Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2017 | Oct. 10, 2017 | |
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 | Sep. 30, 2017 | |
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 | 164,272,886 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017USD ($)$ / sharesshares | Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2017USD ($)$ / sharesshares | Sep. 30, 2016USD ($)$ / sharesshares | |
Income Statement [Abstract] | ||||
Net sales | $ 632,470 | $ 564,304 | $ 1,162,416 | $ 1,044,168 |
Cost of goods sold | 402,722 | 356,268 | 737,496 | 665,893 |
Amortization of intangible assets and purchase accounting effect on inventory | 2,011 | 1,163 | 3,515 | 2,776 |
Gross profit | 227,737 | 206,873 | 421,405 | 375,499 |
Operating expenses: | ||||
Marketing and selling | 107,386 | 93,792 | 209,764 | 177,664 |
Research and development | 36,647 | 32,632 | 71,746 | 64,583 |
General and administrative | 25,205 | 25,290 | 50,559 | 50,945 |
Amortization of intangible assets and acquisition-related costs | 2,491 | 1,748 | 3,881 | 3,041 |
Change in fair value of contingent consideration for business acquisition | (2,930) | 0 | (4,908) | 0 |
Total operating expenses | 168,799 | 153,462 | 331,042 | 296,233 |
Operating income | 58,938 | 53,411 | 90,363 | 79,266 |
Interest income (expense), net | 1,048 | (90) | 2,223 | 61 |
Other income (expense), net | 459 | (683) | (570) | (1,691) |
Income before income taxes | 60,445 | 52,638 | 92,016 | 77,636 |
Provision for (benefit from) income taxes | 4,087 | 5,593 | (1,349) | 8,650 |
Net income | $ 56,358 | $ 47,045 | $ 93,365 | $ 68,986 |
Net income per share: | ||||
Net income per share - basic (in dollars per share) | $ / shares | $ 0.34 | $ 0.29 | $ 0.57 | $ 0.43 |
Net income per share - diluted (in dollars per share) | $ / shares | $ 0.33 | $ 0.28 | $ 0.55 | $ 0.42 |
Weighted average shares used to compute net income per share: | ||||
Basic (in shares) | shares | 164,120 | 162,222 | 163,765 | 162,176 |
Diluted (in shares) | shares | 169,078 | 165,549 | 168,710 | 164,926 |
Cash dividend per share (in dollars per share) | (per share) | $ 0.63 | $ 0.57 | $ 0.63 | $ 0.57 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 56,358 | $ 47,045 | $ 93,365 | $ 68,986 |
Other comprehensive income (loss): | ||||
Currency translation gain, net of taxes | 2,185 | 550 | 3,641 | 254 |
Defined benefit pension plans: | ||||
Net gain and prior service costs, net of taxes | 532 | 17 | 380 | 327 |
Amortization included in operating expenses | 52 | 432 | 102 | 865 |
Hedging gain (loss): | ||||
Deferred hedging gain (loss), net of taxes | (2,140) | 564 | (5,349) | 1,529 |
Reclassification of hedging loss included in cost of goods sold | 2,596 | 155 | 3,129 | 895 |
Other comprehensive income: | 3,225 | 1,718 | 1,903 | 3,870 |
Total comprehensive income | $ 59,583 | $ 48,763 | $ 95,268 | $ 72,856 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Mar. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 398,848 | $ 547,533 |
Short-term investments | 6,789 | 0 |
Accounts receivable, net | 277,839 | 185,179 |
Inventories | 330,422 | 253,401 |
Other current assets | 47,721 | 41,732 |
Total current assets | 1,061,619 | 1,027,845 |
Non-current assets: | ||
Property, plant and equipment, net | 87,355 | 85,408 |
Goodwill | 271,154 | 249,741 |
Other intangible assets, net | 93,846 | 47,564 |
Other assets | 138,144 | 88,119 |
Total assets | 1,652,118 | 1,498,677 |
Current liabilities: | ||
Accounts payable | 386,963 | 274,805 |
Accrued and other current liabilities | 229,176 | 232,273 |
Total current liabilities | 616,139 | 507,078 |
Non-current liabilities: | ||
Income taxes payable | 33,241 | 51,797 |
Other non-current liabilities | 80,903 | 83,691 |
Total liabilities | 730,283 | 642,566 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Registered shares, CHF 0.25 par value: Issued and authorized shares - 173,106 at September 30 and March 31, 2017 Conditionally authorized shares - 50,000 at September 30 and March 31, 2017 | 30,148 | 30,148 |
Additional paid-in capital | 29,940 | 26,596 |
Shares in treasury, at cost — 8,745 at September 30, 2017 and 10,727 at March 31, 2017 | (156,589) | (174,037) |
Retained earnings | 1,117,139 | 1,074,110 |
Accumulated other comprehensive loss | (98,803) | (100,706) |
Total shareholders’ equity | 921,835 | 856,111 |
Total liabilities and shareholders’ equity | $ 1,652,118 | $ 1,498,677 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - SFr / shares | Sep. 30, 2017 | Mar. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Shares, par value (in CHF per share) | SFr 0.25 | SFr 0.25 |
Shares, issued (in shares) | 173,106,000 | 173,106,000 |
Shares, authorized (in shares) | 173,106,000 | 173,106,000 |
Shares, conditionally authorized (in shares) | 50,000,000 | 50,000,000 |
Treasury, at cost, shares (in shares) | 8,745,000 | 10,727,000 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 93,365 | $ 68,986 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 19,368 | 23,616 |
Amortization of intangible assets | 6,238 | 3,867 |
Gain on investments in privately held companies | (436) | (172) |
Loss on disposal of property, plant and equipment | 12 | 0 |
Share-based compensation expense | 21,683 | 16,967 |
Deferred income taxes | (11,933) | (385) |
Change in fair value of contingent consideration for business acquisition | (4,908) | 0 |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable, net | (91,718) | (97,001) |
Inventories | (58,078) | (28,317) |
Other assets | (8,490) | (4,738) |
Accounts payable | 110,136 | 83,676 |
Accrued and other liabilities | (7,739) | 25,387 |
Net cash provided by operating activities | 67,500 | 91,886 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (17,188) | (14,758) |
Investment in privately held companies | (520) | (480) |
Acquisitions, net of cash acquired | (85,000) | (66,987) |
Proceeds from return of investment in privately held companies | 237 | 0 |
Changes in restricted cash | 0 | 715 |
Purchases of short-term investments | (6,789) | 0 |
Purchases of trading investments | (999) | (5,271) |
Proceeds from sales of trading investments | 1,057 | 5,296 |
Net cash used in investing activities | (109,202) | (81,485) |
Cash flows from financing activities: | ||
Payment of cash dividends | (104,248) | (93,093) |
Purchases of registered shares | (10,682) | (42,894) |
Proceeds from exercises of stock options and purchase rights | 30,000 | 14,484 |
Tax withholdings related to net share settlements of restricted stock units | (23,706) | (11,047) |
Net cash used in financing activities | (108,636) | (132,550) |
Effect of exchange rate changes on cash and cash equivalents | 1,653 | (1,845) |
Net decrease in cash and cash equivalents | (148,685) | (123,994) |
Cash and cash equivalents, beginning of the period | 547,533 | 519,195 |
Cash and cash equivalents, end of the period | 398,848 | 395,201 |
Non-cash investing activities: | ||
Property, plant and equipment purchased during the period and included in period end liability accounts | $ 6,219 | $ 4,008 |
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 Loss |
Beginning of the period (in shares) at Mar. 31, 2016 | 173,106 | 10,697 | ||||
Beginning of the period at Mar. 31, 2016 | $ 759,948 | $ 30,148 | $ 6,616 | $ (128,407) | $ 963,576 | $ (111,985) |
Increase (Decrease) in Shareholders' Equity | ||||||
Total comprehensive income | $ 72,856 | 68,986 | 3,870 | |||
Purchase of registered shares (in shares) | 2,400 | 2,441 | ||||
Purchases of registered shares | $ (42,894) | $ (42,894) | ||||
Tax effects from share-based awards | (1,138) | (1,138) | ||||
Sales of shares upon exercise of stock options and purchase rights | 14,484 | 4,556 | $ 9,928 | |||
Sales of shares upon exercise of options and purchase rights (in shares) | (1,100) | |||||
Issuance of shares upon vesting of restricted stock units | (11,047) | (18,101) | $ 9,303 | (2,249) | ||
Issuance of shares upon vesting of restricted stock units (in shares) | (1,029) | |||||
Share-based compensation expense | 16,918 | 16,918 | ||||
Cash dividends | (93,093) | (93,093) | ||||
End of the period (in shares) at Sep. 30, 2016 | 173,106 | 11,009 | ||||
End of the period at Sep. 30, 2016 | 716,034 | $ 30,148 | 8,851 | $ (152,070) | 937,220 | (108,115) |
Increase (Decrease) in Shareholders' Equity | ||||||
Cumulative effect of adoption of new accounting standard (Note 1) | 57,205 | 3,293 | 53,912 | |||
Beginning of the period (in shares) at Mar. 31, 2017 | 173,106 | 10,727 | ||||
Beginning of the period at Mar. 31, 2017 | 856,111 | $ 30,148 | 26,596 | $ (174,037) | 1,074,110 | (100,706) |
Increase (Decrease) in Shareholders' Equity | ||||||
Total comprehensive income | $ 95,268 | 93,365 | 1,903 | |||
Purchase of registered shares (in shares) | 300 | 307 | ||||
Purchases of registered shares | $ (10,682) | $ (10,682) | ||||
Sales of shares upon exercise of stock options and purchase rights | 30,000 | 15,628 | $ 14,372 | |||
Sales of shares upon exercise of options and purchase rights (in shares) | (1,084) | |||||
Issuance of shares upon vesting of restricted stock units | (23,706) | (37,464) | $ 13,758 | 0 | ||
Issuance of shares upon vesting of restricted stock units (in shares) | (1,205) | |||||
Share-based compensation expense | 21,887 | 21,887 | ||||
Cash dividends | (104,248) | (104,248) | ||||
End of the period (in shares) at Sep. 30, 2017 | 173,106 | 8,745 | ||||
End of the period at Sep. 30, 2017 | $ 921,835 | $ 30,148 | $ 29,940 | $ (156,589) | $ 1,117,139 | $ (98,803) |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies and Estimates | 6 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
The Company and Summary of Significant Accounting Policies and Estimates | The Company and Summary of Significant Accounting Policies and Estimates The Company Logitech International S.A, together with its consolidated subsidiaries, ("Logitech" or the "Company") designs, manufactures and markets products that allow people to connect through music, gaming, video, computing, and other digital platforms. The Company sells its products to a broad network of domestic and international customers, including direct sales to retailers and indirect sales through distributors. Logitech was founded in Switzerland in 1981 and Logitech International S.A. has been the parent holding company of Logitech since 1988. Logitech International S.A. is a Swiss holding company with its registered office in Apples, Switzerland and headquarters in Lausanne, Switzerland, which conducts its business through subsidiaries in the Americas, Europe, Middle East and Africa ("EMEA") and Asia Pacific. Shares of Logitech International S.A. are listed on both the SIX Swiss Exchange under the trading symbol LOGN and the Nasdaq Global Select Market under the trading symbol LOGI. Business Acquisition In August 2017, the Company acquired the ASTRO Gaming business. See "Note 2 - Business Acquisition" for more information. 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, 2017, included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on May 26, 2017. In the opinion of management, these condensed consolidated financial statements include all adjustments, consisting of only normal and recurring adjustments, necessary and in all material aspects, for a fair statement of the results of operations, comprehensive income, financial position, cash flows and changes in shareholders' equity for the periods presented. Operating results for the three and six months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2018, or any future periods. Reclassification Certain amounts from the comparative period in the accompanying unaudited condensed consolidated financial statements have been reclassified to conform to the condensed consolidated financial statement presentation as of and for the three and six months ended September 30, 2017 . Changes in Significant Accounting Policies Other than the recent accounting pronouncements adopted, discussed below, there have been no substantial changes in the Company’s significant accounting policies during the six months ended September 30, 2017 compared with the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended March 31, 2017 . Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make judgments, estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Significant estimates and assumptions made by management involve the fair value of goodwill, intangible assets acquired from business acquisitions, warranty liabilities, accruals for customer programs and related breakage when appropriate, sales return reserves, allowance for doubtful accounts, inventory valuation, contingent consideration from business acquisitions and periodical reassessment of its fair value, share-based compensation expense, uncertain tax positions, and valuation allowances for deferred tax assets. Although these estimates are based on management’s best knowledge of current events and actions that may impact the Company in the future, actual results could differ materially from those estimates. Recent Accounting Pronouncements Adopted In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-11, "Simplifying the Measurement of Inventory (Topic 330)" ("ASU 2015-11"). Topic 330, Inventory, previously required an entity to measure inventory at the lower of cost or market, with market value represented by replacement cost, net realizable value or net realizable value less a normal profit margin. ASU 2015-11 requires an entity to measure inventory at the lower of cost or net realizable value and is effective for fiscal years beginning after December 15, 2016. The Company adopted this standard effective April 1, 2017, which has not had a material impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"). ASU 2016-09 simplifies several aspects of the accounting for share-based payments, including immediate recognition of all excess tax benefits and deficiencies in the income statement, changing the threshold to qualify for equity classification up to the employees' maximum statutory tax rates, allowing an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur, and clarifying the classification on the statement of cash flows for the excess tax benefits and employee taxes paid when an employer withholds shares for tax withholding purposes. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016. The Company adopted this standard effective April 1, 2017. Changes to the statements of cash flows related to the classification of excess tax benefits were implemented on a retroactive basis and accordingly, to conform to the current year presentation, the Company reclassified $4.1 million of excess tax benefits previously reported under financing activities to operating activities for the six months ended September 30, 2016 on its condensed consolidated statements of cash flows. Under the new standard, the Company accounts for forfeitures as they occur. The change in accounting for forfeitures resulted in a cumulative-effect adjustment to decrease retained earnings as of March 31, 2017 by $3.3 million . The Company further recognized a cumulative-effect adjustment to increase retained earnings as of March 31, 2017 by $57.2 million upon adoption of the new guidance to account for gross excess tax benefits of $75.2 million that were previously not recognized because the related tax deduction had not reduced current income taxes, offset by a valuation allowance of $18.0 million to reduce the deferred tax assets to amounts that are more likely than not to be realized. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment (Topic 350)" ("ASU 2017-04"), which removes Step 2 from the goodwill impairment test. ASU 2017-04 is effective for annual or any interim goodwill impairments in annual periods beginning December 15, 2019, with early adoption permitted. The Company adopted this standard effective April 1, 2017, which has not had a material impact on its consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, "Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting" ("ASU 2017-09"), which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-09 is effective for annual periods beginning after December 15, 2017, with early adoption permitted, including adoption in any interim period for which financial statements have not yet been issued. The Company adopted this standard effective April 1, 2017, which has not had a material impact on its consolidated financial statements. Recent Accounting Pronouncements to be Adopted In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09") which supersedes the revenue recognition requirements under ASC 605, Revenue Recognition. ASU 2014-09 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. The new standard requires reporting companies to disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard will become effective for the Company on April 1, 2018. The standard allows for either a "full retrospective" adoption, meaning the standard is applied to all of the periods presented subject to practical expedients, or a "modified retrospective" adoption, meaning the standard is applied only in the initial year, or interim period in year of initial application with a cumulative adjustment to opening retained earnings for existing contracts. The Company currently expects to utilize the modified retrospective transition method. The Company continues to evaluate the impact this new standard could have on the current contracts with customers and the accruals of various sales and marketing programs the Company offers and on the related breakage estimates. The Company has not completed its analysis of the impact to its consolidated financial statements and this information will not be available until the Company completes its full assessment. It is possible that during the fiscal year 2018, the Company may identify certain areas which may result in material impact on the Company’s consolidated financial statements, or the Company may revise its adoption method. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10)" ("ASU 2016-01"). ASU 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. The Company does not believe that the adoption of ASU 2016-01 will have a material impact on its consolidated financial statements and will adopt this standard effective April 1, 2018. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), w hich requires the recognition of lease assets and lease liabilities arising from operating leases in the statement of financial position. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company is evaluating the full effect that ASU 2016-02 will have on its consolidated financial statements and will adopt this standard effective April 1, 2019. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory" ("ASU 2016-16"), which eliminates the deferral of income tax effects of intra-entity asset transfers until the transferred asset is sold to an unrelated party or recovered through use. However, this standard does not apply to intra-entity transfer of inventory. ASU 2016-16 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted but only in the first interim period of an annual period. The cumulative effect of change on equity upon adoption is to be quantified under the modified retrospective approach and recorded as of the beginning of the period of adoption. The Company is evaluating the full effect that ASU 2016-16 will have on its consolidated financial statements and will adopt this standard effective April 1, 2018. In December 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash" ("ASU 2016-18"), which requires that a statement of cash flows explains the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. The adoption of this standard should be applied using a retrospective transition method to each period presented. The Company does not expect the adoption of ASU 2016-18 will have a material impact on its consolidated financial statements and will adopt this standard effective April 1, 2018. In January 2017, the FASB issued ASU 2017-01, "Business Combination (ASC Topic 805): Clarifying the Definition of a Business" ("ASU 2017-01"), which changes the definition of a business to assist with evaluating when a set of transferred assets and activities is a business. ASU 2017-01 is effective for annual or any interim goodwill impairments in annual periods beginning after December 15, 2017, with early adoption permitted. The Company does not expect the adoption of ASU 2017-01 will have a material impact on its condensed consolidated financial statements and will adopt this standard effective April 1, 2018. In March 2017, the FASB issued ASU 2017-07, "Compensation-Retirement Benefit (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" ("ASU 2017-07"), which requires that the Company disaggregate the service cost component from the other components of net benefit cost, and also provides guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allow only the service cost component of net benefit cost to be eligible for capitalization. ASU 2017-07 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. The Company does not expect the adoption of ASU 2017-07 will have a material impact on its consolidated financial statements and will adopt this standard effective April 1, 2018. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" ("ASU 2017-12"), which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and simplifies the application of the hedge accounting guidance. ASU 2017-12 is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. The Company does not expect the adoption of ASU 2017-12 will have a material impact on its consolidated financial statements and is currently assessing the timing of adoption. |
Business Acquisition Business A
Business Acquisition Business Acquisition | 6 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Business Acquisition | Business Acquisition ASTRO Acquisition On August 11, 2017 (the "Acquisition Date"), the Company acquired certain assets and liabilities constituting the ASTRO Gaming business ("ASTRO") from AG Acquisition Corporation for a preliminary purchase price of $85.0 million in cash (the "ASTRO Acquisition"). ASTRO is a leading console gaming brand with a history of producing award-winning headsets for professional gamers and enthusiasts. ASTRO provides a strong growth platform in the console gaming accessories market. ASTRO meets the definition of a business, and its acquisition is accounted for using the acquisition method. The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the Acquisition Date (in thousands): Estimated Fair Value Inventories $ 10,331 Property, plant, and equipment 2,760 Intangible assets 52,520 Other assets 605 Total identifiable assets acquired $ 66,216 Accrued liabilities (2,602 ) Net identifiable assets acquired $ 63,614 Goodwill 21,386 Net assets acquired $ 85,000 Goodwill related to the transaction is primarily attributable to opportunities and economies of scale from combining the operations and technologies of Logitech and ASTRO. Goodwill is expected to be deductible for tax purposes. The fair value of the inventory acquired is estimated at its net realizable value, which uses the estimated selling prices, less the cost of disposal and a reasonable profit allowance for the selling efforts. The difference between the fair value of the inventories and the amount recognized by the acquiree immediately before the acquisition date is $0.8 million , which will be recognized in "amortization of intangibles assets and purchase accounting effect on inventory" in the condensed consolidated statements of operations upon the sale of the acquired inventory. The Company included ASTRO's estimated fair value of assets acquired and liabilities assumed in its condensed consolidated balance sheets beginning the Acquisition Date. The results of operations for ASTRO for this partial quarter have been included in, but are not material to, the Company's condensed consolidated statements of operations from the Acquisition Date. Pro forma results of operations for the ASTRO Acquisition have not been presented because they are not material to the condensed consolidated statements of operations. The following table sets forth the components of identifiable intangible assets acquired at their estimated fair values and their estimated useful lives as of the Acquisition Date (Dollars in thousands): Preliminary Fair Value Estimated Useful Life (years) Developed technology $ 12,540 4.0 Customer relationships 33,100 8.0 Trade name 6,880 6.0 Total intangible assets acquired $ 52,520 6.8 Intangible assets acquired as a result of the ASTRO Acquisition are being amortized over their estimated useful lives using the straight-line method of amortization. Amortization of acquired developed technology of $0.4 million during the three months ended September 30, 2017 is included in "amortization of intangible assets and purchase accounting effect of inventory" in the gross profit of the condensed consolidated statements of operations. Amortization of the acquired customer relationships and trade name of $0.7 million during the three months ended September 30, 2017 is included in " amortization of intangible assets and acquisition-related costs " in the operating expense of the condensed consolidated statements of operations. Developed technology relates to existing ASTRO gaming headset products. The economic useful life was determined based on the technology cycle related to developed technology of existing products, as well as the cash flows anticipated over the forecasted periods. Customer relationships represent the fair value of future projected revenue that will be derived from sales of products to existing customers of ASTRO. The economic useful life was determined based on historical customer turnover rates and industry benchmarks. Trade name relates to the “ASTRO” trade name. The economic useful life was determined based on the expected life of the trade name and the cash flows anticipated over the forecasted periods. The fair value of developed technology and trade name were estimated using the relief-from-royalty method, an income approach (Level 3), which estimates the cost savings that accrue to the owner of the intangible assets that would otherwise be payable as royalties or license fees on revenues earned through the use of the asset. A royalty rate is applied to the projected revenues associated with the intangible assets to determine the amount of savings, which is then discounted to determine the fair value. The developed technology and trade name were valued using royalty rates of 10% and 2% , respectively, and both were discounted at a rate of 13% . The fair value of customer relationships was estimated using the excess earnings method, an income approach (Level 3), which converts projected revenues and costs into cash flows. To reflect the fact that certain other assets contributed to the cash flows generated, the returns for these contributory assets were removed to arrive at estimated cash flows solely attributable to the customer relationships, which were discounted at a rate of 13% . The Company believes the preliminary value of purchased intangible assets recorded above represent the fair values of, and approximate the amounts a market participant would pay for, these intangible assets as of the Acquisition Date. The Company incurred acquisition-related costs for the ASTRO Acquisition of approximately $0.7 million and $1.0 million for the three and six months ended September 30, 2017 , respectively. The acquisition-related costs are included in " amortization of intangible assets and acquisition-related costs " in the operating expenses of the condensed consolidated statements of operations. The fair value of identifiable intangible assets acquired was based on estimates and assumptions made by management at the time of the acquisition. As additional information becomes available, such as finalization of the estimated fair value of the assets acquired and liabilities assumed, and any dispute that may affect the total consideration transferred, the Company may revise its preliminary estimates of fair values during the remainder of the measurement periods (which will not exceed 12 months from the Acquisition Date). Any such revisions or changes may be material as we finalize the fair values of the tangible and intangible assets acquired and liabilities assumed. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Sep. 30, 2017 | |
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 Six Months Ended 2017 2016 2017 2016 Net Income $ 56,358 $ 47,045 $ 93,365 $ 68,986 Shares used in net income per share computation: Weighted average shares outstanding - basic 164,120 162,222 163,765 162,176 Effect of potentially dilutive equivalent shares 4,958 3,327 4,945 2,750 Weighted average shares outstanding - diluted 169,078 165,549 168,710 164,926 Net income per share: Basic $ 0.34 $ 0.29 $ 0.57 $ 0.43 Diluted $ 0.33 $ 0.28 $ 0.55 $ 0.42 Share equivalents attributable to outstanding stock options and restricted stock units of 0.6 million and 2.9 million for the three months ended September 30, 2017 and 2016 , respectively, and 1.2 million and 3.1 million for the six months ended September 30, 2017 and 2016 , respectively, were anti-dilutive and excluded from the calculation of diluted net income per share. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Employee Share Purchase Plans and Stock Incentive Plans As of September 30, 2017 , 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 total income tax benefit recognized for share-based awards for the three and six months ended September 30, 2017 and 2016 (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Cost of goods sold $ 1,091 $ 638 $ 1,802 $ 1,313 Marketing and selling 4,343 3,244 8,724 6,681 Research and development 1,633 917 3,176 1,831 General and administrative 3,911 3,651 7,981 7,142 Total share-based compensation expense 10,978 8,450 21,683 16,967 Income tax benefit (3,677 ) (1,886 ) (14,959 ) (3,701 ) Total share-based compensation expense, net of income tax $ 7,301 $ 6,564 $ 6,724 $ 13,266 The income tax benefit in the respective period primarily consists of tax benefit related to the share-based compensation expense for the period and direct tax benefit realized, including net excess tax benefits recognized, from stock-based awards vested or exercised during the period. As of September 30, 2017 and 2016 , the Company capitalized $0.8 million and $0.4 million of stock-based compensation expense to 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 $2.3 million and $2.8 million for the three months ended September 30, 2017 and 2016 , respectively, and $4.6 million and $5.6 million for the six months ended September 30, 2017 and 2016 , respectively, was primarily related to service costs. |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2017 | |
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 provision for the three months ended September 30, 2017 was $4.1 million based on an effective income tax rate of 6.8% of pre-tax income, compared to an income tax provision of $5.6 million based on an effective income tax rate of 10.6% of pre-tax income for the three months ended September 30, 2016 . The income tax benefit for the six months ended September 30, 2017 was $1.3 million based on an effective income tax rate of (1.5)% of pre-tax income, compared to an income tax provision of $8.7 million based on an effective income tax rate of 11.1% for the six months ended September 30, 2016 . The change in the effective income tax rate is primarily due to the recognition of excess tax benefits of $1.1 million and $11.0 million , respectively, in the three and six months ended September 30, 2017 after adoption of ASU 2016-09, compared to the same periods ended September 30, 2016 . In the three and six months ended September 30, 2017 , there was a discrete tax benefit of $0.7 million and $1.9 million , respectively, from the reversal of uncertain tax positions from the expiration of statutes of limitations. In the same periods ended September 30, 2016 , the tax benefit from the reversal of uncertain tax positions from the expiration of statutes of limitations was $0.7 million and $1.8 million , respectively. As of September 30 and March 31 , 2017 , the total amount of unrecognized tax benefits due to uncertain tax positions was $68.7 million and $63.7 million , respectively, all of which would affect the effective income tax rate if recognized. The Company had $33.2 million in non-current income taxes payable and $1.9 million in current income taxes payable, including interest and penalties, related to its income tax liability for uncertain tax positions as of September 30, 2017 , compared to $51.8 million in non-current income taxes payable and $1.5 million in current income taxes payable as of March 31, 2017 . The Company anticipates a settlement of $1.9 million with the tax authorities in a foreign jurisdiction in the third quarter of fiscal year 2018. The Company recognizes interest and penalties related to unrecognized tax positions in income tax expense. As of September 30 and March 31, 2017 , the Company had $3.2 million and $3.0 million , respectively, of accrued interest and penalties related to uncertain tax positions. 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 2018, the Company will continue to review its tax positions and provide for or reverse unrecognized tax benefits as issues arise. During the next twelve 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 $7.8 million from the lapse of the statutes of limitations in various jurisdictions during the next twelve months. |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Sep. 30, 2017 | |
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 September 30 and March 31 , 2017 (in thousands): September 30, March 31, Accounts receivable, net: Accounts receivable $ 529,842 $ 395,754 Allowance for doubtful accounts (229 ) (607 ) Allowance for sales returns (21,712 ) (18,800 ) Allowance for cooperative marketing arrangements (28,758 ) (28,022 ) Allowance for customer incentive programs (70,413 ) (60,857 ) Allowance for pricing programs (130,891 ) (102,289 ) $ 277,839 $ 185,179 Inventories: Raw materials $ 46,405 $ 30,582 Finished goods 284,017 222,819 $ 330,422 $ 253,401 Other current assets: Value-added tax receivables $ 23,693 $ 23,132 Prepaid expenses and other assets 24,028 18,600 $ 47,721 $ 41,732 Property, plant and equipment, net: Property, plant and equipment at cost $ 359,333 $ 348,760 Less: accumulated depreciation and amortization (271,978 ) (263,352 ) $ 87,355 $ 85,408 Other assets: Deferred tax assets $ 103,071 $ 57,303 Trading investments for deferred compensation plan 17,583 15,043 Investments in privately held companies 11,495 10,776 Other assets 5,995 4,997 $ 138,144 $ 88,119 The following table presents the components of certain balance sheet liability amounts as of September 30 and March 31, 2017 (in thousands): September 30, March 31, Accrued and other current liabilities: Accrued personnel expenses $ 68,645 $ 88,346 Indirect customer incentive programs 41,710 36,409 Warranty accrual 14,567 13,424 Employee benefit plan obligation 1,841 1,266 Income taxes payable 6,950 6,232 Contingent consideration for business acquisition - current portion 5,000 2,889 Other current liabilities 90,463 83,707 $ 229,176 $ 232,273 Other non-current liabilities: Warranty accrual $ 9,782 $ 8,487 Obligation for deferred compensation plan 17,583 15,043 Employee benefit plan obligation 43,057 41,998 Deferred tax liability 1,789 1,789 Contingent consideration for business acquisition - non-current portion — 7,019 Other non-current liabilities 8,692 9,355 $ 80,903 $ 83,691 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Sep. 30, 2017 | |
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 on a recurring basis, excluding assets related to the Company’s defined benefit pension plans, classified by the level within the fair value hierarchy (in thousands): September 30, 2017 March 31, 2017 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Cash equivalents $ 286,074 $ — $ — $ 448,742 $ — $ — Time deposits included in short-term investments $ — $ 6,789 $ — $ — $ — $ — Trading investments for deferred compensation plan included in other assets: Money market funds $ 3,110 $ — $ — $ 2,813 $ — $ — Mutual funds 14,473 — — 12,230 — — Total of trading investments for deferred compensation plan $ 17,583 $ — $ — $ 15,043 $ — $ — Currency exchange derivative assets $ — $ 165 $ — $ — $ 48 $ — Liabilities: Acquisition-related contingent $ — $ — $ — $ — $ — $ 9,908 Currency exchange derivative liabilities $ — $ 107 $ — $ — $ 443 $ — The following table summarizes the changes in fair value of the Company’s contingent consideration balance measured with Level 3 inputs during the three and six months ended September 30, 2017 and 2016 (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Beginning of the period $ 7,475 $ 18,000 $ 9,908 $ — Fair value of contingent consideration upon acquisition — — — 18,000 Change in fair value of contingent consideration (2,930 ) — (4,908 ) — Expected payment (4,545 ) — (5,000 ) — End of the period $ — $ 18,000 $ — $ 18,000 Acquisition-related contingent consideration On April 20, 2016 (the "Jaybird Acquisition Date"), the Company acquired all of the equity interest of Jaybird, LLC (“Jaybird”). The acquisition-related contingent consideration liability arising from the Jaybird acquisition represents the future potential earn-out payments of up to $45.0 million based on the achievement of certain net revenue targets over approximately a two year period. If the net revenue targets are met, the Company will pay a maximum of $25.0 million and $20.0 million in fiscal years 2018 and 2019, respectively. The fair value of the earn-out as of the Jaybird Acquisition Date was $18.0 million , which was determined by using a Monte Carlo Simulation that includes significant unobservable inputs such as a risk-adjusted discount rate of 16% and projected net sales of Jaybird over the earn-out period. The fair value is remeasured at each reporting period at the estimated fair value based on the inputs on the date of remeasurement, with the change in fair value recognized as "change in fair value of contingent consideration for business acquisition" in the operating expense section in the condensed consolidated statements of operations. Projected net sales are based on the Company's internal projections, including analysis of the target markets. In October 2017, the Company and the sellers of Jaybird entered into an agreement fully, irrevocably and unconditionally releasing the Company from the earn-out rights and payments in exchange for $5.0 million in cash, which approximates the fair value of the contingent consideration as of September 30, 2017 and the expected cash payment is included in the accrued and other current liabilities. Investment Securities The marketable securities for the Company's deferred compensation plan are recorded at a fair value of $17.6 million and $15.0 million , respectively, as of September 30, 2017 and March 31, 2017 , 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 and six months ended September 30, 2017 and 2016 were not material and are included in other income (expense), net in the Company's condensed consolidated statements of operations. Assets Measured at Fair Value on a Nonrecurring Basis The Company’s non-marketable cost method investments, and non-financial assets, such as goodwill, intangible assets and property, plant and equipment, are recorded at fair value only upon initial recognition or if an impairment is recognized. There were no material impairments of long-lived assets during the three and six months ended September 30, 2017 or 2016 . Non-marketable cost method investments. These investments are classified as Level 3 due to the absence of quoted market prices, the inherent lack of liquidity, and the fact that inputs used to measure fair value are unobservable and require management's judgment. When certain events or circumstances indicate that impairment may exist, the Company revalues the investments using various assumptions, including the financial metrics and ratios of comparable public companies. The primary investment included in non-marketable investments is the Company’s investment in Series A Preferred Stock of Lifesize Inc. ("Lifesize") recorded at the fair value of $5.6 million on the date of the Lifesize divestiture. The aggregate recorded amount of cost method investments included in other assets as of September 30, 2017 and March 31, 2017 was $7.1 million and $7.4 million , respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Under certain agreements with the respective counterparties to the Company’s derivative contracts, subject to applicable requirements, the Company is allowed to net settle transactions of the same type with a single net amount payable by one party to the other. However, the Company presents its derivative assets and derivative liabilities on a gross basis on the condensed consolidated balance sheets as of September 30, 2017 and March 31, 2017 . The fair values of the Company’s derivative instruments not designated as hedging instruments were not material as of September 30, 2017 or March 31, 2017 . The following table presents the fair values of the Company’s derivative instruments designated as hedging instruments on a gross basis in other current assets or accrued and other current liabilities on its condensed consolidated balance sheets as of September 30, 2017 and March 31, 2017 (in thousands): Derivatives Asset Liability September 30, March 31, September 30, March 31, Cash flow hedges $ 165 $ 48 $ 38 $ 402 The amount of gain (loss) recognized on derivatives not designated as hedging instruments were not material in all periods presented herein. The following table presents the amounts of gains (losses) on the Company’s derivative instruments designated as hedging instruments and their locations on its condensed consolidated statements of operations and condensed consolidated statements of comprehensive income for the three and six months ended September 30, 2017 and 2016 (in thousands): Three Months Ended Amount of Gain (Loss) Amount of Loss 2017 2016 2017 2016 Cash flow hedges $ (2,140 ) $ 564 $ 2,596 $ 155 Six Months Ended Amount of Gain (Loss) Amount of Loss 2017 2016 2017 2016 Cash flow hedges $ (5,349 ) $ 1,529 $ 3,129 $ 895 Cash Flow Hedges The Company enters into cash flow hedge contracts to protect against exchange rate exposure of forecasted inventory purchases. These hedging contracts mature within four months. 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. Cash flows from such hedges are classified as operating activities in the condensed consolidated statements of cash flows. The notional amounts of foreign currency exchange forward contracts outstanding related to forecasted inventory purchases were $149.1 million and $59.4 million as of September 30, 2017 and March 31, 2017 , respectively. The Company estimates that $2.7 million of net losses related to its cash flow hedges included in accumulated other comprehensive loss as of September 30, 2017 will be reclassified into earnings within the next 12 months. Other Derivatives The Company also enters into foreign currency exchange forward and swap contracts to reduce the short-term effects of currency exchange rate fluctuations on certain receivables or payables denominated in currencies other than the functional currencies of its subsidiaries. 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 these contracts are recognized in other income (expense), net in the condensed consolidated statements of operations based on the changes in fair value. The notional amounts of these contracts outstanding as of September 30, 2017 and March 31, 2017 were $95.6 million and $56.7 million , respectively. Open forward and swap contracts outstanding as of September 30, 2017 and March 31, 2017 consisted of contracts in Mexican Pesos, Japanese Yen, British Pounds, Taiwanese Dollars, Canadian Dollars, Australian Dollars and Chinese Renminbi to be settled at future dates at pre-determined exchange rates. The fair value of all foreign 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 | 6 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company conducts its impairment analysis of the goodwill annually at December 31 and as necessary if changes in facts and circumstances indicate that it is more likely than not that the fair value of the Company’s reporting units may be less than its carrying amount. There have been no events or circumstances during the six months ended September 30, 2017 that have required the Company to perform an interim assessment of goodwill. The following table summarizes the activities in the Company’s goodwill balance during the six months ended September 30, 2017 (in thousands): As of March 31, 2017 $ 249,741 Business acquisitions (See Note 2) 21,386 Currency impact 27 As of September 30, 2017 $ 271,154 The Company's acquired intangible assets subject to amortization were as follows (in thousands): September 30, 2017 March 31, 2017 Gross Carrying Amount Accumulated Net Carrying Amount Gross Carrying Amount Accumulated Net Carrying Amount Trademark and trade names $ 23,380 $ (8,012 ) $ 15,368 $ 16,500 $ (6,933 ) $ 9,567 Developed Technology 75,825 (46,225 ) 29,600 63,285 (42,831 ) 20,454 Customer contracts/relationships 58,280 (9,402 ) 48,878 25,180 (7,637 ) 17,543 Total $ 157,485 $ (63,639 ) $ 93,846 $ 104,965 $ (57,401 ) $ 47,564 |
Financing Arrangements
Financing Arrangements | 6 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements The Company had several uncommitted, unsecured bank lines of credit aggregating $68.2 million as of September 30, 2017 . There are no financial covenants under these lines of credit with which the Company must comply. As of September 30, 2017 , the Company had outstanding bank guarantees of $39.8 million under these lines of credit. There was no borrowing outstanding under these lines of credit as of September 30, 2017 or March 31, 2017 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Product Warranties All of the Company’s peripherals products sold are covered by warranty to be free from defects in material and workmanship. The warranty period varies by product and by region. Changes in the Company’s warranty liability for the three and six months ended September 30, 2017 and 2016 were as follows (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Beginning of the period $ 22,056 $ 21,752 $ 21,911 $ 20,380 Assumed from business acquisition 1,230 150 1,230 1,963 Provision 5,414 3,163 9,715 6,340 Settlements (4,611 ) (3,452 ) (9,179 ) (6,880 ) Currency translation 260 (1 ) 672 (191 ) End of the period $ 24,349 $ 21,612 $ 24,349 $ 21,612 Guarantees Logitech Europe S.A., one of our wholly-owned subsidiaries, guaranteed payments of certain third-party contract manufacturers’ purchase obligations. As of September 30, 2017 , the maximum amount of this guarantee was $3.8 million , of which $1.4 million of guaranteed purchase obligations were outstanding. Indemnifications The Company indemnifies certain of its suppliers and customers for losses arising from matters such as intellectual property disputes and product safety defects, subject to certain restrictions. The scope of these indemnities varies, but in some instances, includes indemnification for damages and expenses, including reasonable attorneys’ fees. As of September 30, 2017 , 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. The stock purchase agreement entered on December 28, 2015 in connection with the investment by three venture capital firms in Lifesize contains representations, warranties and covenants of Logitech and Lifesize, Inc. to the Investors. Logitech has agreed, subject to certain limitations, to indemnify the Investors and certain persons related to the Investors for certain losses resulting from breaches of or inaccuracies in such representations, warranties and covenants as well as certain other obligations, including third-party expenses, restructuring costs and pre-closing tax obligations of Lifesize. 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 a necessary license or other rights, or litigation arising out of intellectual property claims, could adversely affect the Company’s business. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Share Repurchase Program In March 2014, the Company’s Board of Directors approved the 2014 share buyback program, which authorizes the Company to use up to $250.0 million to purchase its own shares. This share buyback program expired in April 2017. In March 2017, the Company's Board of Directors approved the 2017 share buyback program, which authorizes the Company to use up to $250.0 million to purchase up to 17.3 million shares of its own shares following the expiration date of the 2014 buyback program. 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, through block trades or otherwise. Purchases may be started or stopped at any time without prior notice depending on market conditions and other factors. During the six months ended September 30, 2017 and 2016 , 0.3 million and 2.4 million shares, respectively, were repurchased for $10.7 million and $42.9 million , respectively. Cash Dividend on Shares of Common During the three and six months ended September 30, 2017, the Company declared and paid cash dividends of CHF 0.61 (USD equivalent of $0.63 ) per common share, totaling $104.2 million on the Company's outstanding common stock. During the three and six months ended September 30, 2016, the Company declared and paid cash dividends of CHF 0.56 (USD equivalent of $0.57 ) per common share, totaling $93.1 million on the Company's outstanding common stock. Any future dividends will be subject to the approval of the Company's shareholders. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive income (loss) were as follows (in thousands): Accumulated Other Comprehensive Income (Loss) Cumulative Defined Deferred Total March 31, 2017 $ (89,708 ) $ (10,480 ) $ (518 ) $ (100,706 ) Other comprehensive income (loss) 3,641 482 (2,220 ) 1,903 September 30, 2017 $ (86,067 ) $ (9,998 ) $ (2,738 ) $ (98,803 ) (1) Tax effect was not significant as of September 30 or March 31, 2017 . |
Segment Information
Segment Information | 6 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has determined that it operates in a single operating segment that encompasses the design, manufacturing and marketing of peripherals for PCs, tablets and other digital platforms. Operating performance measures are provided directly 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) to make business decisions. These operating performance measures do not include restructuring charges (credits), net, share-based compensation expense, amortization of intangible assets, charges from the purchase accounting effect on inventory, acquisition-related costs, investigation and related expenses, or change in fair value of contingent consideration from business acquisition. Net sales by product categories, excluding intercompany transactions, for the three and six months ended September 30, 2017 and 2016 were as follows (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Pointing Devices $ 123,643 $ 123,300 $ 245,717 $ 240,083 Keyboards & Combos 119,200 116,516 235,313 234,535 PC Webcams 27,466 24,307 53,091 49,569 Tablet & Other Accessories 30,784 20,614 54,002 34,499 Video Collaboration 46,139 28,581 81,756 52,491 Mobile Speakers 90,548 97,172 153,466 154,468 Audio-PC & Wearables 62,445 62,254 112,647 118,833 Gaming 113,722 79,193 191,430 135,693 Smart Home 18,323 11,807 34,789 22,974 Other (1) 200 560 205 1,023 Total net sales $ 632,470 $ 564,304 $ 1,162,416 $ 1,044,168 (1) Other category includes products that the Company currently intends to transition out of, or has already transitioned out of, because they are no longer strategic to the Company's business. Net sales by geographic region (based on the customers’ locations) for the three and six months ended September 30, 2017 and 2016 were as follows (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Americas $ 261,993 $ 239,830 $ 507,393 $ 462,455 EMEA 218,323 200,636 368,914 343,558 Asia Pacific 152,154 123,838 286,109 238,155 Total net sales $ 632,470 $ 564,304 $ 1,162,416 $ 1,044,168 Sales are attributed to countries on the basis of the customers’ locations. The United States and Germany each represented more than 10% of the total consolidated net sales for the periods presented herein. No other countries represented more than 10% of the Company’s total consolidated net sales for the periods presented herein. Switzerland, the Company’s home domicile, represented 2% of the Company’s total consolidated net sales for the three and six months ended September 30, 2017 , and 3% and 2% for the three and six months ended September 30, 2016 , respectively. Two customer groups of the Company each represented more than 10% of the total consolidated net sales for the periods presented herein. Tangible long-lived assets by geographic region were as follows (in thousands): September 30, March 31, Americas $ 37,725 $ 37,242 EMEA 4,110 4,006 Asia Pacific 45,520 44,160 Total tangible long-lived assets $ 87,355 $ 85,408 Tangible long-lived assets in the United States and China were $37.6 million and $38.1 million , respectively, as of September 30, 2017 , and $37.1 million and $37.2 million , respectively, as of March 31, 2017 . No other countries represented more than 10% of the Company’s total consolidated tangible long-lived assets as of September 30, 2017 or March 31, 2017 . Tangible long-lived assets in Switzerland, the Company’s home domicile, were $2.0 million and $2.1 million as of September 30, 2017 and March 31, 2017 , respectively. |
The Company and Summary of Si21
The Company and Summary of Significant Accounting Policies and Estimates (Policies) | 6 Months Ended |
Sep. 30, 2017 | |
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, 2017, included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on May 26, 2017. In the opinion of management, these condensed consolidated financial statements include all adjustments, consisting of only normal and recurring adjustments, necessary and in all material aspects, for a fair statement of the results of operations, comprehensive income, financial position, cash flows and changes in shareholders' equity for the periods presented. Operating results for the three and six months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2018, or any future periods. |
Reclassification | Reclassification Certain amounts from the comparative period in the accompanying unaudited condensed consolidated financial statements have been reclassified to conform to the condensed consolidated financial statement presentation as of and for the three and six months ended September 30, 2017 . |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make judgments, estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Significant estimates and assumptions made by management involve the fair value of goodwill, intangible assets acquired from business acquisitions, warranty liabilities, accruals for customer programs and related breakage when appropriate, sales return reserves, allowance for doubtful accounts, inventory valuation, contingent consideration from business acquisitions and periodical reassessment of its fair value, share-based compensation expense, uncertain tax positions, and valuation allowances for deferred tax assets. Although these estimates are based on management’s best knowledge of current events and actions that may impact the Company in the future, actual results could differ materially from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-11, "Simplifying the Measurement of Inventory (Topic 330)" ("ASU 2015-11"). Topic 330, Inventory, previously required an entity to measure inventory at the lower of cost or market, with market value represented by replacement cost, net realizable value or net realizable value less a normal profit margin. ASU 2015-11 requires an entity to measure inventory at the lower of cost or net realizable value and is effective for fiscal years beginning after December 15, 2016. The Company adopted this standard effective April 1, 2017, which has not had a material impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"). ASU 2016-09 simplifies several aspects of the accounting for share-based payments, including immediate recognition of all excess tax benefits and deficiencies in the income statement, changing the threshold to qualify for equity classification up to the employees' maximum statutory tax rates, allowing an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur, and clarifying the classification on the statement of cash flows for the excess tax benefits and employee taxes paid when an employer withholds shares for tax withholding purposes. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016. The Company adopted this standard effective April 1, 2017. Changes to the statements of cash flows related to the classification of excess tax benefits were implemented on a retroactive basis and accordingly, to conform to the current year presentation, the Company reclassified $4.1 million of excess tax benefits previously reported under financing activities to operating activities for the six months ended September 30, 2016 on its condensed consolidated statements of cash flows. Under the new standard, the Company accounts for forfeitures as they occur. The change in accounting for forfeitures resulted in a cumulative-effect adjustment to decrease retained earnings as of March 31, 2017 by $3.3 million . The Company further recognized a cumulative-effect adjustment to increase retained earnings as of March 31, 2017 by $57.2 million upon adoption of the new guidance to account for gross excess tax benefits of $75.2 million that were previously not recognized because the related tax deduction had not reduced current income taxes, offset by a valuation allowance of $18.0 million to reduce the deferred tax assets to amounts that are more likely than not to be realized. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment (Topic 350)" ("ASU 2017-04"), which removes Step 2 from the goodwill impairment test. ASU 2017-04 is effective for annual or any interim goodwill impairments in annual periods beginning December 15, 2019, with early adoption permitted. The Company adopted this standard effective April 1, 2017, which has not had a material impact on its consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, "Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting" ("ASU 2017-09"), which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-09 is effective for annual periods beginning after December 15, 2017, with early adoption permitted, including adoption in any interim period for which financial statements have not yet been issued. The Company adopted this standard effective April 1, 2017, which has not had a material impact on its consolidated financial statements. Recent Accounting Pronouncements to be Adopted In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09") which supersedes the revenue recognition requirements under ASC 605, Revenue Recognition. ASU 2014-09 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. The new standard requires reporting companies to disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard will become effective for the Company on April 1, 2018. The standard allows for either a "full retrospective" adoption, meaning the standard is applied to all of the periods presented subject to practical expedients, or a "modified retrospective" adoption, meaning the standard is applied only in the initial year, or interim period in year of initial application with a cumulative adjustment to opening retained earnings for existing contracts. The Company currently expects to utilize the modified retrospective transition method. The Company continues to evaluate the impact this new standard could have on the current contracts with customers and the accruals of various sales and marketing programs the Company offers and on the related breakage estimates. The Company has not completed its analysis of the impact to its consolidated financial statements and this information will not be available until the Company completes its full assessment. It is possible that during the fiscal year 2018, the Company may identify certain areas which may result in material impact on the Company’s consolidated financial statements, or the Company may revise its adoption method. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10)" ("ASU 2016-01"). ASU 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. The Company does not believe that the adoption of ASU 2016-01 will have a material impact on its consolidated financial statements and will adopt this standard effective April 1, 2018. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), w hich requires the recognition of lease assets and lease liabilities arising from operating leases in the statement of financial position. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company is evaluating the full effect that ASU 2016-02 will have on its consolidated financial statements and will adopt this standard effective April 1, 2019. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory" ("ASU 2016-16"), which eliminates the deferral of income tax effects of intra-entity asset transfers until the transferred asset is sold to an unrelated party or recovered through use. However, this standard does not apply to intra-entity transfer of inventory. ASU 2016-16 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted but only in the first interim period of an annual period. The cumulative effect of change on equity upon adoption is to be quantified under the modified retrospective approach and recorded as of the beginning of the period of adoption. The Company is evaluating the full effect that ASU 2016-16 will have on its consolidated financial statements and will adopt this standard effective April 1, 2018. In December 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash" ("ASU 2016-18"), which requires that a statement of cash flows explains the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. The adoption of this standard should be applied using a retrospective transition method to each period presented. The Company does not expect the adoption of ASU 2016-18 will have a material impact on its consolidated financial statements and will adopt this standard effective April 1, 2018. In January 2017, the FASB issued ASU 2017-01, "Business Combination (ASC Topic 805): Clarifying the Definition of a Business" ("ASU 2017-01"), which changes the definition of a business to assist with evaluating when a set of transferred assets and activities is a business. ASU 2017-01 is effective for annual or any interim goodwill impairments in annual periods beginning after December 15, 2017, with early adoption permitted. The Company does not expect the adoption of ASU 2017-01 will have a material impact on its condensed consolidated financial statements and will adopt this standard effective April 1, 2018. In March 2017, the FASB issued ASU 2017-07, "Compensation-Retirement Benefit (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" ("ASU 2017-07"), which requires that the Company disaggregate the service cost component from the other components of net benefit cost, and also provides guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allow only the service cost component of net benefit cost to be eligible for capitalization. ASU 2017-07 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. The Company does not expect the adoption of ASU 2017-07 will have a material impact on its consolidated financial statements and will adopt this standard effective April 1, 2018. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" ("ASU 2017-12"), which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and simplifies the application of the hedge accounting guidance. ASU 2017-12 is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. The Company does not expect the adoption of ASU 2017-12 will have a material impact on its consolidated financial statements and is currently assessing the timing of adoption. |
Business Acquisition Business22
Business Acquisition Business Acquisition (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the Acquisition Date (in thousands): Estimated Fair Value Inventories $ 10,331 Property, plant, and equipment 2,760 Intangible assets 52,520 Other assets 605 Total identifiable assets acquired $ 66,216 Accrued liabilities (2,602 ) Net identifiable assets acquired $ 63,614 Goodwill 21,386 Net assets acquired $ 85,000 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table sets forth the components of identifiable intangible assets acquired at their estimated fair values and their estimated useful lives as of the Acquisition Date (Dollars in thousands): Preliminary Fair Value Estimated Useful Life (years) Developed technology $ 12,540 4.0 Customer relationships 33,100 8.0 Trade name 6,880 6.0 Total intangible assets acquired $ 52,520 6.8 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
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 Six Months Ended 2017 2016 2017 2016 Net Income $ 56,358 $ 47,045 $ 93,365 $ 68,986 Shares used in net income per share computation: Weighted average shares outstanding - basic 164,120 162,222 163,765 162,176 Effect of potentially dilutive equivalent shares 4,958 3,327 4,945 2,750 Weighted average shares outstanding - diluted 169,078 165,549 168,710 164,926 Net income per share: Basic $ 0.34 $ 0.29 $ 0.57 $ 0.43 Diluted $ 0.33 $ 0.28 $ 0.55 $ 0.42 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of share-based compensation expense and related tax benefit recognized | The following table summarizes the share-based compensation expense and total income tax benefit recognized for share-based awards for the three and six months ended September 30, 2017 and 2016 (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Cost of goods sold $ 1,091 $ 638 $ 1,802 $ 1,313 Marketing and selling 4,343 3,244 8,724 6,681 Research and development 1,633 917 3,176 1,831 General and administrative 3,911 3,651 7,981 7,142 Total share-based compensation expense 10,978 8,450 21,683 16,967 Income tax benefit (3,677 ) (1,886 ) (14,959 ) (3,701 ) Total share-based compensation expense, net of income tax $ 7,301 $ 6,564 $ 6,724 $ 13,266 |
Balance Sheet Compnents (Tables
Balance Sheet Compnents (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
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 September 30 and March 31 , 2017 (in thousands): September 30, March 31, Accounts receivable, net: Accounts receivable $ 529,842 $ 395,754 Allowance for doubtful accounts (229 ) (607 ) Allowance for sales returns (21,712 ) (18,800 ) Allowance for cooperative marketing arrangements (28,758 ) (28,022 ) Allowance for customer incentive programs (70,413 ) (60,857 ) Allowance for pricing programs (130,891 ) (102,289 ) $ 277,839 $ 185,179 Inventories: Raw materials $ 46,405 $ 30,582 Finished goods 284,017 222,819 $ 330,422 $ 253,401 Other current assets: Value-added tax receivables $ 23,693 $ 23,132 Prepaid expenses and other assets 24,028 18,600 $ 47,721 $ 41,732 Property, plant and equipment, net: Property, plant and equipment at cost $ 359,333 $ 348,760 Less: accumulated depreciation and amortization (271,978 ) (263,352 ) $ 87,355 $ 85,408 Other assets: Deferred tax assets $ 103,071 $ 57,303 Trading investments for deferred compensation plan 17,583 15,043 Investments in privately held companies 11,495 10,776 Other assets 5,995 4,997 $ 138,144 $ 88,119 |
Schedule of components of balance sheet liability | The following table presents the components of certain balance sheet liability amounts as of September 30 and March 31, 2017 (in thousands): September 30, March 31, Accrued and other current liabilities: Accrued personnel expenses $ 68,645 $ 88,346 Indirect customer incentive programs 41,710 36,409 Warranty accrual 14,567 13,424 Employee benefit plan obligation 1,841 1,266 Income taxes payable 6,950 6,232 Contingent consideration for business acquisition - current portion 5,000 2,889 Other current liabilities 90,463 83,707 $ 229,176 $ 232,273 Other non-current liabilities: Warranty accrual $ 9,782 $ 8,487 Obligation for deferred compensation plan 17,583 15,043 Employee benefit plan obligation 43,057 41,998 Deferred tax liability 1,789 1,789 Contingent consideration for business acquisition - non-current portion — 7,019 Other non-current liabilities 8,692 9,355 $ 80,903 $ 83,691 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
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 on a recurring basis, excluding assets related to the Company’s defined benefit pension plans, classified by the level within the fair value hierarchy (in thousands): September 30, 2017 March 31, 2017 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Cash equivalents $ 286,074 $ — $ — $ 448,742 $ — $ — Time deposits included in short-term investments $ — $ 6,789 $ — $ — $ — $ — Trading investments for deferred compensation plan included in other assets: Money market funds $ 3,110 $ — $ — $ 2,813 $ — $ — Mutual funds 14,473 — — 12,230 — — Total of trading investments for deferred compensation plan $ 17,583 $ — $ — $ 15,043 $ — $ — Currency exchange derivative assets $ — $ 165 $ — $ — $ 48 $ — Liabilities: Acquisition-related contingent $ — $ — $ — $ — $ — $ 9,908 Currency exchange derivative liabilities $ — $ 107 $ — $ — $ 443 $ — |
Schedule of change in fair value of contingent consideration | The following table summarizes the changes in fair value of the Company’s contingent consideration balance measured with Level 3 inputs during the three and six months ended September 30, 2017 and 2016 (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Beginning of the period $ 7,475 $ 18,000 $ 9,908 $ — Fair value of contingent consideration upon acquisition — — — 18,000 Change in fair value of contingent consideration (2,930 ) — (4,908 ) — Expected payment (4,545 ) — (5,000 ) — End of the period $ — $ 18,000 $ — $ 18,000 |
Derivative Dinancial Instrument
Derivative Dinancial Instruments (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivative Instruments Designated as Hedging | The following table presents the fair values of the Company’s derivative instruments designated as hedging instruments on a gross basis in other current assets or accrued and other current liabilities on its condensed consolidated balance sheets as of September 30, 2017 and March 31, 2017 (in thousands): Derivatives Asset Liability September 30, March 31, September 30, March 31, Cash flow hedges $ 165 $ 48 $ 38 $ 402 |
Schedule of Cash Flow Hedges Included in AOCI | The following table presents the amounts of gains (losses) on the Company’s derivative instruments designated as hedging instruments and their locations on its condensed consolidated statements of operations and condensed consolidated statements of comprehensive income for the three and six months ended September 30, 2017 and 2016 (in thousands): Three Months Ended Amount of Gain (Loss) Amount of Loss 2017 2016 2017 2016 Cash flow hedges $ (2,140 ) $ 564 $ 2,596 $ 155 Six Months Ended Amount of Gain (Loss) Amount of Loss 2017 2016 2017 2016 Cash flow hedges $ (5,349 ) $ 1,529 $ 3,129 $ 895 |
Goodwill and Other Intangible28
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of activity in the goodwill account | The following table summarizes the activities in the Company’s goodwill balance during the six months ended September 30, 2017 (in thousands): As of March 31, 2017 $ 249,741 Business acquisitions (See Note 2) 21,386 Currency impact 27 As of September 30, 2017 $ 271,154 |
Schedule of intangible assets subject to amortization | The Company's acquired intangible assets subject to amortization were as follows (in thousands): September 30, 2017 March 31, 2017 Gross Carrying Amount Accumulated Net Carrying Amount Gross Carrying Amount Accumulated Net Carrying Amount Trademark and trade names $ 23,380 $ (8,012 ) $ 15,368 $ 16,500 $ (6,933 ) $ 9,567 Developed Technology 75,825 (46,225 ) 29,600 63,285 (42,831 ) 20,454 Customer contracts/relationships 58,280 (9,402 ) 48,878 25,180 (7,637 ) 17,543 Total $ 157,485 $ (63,639 ) $ 93,846 $ 104,965 $ (57,401 ) $ 47,564 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of warranty liability | Changes in the Company’s warranty liability for the three and six months ended September 30, 2017 and 2016 were as follows (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Beginning of the period $ 22,056 $ 21,752 $ 21,911 $ 20,380 Assumed from business acquisition 1,230 150 1,230 1,963 Provision 5,414 3,163 9,715 6,340 Settlements (4,611 ) (3,452 ) (9,179 ) (6,880 ) Currency translation 260 (1 ) 672 (191 ) End of the period $ 24,349 $ 21,612 $ 24,349 $ 21,612 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of components of accumulated other comprehensive income (loss) | The components of accumulated other comprehensive income (loss) were as follows (in thousands): Accumulated Other Comprehensive Income (Loss) Cumulative Defined Deferred Total March 31, 2017 $ (89,708 ) $ (10,480 ) $ (518 ) $ (100,706 ) Other comprehensive income (loss) 3,641 482 (2,220 ) 1,903 September 30, 2017 $ (86,067 ) $ (9,998 ) $ (2,738 ) $ (98,803 ) (1) Tax effect was not significant as of September 30 or March 31, 2017 . |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of net sales by product categories, excluding intercompany transactions | Net sales by product categories, excluding intercompany transactions, for the three and six months ended September 30, 2017 and 2016 were as follows (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Pointing Devices $ 123,643 $ 123,300 $ 245,717 $ 240,083 Keyboards & Combos 119,200 116,516 235,313 234,535 PC Webcams 27,466 24,307 53,091 49,569 Tablet & Other Accessories 30,784 20,614 54,002 34,499 Video Collaboration 46,139 28,581 81,756 52,491 Mobile Speakers 90,548 97,172 153,466 154,468 Audio-PC & Wearables 62,445 62,254 112,647 118,833 Gaming 113,722 79,193 191,430 135,693 Smart Home 18,323 11,807 34,789 22,974 Other (1) 200 560 205 1,023 Total net sales $ 632,470 $ 564,304 $ 1,162,416 $ 1,044,168 (1) Other category includes products that the Company currently intends to transition out of, or has already transitioned out of, because they are no longer strategic to the Company's business. |
Schedule of net sales to unaffiliated customers by geographic region | Net sales by geographic region (based on the customers’ locations) for the three and six months ended September 30, 2017 and 2016 were as follows (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Americas $ 261,993 $ 239,830 $ 507,393 $ 462,455 EMEA 218,323 200,636 368,914 343,558 Asia Pacific 152,154 123,838 286,109 238,155 Total net sales $ 632,470 $ 564,304 $ 1,162,416 $ 1,044,168 |
Schedule of long-lived assets by geographic region | Tangible long-lived assets by geographic region were as follows (in thousands): September 30, March 31, Americas $ 37,725 $ 37,242 EMEA 4,110 4,006 Asia Pacific 45,520 44,160 Total tangible long-lived assets $ 87,355 $ 85,408 |
The Company and Summary of Si32
The Company and Summary of Significant Accounting Policies and Estimates - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cash flows from operating activities | $ 67,500 | $ 91,886 | |
Cash flow from financing activities | 108,636 | $ 132,550 | |
Cumulative-effect adjustment to retained earnings | $ 57,205 | ||
Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative-effect adjustment to retained earnings | 53,912 | ||
Accounting Standards Update 2016-09, Excess Tax Benefit Component Increase to Operating Cash FLows | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cash flows from operating activities | 4,100 | ||
Gross excess tax benefits | 75,200 | ||
Tax benefit valuation allowance | 18,000 | ||
Accounting Standards Update 2016-09, Excess Tax Benefit Component Increase to Operating Cash FLows | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative-effect adjustment to retained earnings | 57,200 | ||
Accounting Standards Update 2016-09, Excess Tax Benefit Component Decrease to Financing Cash Flows | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cash flow from financing activities | $ 4,100 | ||
Accounting Standards Update 2016-09, Forfeiture Rate Component | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement, Cumulative Effect of Change on Retained Earning | $ 3,300 |
Business Acquisition - Narrativ
Business Acquisition - Narrative (Details) - USD ($) $ in Thousands | Aug. 11, 2017 | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 |
Business Acquisition [Line Items] | ||||
Amortization of intangible assets | $ 6,238 | $ 3,867 | ||
Astro Gaming | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire business, gross | $ 85,000 | |||
Inventory adjustment due to purchase accounting | $ 800 | |||
Business acquisition related costs | $ 700 | $ 1,000 | ||
Developed technology | Astro Gaming | ||||
Business Acquisition [Line Items] | ||||
Amortization of intangible assets | 400 | |||
Customer relationships and trade name | Astro Gaming | ||||
Business Acquisition [Line Items] | ||||
Amortization of intangible assets | $ 700 | |||
Level 3 | Developed technology | Astro Gaming | ||||
Business Acquisition [Line Items] | ||||
Royalty rate for fair value measurement | 10.00% | |||
Discount rate for value measurement | 13.00% | |||
Level 3 | Customer relationships | Astro Gaming | ||||
Business Acquisition [Line Items] | ||||
Discount rate for value measurement | 13.00% | |||
Level 3 | Trade name | Astro Gaming | ||||
Business Acquisition [Line Items] | ||||
Royalty rate for fair value measurement | 2.00% | |||
Discount rate for value measurement | 13.00% |
Business Acquisition - Schedule
Business Acquisition - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Aug. 11, 2017 | Mar. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 271,154 | $ 249,741 | |
Astro Gaming | |||
Business Acquisition [Line Items] | |||
Inventories | $ 10,331 | ||
Property, plant, and equipment | 2,760 | ||
Intangible assets | 52,520 | ||
Other assets | 605 | ||
Total identifiable assets acquired | 66,216 | ||
Accrued liabilities | (2,602) | ||
Net identifiable assets acquired | 63,614 | ||
Goodwill | 21,386 | ||
Net assets acquired | $ 85,000 |
Business Acquisition - Schedu35
Business Acquisition - Schedule of Finite-lived Assets Assumed (Details) - Astro Gaming $ in Thousands | Aug. 11, 2017USD ($) |
Business Acquisition [Line Items] | |
Finite-lived intangible assets acquired, fair value | $ 52,520 |
Finite-lived intangible asset, estimated useful life (years) | 6 years 9 months 17 days |
Developed technology | |
Business Acquisition [Line Items] | |
Finite-lived intangible assets acquired, fair value | $ 12,540 |
Finite-lived intangible asset, estimated useful life (years) | 4 years |
Customer relationships | |
Business Acquisition [Line Items] | |
Finite-lived intangible assets acquired, fair value | $ 33,100 |
Finite-lived intangible asset, estimated useful life (years) | 8 years |
Trade name | |
Business Acquisition [Line Items] | |
Finite-lived intangible assets acquired, fair value | $ 6,880 |
Finite-lived intangible asset, estimated useful life (years) | 6 years |
Net Income Per Share - Computa
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 | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 56,358 | $ 47,045 | $ 93,365 | $ 68,986 |
Shares used in net income per share computation: | ||||
Weighted average shares outstanding - basic (in shares) | 164,120 | 162,222 | 163,765 | 162,176 |
Effect of potentially dilutive equivalent shares (in shares) | 4,958 | 3,327 | 4,945 | 2,750 |
Weighted average shares outstanding - diluted (in shares) | 169,078 | 165,549 | 168,710 | 164,926 |
Net income per share: | ||||
Net income per share - basic (in dollars per share) | $ 0.34 | $ 0.29 | $ 0.57 | $ 0.43 |
Net income per share - diluted (in dollars per share) | $ 0.33 | $ 0.28 | $ 0.55 | $ 0.42 |
Anti-dilutive equivalents shares excluded (in shares) | 600 | 2,900 | 1,200 | 3,100 |
Employee Benefit Plans - Share
Employee Benefit Plans - Share-based Compensation Expenses and Related Tax Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based compensation expense and related tax benefit | ||||
Total share-based compensation expense | $ 10,978 | $ 8,450 | $ 21,683 | $ 16,967 |
Income tax benefit | (3,677) | (1,886) | (14,959) | (3,701) |
Total share-based compensation expense, net of income tax | 7,301 | 6,564 | 6,724 | 13,266 |
Cost of goods sold | ||||
Share-based compensation expense and related tax benefit | ||||
Total share-based compensation expense | 1,091 | 638 | 1,802 | 1,313 |
Marketing and selling | ||||
Share-based compensation expense and related tax benefit | ||||
Total share-based compensation expense | 4,343 | 3,244 | 8,724 | 6,681 |
Research and development | ||||
Share-based compensation expense and related tax benefit | ||||
Total share-based compensation expense | 1,633 | 917 | 3,176 | 1,831 |
General and administrative | ||||
Share-based compensation expense and related tax benefit | ||||
Total share-based compensation expense | $ 3,911 | $ 3,651 | $ 7,981 | $ 7,142 |
Employee Benefit Plans - Narra
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Share-based Compensation | ||||||
Share-based compensation expenses capitalized as inventory | $ 0.8 | $ 0.4 | ||||
Defined benefit plans | ||||||
Net periodic benefit cost | $ 2.3 | $ 2.8 | $ 4.6 | $ 5.6 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2017 | Mar. 31, 2017 | |
Income Tax Disclosure [Line Items] | ||||||
Provision for (benefit from) income taxes | $ 4,087 | $ 5,593 | $ (1,349) | $ 8,650 | ||
Effective income tax rates | 6.80% | 10.60% | (1.50%) | 11.10% | ||
Excess tax benefits | $ 1,100 | $ 11,000 | ||||
Lapse of statute of limitations | 700 | $ 700 | 1,900 | $ 1,800 | ||
Unrecognized tax benefits | 68,700 | 68,700 | $ 63,700 | |||
Accrued interest and penalties related to uncertain tax positions | 3,200 | 3,200 | 3,000 | |||
Expected decrease in uncertain tax positions | 7,800 | 7,800 | ||||
Non-current income tax payable | ||||||
Income Tax Disclosure [Line Items] | ||||||
Unrecognized tax benefits | 33,200 | 33,200 | 51,800 | |||
Current income tax payable | ||||||
Income Tax Disclosure [Line Items] | ||||||
Unrecognized tax benefits | $ 1,900 | $ 1,900 | $ 1,500 | |||
Scenario, Forecast | Settlement with Taxing Authority | ||||||
Income Tax Disclosure [Line Items] | ||||||
Tax settlement, foreign jurisdiction | $ 1,900 |
Balance Sheet Components - Com
Balance Sheet Components - Components of Certain Balance Sheet Asset Amounts (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Mar. 31, 2017 |
Accounts receivable, net: | ||
Accounts receivable | $ 529,842 | $ 395,754 |
Accounts receivable, net | 277,839 | 185,179 |
Inventories: | ||
Raw materials | 46,405 | 30,582 |
Finished goods | 284,017 | 222,819 |
Inventory, net | 330,422 | 253,401 |
Other current assets: | ||
Value-added tax receivables | 23,693 | 23,132 |
Prepaid expenses and other assets | 24,028 | 18,600 |
Other current assets, total | 47,721 | 41,732 |
Property, plant and equipment, net: | ||
Property, plant and equipment at cost | 359,333 | 348,760 |
Less: accumulated depreciation and amortization | (271,978) | (263,352) |
Property, plant and equipment, net | 87,355 | 85,408 |
Other assets: | ||
Deferred tax assets | 103,071 | 57,303 |
Trading investments for deferred compensation plan | 17,583 | 15,043 |
Investments in privately held companies | 11,495 | 10,776 |
Other assets | 5,995 | 4,997 |
Other assets, total | 138,144 | 88,119 |
Allowance for doubtful accounts | ||
Accounts receivable, net: | ||
Valuation allowance for accounts receivable | (229) | (607) |
Allowance for sales returns | ||
Accounts receivable, net: | ||
Valuation allowance for accounts receivable | (21,712) | (18,800) |
Allowance for cooperative marketing arrangements | ||
Accounts receivable, net: | ||
Valuation allowance for accounts receivable | (28,758) | (28,022) |
Allowance for customer incentive programs | ||
Accounts receivable, net: | ||
Valuation allowance for accounts receivable | (70,413) | (60,857) |
Allowance for pricing programs | ||
Accounts receivable, net: | ||
Valuation allowance for accounts receivable | $ (130,891) | $ (102,289) |
Balance Sheet Components - C41
Balance Sheet Components - Components of Certain Balance Sheet Liability Amounts (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Mar. 31, 2017 |
Accrued and other current liabilities: | ||
Accrued personnel expenses | $ 68,645 | $ 88,346 |
Indirect customer incentive programs | 41,710 | 36,409 |
Warranty accrual | 14,567 | 13,424 |
Employee benefit plan obligation | 1,841 | 1,266 |
Income taxes payable | 6,950 | 6,232 |
Contingent consideration for business acquisition - current portion | 5,000 | 2,889 |
Other current liabilities | 90,463 | 83,707 |
Accrued and other current liabilities | 229,176 | 232,273 |
Other non-current liabilities: | ||
Warranty accrual | 9,782 | 8,487 |
Obligation for deferred compensation plan | 17,583 | 15,043 |
Employee benefit plan obligation | 43,057 | 41,998 |
Deferred tax liability | 1,789 | 1,789 |
Contingent consideration for business acquisition - non-current portion | 0 | 7,019 |
Other non-current liabilities | 8,692 | 9,355 |
Non-current liabilities | $ 80,903 | $ 83,691 |
Fair Value Measurements - Fina
Fair Value Measurements - Financial Assets and Liabilities, Classified by Level (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Mar. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading investments for deferred compensation plan | $ 17,583 | $ 15,043 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 286,074 | 448,742 |
Time Deposits | 0 | 0 |
Trading investments for deferred compensation plan | 17,583 | 15,043 |
Acquisition-related contingent consideration included in accrued and other current liabilities and other non-current liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Currency exchange derivative assets included in other current assets | 0 | 0 |
Currency exchange derivative liabilities included in accrued and other current liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading investments for deferred compensation plan | 3,110 | 2,813 |
Fair Value, Measurements, Recurring | Level 1 | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading investments for deferred compensation plan | 14,473 | 12,230 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Time Deposits | 6,789 | 0 |
Trading investments for deferred compensation plan | 0 | 0 |
Acquisition-related contingent consideration included in accrued and other current liabilities and other non-current liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Currency exchange derivative assets included in other current assets | 165 | 48 |
Currency exchange derivative liabilities included in accrued and other current liabilities | 107 | 443 |
Fair Value, Measurements, Recurring | 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 |
Fair Value, Measurements, Recurring | 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 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Time Deposits | 0 | 0 |
Trading investments for deferred compensation plan | 0 | 0 |
Acquisition-related contingent consideration included in accrued and other current liabilities and other non-current liabilities | 0 | 9,908 |
Fair Value, Measurements, Recurring | Level 3 | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Currency exchange derivative assets included in other current assets | 0 | 0 |
Currency exchange derivative liabilities included in accrued and other current liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading investments for deferred compensation plan | $ 0 | $ 0 |
Fair Value Measurements - Chang
Fair Value Measurements - Change in Fair Value of Contingent Consideration (Details) - Contingent Consideration - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning of the period | $ 7,475 | $ 18,000 | $ 9,908 | $ 0 |
Fair value of contingent consideration upon acquisition | 0 | 0 | 0 | 18,000 |
Change in fair value of contingent consideration | (2,930) | 0 | (4,908) | 0 |
Expected payment | (4,545) | 0 | (5,000) | 0 |
End of the period | $ 0 | $ 18,000 | $ 0 | $ 18,000 |
Fair Value Measurements - Narr
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | Apr. 20, 2016 | Oct. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Sep. 30, 2017 | Mar. 31, 2017 | Dec. 28, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Trading investments for deferred compensation plan | $ 17,583 | $ 15,043 | |||||
Cost method investments at cost | 7,100 | 7,400 | |||||
Lifesize | Preferred Stock | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair value of cost method investment | $ 5,600 | ||||||
Jaybird | Revenue Growth | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Maximum earn-out | $ 45,000 | ||||||
Earn-out payments net revenue target period | 2 years | ||||||
Jaybird | Revenue Growth | Level 3 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Discount rate for value measurement | 16.00% | ||||||
Fair Value, Measurements, Recurring | Level 1 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Acquisition-related contingent consideration included in accrued and other current liabilities and other non-current liabilities | 0 | 0 | |||||
Trading investments for deferred compensation plan | 17,583 | 15,043 | |||||
Fair Value, Measurements, Recurring | Level 3 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Acquisition-related contingent consideration included in accrued and other current liabilities and other non-current liabilities | 0 | 9,908 | |||||
Trading investments for deferred compensation plan | $ 0 | $ 0 | |||||
Fair Value, Measurements, Recurring | Jaybird | Revenue Growth | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Acquisition-related contingent consideration included in accrued and other current liabilities and other non-current liabilities | $ 18,000 | ||||||
Scenario, Forecast | Jaybird | Revenue Growth | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Earn-out payments (up to) | $ 20,000 | $ 25,000 | |||||
Contingent Consideration | Scenario, Forecast | Earn Out Payment [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Payments for release of contingent consideration | $ 5,000 |
Derivative Financial Instrume45
Derivative Financial Instruments - Fair Values of Company Derivative Instruments (Details) - Designated as hedging instruments - Cash Flow Hedges - USD ($) $ in Thousands | Sep. 30, 2017 | Mar. 31, 2017 |
Other Current Assets | ||
Derivative Financial Instruments | ||
Asset | $ 165 | $ 48 |
Accrued Liabilities Current | ||
Derivative Financial Instruments | ||
Liability | $ 38 | $ 402 |
Derivative Financial Instrume46
Derivative Financial Instruments - Gains and Losses on Derivative Instruments (Details) - Designated as hedging instruments - Cash Flow Hedges - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Comprehensive Loss | ||||
Amounts of gains and losses on the derivative instruments | ||||
Amount of Gain (Loss) Deferred as a Component of Accumulated Other Comprehensive Loss | $ (2,140) | $ 564 | $ (5,349) | $ 1,529 |
Cost of goods sold | ||||
Amounts of gains and losses on the derivative instruments | ||||
Amount of Loss Reclassified from Accumulated Other Comprehensive Loss to Costs of Goods Sold | $ 2,596 | $ 155 | $ 3,129 | $ 895 |
Derivative Financial Instrume47
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Sep. 30, 2017 | Mar. 31, 2017 | |
Not Designated as Hedging Instrument | Foreign Exchange Forward And Swap | ||
Derivative [Line Items] | ||
Derivative term of contract | 1 month | |
Foreign Exchange Forward | Designated as hedging instruments | Cash Flow Hedges | ||
Derivative [Line Items] | ||
Derivative term of contract | 4 months | |
Notional amount of derivatives | $ 149.1 | $ 59.4 |
Cash flow hedge gain (loss) to be reclassified within twelve months | (2.7) | |
Foreign Exchange Forward | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount of derivatives | $ 95.6 | $ 56.7 |
Goodwill and Other Intangibe As
Goodwill and Other Intangibe Assets - Summary of Activity In Goodwill Balance (Details) $ in Thousands | 6 Months Ended |
Sep. 30, 2017USD ($) | |
Goodwill | |
Balance at the beginning of the period | $ 249,741 |
Business acquisitions | 21,386 |
Currency impact | 27 |
Balance at the end of the period | $ 271,154 |
Goodwill and Other Intangibe 49
Goodwill and Other Intangibe Assets - Schedule of Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Mar. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount (Note 2) | $ 157,485 | $ 104,965 |
Accumulated Amortization | (63,639) | (57,401) |
Net Carrying Amount | 93,846 | 47,564 |
Trademark and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount (Note 2) | 23,380 | 16,500 |
Accumulated Amortization | (8,012) | (6,933) |
Net Carrying Amount | 15,368 | 9,567 |
Developed Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount (Note 2) | 75,825 | 63,285 |
Accumulated Amortization | (46,225) | (42,831) |
Net Carrying Amount | 29,600 | 20,454 |
Customer contracts/relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount (Note 2) | 58,280 | 25,180 |
Accumulated Amortization | (9,402) | (7,637) |
Net Carrying Amount | $ 48,878 | $ 17,543 |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) - USD ($) | Sep. 30, 2017 | Mar. 31, 2017 |
Financing Arrangements | ||
Outstanding borrowings | $ 0 | $ 0 |
Line of Credit | ||
Financing Arrangements | ||
Maximum borrowing capacity | 68,200,000 | |
Outstanding bank guarantees | $ 39,800,000 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | Sep. 30, 2017USD ($) | Dec. 28, 2015firm |
Other Commitments [Line Items] | ||
Number of venture firms invested in Lifesize | firm | 3 | |
Parent guarantee for purchase obligation of third party contract manufacturer | ||
Other Commitments [Line Items] | ||
Maximum amount of the guarantees | $ 3,800,000 | |
Guarantees outstanding | 1,400,000 | |
Indemnification agreement | ||
Other Commitments [Line Items] | ||
Amount accrued for indemnification provisions | $ 0 |
Commitments and Contingencies52
Commitments and Contingencies - Changes in Warranty Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Changes in the warranty liability: | ||||
Beginning of the period | $ 22,056 | $ 21,752 | $ 21,911 | $ 20,380 |
Assumed from business acquisition | 1,230 | 150 | 1,230 | 1,963 |
Provision | 5,414 | 3,163 | 9,715 | 6,340 |
Settlements | (4,611) | (3,452) | (9,179) | (6,880) |
Currency translation | 260 | (1) | 672 | (191) |
End of the period | $ 24,349 | $ 21,612 | $ 24,349 | $ 21,612 |
Shareholders' Equity - Narrati
Shareholders' Equity - Narrative (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Mar. 31, 2017USD ($)shares | Sep. 30, 2017USD ($)$ / shares | Sep. 30, 2017SFr / shares | Sep. 30, 2016USD ($)$ / shares | Sep. 30, 2016SFr / shares | Sep. 30, 2017USD ($)$ / sharesshares | Sep. 30, 2017SFr / shares | Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2016SFr / shares | Mar. 31, 2014USD ($) | |
Stockholders' Equity Note [Abstract] | ||||||||||
Authorized amount in buyback program | $ 250,000,000 | $ 250,000,000 | ||||||||
Shares authorized to be repurchased (in shares) | shares | 17.3 | |||||||||
Period to complete share repurchase program | 3 years | |||||||||
Repurchase of shares (in shares) | shares | 0.3 | 2.4 | ||||||||
Purchases of registered shares | $ 10,682,000 | $ 42,894,000 | ||||||||
Cash dividend paid per share (in dollars per share) | (per share) | $ 0.63 | SFr 0.61 | $ 0.57 | SFr 0.56 | $ 0.63 | SFr 0.61 | $ 0.57 | SFr 0.56 | ||
Cash dividend declared per share (in dollars per share) | (per share) | $ 0.63 | SFr 0.61 | $ 0.57 | SFr 0.56 | $ 0.63 | SFr 0.61 | $ 0.57 | SFr 0.56 | ||
Dividends paid | $ (104,200,000) | $ (93,100,000) | $ (104,200,000) | $ (93,100,000) |
Shareholders' Equity - Compone
Shareholders' Equity - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning of the period | $ 856,111 | $ 759,948 | ||
Other comprehensive income (loss) | $ 3,225 | $ 1,718 | 1,903 | 3,870 |
End of the period | 921,835 | 716,034 | 921,835 | 716,034 |
Cumulative Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning of the period | (89,708) | |||
Other comprehensive income (loss) | 3,641 | |||
End of the period | (86,067) | (86,067) | ||
Defined Benefit Plan | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning of the period | (10,480) | |||
Other comprehensive income (loss) | 482 | |||
End of the period | (9,998) | (9,998) | ||
Deferred Hedging Losses | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning of the period | (518) | |||
Other comprehensive income (loss) | (2,220) | |||
End of the period | (2,738) | (2,738) | ||
Total | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning of the period | (100,706) | (111,985) | ||
Other comprehensive income (loss) | 1,903 | |||
End of the period | $ (98,803) | $ (108,115) | $ (98,803) | $ (108,115) |
Segment Information - Net Sale
Segment Information - Net Sales by Product Family- Excluding Intercompany Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 632,470 | $ 564,304 | $ 1,162,416 | $ 1,044,168 |
Pointing Devices | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 123,643 | 123,300 | 245,717 | 240,083 |
Keyboards & Combos | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 119,200 | 116,516 | 235,313 | 234,535 |
PC Webcams | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 27,466 | 24,307 | 53,091 | 49,569 |
Tablet & Other Accessories | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 30,784 | 20,614 | 54,002 | 34,499 |
Video Collaboration | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 46,139 | 28,581 | 81,756 | 52,491 |
Mobile Speakers | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 90,548 | 97,172 | 153,466 | 154,468 |
Audio-PC & Wearables | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 62,445 | 62,254 | 112,647 | 118,833 |
Gaming | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 113,722 | 79,193 | 191,430 | 135,693 |
Smart Home | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 18,323 | 11,807 | 34,789 | 22,974 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 200 | $ 560 | $ 205 | $ 1,023 |
Segment Information - Net Sa56
Segment Information - Net Sales and Long-Lived Assets by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2017 | |
Net sales to unaffiliated customers and long-lived assets by geographic region | |||||
Net sales | $ 632,470 | $ 564,304 | $ 1,162,416 | $ 1,044,168 | |
Long lived assets | 87,355 | 87,355 | $ 85,408 | ||
Americas | Operating Segments | |||||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||||
Net sales | 261,993 | 239,830 | 507,393 | 462,455 | |
Long lived assets | 37,725 | 37,725 | 37,242 | ||
EMEA | Operating Segments | |||||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||||
Net sales | 218,323 | 200,636 | 368,914 | 343,558 | |
Long lived assets | 4,110 | 4,110 | 4,006 | ||
Asia Pacific | Operating Segments | |||||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||||
Net sales | 152,154 | $ 123,838 | 286,109 | $ 238,155 | |
Long lived assets | $ 45,520 | $ 45,520 | $ 44,160 |
Segment Information - Narrativ
Segment Information - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Long lived assets | $ 87,355 | $ 87,355 | $ 85,408 | ||
United States | |||||
Segment Reporting Information [Line Items] | |||||
Long lived assets | 37,600 | 37,600 | 37,100 | ||
Switzerland | |||||
Segment Reporting Information [Line Items] | |||||
Long lived assets | 2,000 | 2,000 | 2,100 | ||
China | |||||
Segment Reporting Information [Line Items] | |||||
Long lived assets | $ 38,100 | $ 38,100 | $ 37,200 | ||
Geographic Concentration | Consolidated net sales from continuing operations | Switzerland | |||||
Segment Reporting Information [Line Items] | |||||
Percentage of consolidated net sales | 2.00% | 3.00% | 2.00% | 2.00% |