Cover Page
Cover Page - shares | 9 Months Ended | |
Dec. 31, 2019 | Jan. 08, 2020 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2019 | |
Document Transition Report | false | |
Entity File Number | 0-29174 | |
Entity Registrant Name | LOGITECH INTERNATIONAL S.A. | |
Entity Incorporation, State or Country Code | V8 | |
Entity Address, Address Line One | 1015 Lausanne | |
Entity Address, Country | CH | |
Entity Address, Address Line Two | c/o Logitech Inc. | |
Entity Address, Address Line Two | 7700 Gateway Boulevard | |
Entity Address, City or Town | Newark | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94560 | |
City Area Code | 510 | |
Local Phone Number | 795-8500 | |
Title of 12(b) Security | Registered Shares | |
Trading Symbol | LOGI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 167,305,147 | |
Entity Central Index Key | 0001032975 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 902,687 | $ 864,388 | $ 2,266,603 | $ 2,164,014 |
Cost of goods sold | 564,283 | 535,707 | 1,410,605 | 1,349,941 |
Amortization of intangible assets and purchase accounting effect on inventory | 3,951 | 4,699 | 10,493 | 10,037 |
Gross profit | 334,453 | 323,982 | 845,505 | 804,036 |
Operating expenses: | ||||
Marketing and selling | 134,950 | 132,250 | 392,138 | 368,635 |
Research and development | 43,292 | 40,591 | 127,499 | 119,120 |
General and administrative | 22,344 | 24,496 | 68,551 | 75,175 |
Amortization of intangible assets and acquisition-related costs | 5,084 | 3,539 | 12,898 | 10,377 |
Restructuring charges (credits), net | (45) | (278) | 69 | 9,762 |
Total operating expenses | 205,625 | 200,598 | 601,155 | 583,069 |
Operating income | 128,828 | 123,384 | 244,350 | 220,967 |
Interest income | 2,063 | 1,482 | 7,006 | 5,709 |
Other income (expense), net | 1,101 | (2,747) | 2,852 | (929) |
Income before income taxes | 131,992 | 122,119 | 254,208 | 225,747 |
Provision for income taxes | 14,467 | 9,309 | 18,405 | 10,295 |
Net income | $ 117,525 | $ 112,810 | $ 235,803 | $ 215,452 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.70 | $ 0.68 | $ 1.41 | $ 1.30 |
Diluted (in dollars per share) | $ 0.69 | $ 0.67 | $ 1.39 | $ 1.28 |
Weighted average shares used to compute net income per share: | ||||
Basic (in shares) | 167,063 | 165,707 | 166,678 | 165,552 |
Diluted (in shares) | 169,685 | 168,907 | 169,173 | 168,966 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 117,525 | $ 112,810 | $ 235,803 | $ 215,452 |
Other comprehensive income (loss): | ||||
Currency translation gain (loss), net of taxes | 1,736 | 111 | (2,639) | (7,715) |
Reclassification of currency translation gain included in other income (expense), net | 0 | (537) | 0 | (537) |
Defined benefit plans: | ||||
Net gain (loss) and prior service costs, net of taxes | (231) | 10 | (274) | 108 |
Amortization included in other income (expense), net | 53 | (69) | 160 | (208) |
Hedging gain (loss): | ||||
Deferred hedging gain (loss), net of taxes | (1,381) | 575 | 56 | 1,060 |
Reclassification of hedging (gain) loss included in cost of goods sold | (739) | (615) | (1,097) | 2,454 |
Total other comprehensive loss | (562) | (525) | (3,794) | (4,838) |
Total comprehensive income | $ 116,963 | $ 112,285 | $ 232,009 | $ 210,614 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 656,046 | $ 604,516 |
Accounts receivable, net | 531,309 | 383,309 |
Inventories | 307,494 | 293,495 |
Other current assets | 78,539 | 69,116 |
Total current assets | 1,573,388 | 1,350,436 |
Non-current assets: | ||
Property, plant and equipment, net | 76,079 | 78,552 |
Goodwill | 400,842 | 343,684 |
Other intangible assets, net | 135,841 | 118,999 |
Other assets | 160,241 | 132,453 |
Total assets | 2,346,391 | 2,024,124 |
Current liabilities: | ||
Accounts payable | 439,035 | 283,922 |
Accrued and other current liabilities | 453,933 | 433,897 |
Total current liabilities | 892,968 | 717,819 |
Non-current liabilities: | ||
Income taxes payable | 38,163 | 36,384 |
Other non-current liabilities | 117,467 | 93,582 |
Total liabilities | 1,048,598 | 847,785 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Registered shares, CHF 0.25 par value: Issued shares - 173,106 at December 31 and March 31, 2019 Additional shares that may be be issued out of conditional capital - 50,000 at December 31 and March 31, 2019 Additional shares that may be issued out of the authorized capital - 34,621 at December 31 and March 31, 2019 | 30,148 | 30,148 |
Additional paid-in capital | 59,668 | 56,655 |
Shares in treasury, at cost — 5,901 at December 31, 2019 and 7,244 at March 31, 2019 | (159,190) | (169,802) |
Retained earnings | 1,476,659 | 1,365,036 |
Accumulated other comprehensive loss | (109,492) | (105,698) |
Total shareholders’ equity | 1,297,793 | 1,176,339 |
Total liabilities and shareholders’ equity | $ 2,346,391 | $ 2,024,124 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - SFr / shares shares in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Shares, par value (in CHF per share) | SFr 0.25 | SFr 0.25 |
Shares issued (in shares) | 173,106 | 173,106 |
Shares that may be issued out of conditional capital (in shares) | 50,000 | 50,000 |
Shares that may be issued out of the authorized capital (in shares) | 34,621 | 34,621 |
Treasury, at cost, shares (in shares) | 5,901 | 7,244 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 235,803 | $ 215,452 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 32,154 | 32,655 |
Amortization of intangible assets | 21,958 | 17,236 |
Loss (gain) on investments | 772 | (589) |
Share-based compensation expense | 40,301 | 37,163 |
Deferred income taxes | 480 | (9,722) |
Other | (1,012) | (378) |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable, net | (147,292) | (158,944) |
Inventories | (15,170) | (69,163) |
Other assets | 2,866 | (11,098) |
Accounts payable | 155,190 | 133,657 |
Accrued and other liabilities | (1,896) | 87,174 |
Net cash provided by operating activities | 324,154 | 273,443 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (28,667) | (28,304) |
Investment in privately held companies | (310) | (2,542) |
Acquisitions, net of cash acquired | (91,569) | (133,908) |
Proceeds from the sale of property, plant and equipment | 1,037 | 0 |
Purchases of short-term investments | 0 | (1,505) |
Purchases of trading investments | (3,071) | (4,335) |
Proceeds from sales of trading investments | 3,139 | 4,838 |
Net cash used in investing activities | (119,441) | (165,756) |
Cash flows from financing activities: | ||
Payment of cash dividends | (124,180) | (113,971) |
Purchases of registered shares | (15,127) | (22,454) |
Proceeds from exercises of stock options and purchase rights | 11,540 | 10,135 |
Tax withholdings related to net share settlements of restricted stock units | (23,096) | (29,111) |
Net cash used in financing activities | (150,863) | (155,401) |
Effect of exchange rate changes on cash and cash equivalents | (2,320) | (9,745) |
Net increase (decrease) in cash and cash equivalents | 51,530 | (57,459) |
Cash and cash equivalents, beginning of the period | 604,516 | 641,947 |
Cash and cash equivalents, end of the period | 656,046 | 584,488 |
Non-cash investing activities: | ||
Property, plant and equipment purchased during the period and included in period end liability accounts | $ 4,871 | $ 3,742 |
CONDENSED CONSOLIDATED STATEM_4
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 at Mar. 31, 2018 | $ 1,050,557 | $ 30,148 | $ 47,234 | $ (165,686) | $ 1,232,316 | $ (93,455) |
Beginning of the period (in shares) at Mar. 31, 2018 | 173,106 | 8,527 | ||||
Increase (Decrease) in Shareholders' Equity | ||||||
Total comprehensive income | 210,614 | 215,452 | (4,838) | |||
Purchases of registered shares | (22,454) | $ (22,454) | ||||
Purchase of registered shares (in shares) | 532 | |||||
Sales of shares upon exercise of stock options and purchase rights | 10,135 | 6,008 | $ 4,127 | |||
Sales of shares upon exercise of stock options and purchase rights (in shares) | (317) | |||||
Issuance of shares upon vesting of restricted stock units | (29,111) | (48,192) | $ 19,081 | |||
Issuance of shares upon vesting of restricted stock units (in shares) | (1,387) | |||||
Share-based compensation | 37,200 | 37,200 | ||||
Cash dividends (in dollars per share) | (113,971) | (113,971) | ||||
End of the period at Dec. 31, 2018 | 1,132,088 | $ 30,148 | 42,250 | $ (164,932) | 1,322,915 | (98,293) |
End of the period (in shares) at Dec. 31, 2018 | 173,106 | 7,355 | ||||
Beginning of the period at Sep. 30, 2018 | 1,012,164 | $ 30,148 | 33,160 | $ (163,481) | 1,210,105 | (97,768) |
Beginning of the period (in shares) at Sep. 30, 2018 | 173,106 | 7,384 | ||||
Increase (Decrease) in Shareholders' Equity | ||||||
Total comprehensive income | 112,285 | 112,810 | (525) | |||
Purchases of registered shares | (2,553) | $ (2,553) | ||||
Purchase of registered shares (in shares) | 58 | |||||
Sales of shares upon exercise of stock options and purchase rights | 128 | 57 | $ 71 | |||
Sales of shares upon exercise of stock options and purchase rights (in shares) | (6) | |||||
Issuance of shares upon vesting of restricted stock units | (1,731) | (2,762) | $ 1,031 | |||
Issuance of shares upon vesting of restricted stock units (in shares) | (81) | |||||
Share-based compensation | 11,795 | 11,795 | ||||
End of the period at Dec. 31, 2018 | 1,132,088 | $ 30,148 | 42,250 | $ (164,932) | 1,322,915 | (98,293) |
End of the period (in shares) at Dec. 31, 2018 | 173,106 | 7,355 | ||||
Beginning of the period at Mar. 31, 2019 | 1,176,339 | $ 30,148 | 56,655 | $ (169,802) | 1,365,036 | (105,698) |
Beginning of the period (in shares) at Mar. 31, 2019 | 173,106 | 7,244 | ||||
Increase (Decrease) in Shareholders' Equity | ||||||
Total comprehensive income | 232,009 | 235,803 | (3,794) | |||
Purchases of registered shares | (15,127) | $ (15,127) | ||||
Purchase of registered shares (in shares) | 389 | |||||
Sales of shares upon exercise of stock options and purchase rights | 11,540 | 2,607 | $ 8,933 | |||
Sales of shares upon exercise of stock options and purchase rights (in shares) | (604) | |||||
Issuance of shares upon vesting of restricted stock units | (23,096) | (39,902) | $ 16,806 | |||
Issuance of shares upon vesting of restricted stock units (in shares) | (1,128) | |||||
Share-based compensation | 40,308 | 40,308 | ||||
Cash dividends (in dollars per share) | (124,180) | (124,180) | ||||
End of the period at Dec. 31, 2019 | 1,297,793 | $ 30,148 | 59,668 | $ (159,190) | 1,476,659 | (109,492) |
End of the period (in shares) at Dec. 31, 2019 | 173,106 | 5,901 | ||||
Beginning of the period at Sep. 30, 2019 | 1,167,537 | $ 30,148 | 50,913 | $ (163,728) | 1,359,134 | (108,930) |
Beginning of the period (in shares) at Sep. 30, 2019 | 173,106 | 6,203 | ||||
Increase (Decrease) in Shareholders' Equity | ||||||
Total comprehensive income | 116,963 | 117,525 | (562) | |||
Sales of shares upon exercise of stock options and purchase rights | 1,640 | (1,551) | $ 3,191 | |||
Sales of shares upon exercise of stock options and purchase rights (in shares) | (213) | |||||
Issuance of shares upon vesting of restricted stock units | (2,188) | (3,535) | $ 1,347 | |||
Issuance of shares upon vesting of restricted stock units (in shares) | (89) | |||||
Share-based compensation | 13,841 | 13,841 | ||||
End of the period at Dec. 31, 2019 | $ 1,297,793 | $ 30,148 | $ 59,668 | $ (159,190) | $ 1,476,659 | $ (109,492) |
End of the period (in shares) at Dec. 31, 2019 | 173,106 | 5,901 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) | 9 Months Ended | |||
Dec. 31, 2019$ / shares | Dec. 31, 2019SFr / shares | Dec. 31, 2018$ / shares | Dec. 31, 2018SFr / shares | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends (in $ per share) | (per share) | $ 0.74 | SFr 0.73 | $ 0.69 | SFr 0.67 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies and Estimates | 9 Months Ended |
Dec. 31, 2019 | |
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 help connect people to digital and cloud experiences. More than 35 years ago, Logitech created products to improve experiences around the personal PC platform, and today it is a multi-brand, multi-category company designing products that enable better experiences consuming, sharing and creating any digital content such as music, gaming, video and computing, whether it is on a computer, mobile device or in the cloud. The Company sells its products to a broad network of domestic and international customers, including direct sales to retailers and e-tailers 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 On October 31, 2019, the Company acquired General Workings, Inc. See "Note 2 - Business Acquisition" for more information. Basis of Presentation The condensed consolidated 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. The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year ended March 31, 2019 , included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on May 17, 2019. 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 nine months ended December 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2020, or any future periods. Changes in Significant Accounting Policies Other than the recent accounting pronouncements adopted and discussed below under Recent Accounting Pronouncements Adopted and Summary of Significant Accounting Policies , there have been no changes in the Company’s significant accounting policies during the nine months ended December 31, 2019 compared with the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended March 31, 2019 . 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, contingent consideration for a business acquisition and periodic reassessment of its fair value, valuation of operating right-of-use assets, warranty liabilities, accruals for customer incentives, cooperative marketing, and pricing programs (Customer Programs) and related breakage when appropriate, accrued sales return liability, allowance for doubtful accounts, inventory valuation, 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 these estimates. Recent Accounting Pronouncements Adopted In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, "Leases (Topic 842)" (ASU 2016-02 or Topic 842), which requires a lessee to recognize right-of-use (ROU) assets and lease liabilities arising from operating and financing leases with terms longer than 12 months on the consolidated balance sheets and to disclose key information about leasing arrangements. The Company adopted the new standard effective April 1, 2019 and recorded an ROU asset and lease liability related to its operating leases. The Company used the modified retrospective approach with the effective date as the date of initial application. Accordingly, the Company applied the new lease standard prospectively to leases existing or commencing on or after April 1, 2019. Prior period balances and disclosures have not been restated. The Company elected the package of transitional practical expedients, which among other provisions, allows the Company to not reassess under the new standard the Company's prior conclusions about lease identification, lease classification and initial direct cost, for any existing leases on the adoption date. In addition, for operating leases, the Company elected to account for lease and non-lease components as a single lease component. The Company also made an accounting policy election to not recognize lease liabilities and ROU assets on its condensed consolidated balance sheet for leases that, at the lease commencement date, have a lease term of 12 months or less. Adoption of the standard resulted in the recognition of $31.3 million of ROU assets and $37.4 million of lease liabilities related to the Company's leases on its condensed consolidated balance sheet on April 1, 2019. The difference of $6.1 million represented deferred rent for leases that existed as of the date of adoption, which decreased the opening balance of ROU assets. In addition, the prepaid rent balance as of the date of adoption increased the opening balance of ROU assets. The deferred rent and prepaid rent balances were derecognized as of the date of adoption and no adjustment was made to retained earnings. The adoption of the standard did not have an impact on the Company's condensed consolidated statement of operations, comprehensive income, changes in shareholders' equity or cash flows. In August 2018, the FASB issued ASU 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract" (ASU 2018-15), which clarifies that implementation costs incurred by customers in cloud computing arrangements are deferred if they would be capitalized by customers in software licensing arrangements under the internal-use software guidance. ASU 2018-15 is effective for annual and interim periods in fiscal years beginning after December 15, 2019, with early adoption permitted. Entities have the option to apply the guidance prospectively to all implementation costs incurred after the date of adoption or retrospectively. The Company adopted this standard effective April 1, 2019 using a prospective adoption method. The adoption of ASU 2018-15 did not have a material impact on the Company's condensed consolidated financial statements. Recent Accounting Pronouncements to be Adopted In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" (ASU 2016-13), which was further updated and clarified by the FASB through issuance of additional related ASUs, replaces the incurred-loss impairment methodology and requires immediate recognition of estimated credit losses expected to occur for most financial assets, including trade receivables. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The Company does not expect the adoption of ASU 2016-13 will have a material impact on its consolidated financial statements and plans to adopt the standard effective April 1, 2020. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements" (ASU 2018-13), which aims to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing fair value measurement disclosures. ASU 2018-13 is effective for annual and interim periods in fiscal years beginning after December 15, 2019. Early adoption is permitted. Retrospective adoption is required, except for certain disclosures which will be required to be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. The Company does not expect the adoption of ASU 2018-13 will have a material impact on its consolidated financial statements and plans to adopt the standard effective April 1, 2020. In August 2018, the FASB issued ASU 2018-14, "Compensation - Retirement Benefits - Defined Benefits Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans" (ASU 2018-14), which aims to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing defined benefit plan disclosures. ASU 2018-14 is effective for annual periods in fiscal years ending after December 15, 2020. Retrospective adoption is required and early adoption is permitted. The Company does not expect the adoption of ASU 2018-14 will have a material impact on its consolidated financial statements and plans to adopt the standard effective April 1, 2020. In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" (ASU 2019-12), which eliminates certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. This ASU also includes guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 is effective for annual and interim periods in fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is currently assessing the impact of ASU 2019-12 on its consolidated financial statements and plans to adopt the standard effective April 1, 2021. |
Business Acquisitions
Business Acquisitions | 9 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions On October 31, 2019 (the "Acquisition Date"), the Company acquired all equity interests of General Workings, Inc. (" Streamlabs ") for a total consideration of $105.7 million (as described in the table below), which included a working capital adjustment, plus additional contingent consideration of $29.0 million payable in stock only upon the achievement of certain net revenues for the period beginning on January 1, 2020 and ending on June 30, 2020 (the " Streamlabs Acquisition"). Streamlabs is a leading provider of software and tools for professional streamers. The Streamlabs Acquisition will be complementary to the Company's existing gaming portfolio. Streamlabs met the definition of a business, and therefore the acquisition is accounted for using the acquisition method. The fair value of consideration transferred for the Streamlabs Acquisition consists of the following (in thousands): Purchase price (cash) $ 105,645 Fair value of contingent consideration (earn-out) 37 Fair value of total consideration transferred $ 105,682 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 Cash and cash equivalents $ 17,014 Intangible assets 37,000 Other identifiable liabilities assumed, net (3,635 ) Net identifiable assets acquired 50,379 Contingent consideration (earn-out) (37 ) Goodwill 55,340 Net assets acquired $ 105,682 Goodwill related to the acquisition is primarily attributable to opportunities and economies of scale from combining the operations and technologies of Logitech and Streamlabs, and is not deductible for tax purposes. The following table summarizes the preliminary estimated fair values and estimated useful lives of the components of identifiable intangible assets acquired as of the Acquisition Date (Dollars in thousands): Preliminary Fair Value Estimated Useful Life (years) Developed technology $ 21,800 6.0 Customer relationships 6,000 2.0 Trade name 9,200 8.0 Total identifiable intangible assets acquired $ 37,000 5.9 Intangible assets acquired as a result of the Streamlabs Acquisition are being amortized over their estimated useful lives using the straight-line method of amortization, which materially approximates the distribution of the economic value of the identified intangible assets. Amortization of acquired developed technology of $0.6 million during the three months ended December 31, 2019 is included in amortization of intangible assets and purchase accounting effect of inventory in the condensed consolidated statements of operations. Amortization of the acquired customer relationships and trade name of $0.7 million during the three months ended December 31, 2019 is included in amortization of intangible assets and acquisition-related costs in the condensed consolidated statements of operations. Developed technology relates to the software platform which existing Streamlabs services is provided on. The economic useful life was determined based on the technology cycle related to developed technology of the software platform, 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 to existing customers of Streamlabs . The economic useful life was determined based on historical customer turnover rates and industry benchmarks. Trade name relates to the “ Streamlabs ” 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 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 developed technology, which were discounted at a rate of 25% . The fair value of trade name was 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. Trade name was valued using royalty rate of 5% and was discounted at a rate of 25% . The fair value of customer relationships was estimated primarily using the with and without scenario, a discounted cash flow method (Level 3). Under this method, the Company calculated the present value of the after-tax cash flows expected to be generated by the business with and without the customer relationships using a discount rate of 20% . The without scenario incorporates lost revenue and lost profits over the period necessary to retain the asset. The Company believes the preliminary fair values of acquired intangible assets recorded above represents their fair values and approximates the amounts a market participant would pay for these intangible assets as of the Acquisition Date. 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 tangible assets acquired and liabilities assumed, and working capital adjustments that may affect the total consideration transferred, the Company may revise its preliminary estimates of fair values during the remainder of the measurement period (which will not exceed 12 months from the Acquisition Date). Any such revisions or changes may be material as the Company finalizes the fair values of the tangible and intangible assets acquired and liabilities assumed. The Company incurred acquisition-related costs for the Streamlabs Acquisition of approximately $0.8 million and $1.4 million during the three and nine months ended December 31, 2019 , respectively. The acquisition-related costs are included in amortization of intangible assets and acquisition-related costs in the condensed consolidated statements of operations. The Company included Streamlabs ' estimated fair value of assets acquired and liabilities assumed in its condensed consolidated financial statements beginning on the Acquisition Date. The results of operations for Streamlabs subsequent to the Acquisition Date have been included in, but are not material to, the Company's condensed consolidated statements of operations for the three and nine months ended December 31, 2019 . Pro forma results of operations for the Streamlabs Acquisition have not been presented because they are not material to the condensed consolidated statements of operations for the three and nine months ended December 31, 2019 . Streamlabs contributed $4.1 million to the net sales for the three and nine months ended December 31, 2019 , representing less than one percent of the Company's net sales for each of the respective periods. On October 31, 2019, the Company also made an immaterial technology acquisition for a total cash consideration of $3.6 million , which was accounted for using the acquisition method. The Company retained 10% of the total consideration for the purpose of ensuring seller's representations and warranties. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The following table summarizes the computations of basic and diluted net income per share for the three and nine months ended December 31, 2019 and 2018 (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Net income $ 117,525 $ 112,810 $ 235,803 $ 215,452 Shares used in net income per share computation: Weighted average shares outstanding - basic 167,063 165,707 166,678 165,552 Effect of potentially dilutive equivalent shares 2,622 3,200 2,495 3,414 Weighted average shares outstanding - diluted 169,685 168,907 169,173 168,966 Net income per share: Basic $ 0.70 $ 0.68 $ 1.41 $ 1.30 Diluted $ 0.69 $ 0.67 $ 1.39 $ 1.28 Share equivalents attributable to outstanding stock options, restricted stock units ("RSUs"), performance stock units ("PSUs") and employee share purchase plan (ESPP) rights totaling 1.8 million and 1.3 million for the three months ended December 31, 2019 and 2018, respectively, and 1.8 million and 1.2 million for the nine months ended December 31, 2019 and 2018, respectively, were excluded from the calculation of diluted net income per share because the combined exercise price and average unamortized grant date fair value upon exercise of these options and ESPP rights or vesting of RSUs were greater than the average market price of the Company's shares during the periods presented herein, and therefore their inclusion would have been anti-dilutive. The majority of performance-based awards were not included because all necessary conditions have not been satisfied by the end of the respective period, and those shares were not issuable if the end of the reporting period was the end of the contingency period. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Employee Share Purchase Plans and Stock Incentive Plans As of December 31, 2019 , the Company offers the 2006 Employee Share Purchase Plan (Non-U.S.), as amended and restated (2006 ESPP), the 1996 Employee Share Purchase Plan (U.S.), as amended and restated (1996 ESPP), the 2006 Stock Incentive Plan, as amended and restated (2006 Plan), and the 2012 Stock Inducement Equity Plan (2012 Plan). The following table summarizes the share-based compensation expense and total income tax benefit recognized for share-based awards for the three and nine months ended December 31, 2019 and 2018 (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Cost of goods sold $ 1,210 $ 953 $ 3,552 $ 2,874 Marketing and selling 6,216 4,600 20,016 15,250 Research and development 2,242 1,811 6,644 5,295 General and administrative 4,163 4,491 10,089 13,744 Total share-based compensation expense 13,831 11,855 40,301 37,163 Income tax benefit (3,135 ) (2,397 ) (12,658 ) (14,576 ) Total share-based compensation expense, net of income tax benefit $ 10,696 $ 9,458 $ 27,643 $ 22,587 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 share-based awards vested or exercised during the period. As of December 31, 2019 and 2018 , the balance of capitalized share-based compensation included in inventory was $0.9 million and $0.8 million , 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 costs recorded of $2.3 million and $2.2 million for the three months ended December 31, 2019 and 2018 , respectively, and $7.1 million and $6.7 million for the nine months ended December 31, 2019 and 2018 , respectively, were primarily related to service costs. |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2019 was $14.5 million based on an effective income tax rate of 11.0% of pre-tax income, compared to an income tax provision of $9.3 million based on an effective income tax rate of 7.6% of pre-tax income for the three months ended December 31, 2018 . The income tax provision for the nine months ended December 31, 2019 was $18.4 million based on an effective income tax rate of 7.2% of pre-tax income, compared to an income tax provision of $10.3 million based on an effective income tax rate of 4.6% of pre-tax income for the nine months ended December 31, 2018 . On May 19, 2019, the Swiss electorate approved the Federal Act on Tax Reform and AHV Financing ("TRAF"), a major reform to better align the Swiss tax system with international tax standards. The legislation was subsequently published in the federal register on August 6, 2019 to take effect on January 1, 2020. As of December 31, 2019, TRAF has not been enacted in all cantons, including the canton of Vaud, as the cantonal legislative procedures are in process. The Company anticipates TRAF to take effect as of January 1, 2020 when enactment occurs in the canton of Vaud. The change in the effective income tax rate for the three and nine months ended December 31, 2019 , compared to the same periods ended December 31, 2018 , was primarily due to the mix of income and losses in the various tax jurisdictions in which the Company operates and the transitional income tax impact in Switzerland. The Company has benefited from a longstanding tax ruling from the canton of Vaud through December 31, 2019. The transitional income tax impact represents income tax provision at the current full statutory income tax rate of 13.67% without taking account of other elements of the tax reform yet to be enacted. Furthermore, there was a discrete tax benefit of $1.7 million from adjusting deferred tax assets and liabilities in Switzerland in the nine months ended December 31, 2019. There were discrete tax benefits of $6.0 million and $2.7 million from the recognition of net excess tax benefits in the United States and reversal of uncertain tax positions from the expiration of statutes of limitations, respectively, in the nine-month period ended December 31, 2019 , compared with $9.5 million and $2.3 million , respectively, in the nine-month period ended December 31, 2018 . As of December 31, 2019 and March 31, 2019 , the total amount of unrecognized tax benefits due to uncertain tax positions was $85.0 million and $76.5 million , respectively, all of which would affect the effective income tax rate if recognized. As of December 31, 2019 and March 31, 2019 , the Company had $38.2 million and $36.4 million , respectively, in non-current income taxes payable including interest and penalties, related to the Company's income tax liability for uncertain tax positions. The Company recognizes interest and penalties related to unrecognized tax positions in income tax provision. As of December 31, 2019 and March 31, 2019 , the Company had $2.7 million and $2.5 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 2020, the Company continues to review its tax positions and provide for or reverse unrecognized tax benefits as they 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 $4.1 million from the lapse of the statutes of limitations in various jurisdictions during the next twelve months. |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Dec. 31, 2019 | |
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 December 31 and March 31 , 2019 (in thousands): December 31, 2019 March 31, 2019 Accounts receivable, net: Accounts receivable $ 797,562 $ 573,348 Allowance for doubtful accounts (2,395 ) (84 ) Allowance for sales returns (8,308 ) (6,486 ) Allowance for cooperative marketing arrangements (53,400 ) (35,080 ) Allowance for customer incentive programs (91,906 ) (60,036 ) Allowance for pricing programs (110,244 ) (88,353 ) $ 531,309 $ 383,309 Inventories: Raw materials $ 31,103 $ 40,970 Finished goods 276,391 252,525 $ 307,494 $ 293,495 Other current assets: Value-added tax receivables $ 36,581 $ 34,321 Prepaid expenses and other assets 41,958 34,795 $ 78,539 $ 69,116 Property, plant and equipment, net: Property, plant and equipment at cost $ 356,261 $ 359,345 Accumulated depreciation and amortization (280,182 ) (280,793 ) $ 76,079 $ 78,552 Other assets: Deferred tax assets $ 86,058 $ 90,808 Right-of-use assets (1) 27,670 — Trading investments for deferred compensation plan 23,796 20,363 Investments in privately held companies 16,502 16,022 Other assets 6,215 5,260 $ 160,241 $ 132,453 (1) Increase of balances was due to the adoption of Topic 842. Refer to Note 1 to the condensed consolidated financial statements for more information. The following table presents the components of certain balance sheet liability amounts as of December 31 and March 31, 2019 (in thousands): December 31, 2019 March 31, 2019 Accrued and other current liabilities: Accrued personnel expenses $ 83,902 $ 103,166 Accrued sales return liability 33,242 37,749 Accrued customer marketing, pricing and incentive programs 165,863 143,888 Operating lease liability (1) 11,304 — Warranty accrual 25,743 21,524 Income taxes payable 4,307 6,207 Other current liabilities 129,572 121,363 $ 453,933 $ 433,897 Other non-current liabilities: Warranty accrual $ 14,434 $ 12,705 Obligation for deferred compensation plan 23,796 20,363 Employee benefit plan obligation 52,471 51,448 Operating lease liability (1) 21,744 — Deferred tax liability 2,050 2,050 Other non-current liabilities 2,972 7,016 $ 117,467 $ 93,582 (1) Increase of balances was due to the adoption of Topic 842. Refer to Note 1 to the condensed consolidated financial statements for more information. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Dec. 31, 2019 | |
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): December 31, 2019 March 31, 2019 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Cash equivalents $ 528,446 $ — $ — $ 496,434 $ — $ — Trading investments for deferred compensation plan included in other assets: Money market funds 4,460 — — 4,080 — — Mutual funds 19,336 — — 16,283 — — Total of trading investments for deferred compensation plan $ 23,796 $ — $ — $ 20,363 $ — $ — Currency exchange derivative assets $ — $ 118 $ — $ — $ 455 $ — Liabilities: Contingent consideration for business acquisition included in accrued and other current liabilities (Note 2) $ — $ — $ 37 $ — $ — $ — Currency exchange derivative liabilities $ — $ 695 $ — $ — $ 36 $ — Investment Securities The marketable securities for the Company's deferred compensation plan were recorded at a fair value of $23.8 million and $20.4 million as of December 31, 2019 and March 31, 2019 , respectively, based on quoted market prices. Quoted market prices are observable inputs that are classified as Level 1 within the fair value hierarchy. Unrealized gains (losses) related to trading securities for the three and nine months ended December 31, 2019 and 2018 were not material and are included in other income (expense), net in the Company's condensed consolidated statements of operations. Contingent Consideration for Business Acquisition The contingent consideration for business acquisition arising from the Streamlabs Acquisition (see "Note 2 - Business Acquisition" to the condensed consolidated financial statements for more information) represents the future potential earn-out payments of $29.0 million payable in stock only upon the achievement of net revenues for the period beginning on January 1, 2020 and ending on June 30, 2020. The fair value of the earn-out as of the Acquisition Date was $0.04 million which was determined by using a Black-Scholes-Merton option-pricing valuation model that includes significant assumptions and unobservable inputs such as the projected revenues of Streamlabs over the earn-out period and the probability of the earn-out threshold being met. Actual results that differ from the assumptions used and any changes to the significant assumptions and unobservable inputs used could have a material impact on future results of operations. Actual payment of contingent consideration in the future could be different from the current fair value of the contingent consideration. The fair value of the contingent consideration is remeasured at each reporting period based on the inputs on the date of remeasurement. The fair value of the earn-out was $0.04 million as of December 31, 2019 . Equity Method Investments The Company has certain non-marketable investments included in other assets in the Company's condensed consolidated balance sheets that are accounted for under the equity method of accounting, with a carrying value of $7.0 million and $6.6 million as of December 31, 2019 and March 31, 2019 , respectively. Assets Measured at Fair Value on a Nonrecurring Basis Financial Assets. The Company has certain investments without readily determinable fair values 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 carrying value is also adjusted for observable price changes with a same or similar security from the same issuer. The amount of these investments included in other assets as of December 31, 2019 and March 31, 2019 was $9.5 million . There was no impairment of these assets during the three and nine months ended December 31, 2019 or 2018 . Non-Financial Assets. The Company’s non-financial assets, such as intangible assets and property, plant and equipment, are recorded at fair value only upon initial recognition or if an impairment is recognized. There was no impairment of these assets during the three and nine months ended December 31, 2019 or 2018 . |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2019 and March 31, 2019 . The fair value of the Company’s derivative instruments was not material as of December 31, 2019 or March 31, 2019 . The amount of gain (loss) recognized on derivatives not designated as hedging instruments was 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 nine months ended December 31, 2019 and 2018 (in thousands): Three Months Ended Amount of Gain (Loss) Amount of Loss (Gain) 2019 2018 2019 2018 Cash flow hedges $ (1,381 ) $ 575 $ (739 ) $ (615 ) Nine Months Ended Amount of Gain (Loss) Amount of Loss (Gain) 2019 2018 2019 2018 Cash flow hedges $ 56 $ 1,060 $ (1,097 ) $ 2,454 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. Hedging relationships are discontinued when the hedging contract is no longer eligible for hedge accounting, or is sold, terminated or exercised, or when the Company removes hedge designation for the contract. Gains and losses in the fair value of the effective portion of the discontinued hedges continue to be reported in accumulated other comprehensive loss until the hedged inventory purchases are sold, unless it is probable that the forecasted inventory purchases will not occur by the end of the originally specified time period or within an additional two -month period of time thereafter. In all periods presented herein, there have been no forecasted inventory purchases that were probable to not occur by the end of the originally specified time period or within an additional two-month period of time thereafter. The notional amounts of foreign currency exchange forward contracts outstanding related to forecasted inventory purchases were $69.5 million as of December 31, 2019 and $41.4 million as of March 31, 2019 . The Company had $0.7 million of net losses related to its cash flow hedges included in accumulated other comprehensive loss as of December 31, 2019 which 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 December 31, 2019 and March 31, 2019 were $71.0 million and $50.4 million , respectively. Open forward and swap contracts outstanding as of December 31, 2019 and March 31, 2019 consisted of contracts in Mexican Pesos, Japanese Yen, Canadian Dollars, Taiwan New Dollars and Australian Dollars to be settled at future dates at pre-determined exchange rates. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company conducts its impairment analysis of 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 sole reporting unit may be less than its carrying amount. The Company conducted its annual impairment analysis of goodwill as of December 31, 2019 by performing a qualitative assessment and concluded that it was more likely than not that the fair value of its reporting unit exceeds its carrying amount. In assessing the qualitative factors, the Company considered the impact of change in industry and competitive environment, growth in the Company's market capitalization and budgeted-to-actual revenue performance for the last twelve months. The following table summarizes the activities in the Company’s goodwill balance during the nine months ended December 31, 2019 (in thousands): As of March 31, 2019 $ 343,684 Acquisitions (1) 57,140 Currency translation 18 As of December 31, 2019 $ 400,842 (1) Includes goodwill acquired from the Streamlabs Acquisition and the immaterial technology acquisition in October 2019. See Note 2 for more information. The Company's acquired intangible assets subject to amortization were as follows (in thousands): December 31, 2019 March 31, 2019 Gross Carrying Amount Accumulated Net Carrying Amount Gross Carrying Amount Accumulated Net Carrying Amount Trademark and trade names $ 45,570 $ (17,543 ) $ 28,027 $ 36,370 $ (13,659 ) $ 22,711 Developed technology 118,807 (72,834 ) 45,973 95,207 (62,341 ) 32,866 Customer contracts/relationships 90,610 (28,769 ) 61,841 84,610 (21,188 ) 63,422 Total $ 254,987 $ (119,146 ) $ 135,841 $ 216,187 $ (97,188 ) $ 118,999 |
Financing Arrangements
Financing Arrangements | 9 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements The Company had several uncommitted, unsecured bank lines of credit aggregating $78.4 million as of December 31, 2019 . There are no financial covenants under these lines of credit with which the Company must comply. As of December 31, 2019 , the Company had outstanding bank guarantees of $17.1 million under these lines of credit. There was no borrowing outstanding under these lines of credit as of December 31, 2019 or March 31, 2019 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Product Warranties Changes in the Company’s warranty liability for the three and nine months ended December 31, 2019 and 2018 were as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Beginning of the period $ 37,222 $ 31,754 $ 34,229 $ 27,573 Assumed from business acquisition — — — 351 Provision 9,608 11,305 26,652 30,625 Settlements (6,840 ) (7,523 ) (20,544 ) (22,405 ) Currency translation 187 (61 ) (160 ) (669 ) End of the period $ 40,177 $ 35,475 $ 40,177 $ 35,475 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 December 31, 2019 , no amounts have been accrued for these indemnification provisions. The Company does not believe, based on historical experience and information currently available, that it is probable that any material amounts will be required to be paid under its indemnification arrangements. The Company also indemnifies its current and former directors and certain of its current and former officers. Certain costs incurred for providing such indemnification may be recoverable under various insurance policies. The Company is unable to reasonably estimate the maximum amount that could be payable under these arrangements because these exposures are not limited, the obligations are conditional in nature and the facts and circumstances involved in any situation that might arise are variable. Legal Proceedings From time to time the Company is involved in claims and legal proceedings that arise in the ordinary course of its business. The Company is currently subject to several such claims and a small number of legal proceedings. The Company believes that these matters lack merit and intends to vigorously defend against them. Based on currently available information, the Company does not believe that resolution of pending matters will have a material adverse effect on its financial condition, cash flows or results of operations. However, litigation is subject to inherent uncertainties, and there can be no assurances that the Company’s defenses will be successful or that any such lawsuit or claim would not have a material adverse impact on the Company’s business, financial condition, cash flows or results of operations in a particular period. Any claims or proceedings against the Company, whether meritorious or not, can have an adverse impact because of defense costs, diversion of management and operational resources, negative publicity and other factors. Any failure to obtain 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 | 9 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Share Repurchase Program 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. 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. As of December 31, 2019 , $172.4 million is still available for repurchase under the 2017 buyback program. Dividends During the nine months ended December 31, 2019 , the Company declared and paid cash dividends of CHF 0.73 (USD equivalent of $0.74 ) per share, totaling $124.2 million on the Company's outstanding shares. During the nine months ended December 31, 2018 , the Company declared and paid cash dividends of CHF 0.67 (USD equivalent of $0.69 ) per share, totaling $114.0 million on the Company's outstanding shares. Any future dividends will be subject to approval of the Company's shareholders. Accumulated Other Comprehensive Income (Loss) The accumulated other comprehensive income (loss) was as follows (in thousands): Accumulated Other Comprehensive Income (Loss) Cumulative (1) Defined (1) Deferred Hedging Losses (1) Total March 31, 2019 $ (92,148 ) $ (13,932 ) $ 382 $ (105,698 ) Other comprehensive income (loss) (2,639 ) (114 ) (1,041 ) (3,794 ) December 31, 2019 $ (94,787 ) $ (14,046 ) $ (659 ) $ (109,492 ) (1) Tax effect was not significant as of December 31 or March 31, 2019 . |
Segment Information
Segment Information | 9 Months Ended |
Dec. 31, 2019 | |
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 CEO, who is considered to be the Company’s Chief Operating Decision Maker. The CEO periodically reviews information such as sales and adjusted 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 or change in fair value of contingent consideration from business acquisition. Sales by product categories and sales channels, excluding intercompany transactions, for the three and nine months ended December 31, 2019 and 2018 were as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Pointing Devices $ 154,540 $ 149,123 $ 409,293 $ 405,250 Keyboards & Combos 156,333 144,169 424,061 404,263 PC Webcams 32,165 33,021 89,041 90,916 Tablet & Other Accessories 31,256 35,757 103,442 104,903 Video Collaboration 91,964 74,186 254,941 190,154 Mobile Speakers 92,969 96,263 200,617 207,690 Audio & Wearables 81,934 98,629 208,576 212,343 Gaming 245,736 213,663 541,265 510,481 Smart Home 15,790 19,577 35,088 37,829 Other (1) — — 279 185 Total sales $ 902,687 $ 864,388 $ 2,266,603 $ 2,164,014 (1) Other category includes products that the Company currently intends to phase out, or has already phased out, because they are no longer strategic to the Company's business. Sales by geographic region (based on the customers’ locations) for the three and nine months ended December 31, 2019 and 2018 were as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Americas $ 380,493 $ 385,598 $ 970,775 $ 946,240 EMEA 308,907 269,082 719,994 648,014 Asia Pacific 213,287 209,708 575,834 569,760 Total sales $ 902,687 $ 864,388 $ 2,266,603 $ 2,164,014 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 sales for each of the periods presented herein. China represented more than 10% of the total consolidated sales for the nine months ended December 31, 2019 and 2018. No other countries represented 10% or more of the Company’s total consolidated sales for the periods presented herein. Switzerland, the Company’s home domicile, represented 4% of the Company's total consolidated sales for the three and nine months ended December 31, 2019 , respectively, and represented 3% of the Company's total consolidated sales for the three and nine months ended December 31, 2018 , respectively. Two customers of the Company each represented more than 10% of the total consolidated gross sales for each of the periods presented herein. Property, plant and equipment, net by geographic region were as follows (in thousands): December 31, 2019 March 31, 2019 Americas $ 26,837 $ 29,813 EMEA 4,451 4,537 Asia Pacific 44,791 44,202 Total property, plant and equipment, net $ 76,079 $ 78,552 Property, plant and equipment, net in the United States and China were $26.7 million and $37.0 million , respectively, as of December 31, 2019 , and $29.8 million and $36.4 million , respectively, as of March 31, 2019 . No other countries represented 10% or more of the Company’s total consolidated property, plant and equipment, net as of December 31, 2019 and March 31, 2019 . Property, plant and equipment, net in Switzerland, the Company’s home domicile, were $1.6 million and $1.7 million as of December 31, 2019 and March 31, 2019 , respectively. |
Restructuring
Restructuring | 9 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During the first quarter of fiscal year 2019, the Company implemented a restructuring plan to streamline and realign the Company's overall organizational structure and reallocate resources to support long-term growth opportunities. In July 2018, the Company's Board of Directors approved additional costs under this restructuring plan, totaling pre-tax charges of approximately $10.0 million to $15.0 million , of which $11.4 million has been recognized cumulatively as of December 31, 2019 . The total charges consisted of cash severance and other personnel costs and are presented as restructuring charges (credit), net in the condensed consolidated statements of operations, and the accrual balances are presented in accrued and other current liabilities in the condensed consolidated balance sheets. During the first quarter of fiscal year 2020, the Company had substantially completed this restructuring plan. The following table summarizes restructuring-related activities during the three and nine months ended December 31, 2019 (in thousands): Termination Accrual balance at March 31, 2019 $ 4,389 Charges 478 Cash payments (1,956 ) Accrual balance at June 30, 2019 2,911 Credits (364 ) Cash payments (1,140 ) Accrual balance at September 30, 2019 1,407 Credits (45 ) Cash payments (308 ) Accrual balance at December 31, 2019 $ 1,054 |
Leases
Leases | 9 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company is a lessee in several noncancellable operating leases, primarily real estate facilities for office space and for transportation and office equipment. The Company accounts for leases in accordance with Topic 842 (see Note 1) and determines if an arrangement is a lease or contains a lease at contract inception. ROU assets are included in other assets, short-term lease liabilities are included in accrued and other current liabilities, and long-term lease liabilities are included in other non-current liabilities on the Company's unaudited condensed consolidated balance sheet. Leases with an initial term of 12 months or less are not recorded on the balance sheet. For the Company's operating leases, the Company accounts for the lease and non-lease components as a single lease component. Lease expense is recognized on a straight-line basis over the lease term. For operating leases, the lease liability is initially and subsequently measured at the present value of the unpaid lease payments at lease commencement date. Topic 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if the rate cannot be readily determined, its incremental borrowing rate. As the rate implicit in the lease is not readily determinable for the Company's operating leases, the Company generally uses an incremental borrowing rate as the discount rate for the lease. The Company's incremental borrowing rate is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Because the Company does not generally borrow in a collateralized basis, it uses its understanding of what its collateralized credit rating would be as an input to deriving an appropriate incremental borrowing rate. The operating lease right-of-use asset includes any lease payments made and excludes lease incentives. The Company's lease arrangements comprise of operating leases with various expiration dates through June 30, 2031 . The lease term for all of the Company’s leases includes the noncancellable period of the lease. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into our determination of the duration of the lease arrangement. The Company's leases do not contain any material residual value guarantees. For the three and nine months ended December 31, 2019 , the total operating lease costs were $3.4 million and $10.3 million, respectively, which included short-term lease costs and sublease income. Total variable lease costs were immaterial during the three and nine months ended December 31, 2019 . The total operating and variable lease costs were included in cost of goods sold, marketing and selling, research and development, and general and administrative in the Company's unaudited condensed consolidated statement of operations. As of December 31, 2019 , the weighted-average remaining lease term was 3.9 years , and the weighted-average discount rate was 2.9% . For the three and nine months ended December 31, 2019 , cash paid for amounts included in the measurement of operating lease liabilities was $3.5 million and $9.9 million, respectively, and right-of-use assets obtained in exchange for new operating lease liabilities was $0.1 million and $5.0 million, respectively. Future lease payments included in the measurement of lease liabilities as of December 31, 2019 for the following five fiscal years and thereafter are as follows (in thousands): Operating Lease Remaining 2020 $ 3,475 2021 11,470 2022 9,349 2023 5,688 2024 1,384 Thereafter 4,149 Total lease payments 35,515 Less interest (2,467 ) Present value of lease liabilities $ 33,048 Future minimum lease payments, as defined under the previous lease accounting guidance of ASC Topic 840 under our non-cancelable operating leases as of March 31, 2019 were as follows (in thousands): Years Ending March 31, Operating Lease 2020 $ 11,849 2021 10,002 2022 7,882 2023 5,111 2024 1,130 Thereafter 3,646 Total lease payments $ 39,620 |
The Company and Summary of Si_2
The Company and Summary of Significant Accounting Policies and Estimates (Policies) | 9 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy | Basis of Presentation The condensed consolidated 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. The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year ended March 31, 2019 |
Basis of Presentation | 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 nine months ended December 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2020, or any future periods. |
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, contingent consideration for a business acquisition and periodic reassessment of its fair value, valuation of operating right-of-use assets, warranty liabilities, accruals for customer incentives, cooperative marketing, and pricing programs (Customer Programs) and related breakage when appropriate, accrued sales return liability, allowance for doubtful accounts, inventory valuation, 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 these estimates. |
Recent Accounting Pronouncements Issued and Adopted | Recent Accounting Pronouncements Adopted In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, "Leases (Topic 842)" (ASU 2016-02 or Topic 842), which requires a lessee to recognize right-of-use (ROU) assets and lease liabilities arising from operating and financing leases with terms longer than 12 months on the consolidated balance sheets and to disclose key information about leasing arrangements. The Company adopted the new standard effective April 1, 2019 and recorded an ROU asset and lease liability related to its operating leases. The Company used the modified retrospective approach with the effective date as the date of initial application. Accordingly, the Company applied the new lease standard prospectively to leases existing or commencing on or after April 1, 2019. Prior period balances and disclosures have not been restated. The Company elected the package of transitional practical expedients, which among other provisions, allows the Company to not reassess under the new standard the Company's prior conclusions about lease identification, lease classification and initial direct cost, for any existing leases on the adoption date. In addition, for operating leases, the Company elected to account for lease and non-lease components as a single lease component. The Company also made an accounting policy election to not recognize lease liabilities and ROU assets on its condensed consolidated balance sheet for leases that, at the lease commencement date, have a lease term of 12 months or less. Adoption of the standard resulted in the recognition of $31.3 million of ROU assets and $37.4 million of lease liabilities related to the Company's leases on its condensed consolidated balance sheet on April 1, 2019. The difference of $6.1 million represented deferred rent for leases that existed as of the date of adoption, which decreased the opening balance of ROU assets. In addition, the prepaid rent balance as of the date of adoption increased the opening balance of ROU assets. The deferred rent and prepaid rent balances were derecognized as of the date of adoption and no adjustment was made to retained earnings. The adoption of the standard did not have an impact on the Company's condensed consolidated statement of operations, comprehensive income, changes in shareholders' equity or cash flows. In August 2018, the FASB issued ASU 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract" (ASU 2018-15), which clarifies that implementation costs incurred by customers in cloud computing arrangements are deferred if they would be capitalized by customers in software licensing arrangements under the internal-use software guidance. ASU 2018-15 is effective for annual and interim periods in fiscal years beginning after December 15, 2019, with early adoption permitted. Entities have the option to apply the guidance prospectively to all implementation costs incurred after the date of adoption or retrospectively. The Company adopted this standard effective April 1, 2019 using a prospective adoption method. The adoption of ASU 2018-15 did not have a material impact on the Company's condensed consolidated financial statements. Recent Accounting Pronouncements to be Adopted In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" (ASU 2016-13), which was further updated and clarified by the FASB through issuance of additional related ASUs, replaces the incurred-loss impairment methodology and requires immediate recognition of estimated credit losses expected to occur for most financial assets, including trade receivables. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The Company does not expect the adoption of ASU 2016-13 will have a material impact on its consolidated financial statements and plans to adopt the standard effective April 1, 2020. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements" (ASU 2018-13), which aims to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing fair value measurement disclosures. ASU 2018-13 is effective for annual and interim periods in fiscal years beginning after December 15, 2019. Early adoption is permitted. Retrospective adoption is required, except for certain disclosures which will be required to be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. The Company does not expect the adoption of ASU 2018-13 will have a material impact on its consolidated financial statements and plans to adopt the standard effective April 1, 2020. In August 2018, the FASB issued ASU 2018-14, "Compensation - Retirement Benefits - Defined Benefits Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans" (ASU 2018-14), which aims to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing defined benefit plan disclosures. ASU 2018-14 is effective for annual periods in fiscal years ending after December 15, 2020. Retrospective adoption is required and early adoption is permitted. The Company does not expect the adoption of ASU 2018-14 will have a material impact on its consolidated financial statements and plans to adopt the standard effective April 1, 2020. In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" (ASU 2019-12), which eliminates certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. This ASU also includes guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 is effective for annual and interim periods in fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is currently assessing the impact of ASU 2019-12 on its consolidated financial statements and plans to adopt the standard effective April 1, 2021. |
Business Acquisitions Business
Business Acquisitions Business Acquisition (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Fair Value of Consideration Transferred | The fair value of consideration transferred for the Streamlabs Acquisition consists of the following (in thousands): Purchase price (cash) $ 105,645 Fair value of contingent consideration (earn-out) 37 Fair value of total consideration transferred $ 105,682 |
Fair Value of 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 Cash and cash equivalents $ 17,014 Intangible assets 37,000 Other identifiable liabilities assumed, net (3,635 ) Net identifiable assets acquired 50,379 Contingent consideration (earn-out) (37 ) Goodwill 55,340 Net assets acquired $ 105,682 |
Estimated Fair Values and Useful Lives of Identifiable Intangible Assets | The following table summarizes the preliminary estimated fair values and estimated useful lives of the components of identifiable intangible assets acquired as of the Acquisition Date (Dollars in thousands): Preliminary Fair Value Estimated Useful Life (years) Developed technology $ 21,800 6.0 Customer relationships 6,000 2.0 Trade name 9,200 8.0 Total identifiable intangible assets acquired $ 37,000 5.9 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of computations of basic and diluted net income per share | The following table summarizes the computations of basic and diluted net income per share for the three and nine months ended December 31, 2019 and 2018 (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Net income $ 117,525 $ 112,810 $ 235,803 $ 215,452 Shares used in net income per share computation: Weighted average shares outstanding - basic 167,063 165,707 166,678 165,552 Effect of potentially dilutive equivalent shares 2,622 3,200 2,495 3,414 Weighted average shares outstanding - diluted 169,685 168,907 169,173 168,966 Net income per share: Basic $ 0.70 $ 0.68 $ 1.41 $ 1.30 Diluted $ 0.69 $ 0.67 $ 1.39 $ 1.28 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [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 nine months ended December 31, 2019 and 2018 (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Cost of goods sold $ 1,210 $ 953 $ 3,552 $ 2,874 Marketing and selling 6,216 4,600 20,016 15,250 Research and development 2,242 1,811 6,644 5,295 General and administrative 4,163 4,491 10,089 13,744 Total share-based compensation expense 13,831 11,855 40,301 37,163 Income tax benefit (3,135 ) (2,397 ) (12,658 ) (14,576 ) Total share-based compensation expense, net of income tax benefit $ 10,696 $ 9,458 $ 27,643 $ 22,587 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
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 December 31 and March 31 , 2019 (in thousands): December 31, 2019 March 31, 2019 Accounts receivable, net: Accounts receivable $ 797,562 $ 573,348 Allowance for doubtful accounts (2,395 ) (84 ) Allowance for sales returns (8,308 ) (6,486 ) Allowance for cooperative marketing arrangements (53,400 ) (35,080 ) Allowance for customer incentive programs (91,906 ) (60,036 ) Allowance for pricing programs (110,244 ) (88,353 ) $ 531,309 $ 383,309 Inventories: Raw materials $ 31,103 $ 40,970 Finished goods 276,391 252,525 $ 307,494 $ 293,495 Other current assets: Value-added tax receivables $ 36,581 $ 34,321 Prepaid expenses and other assets 41,958 34,795 $ 78,539 $ 69,116 Property, plant and equipment, net: Property, plant and equipment at cost $ 356,261 $ 359,345 Accumulated depreciation and amortization (280,182 ) (280,793 ) $ 76,079 $ 78,552 Other assets: Deferred tax assets $ 86,058 $ 90,808 Right-of-use assets (1) 27,670 — Trading investments for deferred compensation plan 23,796 20,363 Investments in privately held companies 16,502 16,022 Other assets 6,215 5,260 $ 160,241 $ 132,453 (1) Increase of balances was due to the adoption of Topic 842. Refer to Note 1 to the condensed consolidated financial statements for more information. |
Schedule of components of balance sheet liability | The following table presents the components of certain balance sheet liability amounts as of December 31 and March 31, 2019 (in thousands): December 31, 2019 March 31, 2019 Accrued and other current liabilities: Accrued personnel expenses $ 83,902 $ 103,166 Accrued sales return liability 33,242 37,749 Accrued customer marketing, pricing and incentive programs 165,863 143,888 Operating lease liability (1) 11,304 — Warranty accrual 25,743 21,524 Income taxes payable 4,307 6,207 Other current liabilities 129,572 121,363 $ 453,933 $ 433,897 Other non-current liabilities: Warranty accrual $ 14,434 $ 12,705 Obligation for deferred compensation plan 23,796 20,363 Employee benefit plan obligation 52,471 51,448 Operating lease liability (1) 21,744 — Deferred tax liability 2,050 2,050 Other non-current liabilities 2,972 7,016 $ 117,467 $ 93,582 (1) Increase of balances was due to the adoption of Topic 842. Refer to Note 1 to the condensed consolidated financial statements for more information. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
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): December 31, 2019 March 31, 2019 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Cash equivalents $ 528,446 $ — $ — $ 496,434 $ — $ — Trading investments for deferred compensation plan included in other assets: Money market funds 4,460 — — 4,080 — — Mutual funds 19,336 — — 16,283 — — Total of trading investments for deferred compensation plan $ 23,796 $ — $ — $ 20,363 $ — $ — Currency exchange derivative assets $ — $ 118 $ — $ — $ 455 $ — Liabilities: Contingent consideration for business acquisition included in accrued and other current liabilities (Note 2) $ — $ — $ 37 $ — $ — $ — Currency exchange derivative liabilities $ — $ 695 $ — $ — $ 36 $ — |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 nine months ended December 31, 2019 and 2018 (in thousands): Three Months Ended Amount of Gain (Loss) Amount of Loss (Gain) 2019 2018 2019 2018 Cash flow hedges $ (1,381 ) $ 575 $ (739 ) $ (615 ) Nine Months Ended Amount of Gain (Loss) Amount of Loss (Gain) 2019 2018 2019 2018 Cash flow hedges $ 56 $ 1,060 $ (1,097 ) $ 2,454 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
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 nine months ended December 31, 2019 (in thousands): As of March 31, 2019 $ 343,684 Acquisitions (1) 57,140 Currency translation 18 As of December 31, 2019 $ 400,842 (1) Includes goodwill acquired from the Streamlabs Acquisition and the immaterial technology acquisition in October 2019. See Note 2 for more information. |
Schedule of intangible assets subject to amortization | The Company's acquired intangible assets subject to amortization were as follows (in thousands): December 31, 2019 March 31, 2019 Gross Carrying Amount Accumulated Net Carrying Amount Gross Carrying Amount Accumulated Net Carrying Amount Trademark and trade names $ 45,570 $ (17,543 ) $ 28,027 $ 36,370 $ (13,659 ) $ 22,711 Developed technology 118,807 (72,834 ) 45,973 95,207 (62,341 ) 32,866 Customer contracts/relationships 90,610 (28,769 ) 61,841 84,610 (21,188 ) 63,422 Total $ 254,987 $ (119,146 ) $ 135,841 $ 216,187 $ (97,188 ) $ 118,999 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of warranty liability | Changes in the Company’s warranty liability for the three and nine months ended December 31, 2019 and 2018 were as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Beginning of the period $ 37,222 $ 31,754 $ 34,229 $ 27,573 Assumed from business acquisition — — — 351 Provision 9,608 11,305 26,652 30,625 Settlements (6,840 ) (7,523 ) (20,544 ) (22,405 ) Currency translation 187 (61 ) (160 ) (669 ) End of the period $ 40,177 $ 35,475 $ 40,177 $ 35,475 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of components of accumulated other comprehensive income (loss) | The accumulated other comprehensive income (loss) was as follows (in thousands): Accumulated Other Comprehensive Income (Loss) Cumulative (1) Defined (1) Deferred Hedging Losses (1) Total March 31, 2019 $ (92,148 ) $ (13,932 ) $ 382 $ (105,698 ) Other comprehensive income (loss) (2,639 ) (114 ) (1,041 ) (3,794 ) December 31, 2019 $ (94,787 ) $ (14,046 ) $ (659 ) $ (109,492 ) (1) Tax effect was not significant as of December 31 or March 31, 2019 . |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of net sales by product categories, excluding intercompany transactions | Sales by product categories and sales channels, excluding intercompany transactions, for the three and nine months ended December 31, 2019 and 2018 were as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Pointing Devices $ 154,540 $ 149,123 $ 409,293 $ 405,250 Keyboards & Combos 156,333 144,169 424,061 404,263 PC Webcams 32,165 33,021 89,041 90,916 Tablet & Other Accessories 31,256 35,757 103,442 104,903 Video Collaboration 91,964 74,186 254,941 190,154 Mobile Speakers 92,969 96,263 200,617 207,690 Audio & Wearables 81,934 98,629 208,576 212,343 Gaming 245,736 213,663 541,265 510,481 Smart Home 15,790 19,577 35,088 37,829 Other (1) — — 279 185 Total sales $ 902,687 $ 864,388 $ 2,266,603 $ 2,164,014 (1) Other category includes products that the Company currently intends to phase out, or has already phased out, because they are no longer strategic to the Company's business. |
Schedule of net sales to unaffiliated customers by geographic region | Sales by geographic region (based on the customers’ locations) for the three and nine months ended December 31, 2019 and 2018 were as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Americas $ 380,493 $ 385,598 $ 970,775 $ 946,240 EMEA 308,907 269,082 719,994 648,014 Asia Pacific 213,287 209,708 575,834 569,760 Total sales $ 902,687 $ 864,388 $ 2,266,603 $ 2,164,014 |
Schedule of long-lived assets by geographic region | Property, plant and equipment, net by geographic region were as follows (in thousands): December 31, 2019 March 31, 2019 Americas $ 26,837 $ 29,813 EMEA 4,451 4,537 Asia Pacific 44,791 44,202 Total property, plant and equipment, net $ 76,079 $ 78,552 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Costs | The following table summarizes restructuring-related activities during the three and nine months ended December 31, 2019 (in thousands): Termination Accrual balance at March 31, 2019 $ 4,389 Charges 478 Cash payments (1,956 ) Accrual balance at June 30, 2019 2,911 Credits (364 ) Cash payments (1,140 ) Accrual balance at September 30, 2019 1,407 Credits (45 ) Cash payments (308 ) Accrual balance at December 31, 2019 $ 1,054 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Maturity of lease liabilities under non-cancelable operating leases | Future lease payments included in the measurement of lease liabilities as of December 31, 2019 for the following five fiscal years and thereafter are as follows (in thousands): Operating Lease Remaining 2020 $ 3,475 2021 11,470 2022 9,349 2023 5,688 2024 1,384 Thereafter 4,149 Total lease payments 35,515 Less interest (2,467 ) Present value of lease liabilities $ 33,048 |
Schedule of future minimum rental payments under non-cancelable operating leases | Future minimum lease payments, as defined under the previous lease accounting guidance of ASC Topic 840 under our non-cancelable operating leases as of March 31, 2019 were as follows (in thousands): Years Ending March 31, Operating Lease 2020 $ 11,849 2021 10,002 2022 7,882 2023 5,111 2024 1,130 Thereafter 3,646 Total lease payments $ 39,620 |
The Company and Summary of Si_3
The Company and Summary of Significant Accounting Policies and Estimates - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Apr. 01, 2019 |
Accounting Policies [Abstract] | ||
Right-of-use assets | $ 27,670 | $ 31,300 |
Lease liabilities | $ 33,048 | 37,400 |
Deferred rent for leases | $ 6,100 |
Business Acquisitions (Details)
Business Acquisitions (Details) - USD ($) | Oct. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Amortization of intangible assets | $ 21,958,000 | $ 17,236,000 | ||
Streamlabs | ||||
Business Acquisition [Line Items] | ||||
Fair value of total consideration transferred | $ 105,682,000 | |||
Maximum additional earn-out | 29,000,000 | |||
Business acquisition related costs | $ 800,000 | 1,400,000 | ||
Net sales contributed by acquiree | $ 4,100,000 | $ 4,100,000 | ||
Percent of net sales contributed by acquiree (less than, as a percent) | 1.00% | 1.00% | ||
Small Technology Acquisition | ||||
Business Acquisition [Line Items] | ||||
Fair value of total consideration transferred | $ 3,600,000 | |||
Consideration retained (as a percent) | 10.00% | |||
Developed technology | Streamlabs | ||||
Business Acquisition [Line Items] | ||||
Amortization of intangible assets | $ 600,000 | |||
Customer Relationships and Trade Names | Streamlabs | ||||
Business Acquisition [Line Items] | ||||
Amortization of intangible assets | $ 700,000 | |||
Fair Value, Inputs, Level 3 | Trade Names | Streamlabs | ||||
Business Acquisition [Line Items] | ||||
Royalty rate for fair value measurement (as a percent) | 5.00% | |||
Measurement Input, Discount Rate | Customer relationships | Streamlabs | ||||
Business Acquisition [Line Items] | ||||
Discount rate for value measurement (as a percent) | 20.00% | |||
Measurement Input, Discount Rate | Fair Value, Inputs, Level 3 | Developed technology | Streamlabs | ||||
Business Acquisition [Line Items] | ||||
Discount rate for value measurement (as a percent) | 25.00% | |||
Measurement Input, Discount Rate | Fair Value, Inputs, Level 3 | Trade Names | Streamlabs | ||||
Business Acquisition [Line Items] | ||||
Discount rate for value measurement (as a percent) | 25.00% |
Business Acquisitions - Fair Va
Business Acquisitions - Fair Value of Consideration Transferred (Details) - Streamlabs $ in Thousands | Oct. 31, 2019USD ($) |
Business Acquisition [Line Items] | |
Purchase price (cash) | $ 105,645 |
Fair value of contingent consideration (earn-out) | 37 |
Fair value of total consideration transferred | $ 105,682 |
Business Acquisitions - Fair V
Business Acquisitions - Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Oct. 31, 2019 | Mar. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 400,842 | $ 343,684 | |
Streamlabs | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 17,014 | ||
Intangible assets | 37,000 | ||
Other identifiable liabilities assumed, net | (3,635) | ||
Net identifiable assets acquired | 50,379 | ||
Contingent consideration (earn-out) | $ (40) | (37) | |
Goodwill | 55,340 | ||
Net assets acquired | $ 105,682 |
Business Acquisitions - Estimat
Business Acquisitions - Estimated Fair Values and Useful Lives of Identifiable Intangible Assets (Details) - Streamlabs $ in Thousands | Oct. 31, 2019USD ($) |
Business Acquisition [Line Items] | |
Preliminary Fair Value | $ 37,000 |
Estimated Useful Life (years) | 5 years 10 months 24 days |
Developed technology | |
Business Acquisition [Line Items] | |
Preliminary Fair Value | $ 21,800 |
Estimated Useful Life (years) | 6 years |
Customer relationships | |
Business Acquisition [Line Items] | |
Preliminary Fair Value | $ 6,000 |
Estimated Useful Life (years) | 2 years |
Trade name | |
Business Acquisition [Line Items] | |
Preliminary Fair Value | $ 9,200 |
Estimated Useful Life (years) | 8 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 | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 117,525 | $ 112,810 | $ 235,803 | $ 215,452 |
Shares used in net income per share computation: | ||||
Weighted average shares outstanding - basic (in shares) | 167,063 | 165,707 | 166,678 | 165,552 |
Effect of potentially dilutive equivalent shares (in shares) | 2,622 | 3,200 | 2,495 | 3,414 |
Weighted average shares outstanding - diluted (in shares) | 169,685 | 168,907 | 169,173 | 168,966 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.70 | $ 0.68 | $ 1.41 | $ 1.30 |
Diluted (in dollars per share) | $ 0.69 | $ 0.67 | $ 1.39 | $ 1.28 |
Anti-dilutive equivalents shares excluded (in shares) | 1,800 | 1,300 | 1,800 | 1,200 |
Employee Benefit Plans - Share
Employee Benefit Plans - Share-based Compensation Expenses and Related Tax Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based compensation expense and related tax benefit | ||||
Total share-based compensation expense | $ 13,831 | $ 11,855 | $ 40,301 | $ 37,163 |
Income tax benefit | (3,135) | (2,397) | (12,658) | (14,576) |
Total share-based compensation expense, net of income tax benefit | 10,696 | 9,458 | 27,643 | 22,587 |
Cost of goods sold | ||||
Share-based compensation expense and related tax benefit | ||||
Total share-based compensation expense | 1,210 | 953 | 3,552 | 2,874 |
Marketing and selling | ||||
Share-based compensation expense and related tax benefit | ||||
Total share-based compensation expense | 6,216 | 4,600 | 20,016 | 15,250 |
Research and development | ||||
Share-based compensation expense and related tax benefit | ||||
Total share-based compensation expense | 2,242 | 1,811 | 6,644 | 5,295 |
General and administrative | ||||
Share-based compensation expense and related tax benefit | ||||
Total share-based compensation expense | $ 4,163 | $ 4,491 | $ 10,089 | $ 13,744 |
Employee Benefit Plans - Narra
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation | ||||
Share-based compensation expenses capitalized as inventory | $ 0.9 | $ 0.8 | ||
Defined benefit plans | ||||
Net periodic benefit cost | $ 2.3 | $ 2.2 | $ 7.1 | $ 6.7 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||||
Provision for income taxes | $ 14,467 | $ 9,309 | $ 18,405 | $ 10,295 | |
Effective income tax rates (as a percent) | 11.00% | 7.60% | 7.20% | 4.60% | |
Full statutory income tax rate (as a percent) | 13.67% | ||||
Discrete tax benefit from adjustment of deferred tax assets and liabilities in Switzerland | $ 1,700 | ||||
Discrete tax benefits from reversal of uncertain tax positions | 2,700 | $ 2,300 | |||
Unrecognized tax benefits | $ 85,000 | 85,000 | $ 76,500 | ||
Accrued interest and penalties related to uncertain tax positions | 2,700 | 2,700 | 2,500 | ||
Expected decrease in uncertain tax positions | 4,100 | 4,100 | |||
Non-current income tax payable | |||||
Operating Loss Carryforwards [Line Items] | |||||
Unrecognized tax benefits | $ 38,200 | 38,200 | $ 36,400 | ||
UNITED STATES | |||||
Operating Loss Carryforwards [Line Items] | |||||
Discrete tax benefits from recognition of excess tax benefits in the United States | $ 6,000 | $ 9,500 |
Balance Sheet Components - Com
Balance Sheet Components - Components of Certain Balance Sheet Asset Amounts (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Apr. 01, 2019 | Mar. 31, 2019 |
Accounts receivable, net: | |||
Accounts receivable | $ 797,562 | $ 573,348 | |
Accounts receivable, net | 531,309 | 383,309 | |
Inventories: | |||
Raw materials | 31,103 | 40,970 | |
Finished goods | 276,391 | 252,525 | |
Inventory, net | 307,494 | 293,495 | |
Other current assets: | |||
Value-added tax receivables | 36,581 | 34,321 | |
Prepaid expenses and other assets | 41,958 | 34,795 | |
Other current assets, total | 78,539 | 69,116 | |
Property, plant and equipment, net: | |||
Property, plant and equipment at cost | 356,261 | 359,345 | |
Accumulated depreciation and amortization | (280,182) | (280,793) | |
Property, plant and equipment, net | 76,079 | 78,552 | |
Other assets: | |||
Deferred tax assets | 86,058 | 90,808 | |
Right-of-use assets | 27,670 | $ 31,300 | |
Trading investments for deferred compensation plan | 23,796 | 20,363 | |
Investments in privately held companies | 16,502 | 16,022 | |
Other assets | 6,215 | 5,260 | |
Other assets, total | 160,241 | 132,453 | |
Allowance for doubtful accounts | |||
Accounts receivable, net: | |||
Valuation allowance for accounts receivable | (2,395) | (84) | |
Allowance for sales returns | |||
Accounts receivable, net: | |||
Valuation allowance for accounts receivable | (8,308) | (6,486) | |
Allowance for cooperative marketing arrangements | |||
Accounts receivable, net: | |||
Valuation allowance for accounts receivable | (53,400) | (35,080) | |
Allowance for customer incentive programs | |||
Accounts receivable, net: | |||
Valuation allowance for accounts receivable | (91,906) | (60,036) | |
Allowance for pricing programs | |||
Accounts receivable, net: | |||
Valuation allowance for accounts receivable | $ (110,244) | $ (88,353) |
Balance Sheet Components - C_2
Balance Sheet Components - Components of Certain Balance Sheet Liability Amounts (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Accrued and other current liabilities: | ||
Accrued personnel expenses | $ 83,902 | $ 103,166 |
Accrued sales return liability | 33,242 | 37,749 |
Accrued customer marketing, pricing and incentive programs | 165,863 | 143,888 |
Operating lease liability | 11,304 | 0 |
Warranty accrual | 25,743 | 21,524 |
Income taxes payable | 4,307 | 6,207 |
Other current liabilities | 129,572 | 121,363 |
Accrued and other current liabilities | 453,933 | 433,897 |
Other non-current liabilities: | ||
Warranty accrual | 14,434 | 12,705 |
Obligation for deferred compensation plan | 23,796 | 20,363 |
Employee benefit plan obligation | 52,471 | 51,448 |
Operating lease liability | 21,744 | 0 |
Deferred tax liability | 2,050 | 2,050 |
Other non-current liabilities | 2,972 | 7,016 |
Non-current liabilities | $ 117,467 | $ 93,582 |
Fair Value Measurements - Fina
Fair Value Measurements - Financial Assets and Liabilities, Classified by Level (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Oct. 31, 2019 | Mar. 31, 2019 |
Assets: | |||
Trading investments for deferred compensation plan | $ 23,796 | $ 20,363 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Assets: | |||
Cash equivalents | 528,446 | 496,434 | |
Trading investments for deferred compensation plan | 23,796 | 20,363 | |
Liabilities: | |||
Contingent consideration for business acquisition included in accrued and other current liabilities (Note 2) | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Foreign exchange contracts | |||
Assets: | |||
Currency exchange derivative assets included in other current assets | 0 | 0 | |
Liabilities: | |||
Currency exchange derivative liabilities included in accrued and other current liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Money market funds | |||
Assets: | |||
Trading investments for deferred compensation plan | 4,460 | 4,080 | |
Fair Value, Measurements, Recurring | Level 1 | Mutual funds | |||
Assets: | |||
Trading investments for deferred compensation plan | 19,336 | 16,283 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Assets: | |||
Cash equivalents | 0 | 0 | |
Trading investments for deferred compensation plan | 0 | 0 | |
Liabilities: | |||
Contingent consideration for business acquisition included in accrued and other current liabilities (Note 2) | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Foreign exchange contracts | |||
Assets: | |||
Currency exchange derivative assets included in other current assets | 118 | 455 | |
Liabilities: | |||
Currency exchange derivative liabilities included in accrued and other current liabilities | 695 | 36 | |
Fair Value, Measurements, Recurring | Level 2 | Money market funds | |||
Assets: | |||
Trading investments for deferred compensation plan | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Mutual funds | |||
Assets: | |||
Trading investments for deferred compensation plan | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Assets: | |||
Cash equivalents | 0 | 0 | |
Trading investments for deferred compensation plan | 0 | 0 | |
Liabilities: | |||
Contingent consideration for business acquisition included in accrued and other current liabilities (Note 2) | 37 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Foreign exchange contracts | |||
Assets: | |||
Currency exchange derivative assets included in other current assets | 0 | 0 | |
Liabilities: | |||
Currency exchange derivative liabilities included in accrued and other current liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Money market funds | |||
Assets: | |||
Trading investments for deferred compensation plan | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Mutual funds | |||
Assets: | |||
Trading investments for deferred compensation plan | 0 | $ 0 | |
Streamlabs | |||
Liabilities: | |||
Contingent consideration for business acquisition included in accrued and other current liabilities (Note 2) | $ 40 | $ 37 |
Fair Value Measurements - Narr
Fair Value Measurements - Narrative (Details) - USD ($) | Oct. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading investments for deferred compensation plan | $ 23,796,000 | $ 23,796,000 | $ 20,363,000 | |||
Equity method investments | 7,000,000 | 7,000,000 | 6,600,000 | |||
Long-lived assets | 9,500,000 | 9,500,000 | 9,500,000 | |||
Impairment of investments without readily determinable fair values | 0 | $ 0 | 0 | $ 0 | ||
Impairment of non-financial assets | 0 | $ 0 | 0 | $ 0 | ||
Fair Value, Measurements, Recurring | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Trading investments for deferred compensation plan | 23,796,000 | 23,796,000 | 20,363,000 | |||
Fair value of contingent consideration (earn-out) | 0 | 0 | $ 0 | |||
Streamlabs | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Maximum additional earn-out | $ 29,000,000 | |||||
Fair value of contingent consideration (earn-out) | $ 37,000 | $ 40,000 | $ 40,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Gains and Losses on Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amounts of gains and losses on the derivative instruments | ||||
Amount of Gain (Loss) Deferred as a Component of Accumulated Other Comprehensive Loss | $ (1,381) | $ 575 | $ 56 | $ 1,060 |
Amount of Loss (Gain) Reclassified from Accumulated Other Comprehensive Loss to Costs of Goods Sold | (739) | (615) | (1,097) | 2,454 |
Designated as hedging instruments | Cash flow hedges | ||||
Amounts of gains and losses on the derivative instruments | ||||
Amount of Gain (Loss) Deferred as a Component of Accumulated Other Comprehensive Loss | (1,381) | 575 | 56 | 1,060 |
Amount of Loss (Gain) Reclassified from Accumulated Other Comprehensive Loss to Costs of Goods Sold | $ (739) | $ (615) | $ (1,097) | $ 2,454 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Dec. 31, 2019 | Mar. 31, 2019 | |
Derivative [Line Items] | ||
Additional term to recognize derivative loss in accumulated other comprehensive loss | 2 months | |
Not Designated as Hedging Instrument | Foreign Exchange Forward And Swap | ||
Derivative [Line Items] | ||
Derivative term of contract | 1 month | |
Derivative, notional amount | $ 71 | $ 50.4 |
Foreign Exchange Forward | Designated as hedging instruments | Cash flow hedges | ||
Derivative [Line Items] | ||
Derivative term of contract | 4 months | |
Derivative, notional amount | $ 69.5 | $ 41.4 |
Cash flow hedge gain (loss) to be reclassified within twelve months | $ (0.7) |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Activity In Goodwill Balance (Details) $ in Thousands | 9 Months Ended |
Dec. 31, 2019USD ($) | |
Goodwill | |
Balance at the beginning of the period | $ 343,684 |
Acquisitions | 57,140 |
Currency translation | 18 |
Balance at the end of the period | $ 400,842 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Mar. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 254,987 | $ 216,187 |
Accumulated Amortization | (119,146) | (97,188) |
Net Carrying Amount | 135,841 | 118,999 |
Trademark and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 45,570 | 36,370 |
Accumulated Amortization | (17,543) | (13,659) |
Net Carrying Amount | 28,027 | 22,711 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 118,807 | 95,207 |
Accumulated Amortization | (72,834) | (62,341) |
Net Carrying Amount | 45,973 | 32,866 |
Customer contracts/relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 90,610 | 84,610 |
Accumulated Amortization | (28,769) | (21,188) |
Net Carrying Amount | $ 61,841 | $ 63,422 |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
Financing Arrangements | ||
Outstanding borrowings | $ 0 | $ 0 |
Line of Credit | ||
Financing Arrangements | ||
Maximum borrowing capacity | 78,400,000 | |
Outstanding bank guarantees | $ 17,100,000 |
Commitments and Contingencies -
Commitments and Contingencies - Changes in Warranty Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in the warranty liability: | ||||
Beginning of the period | $ 37,222 | $ 31,754 | $ 34,229 | $ 27,573 |
Assumed from business acquisition | 0 | 0 | 0 | 351 |
Provision | 9,608 | 11,305 | 26,652 | 30,625 |
Settlements | (6,840) | (7,523) | (20,544) | (22,405) |
Currency translation | 187 | (61) | (160) | (669) |
End of the period | $ 40,177 | $ 35,475 | $ 40,177 | $ 35,475 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) | Dec. 31, 2019USD ($) |
Indemnification agreement | |
Other Commitments [Line Items] | |
Amount accrued for indemnification provisions | $ 0 |
Shareholders' Equity - Narrati
Shareholders' Equity - Narrative (Details) | 1 Months Ended | 9 Months Ended | |||
Mar. 31, 2017USD ($)shares | Dec. 31, 2019USD ($)SFr / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018SFr / shares | Dec. 31, 2018USD ($)$ / shares | |
Stockholders' Equity Note [Abstract] | |||||
Authorized amount in buyback program | $ 250,000,000 | ||||
Shares authorized to be repurchased (in shares) | shares | 17,300,000 | ||||
Period to complete share repurchase program | 3 years | ||||
Amount still available for repurchase | $ 172,400,000 | $ 172,400,000 | |||
Cash dividends per share (in dollars/CHF per share) | (per share) | $ 0.73 | $ 0.74 | SFr 0.67 | $ 0.69 | |
Payment of cash dividends | $ 124,180,000 | $ 113,971,000 |
Shareholders' Equity - Compone
Shareholders' Equity - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning of the period | $ 1,167,537 | $ 1,012,164 | $ 1,176,339 | $ 1,050,557 |
Other comprehensive income (loss) | (562) | (525) | (3,794) | (4,838) |
End of the period | 1,297,793 | 1,132,088 | 1,297,793 | 1,132,088 |
Total | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning of the period | (108,930) | (97,768) | (105,698) | (93,455) |
End of the period | (109,492) | $ (98,293) | (109,492) | $ (98,293) |
Cumulative Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning of the period | (92,148) | |||
Other comprehensive income (loss) | (2,639) | |||
End of the period | (94,787) | (94,787) | ||
Defined Benefit Plan | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning of the period | (13,932) | |||
Other comprehensive income (loss) | (114) | |||
End of the period | (14,046) | (14,046) | ||
Deferred Hedging Losses | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning of the period | 382 | |||
Other comprehensive income (loss) | (1,041) | |||
End of the period | $ (659) | $ (659) |
Segment Information - Net Sale
Segment Information - Net Sales by Product Family- Excluding Intercompany Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 902,687 | $ 864,388 | $ 2,266,603 | $ 2,164,014 |
Pointing Devices | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 154,540 | 149,123 | 409,293 | 405,250 |
Keyboards & Combos | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 156,333 | 144,169 | 424,061 | 404,263 |
PC Webcams | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 32,165 | 33,021 | 89,041 | 90,916 |
Tablet & Other Accessories | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 31,256 | 35,757 | 103,442 | 104,903 |
Video Collaboration | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 91,964 | 74,186 | 254,941 | 190,154 |
Mobile Speakers | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 92,969 | 96,263 | 200,617 | 207,690 |
Audio & Wearables | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 81,934 | 98,629 | 208,576 | 212,343 |
Gaming | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 245,736 | 213,663 | 541,265 | 510,481 |
Smart Home | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 15,790 | 19,577 | 35,088 | 37,829 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 0 | $ 0 | $ 279 | $ 185 |
Segment Information - Net Sa_2
Segment Information - Net Sales and Long-Lived Assets by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | |
Net sales to unaffiliated customers and long-lived assets by geographic region | |||||
Net sales | $ 902,687 | $ 864,388 | $ 2,266,603 | $ 2,164,014 | |
Property, plant and equipment, net | 76,079 | 76,079 | $ 78,552 | ||
Americas | |||||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||||
Net sales | 380,493 | 385,598 | 970,775 | 946,240 | |
Property, plant and equipment, net | 26,837 | 26,837 | 29,813 | ||
EMEA | |||||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||||
Net sales | 308,907 | 269,082 | 719,994 | 648,014 | |
Property, plant and equipment, net | 4,451 | 4,451 | 4,537 | ||
Asia Pacific | |||||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||||
Net sales | 213,287 | $ 209,708 | 575,834 | $ 569,760 | |
Property, plant and equipment, net | $ 44,791 | $ 44,791 | $ 44,202 |
Segment Information - Narrativ
Segment Information - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Long lived assets | $ 76,079 | $ 76,079 | $ 78,552 | ||
United States | |||||
Segment Reporting Information [Line Items] | |||||
Long lived assets | 26,700 | 26,700 | 29,800 | ||
China | |||||
Segment Reporting Information [Line Items] | |||||
Long lived assets | 37,000 | 37,000 | 36,400 | ||
Switzerland | |||||
Segment Reporting Information [Line Items] | |||||
Long lived assets | $ 1,600 | $ 1,600 | $ 1,700 | ||
Geographic Concentration | Consolidated net sales from continuing operations | Switzerland | |||||
Segment Reporting Information [Line Items] | |||||
Percentage of consolidated net sales | 4.00% | 3.00% | 4.00% | 3.00% |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jul. 31, 2018 |
Termination Benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges recognized | $ 11.4 | |
Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Approved cost of restructuring | $ 10 | |
Maximum | ||
Restructuring Cost and Reserve [Line Items] | ||
Approved cost of restructuring | $ 15 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||||||
Charges/Credits | $ (45) | $ (278) | $ 69 | $ 9,762 | ||
Termination Benefits | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Accrual beginning balance | 1,407 | $ 2,911 | $ 4,389 | 4,389 | ||
Charges/Credits | (45) | (364) | 478 | |||
Cash payments | (308) | (1,140) | (1,956) | |||
Accrual ending balance | $ 1,054 | $ 1,407 | $ 2,911 | $ 1,054 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Leases [Abstract] | ||
Operating lease costs | $ 3.4 | $ 10.3 |
Weighted-average remaining lease term | 3 years 10 months 24 days | 3 years 10 months 24 days |
Weighted-average discount rate | 2.90% | 2.90% |
Cash paid for operating lease liabilities | $ 3.5 | $ 9.9 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 0.1 | $ 5 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Apr. 01, 2019 |
Leases [Abstract] | ||
Remaining 2020 | $ 3,475 | |
2021 | 11,470 | |
2022 | 9,349 | |
2023 | 5,688 | |
2024 | 1,384 | |
Thereafter | 4,149 | |
Total lease payments | 35,515 | |
Less interest | (2,467) | |
Present value of lease liabilities | $ 33,048 | $ 37,400 |
Leases - Future Minimum Rental
Leases - Future Minimum Rental Payments (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 11,849 |
2021 | 10,002 |
2022 | 7,882 |
2023 | 5,111 |
2024 | 1,130 |
Thereafter | 3,646 |
Total lease payments | $ 39,620 |
Uncategorized Items - logi10-qq
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (10,882,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (10,882,000) |