LOGITECH INTERNATIONAL SA, 10-Q filed on 7/24/2015
Quarterly Report
Document and Entity Information
3 Months Ended
Jun. 30, 2015
Jul. 13, 2015
Document and Entity Information
 
 
Entity Registrant Name
LOGITECH INTERNATIONAL SA 
 
Entity Central Index Key
0001032975 
 
Document Type
10-Q 
 
Document Period End Date
Jun. 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
 
164,436,377 
Document Fiscal Year Focus
2016 
 
Document Fiscal Period Focus
Q1 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Income Statement [Abstract]
 
 
Net sales
$ 470,320 
$ 482,203 
Cost of goods sold
298,591 
300,450 
Gross profit
171,729 
181,753 
Operating expenses:
 
 
Marketing and selling
87,427 
91,045 
Research and development
33,833 
31,316 
General and administrative
30,504 
36,680 
Restructuring charges, net
12,995 
0 
Total operating expenses
164,759 
159,041 
Operating income
6,970 
22,712 
Interest income, net
264 
258 
Other expense, net
(1,121)
(198)
Income before income taxes
6,113 
22,772 
Provision for (benefit from) income taxes
(1,324)
3,096 
Net income
$ 7,437 
$ 19,676 
Net income per share:
 
 
Basic (in dollars per share)
$ 0.05 
$ 0.12 
Diluted (in dollars per share)
$ 0.04 
$ 0.12 
Shares used to compute net income per share :
 
 
Basic (in shares)
164,431 
163,012 
Diluted (in shares)
166,895 
165,833 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
 
 
Net income
$ 7,437 
$ 19,676 
Other comprehensive income (loss):
 
 
Currency translation gain, net of taxes
2,618 
201 
Defined benefit pension plans:
 
 
Net gain (loss) and prior service costs, net of taxes
(1,130)
139 
Amortization included in operating expenses
416 
113 
Hedging gain (loss):
 
 
Deferred hedging gain (loss), net of taxes
(2,262)
248 
Reclassification of hedging loss (gain) included in cost of goods sold
(2,460)
400 
Other comprehensive income (loss):
(2,818)
1,101 
Total comprehensive income
$ 4,619 
$ 20,777 
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Mar. 31, 2015
Current assets:
 
 
Cash and cash equivalents
$ 492,228 
$ 537,038 
Accounts receivable, net
221,580 
179,823 
Inventories
327,507 
270,730 
Other current assets
73,310 
64,429 
Total current assets
1,114,625 
1,052,020 
Non-current assets:
 
 
Property, plant and equipment, net
101,669 
91,593 
Goodwill
218,251 
218,213 
Other intangible assets
1,164 
1,866 
Other assets
62,338 
62,988 
Total assets
1,498,047 
1,426,680 
Current liabilities:
 
 
Accounts payable
340,330 
299,995 
Accrued and other current liabilities
213,971 
194,912 
Total current liabilities
554,301 
494,907 
Non-current liabilities:
 
 
Income taxes payable
74,831 
72,107 
Other non-current liabilities
102,497 
101,532 
Total liabilities
731,629 
668,546 
Commitments and contingencies (Note 9)
   
   
Shareholders’ equity:
 
 
Registered shares, CHF 0.25 par value: Issued and authorized shares - 173,106 at June 20, 2015 and March 31, 2015 Conditionally authorized shares - 50,000 at June 30, 2015 and March 31, 2015
30,148 
30,148 
Additional paid-in capital
4,304 
0 
Less shares in treasury, at cost — 8,676 at June 30, 2015 and 8,625 at March 31, 2015
(89,590)
(88,951)
Retained earnings
937,611 
930,174 
Accumulated other comprehensive loss
(116,055)
(113,237)
Total shareholders’ equity
766,418 
758,134 
Total liabilities and shareholders’ equity
$ 1,498,047 
$ 1,426,680 
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical)
Jun. 30, 2015
CHF
Mar. 31, 2015
USD ($)
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
8,676,000 
8,625,000 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Operating activities:
 
 
Net income
$ 7,437 
$ 19,676 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation
10,516 
9,951 
Amortization of other intangible assets
732 
2,782 
Share-based compensation expense
6,749 
6,938 
Impairment of investment
103 
0 
Loss (gain) on disposal of property, plant and equipment
0 
22 
Excess tax benefits from share-based compensation
(665)
(381)
Deferred income taxes
(6,732)
(1,832)
Changes in operating assets and liabilities, net of acquisitions:
 
 
Accounts receivable, net
(41,208)
(36,663)
Inventories
(54,164)
(18,463)
Other assets
(2,383)
(2,063)
Accounts payable
34,541 
40,775 
Accrued and other liabilities
19,475 
7,016 
Net cash provided by (used in) operating activities
(25,599)
27,758 
Investing activities:
 
 
Purchases of property, plant and equipment
(15,290)
(11,243)
Investment in privately held companies
(240)
(1,050)
Purchase of trading investments
(903)
(454)
Proceeds from sales of trading investments
840 
506 
Net cash used in investing activities
(15,593)
(12,241)
Financing activities:
 
 
Contingent consideration related to prior acquisition
0 
(100)
Purchases of treasury shares
(8,814)
0 
Proceeds from sales of shares upon exercise of options
4,066 
574 
Tax withholdings related to net share settlements of restricted stock units
(1,296)
(695)
Excess tax benefits from share-based compensation
665 
381 
Net cash provided by (used in) financing activities
(5,379)
160 
Effect of exchange rate changes on cash and cash equivalents
1,761 
(108)
Net increase (decrease) in cash and cash equivalents
(44,810)
15,569 
Cash and cash equivalents, beginning of the period
537,038 
469,412 
Cash and cash equivalents, end of the period
492,228 
484,981 
Non-cash investing activities:
 
 
Property, plant and equipment purchased during the period and included in period end liability accounts
$ 10,358 
$ 5,459 
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)
20,777 
 
 
 
19,676 
1,101 
Tax effects from share-based awards
861 
 
861 
 
 
 
Sales of shares upon exercise of options
574 
 
(399)
973 
 
 
Sales of shares upon exercise of options and purchase rights (in shares)
 
 
 
(53)
 
 
Issuance of shares upon vesting of restricted stock units
(695)
 
(3,109)
2,414 
 
 
Issuance of shares upon vesting of restricted stock units (in shares)
 
 
 
(131)
 
 
Share-based compensation expense
7,063 
 
7,063 
 
 
 
Balance at Jun. 30, 2014
832,708 
30,148 
4,416 
(113,123)
995,968 
(84,701)
Balance (in shares) at Jun. 30, 2014
 
173,106 
 
10,022 
 
 
Balance at Mar. 31, 2015
758,134 
30,148 
0 
(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)
4,619 
 
 
 
7,437 
(2,818)
Tax effects from share-based awards
2,948 
 
2,948 
 
 
 
Sales of shares upon exercise of options
4,066 
 
(1,651)
5,717 
 
 
Sales of shares upon exercise of options and purchase rights (in shares)
 
 
 
(369)
 
 
Issuance of shares upon vesting of restricted stock units
(1,296)
 
(3,754)
2,458 
 
 
Issuance of shares upon vesting of restricted stock units (in shares)
 
 
 
(157)
 
 
Share-based compensation expense
6,761 
 
6,761 
 
 
 
Purchases of treasury shares (in shares)
 
 
 
577 
 
 
Purchases of treasury shares
8,814 
 
 
8,814 
 
 
Balance at Jun. 30, 2015
$ 766,418 
$ 30,148 
$ 4,304 
$ (89,590)
$ 937,611 
$ (116,055)
Balance (in shares) at Jun. 30, 2015
 
173,106 
 
8,676 
 
 
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, recurring adjustments, necessary for a fair statement of the results for the periods presented. Operating results for the three months ended June 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 three months ended June 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 reported amounts of assets, liabilities, net sales and expenses, and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements. 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, 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 from those estimates.
 
Recent Accounting Pronouncements 

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. As currently issued, the new standard is effective beginning in the first quarter of fiscal year 2019; early adoption is prohibited. 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
June 30,
 
 
2015
 
2014
Net income
 
$
7,437

 
$
19,676

Shares used in net income per share computation:
 
 

 
 

Weighted average shares outstanding - basic
 
164,431

 
163,012

Effect of potentially dilutive equivalent shares
 
2,464

 
2,821

Weighted average shares outstanding - diluted
 
166,895

 
165,833

Net income per share:
 
 

 
 

Basic
 
$
0.05

 
$
0.12

Diluted
 
$
0.04

 
$
0.12


 
Share equivalents attributable to outstanding stock options and restricted stock units (RSUs) of 7.3 million and 9.9 million for the three months ended June 30, 2015 and 2014, respectively, 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 June 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 months ended June 30, 2015 and 2014 (in thousands):
 
 
Three Months Ended
June 30,
 
 
2015
 
2014
Cost of goods sold
 
$
605

 
$
538

Marketing and selling
 
2,118

 
2,556

Research and development
 
787

 
844

General and administrative
 
3,232

 
3,000

Restructuring
 
7

 
—

Total share-based compensation expense
 
6,749

 
6,938

Income tax benefit
 
(1,337
)
 
(1,184
)
Total share-based compensation expense, net of income tax
 
$
5,412

 
$
5,754


 
During the three months ended June 30, 2015 and 2014, the Company capitalized $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 $2.0 million for the three months ended June 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 benefit for the three months ended June 30, 2015 was $1.3 million based on an effective income tax rate of (21.7)% of pre-tax income, compared to an income tax provision of $3.1 million based on an effective income tax rate of 13.6% of pre-tax income for the three months ended June 30, 2014. The change in the effective income tax rate for the three months ended June 30, 2015, compared to the three months ended June 30, 2014 is primarily due to the mix of income and losses in the various tax jurisdictions in which the Company operates. There was a discrete tax benefit of $2.2 million and $0.8 million in the three months ended June 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 June 30 and March 31, 2015, the total amount of unrecognized tax benefits due to uncertain tax positions was $79.2 million and $79.0 million, respectively, all of which would affect the effective income tax rate if recognized.
 
The Company had $74.8 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 June 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 June 30 and March 31, 2015, the Company had $4.6 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 $17.0 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 June 30 and March 31, 2015 (in thousands): 
 
 
June 30,
2015
 
March 31,
2015
Accounts receivable, net:
 
 

 
 

Accounts receivable
 
$
436,724

 
$
344,455

Allowance for doubtful accounts
 
(1,247
)
 
(1,093
)
Allowance for sales returns
 
(20,146
)
 
(17,901
)
Allowance for cooperative marketing arrangements
 
(39,127
)
 
(25,700
)
Allowance for customer incentive programs
 
(67,461
)
 
(48,497
)
Allowance for pricing programs
 
(87,163
)
 
(71,441
)
 
 
$
221,580

 
$
179,823

Inventories:
 
 

 
 

Raw materials
 
$
50,199

 
$
36,376

Finished goods
 
277,308

 
234,354

 
 
$
327,507

 
$
270,730

Other current assets:
 
 

 
 

Income tax and value-added tax receivables
 
$
19,548

 
$
19,403

Deferred tax assets
 
36,601

 
27,790

Prepaid expenses and other assets
 
17,161

 
17,236

 
 
$
73,310

 
$
64,429

Property, plant and equipment, net:
 
 

 
 

Property, plant and equipment
 
364,638

 
349,235

Less accumulated depreciation and amortization
 
(262,969
)
 
(257,642
)
 
 
$
101,669

 
$
91,593

Other assets:
 
 

 
 

Deferred tax assets
 
$
38,534

 
$
39,310

Trading investments for deferred compensation plan
 
17,350

 
17,237

Other assets
 
6,454

 
6,441

 
 
$
62,338

 
$
62,988







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

 
 

Accrued personnel expenses
 
$
52,188

 
$
50,015

Indirect customer incentive programs
 
22,467

 
19,730

Accrued restructuring
 
8,341

 
966

Deferred revenue
 
24,850

 
24,987

Warranty accrual
 
12,335

 
12,630

Employee benefit plan obligation
 
1,478

 
1,232

Income taxes payable
 
2,535

 
5,794

Other current liabilities
 
89,777

 
79,558

 
 
$
213,971

 
$
194,912

Non-current liabilities:
 
 

 
 

Warranty accrual
 
$
8,949

 
$
9,080

Obligation for deferred compensation plan
 
17,350

 
17,237

Long term restructuring
 
71

 
73

Employee benefit plan obligation
 
52,821

 
51,181

Deferred rent
 
11,163

 
11,519

Deferred tax liability
 
1,885

 
1,936

Long term deferred revenue
 
8,794

 
9,109

Other non-current liabilities
 
1,464

 
1,397

 
 
$
102,497

 
$
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): 
 
 
June 30, 2015
 
March 31, 2015
 
 
Level 1
 
Level 2
 
Level 1
 
Level 2
Cash equivalents:
 
 

 
 
 
 

 
 

Cash equivalents
 
$
217,225

 
$
—

 
$
264,647

 
$
—

 
 
$
217,225

 
—

 
$
264,647

 
$
—

Trading investments for deferred compensation plan:
 
 

 
 
 
 

 
 

Money market funds
 
$
2,906

 
—

 
$
2,936

 
$
—

Mutual funds
 
14,444

 
—

 
14,301

 
—

 
 
$
17,350

 
—

 
$
17,237

 
$
—

Foreign exchange derivative assets
 
$
—

 
$
63

 
$
—

 
$
2,080

Foreign exchange derivative liabilities
 
$
—

 
$
912

 
$
—

 
$
75


 
There were no material Level 3 financial assets as of June 30, 2015 or March 31, 2015.
 
Investment Securities
 
The marketable securities for the Company's deferred compensation plan are recorded at a fair value of $17.4 million and $17.2 million as of June 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 months ended June 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 June 30, 2015 and March 31, 2015.

The following table presents the fair values of the Company’s derivative instruments and their accounting line presentation on its Condensed Consolidated Balance Sheets as of June 30, 2015 and March 31, 2015 (in thousands):
 
 
Derivatives
 
 
Asset
 
Liability
 
 
June 30,
2015
 
March 31,
2015
 
June 30,
2015
 
March 31,
2015
Designated as hedging instruments:
 
 

 
 

 
 

 
 

Cash flow hedges
 
$
63

 
$
2,080

 
$
847

 
$
—

Not designated as hedging instruments:
 
 

 
 

 
 

 
 

Currency exchange contracts
 
—

 
—

 
65

 
75

 
 
$
63

 
$
2,080

 
$
912

 
$
75


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

 
 

 
 

 
 

 
 

 
 

Cash flow hedges
 
$
(4,722
)
 
$
648

 
$
(2,460
)
 
$
400

 
$
68

 
$
(55
)
Not designated as hedging instruments:
 
 
 
 

 
 

 
 

 
 

 
 

Currency exchange contracts
 
—

 
—

 
—

 
—

 
(34
)
 
(419
)
 
 
$
(4,722
)
 
$
648

 
$
(2,460
)
 
$
400

 
$
34

 
$
(474
)

 
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. 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 months ended June 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 $79.7 million and $43.5 million at June 30, 2015 and March 31, 2015. The Company estimates that $0.8 million of net loss related to its cash flow hedges included in accumulated other comprehensive loss as of June 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 June 30 and March 31, 2015 relating to foreign currency receivables or payables were $52.0 million and $61.7 million, respectively. Open forward and swap contracts outstanding at June 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 three months ended June 30, 2015 that have required the Company to perform an interim assessment of goodwill.
 
As of June 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 three months ended June 30, 2015 (in thousands):
As of March 31, 2015
 
$
218,213

Currency impact
 
38

As of June 30, 2015
 
$
218,251



Other Intangible Assets

Amortization expense for other intangible assets was $0.7 million and $2.8 million for the three months ended June 30, 2015 and 2014, respectively. The Company expects that amortization expense for the remaining nine months of fiscal year 2016 will be $1.0 million, and annual amortization expense for fiscal year 2017 will be $0.2 million.
Financing Arrangements
Financing Arrangements
Financing Arrangements
 
The Company had several uncommitted, unsecured bank lines of credit aggregating $34.6 million as of June 30, 2015. There are no financial covenants under these lines of credit with which the Company must comply. As of June 30, 2015, the Company had outstanding bank guarantees of $14.3 million under these lines of credit. There was no borrowing outstanding under the line of credit as of June 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 three months ended June 30, 2015 and 2014 were as follows (in thousands): 
 
 
Three Months Ended
June 30,
 
 
2015
 
2014
Beginning of the period
 
$
21,710

 
$
24,380

Provision
 
2,142

 
2,206

Settlements
 
(2,568
)
 
(3,166
)
End of the period
 
$
21,284

 
$
23,420


 
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 third-party contract manufacturers’ purchase obligations. As of June 30, 2015, the maximum amount of this guarantee was $3.8 million, of which $1.6 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 June 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
 
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 months ended June 30, 2015, 0.6 million shares were repurchased for $8.8 million. There were no share repurchases during the three months ended June 30, 2014.
 
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)
 
2,618

 
(714
)
 
(4,722
)
 
(2,818
)
June 30, 2015
 
$
(87,606
)
 
$
(27,678
)
 
$
(771
)
 
$
(116,055
)
 
(1)        Tax effect was not significant as of June 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. Restructuring charges, net, share-based compensation expense and amortization of intangible assets are presented in the following financial information by operating segment as “other income (expense), net.” 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 months ended June 30, 2015 and 2014 were as follows (in thousands): 
 
 
Three Months Ended
June 30,
 
 
2015
 
2014
Net sales:
 
 

 
 

Peripherals
 
$
447,686

 
$
456,446

Video conferencing
 
22,634

 
25,757

 
 
$
470,320

 
$
482,203

Segment operating income (loss):
 
 

 
 

Peripherals
 
$
31,847

 
$
33,567

Video conferencing
 
(4,401
)
 
(1,135
)
 
 
27,446

 
32,432

Other income (expense):
 
 

 
 

Restructuring charges, net
 
(12,995
)
 
—

Share-based compensation
 
(6,749
)
 
(6,938
)
Amortization of intangibles
 
(732
)
 
(2,782
)
Interest income, net
 
264

 
258

Other expense, net
 
(1,121
)
 
(198
)
Income before income taxes
 
$
6,113

 
$
22,772


 
Restructuring charges for Peripherals and Video conferencing segments were $11.5 million and $1.5 million, respectively, for the three months ended June 30, 2015. There was no restructuring charge in the three months ended June 30, 2014.

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

 
 

Mobile Speakers
 
$
40,544

 
$
28,830

Gaming
 
43,670

 
46,876

Video Collaboration
 
21,176

 
15,225

Tablet & Other Accessories
 
18,809

 
31,716

Growth
 
124,199

 
122,647

Pointing Devices
 
116,985

 
113,042

Keyboards & Combos
 
105,829

 
105,489

Audio-PC & Wearables
 
45,699

 
48,548

PC Webcams
 
21,681

 
20,463

Home Control
 
10,254

 
12,332

Profit Maximization
 
300,448

 
299,874

Retail Strategic Sales
 
424,647

 
422,521

Non-Strategic
 
741

 
1,293

Retail
 
425,388

 
423,814

OEM
 
22,298

 
32,632

 
 
447,686

 
456,446

Video conferencing
 
22,634

 
25,757

 
 
$
470,320

 
$
482,203



Certain products within the retail product families presented in prior period have been reclassified to conform to the current period's presentation.
 
Net sales to unaffiliated customers by geographic region (based on the customers’ location) for the three months ended June 30, 2015 and 2014 were as follows (in thousands):
 
 
Three Months Ended
June 30,
 
 
2015
 
2014
Americas
 
$
226,687

 
$
211,531

EMEA
 
127,366

 
153,700

Asia Pacific
 
116,267

 
116,972

Total net sales
 
$
470,320

 
$
482,203


 
Sales are attributed to countries on the basis of the customers’ locations. The United States represented 40% and 37% of the Company’s total consolidated net sales for the three months ended June 30, 2015 and 2014, respectively. No other single country represented more than 10% of the Company’s total consolidated net sales during those periods. Revenues from sales to customers in Switzerland, the Company’s home domicile, represented 2% and 2% of the Company’s total consolidated net sales for the three months ended June 30, 2015 and 2014, respectively. One customer group of the Company’s peripheral operating segment represented 14% and 15% of sales for the three months ended June 30, 2015 and 2014, respectively.

Long-lived assets by geographic region were as follows (in thousands):
 
 
June 30,
2015
 
March 31,
2015
Americas
 
$
48,353

 
$
48,527

EMEA
 
3,435

 
3,584

Asia Pacific
 
49,881

 
39,482

 
 
$
101,669

 
$
91,593


 
Long-lived assets in the United States and China were $48.2 million and $44.9 million as of June 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 June 30 or March 31, 2015. Long-lived assets in Switzerland, the Company’s home domicile, were $1.4 million and $1.5 million at June 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 three months ended June 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 $15 million to $20 million under this restructuring plan, and expects to substantially complete this restructuring within the next 12 months.

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

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

 
$
1,039

 
$
—

 
$
1,039

Charges
 
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

Summary of Significant Accounting Policies (Policies)
Basis of Presentation 
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, recurring adjustments, necessary for a fair statement of the results for the periods presented. Operating results for the three months ended June 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 
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 
Use of Estimates
 
The preparation of financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect reported amounts of assets, liabilities, net sales and expenses, and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements. 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, 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 from those estimates.
Recent Accounting Pronouncements 
Recent Accounting Pronouncements 

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. As currently issued, the new standard is effective beginning in the first quarter of fiscal year 2019; early adoption is prohibited. 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
June 30,
 
 
2015
 
2014
Net income
 
$
7,437

 
$
19,676

Shares used in net income per share computation:
 
 

 
 

Weighted average shares outstanding - basic
 
164,431

 
163,012

Effect of potentially dilutive equivalent shares
 
2,464

 
2,821

Weighted average shares outstanding - diluted
 
166,895

 
165,833

Net income per share:
 
 

 
 

Basic
 
$
0.05

 
$
0.12

Diluted
 
$
0.04

 
$
0.12

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 months ended June 30, 2015 and 2014 (in thousands):
 
 
Three Months Ended
June 30,
 
 
2015
 
2014
Cost of goods sold
 
$
605

 
$
538

Marketing and selling
 
2,118

 
2,556

Research and development
 
787

 
844

General and administrative
 
3,232

 
3,000

Restructuring
 
7

 
—

Total share-based compensation expense
 
6,749

 
6,938

Income tax benefit
 
(1,337
)
 
(1,184
)
Total share-based compensation expense, net of income tax
 
$
5,412

 
$
5,754

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

 
 

Accounts receivable
 
$
436,724

 
$
344,455

Allowance for doubtful accounts
 
(1,247
)
 
(1,093
)
Allowance for sales returns
 
(20,146
)
 
(17,901
)
Allowance for cooperative marketing arrangements
 
(39,127
)
 
(25,700
)
Allowance for customer incentive programs
 
(67,461
)
 
(48,497
)
Allowance for pricing programs
 
(87,163
)
 
(71,441
)
 
 
$
221,580

 
$
179,823

Inventories:
 
 

 
 

Raw materials
 
$
50,199

 
$
36,376

Finished goods
 
277,308

 
234,354

 
 
$
327,507

 
$
270,730

Other current assets:
 
 

 
 

Income tax and value-added tax receivables
 
$
19,548

 
$
19,403

Deferred tax assets
 
36,601

 
27,790

Prepaid expenses and other assets
 
17,161

 
17,236

 
 
$
73,310

 
$
64,429

Property, plant and equipment, net:
 
 

 
 

Property, plant and equipment
 
364,638

 
349,235

Less accumulated depreciation and amortization
 
(262,969
)
 
(257,642
)
 
 
$
101,669

 
$
91,593

Other assets:
 
 

 
 

Deferred tax assets
 
$
38,534

 
$
39,310

Trading investments for deferred compensation plan
 
17,350

 
17,237

Other assets
 
6,454

 
6,441

 
 
$
62,338

 
$
62,988

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

 
 

Accrued personnel expenses
 
$
52,188

 
$
50,015

Indirect customer incentive programs
 
22,467

 
19,730

Accrued restructuring
 
8,341

 
966

Deferred revenue
 
24,850

 
24,987

Warranty accrual
 
12,335

 
12,630

Employee benefit plan obligation
 
1,478

 
1,232

Income taxes payable
 
2,535

 
5,794

Other current liabilities
 
89,777

 
79,558

 
 
$
213,971

 
$
194,912

Non-current liabilities:
 
 

 
 

Warranty accrual
 
$
8,949

 
$
9,080

Obligation for deferred compensation plan
 
17,350

 
17,237

Long term restructuring
 
71

 
73

Employee benefit plan obligation
 
52,821

 
51,181

Deferred rent
 
11,163

 
11,519

Deferred tax liability
 
1,885

 
1,936

Long term deferred revenue
 
8,794

 
9,109

Other non-current liabilities
 
1,464

 
1,397

 
 
$
102,497

 
$
101,532

Fair Value Measurements (Tables)
Schedule of financial assets and liabilities accounted for at fair value and classified by level within the fair value hierarchy 
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): 
 
 
June 30, 2015
 
March 31, 2015
 
 
Level 1
 
Level 2
 
Level 1
 
Level 2
Cash equivalents:
 
 

 
 
 
 

 
 

Cash equivalents
 
$
217,225

 
$
—

 
$
264,647

 
$
—

 
 
$
217,225

 
—

 
$
264,647

 
$
—

Trading investments for deferred compensation plan:
 
 

 
 
 
 

 
 

Money market funds
 
$
2,906

 
—

 
$
2,936

 
$
—

Mutual funds
 
14,444

 
—

 
14,301

 
—

 
 
$
17,350

 
—

 
$
17,237

 
$
—

Foreign exchange derivative assets
 
$
—

 
$
63

 
$
—

 
$
2,080

Foreign exchange derivative liabilities
 
$
—

 
$
912

 
$
—

 
$
75

Schedule of fair values of derivative instruments and their locations on the balance sheets 
The following table presents the fair values of the Company’s derivative instruments and their accounting line presentation on its Condensed Consolidated Balance Sheets as of June 30, 2015 and March 31, 2015 (in thousands):
 
 
Derivatives
 
 
Asset
 
Liability
 
 
June 30,
2015
 
March 31,
2015
 
June 30,
2015
 
March 31,
2015
Designated as hedging instruments:
 
 

 
 

 
 

 
 

Cash flow hedges
 
$
63

 
$
2,080

 
$
847

 
$
—

Not designated as hedging instruments:
 
 

 
 

 
 

 
 

Currency exchange contracts
 
—

 
—

 
65

 
75

 
 
$
63

 
$
2,080

 
$
912

 
$
75

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

 
 

 
 

 
 

 
 

 
 

Cash flow hedges
 
$
(4,722
)
 
$
648

 
$
(2,460
)
 
$
400

 
$
68

 
$
(55
)
Not designated as hedging instruments:
 
 
 
 

 
 

 
 

 
 

 
 

Currency exchange contracts
 
—

 
—

 
—

 
—

 
(34
)
 
(419
)
 
 
$
(4,722
)
 
$
648

 
$
(2,460
)
 
$
400

 
$
34

 
$
(474
)
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 three months ended June 30, 2015 (in thousands):
As of March 31, 2015
 
$
218,213

Currency impact
 
38

As of June 30, 2015
 
$
218,251

Commitments and Contingencies (Tables)
Schedule of warranty liability
Changes in the Company’s warranty liability for three months ended June 30, 2015 and 2014 were as follows (in thousands): 
 
 
Three Months Ended
June 30,
 
 
2015
 
2014
Beginning of the period
 
$
21,710

 
$
24,380

Provision
 
2,142

 
2,206

Settlements
 
(2,568
)
 
(3,166
)
End of the period
 
$
21,284

 
$
23,420


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)
 
2,618

 
(714
)
 
(4,722
)
 
(2,818
)
June 30, 2015
 
$
(87,606
)
 
$
(27,678
)
 
$
(771
)
 
$
(116,055
)
 
(1)        Tax effect was not significant as of June 30 or March 31, 2015.
Segment Information (Tables)
Schedule of net sales and operating income (loss) for the Company's reporting segments 
Net sales and operating income (loss) for the Company’s operating segments for the three months ended June 30, 2015 and 2014 were as follows (in thousands): 
 
 
Three Months Ended
June 30,
 
 
2015
 
2014
Net sales:
 
 

 
 

Peripherals
 
$
447,686

 
$
456,446

Video conferencing
 
22,634

 
25,757

 
 
$
470,320

 
$
482,203

Segment operating income (loss):
 
 

 
 

Peripherals
 
$
31,847

 
$
33,567

Video conferencing
 
(4,401
)
 
(1,135
)
 
 
27,446

 
32,432

Other income (expense):
 
 

 
 

Restructuring charges, net
 
(12,995
)
 
—

Share-based compensation
 
(6,749
)
 
(6,938
)
Amortization of intangibles
 
(732
)
 
(2,782
)
Interest income, net
 
264

 
258

Other expense, net
 
(1,121
)
 
(198
)
Income before income taxes
 
$
6,113

 
$
22,772

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

 
 

Mobile Speakers
 
$
40,544

 
$
28,830

Gaming
 
43,670

 
46,876

Video Collaboration
 
21,176

 
15,225

Tablet & Other Accessories
 
18,809

 
31,716

Growth
 
124,199

 
122,647

Pointing Devices
 
116,985

 
113,042

Keyboards & Combos
 
105,829

 
105,489

Audio-PC & Wearables
 
45,699

 
48,548

PC Webcams
 
21,681

 
20,463

Home Control
 
10,254

 
12,332

Profit Maximization
 
300,448

 
299,874

Retail Strategic Sales
 
424,647

 
422,521

Non-Strategic
 
741

 
1,293

Retail
 
425,388

 
423,814

OEM
 
22,298

 
32,632

 
 
447,686

 
456,446

Video conferencing
 
22,634

 
25,757

 
 
$
470,320

 
$
482,203

Schedule of net sales to unaffiliated customers by geographic region 
Net sales to unaffiliated customers by geographic region (based on the customers’ location) for the three months ended June 30, 2015 and 2014 were as follows (in thousands):
 
 
Three Months Ended
June 30,
 
 
2015
 
2014
Americas
 
$
226,687

 
$
211,531

EMEA
 
127,366

 
153,700

Asia Pacific
 
116,267

 
116,972

Total net sales
 
$
470,320

 
$
482,203

Schedule of long-lived assets by geographic region 
Long-lived assets by geographic region were as follows (in thousands):
 
 
June 30,
2015
 
March 31,
2015
Americas
 
$
48,353

 
$
48,527

EMEA
 
3,435

 
3,584

Asia Pacific
 
49,881

 
39,482

 
 
$
101,669

 
$
91,593

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

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

 
$
1,039

 
$
—

 
$
1,039

Charges
 
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

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
Jun. 30, 2015
Jun. 30, 2014
Earnings Per Share [Abstract]
 
 
Net income
$ 7,437 
$ 19,676 
Shares used in net income per share computation:
 
 
Weighted average shares outstanding - basic
164,431,000 
163,012,000 
Effect of potentially dilutive equivalent shares
2,464,000 
2,821,000 
Weighted average shares outstanding - diluted
166,895,000 
165,833,000 
Net income per share:
 
 
Basic (in dollars per share)
$ 0.05 
$ 0.12 
Diluted (in dollars per share)
$ 0.04 
$ 0.12 
Anti-dilutive equivalents shares excluded
7,300,000 
9,900,000 
Employee Benefit Plans- Share-based Compensation Expenses and Related Tax Benefits (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Share-based compensation expense and related tax benefit
 
 
Share-based compensation
$ 6,749 
$ 6,938 
Income tax benefit
(1,337)
(1,184)
Total share-based compensation expense, net of income tax
5,412 
5,754 
Cost of goods sold
 
 
Share-based compensation expense and related tax benefit
 
 
Share-based compensation
605 
538 
Marketing and selling
 
 
Share-based compensation expense and related tax benefit
 
 
Share-based compensation
2,118 
2,556 
Research and development
 
 
Share-based compensation expense and related tax benefit
 
 
Share-based compensation
787 
844 
General and administrative
 
 
Share-based compensation expense and related tax benefit
 
 
Share-based compensation
3,232 
3,000 
Restructuring
 
 
Share-based compensation expense and related tax benefit
 
 
Share-based compensation
$ 7 
$ 0 
Employee Benefit Plans- Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Employee Benefit Plans
 
 
Share-based compensation expenses capitalized as inventory
$ 0.5 
$ 0.5 
Net periodic benefit cost
 
 
Net periodic benefit cost
$ 2.9 
$ 2.0 
Income Taxes- Additional Information (Details) (USD $)
3 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Mar. 31, 2015
Income Tax Disclosure [Abstract]
 
 
 
Provision for (benefit from) income taxes
$ (1,324,000)
$ 3,096,000 
 
Effective income tax rates (as a percent)
(21.70%)
13.60% 
 
Discrete tax benefit due to preferential income tax rate reduction
2,200,000 
800,000 
 
Unrecognized tax benefits
79,200,000 
 
79,000,000 
Unrecognized tax benefits that would impact effective tax rate
79,200,000 
 
79,000,000 
Income taxes payable
74,831,000 
 
72,107,000 
Current income taxes payable
100,000 
 
100,000 
Accrued interest and penalties related to uncertain tax positions
4,600,000 
 
4,900,000 
Expected decrease in uncertain tax positions
$ 17,000,000 
 
 
Balance Sheet Components- Components of Certain Balance Sheet Asset Amounts (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Mar. 31, 2015
Accounts receivable, net:
 
 
Accounts receivable
$ 436,724 
$ 344,455 
Allowance for doubtful accounts
(1,247)
(1,093)
Allowance for sales returns
(20,146)
(17,901)
Allowance for cooperative marketing arrangements
(39,127)
(25,700)
Allowance for customer incentive programs
(67,461)
(48,497)
Allowance for pricing programs
(87,163)
(71,441)
Accounts receivable, net
221,580 
179,823 
Inventories:
 
 
Raw materials
50,199 
36,376 
Finished goods
277,308 
234,354 
Inventory, net
327,507 
270,730 
Other current assets:
 
 
Income tax and value-added tax receivables
19,548 
19,403 
Deferred tax assets
36,601 
27,790 
Prepaid expenses and other assets
17,161 
17,236 
Other current assets, total
73,310 
64,429 
Property, plant and equipment, net:
 
 
Property, plant and equipment, gross
364,638 
349,235 
Less accumulated depreciation and amortization
(262,969)
(257,642)
Property, plant and equipment, net
101,669 
91,593 
Other assets:
 
 
Deferred tax assets
38,534 
39,310 
Trading investments for deferred compensation plan
17,350 
17,237 
Other assets
6,454 
6,441 
Other assets, total
$ 62,338 
$ 62,988 
Balance Sheet Components (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Mar. 31, 2015
Accrued and other current liabilities:
 
 
Accrued personnel expenses
$ 52,188 
$ 50,015 
Indirect customer incentive programs
22,467 
19,730 
Accrued restructuring
8,341 
966 
Deferred revenue
24,850 
24,987 
Warranty accrual
12,335 
12,630 
Employee benefit plan obligation
1,478 
1,232 
Income taxes payable
2,535 
5,794 
Other current liabilities
89,777 
79,558 
Accrued and other current liabilities
213,971 
194,912 
Non-current liabilities:
 
 
Warranty accrual
8,949 
9,080 
Obligation for deferred compensation plan
17,350 
17,237 
Long term restructuring
71 
73 
Employee benefit plan obligation
52,821 
51,181 
Deferred rent
11,163 
11,519 
Deferred tax liability
1,885 
1,936 
Long term deferred revenue
8,794 
9,109 
Other non-current liabilities
1,464 
1,397 
Non-current liabilities
$ 102,497 
$ 101,532 
Fair Value Measurements- Financial Assets and Liabilities, Classified by Level (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Mar. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading investments for deferred compensation plan
$ 17,350 
$ 17,237 
Foreign exchange derivative assets
63 
2,080 
Level 1
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
217,225 
264,647 
Trading investments for deferred compensation plan
17,350 
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
2,906 
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
14,444 
14,301 
Level 2
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
0 
0 
Trading investments for deferred compensation plan
0 
0 
Level 2 |
Money market funds
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading investments for deferred compensation plan
0 
0 
Level 2 |
Mutual funds
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading investments for deferred compensation plan
0 
0 
Foreign exchange contracts |
Level 1
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign exchange derivative assets
0 
0 
Foreign exchange derivative liabilities
0 
0 
Foreign exchange contracts |
Level 2
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign exchange derivative assets
63 
2,080 
Foreign exchange derivative liabilities
$ 912 
$ 75 
Fair Value Measurements- Additional Information (Details) (USD $)
3 Months Ended
Jun. 30, 2015
Mar. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading investments for deferred compensation plan
$ 17,350,000 
$ 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
52,000,000 
61,700,000 
Cash Flow Hedges |
Designated as hedging instruments
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Gain (loss) to be reclassified within twelve months
(800,000)
 
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
$ 79,700,000 
$ 43,500,000 
Fair Value Measurements- Fair Values of Company Derivative Instruments (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Mar. 31, 2015
Derivative Financial Instruments
 
 
Asset
$ 63 
$ 2,080 
Liability
912 
75 
Designated as hedging instruments |
Cash Flow Hedges
 
 
Derivative Financial Instruments
 
 
Asset
63 
2,080 
Liability
847 
0 
Not designated as hedging instruments |
Currency exchange contracts
 
 
Derivative Financial Instruments
 
 
Asset
0 
0 
Liability
$ 65 
$ 75 
Fair Value Measurements- Gains and Losses on Derivative Instruments (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 30, 2015
Jun. 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
$ (4,722)
$ 648 
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
(2,460)
400 
Other Income (Expense), Net
 
 
Amounts of gains and losses on the derivative instruments
 
 
Amount of Gain (Loss) Immediately Recognized in Other Expense, Net
34 
(474)
Designated as hedging instruments |
Cash Flow Hedges
 
 
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
(4,722)
648 
Designated as hedging instruments |
Cash Flow Hedges |
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
(2,460)
400 
Designated as hedging instruments |
Cash Flow Hedges |
Other Income (Expense), Net
 
 
Amounts of gains and losses on the derivative instruments
 
 
Amount of Gain (Loss) Immediately Recognized in Other Expense, Net
68 
(55)
Not designated as hedging instruments |
Other Income (Expense), Net |
Currency exchange contracts
 
 
Amounts of gains and losses on the derivative instruments
 
 
Amount of Gain (Loss) Immediately Recognized in Other Expense, Net
$ (34)
$ (419)
Goodwill and Other Intangible Assets- Summary of Activity In Goodwill Balance (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 30, 2015
Goodwill
 
Balance at the beginning of the period
$ 218,213 
Currency impact
38 
Balance at the end of the period
$ 218,251 
Goodwill and Other Intangible Assets- Additional Information (Details) (USD $)
3 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Amortization expense
 
 
Amortization of other intangible assets
$ 732,000 
$ 2,782,000 
Expected amortization expense
 
 
Future amortization expense for remaining nine months of fiscal year 2016
1,000,000 
 
Future amortization expense for fiscal year, 2017
$ 200,000 
 
Financing Arrangements- Additional Information (Details) (USD $)
Jun. 30, 2015
Mar. 31, 2015
Financing Arrangements
 
 
Outstanding borrowings
$ 0 
$ 0 
Unsecured bank lines of credit
 
 
Financing Arrangements
 
 
Maximum borrowing capacity
34,600,000.0 
 
Outstanding bank guarantees
$ 14,300,000 
 
Commitments and Contingencies- Changes in Warranty Liability (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Changes in the warranty liability:
 
 
Beginning of the period
$ 21,710 
$ 24,380 
Provision
2,142 
2,206 
Settlements
(2,568)
(3,166)
End of the period
$ 21,284 
$ 23,420 
Commitments and Contingencies- Additional Information (Details) (USD $)
3 Months Ended
Jun. 30, 2015
Parent guarantee for purchase obligation of third party contract manufacturer
 
Other Commitments [Line Items]
 
Maximum amount of the guarantees
$ 3,800,000.0 
Guarantees outstanding
1,600,000 
Indemnification agreement
 
Other Commitments [Line Items]
 
Amount accrued for indemnification provisions
0 
Minimum
 
Other Commitments [Line Items]
 
Warranty period
1 year 
Maximum
 
Other Commitments [Line Items]
 
Warranty period
5 years 
SEC Investigation [Member]
 
Other Commitments [Line Items]
 
Possible payment to SEC
$ 7,500,000 
Shareholders' Equity- Additional Information (Details) (USD $)
In Millions, except Share data, unless otherwise specified
1 Months Ended 3 Months Ended
Mar. 31, 2014
Jun. 30, 2015
Jun. 30, 2014
Stockholders' Equity Note [Abstract]
 
 
 
Authorized amount in buyback program
250,000,000 
 
 
Period to complete share repurchase program
3 years 
 
 
Repurchase of shares (in shares)
 
600,000 
0 
Repurchase of shares, value
 
$ 8.8 
 
Shareholders' Equity- Components of Accumulated Other Comprehensive Income (Loss) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 30, 2015
Jun. 30, 2014
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
Balance at the beginning of the period
$ (113,237)
 
Other comprehensive income (loss)
(2,818)
1,101 
Balance at the end of the period
(116,055)
 
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)
2,618 
 
Balance at the end of the period
(87,606)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)
(714)
 
Balance at the end of the period
(27,678)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)
(4,722)
 
Balance at the end of the period
$ (771)
 
Segment Information- Net Sales and Operating Income by Operating Segments (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Segment Reporting Information [Line Items]
 
 
Net sales
$ 470,320 
$ 482,203 
Segment operating income (loss)
6,970 
22,712 
Other income (expense):
 
 
Restructuring charges, net
(12,995)
0 
Share-based compensation
(6,749)
(6,938)
Amortization of intangibles
(732)
(2,782)
Interest income, net
264 
258 
Other expense, net
(1,121)
(198)
Income before income taxes
6,113 
22,772 
Operating Segments
 
 
Segment Reporting Information [Line Items]
 
 
Segment operating income (loss)
27,446 
32,432 
Peripherals
 
 
Other income (expense):
 
 
Restructuring charges, net
(11,500)
 
Peripherals |
Operating Segments
 
 
Segment Reporting Information [Line Items]
 
 
Net sales
447,686 
456,446 
Segment operating income (loss)
31,847 
33,567 
Video conferencing
 
 
Other income (expense):
 
 
Restructuring charges, net
(1,500)
 
Video conferencing |
Operating Segments
 
 
Segment Reporting Information [Line Items]
 
 
Net sales
22,634 
25,757 
Segment operating income (loss)
$ (4,401)
$ (1,135)
Segment Information- Net Sales by Product Family- Excluding Intercompany Transactions (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Segment Reporting Information [Line Items]
 
 
Net sales
$ 470,320 
$ 482,203 
Peripherals |
Operating Segments
 
 
Segment Reporting Information [Line Items]
 
 
Net sales
447,686 
456,446 
Video conferencing |
Operating Segments
 
 
Segment Reporting Information [Line Items]
 
 
Net sales
22,634 
25,757 
Growth |
Peripherals |
Operating Segments
 
 
Segment Reporting Information [Line Items]
 
 
Net sales
124,199 
122,647 
Profit Maximization |
Peripherals |
Operating Segments
 
 
Segment Reporting Information [Line Items]
 
 
Net sales
300,448 
299,874 
Retail Strategic |
Peripherals |
Operating Segments
 
 
Segment Reporting Information [Line Items]
 
 
Net sales
424,647 
422,521 
Non-Strategic |
Peripherals |
Operating Segments
 
 
Segment Reporting Information [Line Items]
 
 
Net sales
741 
1,293 
Mobile Speakers |
Growth |
Peripherals |
Operating Segments
 
 
Segment Reporting Information [Line Items]
 
 
Net sales
40,544 
28,830 
Gaming |
Growth |
Peripherals |
Operating Segments
 
 
Segment Reporting Information [Line Items]
 
 
Net sales
43,670 
46,876 
Video Collaboration |
Growth |
Peripherals |
Operating Segments
 
 
Segment Reporting Information [Line Items]
 
 
Net sales
21,176 
15,225 
Tablet & Other Accessories |
Growth |
Peripherals |
Operating Segments
 
 
Segment Reporting Information [Line Items]
 
 
Net sales
18,809 
31,716 
Pointing Devices |
Profit Maximization |
Peripherals |
Operating Segments
 
 
Segment Reporting Information [Line Items]
 
 
Net sales
116,985 
113,042 
Keyboards & Combos |
Profit Maximization |
Peripherals |
Operating Segments
 
 
Segment Reporting Information [Line Items]
 
 
Net sales
105,829 
105,489 
Audio-PC & Wearables |
Profit Maximization |
Peripherals |
Operating Segments
 
 
Segment Reporting Information [Line Items]
 
 
Net sales
45,699 
48,548 
PC Webcams |
Profit Maximization |
Peripherals |
Operating Segments
 
 
Segment Reporting Information [Line Items]
 
 
Net sales
21,681 
20,463 
Home Control |
Profit Maximization |
Peripherals |
Operating Segments
 
 
Segment Reporting Information [Line Items]
 
 
Net sales
10,254 
12,332 
Retail |
Peripherals |
Operating Segments
 
 
Segment Reporting Information [Line Items]
 
 
Net sales
425,388 
423,814 
OEM |
Peripherals |
Operating Segments
 
 
Segment Reporting Information [Line Items]
 
 
Net sales
$ 22,298 
$ 32,632 
Segment Information- Net Sales and Long-Lived Assets by Geographic Region (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Mar. 31, 2015
Net sales to unaffiliated customers and long-lived assets by geographic region
 
 
 
Net sales
$ 470,320 
$ 482,203 
 
Long lived assets
101,669 
 
91,593 
Americas |
Operating Segments
 
 
 
Net sales to unaffiliated customers and long-lived assets by geographic region
 
 
 
Net sales
226,687 
211,531 
 
Long lived assets
48,353 
 
48,527 
EMEA |
Operating Segments
 
 
 
Net sales to unaffiliated customers and long-lived assets by geographic region
 
 
 
Net sales
127,366 
153,700 
 
Long lived assets
3,435 
 
3,584 
Asia Pacific |
Operating Segments
 
 
 
Net sales to unaffiliated customers and long-lived assets by geographic region
 
 
 
Net sales
116,267 
116,972 
 
Long lived assets
$ 49,881 
 
$ 39,482 
Segment Information- Additional Information (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 3 Months Ended
Jun. 30, 2015
segment
customer
Mar. 31, 2015
Jun. 30, 2015
United States
Mar. 31, 2015
United States
Jun. 30, 2015
China
Mar. 31, 2015
China
Jun. 30, 2015
Switzerland
Mar. 31, 2015
Switzerland
Jun. 30, 2015
Consolidated net sales
Geographic Concentration
United States
Jun. 30, 2014
Consolidated net sales
Geographic Concentration
United States
Jun. 30, 2015
Consolidated net sales
Geographic Concentration
Switzerland
Jun. 30, 2014
Consolidated net sales
Geographic Concentration
Switzerland
Jun. 30, 2015
Single customer group
Consolidated net sales
Customer Concentration
Peripherals
Jun. 30, 2014
Single customer group
Consolidated net sales
Customer Concentration
Peripherals
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long lived assets
$ 101,669 
$ 91,593 
$ 48,200 
$ 48,300 
$ 44,900 
$ 34,000 
$ 1,400 
$ 1,500 
 
 
 
 
 
 
Number of reporting segments
2 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of consolidated net sales
 
 
 
 
 
 
 
 
40.00% 
37.00% 
2.00% 
2.00% 
14.00% 
15.00% 
Number of major customers
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring (Details) (USD $)
3 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Restructuring reserve
 
 
Accrual balance at March 31, 2015
$ 1,039,000 
 
Charges
12,995,000 
0 
Cash payments
(5,622,000)
 
Accrual balance at June 30, 2015
8,412,000 
 
Termination Benefits
 
 
Restructuring reserve
 
 
Accrual balance at March 31, 2015
0 
 
Charges
12,794,000 
 
Cash payments
(4,675,000)
 
Accrual balance at June 30, 2015
8,119,000 
 
Lease Exit Costs
 
 
Restructuring reserve
 
 
Accrual balance at March 31, 2015
1,039,000 
 
Charges
0 
 
Cash payments
(796,000)
 
Accrual balance at June 30, 2015
243,000 
 
Other
 
 
Restructuring reserve
 
 
Accrual balance at March 31, 2015
0 
 
Charges
201,000 
 
Cash payments
(151,000)
 
Accrual balance at June 30, 2015
50,000 
 
Minimum |
Termination Benefits, Lease Exit Costs and Other |
2016 restructuring plan
 
 
Restructuring related charges:
 
 
Expected cost
15,000,000 
 
Maximum |
Termination Benefits, Lease Exit Costs and Other |
2016 restructuring plan
 
 
Restructuring related charges:
 
 
Expected cost
$ 20,000,000