
Number of reporting segments
 
 
 
 
 
Number of major customers
 
 
 
 
Long lived assets
108,184 
 
 
108,184 
 
91,593 
Peripherals
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Charges, net
3,200 
 
 
14,700 
 
 
Video Conferencing
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Charges, net
5,500 
 
 
7,000 
 
 
United States
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Long lived assets
46,800 
 
 
46,800 
 
48,300 
China
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Long lived assets
53,500 
 
 
53,500 
 
34,000 
Switzerland
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Long lived assets
$ 1,300 
 
 
$ 1,300 
 
$ 1,500 
Consolidated net sales |
Geographic Concentration |
United States
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Percentage of consolidated net sales
37.00% 
 
36.00% 
38.00% 
36.00% 
 
Consolidated net sales |
Geographic Concentration |
Switzerland
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Percentage of consolidated net sales
2.00% 
 
2.00% 
2.00% 
2.00% 
 
Single customer group |
Consolidated net sales |
Customer Concentration |
Peripherals
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Percentage of consolidated net sales
15.00% 
 
17.00% 
14.00% 
16.00% 
 
Restructuring (Details) (USD $)
3 Months Ended 6 Months Ended
Sep. 30, 2015
Jun. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Restructuring reserve
 
 
 
 
 
Accrual balance, beginning of the period
$ 8,412,000 
$ 1,039,000 
 
$ 1,039,000 
 
Charges, net
8,696,000 
12,995,000 
21,691,000 
Cash payments
(5,376,000)
(5,622,000)
 
 
 
Accrual balance, end of the period
11,732,000 
8,412,000 
 
11,732,000 
 
2016 restructuring plan |
Minimum
 
 
 
 
 
Restructuring related charges:
 
 
 
 
 
Expected cost
22,000,000 
 
 
22,000,000 
 
2016 restructuring plan |
Maximum
 
 
 
 
 
Restructuring related charges:
 
 
 
 
 
Expected cost
25,000,000 
 
 
25,000,000 
 
Termination Benefits
 
 
 
 
 
Restructuring reserve
 
 
 
 
 
Accrual balance, beginning of the period
8,119,000 
 
 
Charges, net
8,566,000 
12,794,000 
 
 
 
Cash payments
(5,112,000)
(4,675,000)
 
 
 
Accrual balance, end of the period
11,573,000 
8,119,000 
 
11,573,000 
 
Termination Benefits |
2016 restructuring plan |
Minimum
 
 
 
 
 
Restructuring related charges:
 
 
 
 
 
Expected cost
20,300,000 
 
 
20,300,000 
 
Termination Benefits |
2016 restructuring plan |
Maximum
 
 
 
 
 
Restructuring related charges:
 
 
 
 
 
Expected cost
23,300,000 
 
 
23,300,000 
 
Lease Exit Costs
 
 
 
 
 
Restructuring reserve
 
 
 
 
 
Accrual balance, beginning of the period
243,000 
1,039,000 
 
1,039,000 
 
Charges, net
38,000 
 
 
 
Cash payments
(122,000)
(796,000)
 
 
 
Accrual balance, end of the period
159,000 
243,000 
 
159,000 
 
Other
 
 
 
 
 
Restructuring reserve
 
 
 
 
 
Accrual balance, beginning of the period
50,000 
 
 
Charges, net
92,000 
201,000 
 
 
 
Cash payments
(142,000)
(151,000)
 
 
 
Accrual balance, end of the period
$ 0 
$ 50,000 
 
$ 0