Logitech International (LOGI) 10-Q 24 Jul 15 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 30, 2015	Jul. 13, 2015
Document and Entity Information
Entity Registrant Name	LOGITECH INTERNATIONAL SA
Entity Central Index Key	1,032,975
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	2,016
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	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 STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	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

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	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 BALANCE5

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical)	Jun. 30, 2015SFr / sharesshares	Mar. 31, 2015$ / sharesshares
Statement of Financial Position [Abstract]
Shares, par value (in CHF per share) | (per share)	SFr 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 STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	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 STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Registered Shares	Additional Paid-in Capital	Treasury Shares	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Balance (in shares) at Mar. 31, 2014		173,106		10,206
Balance at Mar. 31, 2014	$ 804,128	$ 30,148	$ 0	$ (116,510)	$ 976,292	$ (85,802)
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 (in shares) at Mar. 31, 2015		173,106		8,625
Balance at Mar. 31, 2015	758,134	$ 30,148	0	$ (88,951)	930,174	(113,237)
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 Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
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	3 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
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 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	3 Months Ended
	Jun. 30, 2015
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 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	3 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
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	3 Months Ended
	Jun. 30, 2015
Balance Sheet Related Disclosures [Abstract]
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, March 31, 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, March 31, 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	3 Months Ended
	Jun. 30, 2015
Financial Instruments, Owned, at Fair Value [Abstract]
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, March 31, June 30, March 31, 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 Amount of Gain (Loss) Deferred as a Component of Accumulated Other Comprehensive Loss After Reclassification to Costs of Goods Sold Amount of Loss (Gain) Amount of Gain (Loss) 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 A

Goodwill and Other Intangible Assets	3 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
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	3 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
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	3 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
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 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	3 Months Ended
	Jun. 30, 2015
Stockholders' Equity Note [Abstract]
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 Defined Deferred 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	3 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
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 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 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 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, March 31, 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	3 Months Ended
	Jun. 30, 2015
Restructuring and Related Activities [Abstract]
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 Accoun20

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
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)

Net Income Per Share (Tables)	3 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
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 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)

Employee Benefit Plans (Tables)	3 Months Ended
	Jun. 30, 2015
Employee Benefit Plans
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 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 (Table

Balance Sheet Components (Tables)	3 Months Ended
	Jun. 30, 2015
Balance Sheet Related Disclosures [Abstract]
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, March 31, 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, March 31, 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

Fair Value Measurements (Tables)	3 Months Ended
	Jun. 30, 2015
Financial Instruments, Owned, at Fair Value [Abstract]
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, March 31, June 30, March 31, 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 Amount of Gain (Loss) Deferred as a Component of Accumulated Other Comprehensive Loss After Reclassification to Costs of Goods Sold Amount of Loss (Gain) Amount of Gain (Loss) 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 Intangible25

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
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 (

Commitments and Contingencies (Tables)	3 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
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 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)

Shareholders' Equity (Tables)	3 Months Ended
	Jun. 30, 2015
Stockholders' Equity Note [Abstract]
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 Defined Deferred 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)

Segment Information (Tables)	3 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
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 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 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 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, March 31, Americas $ 48,353 $ 48,527 EMEA 3,435 3,584 Asia Pacific 49,881 39,482 $ 101,669 $ 91,593

Restructuring (Tables)

Restructuring (Tables)	3 Months Ended
	Jun. 30, 2015
Restructuring and Related Activities [Abstract]
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- Computati

Net Income Per Share- Computation of Basic and Diluted Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	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	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 (in dollars per share)	$ 0.05	$ 0.12
Diluted (in dollars per share)	$ 0.04	$ 0.12
Anti-dilutive equivalents shares excluded	7,300	9,900

Employee Benefit Plans- Share-b

Employee Benefit Plans- Share-based Compensation Expenses and Related Tax Benefits (Details) - USD ($) $ in Thousands	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- Additio

Employee Benefit Plans- Additional Information (Details) - USD ($) $ in Millions	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

Income Taxes- Additional Inform

Income Taxes- Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Provision for (benefit from) income taxes	$ (1,324)	$ 3,096
Effective income tax rates (as a percent)	(21.70%)	13.60%
Discrete tax benefit due to preferential income tax rate reduction	$ 2,200	$ 800
Unrecognized tax benefits	79,200		$ 79,000
Unrecognized tax benefits that would impact effective tax rate	79,200		79,000
Income taxes payable	74,831		72,107
Current income taxes payable	100		100
Accrued interest and penalties related to uncertain tax positions	4,600		$ 4,900
Expected decrease in uncertain tax positions	$ 17,000

Balance Sheet Components- Compo

Balance Sheet Components- Components of Certain Balance Sheet Asset Amounts (Details) - USD ($) $ in Thousands	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 (Detai

Balance Sheet Components (Details) - USD ($) $ in Thousands	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- Financ

Fair Value Measurements- Financial Assets and Liabilities, Classified by Level (Details) - USD ($) $ in Thousands	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- Additi

Fair Value Measurements- Additional Information (Details) - USD ($) $ in Thousands	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	$ 17,237
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	61,700
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)
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	$ 43,500

Fair Value Measurements- Fair V

Fair Value Measurements- Fair Values of Company Derivative Instruments (Details) - USD ($) $ in Thousands	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

Fair Value Measurements- Gains and Losses on Derivative Instruments (Details) - USD ($) $ in Thousands	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 Intangible40

Goodwill and Other Intangible Assets- Summary of Activity In Goodwill Balance (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2015USD ($)
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 Intangible41

Goodwill and Other Intangible Assets- Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Amortization expense
Amortization of other intangible assets	$ 732	$ 2,782
Expected amortization expense
Future amortization expense for remaining nine months of fiscal year 2016	1,000
Future amortization expense for fiscal year, 2017	$ 200

Financing Arrangements- Additio

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
Outstanding bank guarantees	$ 14,300,000

Commitments and Contingencies-

Commitments and Contingencies- Changes in Warranty Liability (Details) - USD ($) $ in Thousands	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 Contingencies44

Commitments and Contingencies- Additional Information (Details) - Jun. 30, 2015 - USD ($)	Total
Parent guarantee for purchase obligation of third party contract manufacturer
Other Commitments [Line Items]
Maximum amount of the guarantees	$ 3,800,000
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- Additiona

Shareholders' Equity- Additional Information (Details) - USD ($) $ in Millions	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- Component

Shareholders' Equity- Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands		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	[1]	(90,224)
Other comprehensive income (loss)		2,618
Balance at the end of the period	[1]	(87,606)
Defined Benefit Plan
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at the beginning of the period	[1]	(26,964)
Other comprehensive income (loss)		(714)
Balance at the end of the period	[1]	(27,678)
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)
[1]	Tax effect was not significant as of June 30 or March 31, 2015.

Segment Information- Net Sales

Segment Information- Net Sales and Operating Income by Operating Segments (Details) - USD ($) $ in Thousands	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 Sale48

Segment Information- Net Sales by Product Family- Excluding Intercompany Transactions (Details) - USD ($) $ in Thousands	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 Sale49

Segment Information- Net Sales and Long-Lived Assets by Geographic Region (Details) - USD ($) $ in Thousands	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

Segment Information- Additional Information (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2015USD ($)segmentcustomer	Jun. 30, 2014	Mar. 31, 2015USD ($)
Segment Reporting Information [Line Items]
Long lived assets	$ 101,669		$ 91,593
Number of reporting segments | segment	2
Number of major customers | customer	1
United States
Segment Reporting Information [Line Items]
Long lived assets	$ 48,200		48,300
China
Segment Reporting Information [Line Items]
Long lived assets	44,900		34,000
Switzerland
Segment Reporting Information [Line Items]
Long lived assets	$ 1,400		$ 1,500
Consolidated net sales | Geographic Concentration | United States
Segment Reporting Information [Line Items]
Percentage of consolidated net sales	40.00%	37.00%
Consolidated net sales | Geographic Concentration | Switzerland
Segment Reporting Information [Line Items]
Percentage of consolidated net sales	2.00%	2.00%
Single customer group | Consolidated net sales | Customer Concentration | Peripherals
Segment Reporting Information [Line Items]
Percentage of consolidated net sales	14.00%	15.00%

Restructuring (Details)

Restructuring (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Restructuring reserve
Accrual balance at March 31, 2015	$ 1,039
Charges	12,995	$ 0
Cash payments	(5,622)
Accrual balance at June 30, 2015	8,412
Termination Benefits
Restructuring reserve
Accrual balance at March 31, 2015	0
Charges	12,794
Cash payments	(4,675)
Accrual balance at June 30, 2015	8,119
Lease Exit Costs
Restructuring reserve
Accrual balance at March 31, 2015	1,039
Charges	0
Cash payments	(796)
Accrual balance at June 30, 2015	243
Other
Restructuring reserve
Accrual balance at March 31, 2015	0
Charges	201
Cash payments	(151)
Accrual balance at June 30, 2015	50
Minimum | Termination Benefits, Lease Exit Costs and Other | 2016 restructuring plan
Restructuring related charges:
Expected cost	15,000
Maximum | Termination Benefits, Lease Exit Costs and Other | 2016 restructuring plan
Restructuring related charges:
Expected cost	$ 20,000