Cover Page
Cover Page - shares | 9 Months Ended | |
Dec. 31, 2022 | Jan. 12, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2022 | |
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 Three | 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 Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 160,304,010 | |
Entity Central Index Key | 0001032975 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2023 | |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,269,925 | $ 1,632,782 | $ 3,578,741 | $ 4,251,107 |
Cost of goods sold | 789,489 | 971,646 | 2,193,735 | 2,470,980 |
Amortization of intangible assets | 3,168 | 3,126 | 9,355 | 11,028 |
Gross profit | 477,268 | 658,010 | 1,375,651 | 1,769,099 |
Operating expenses: | ||||
Marketing and selling | 196,653 | 269,941 | 628,122 | 778,882 |
Research and development | 65,640 | 75,529 | 210,166 | 213,436 |
General and administrative | 29,766 | 38,478 | 92,215 | 112,291 |
Amortization of intangible assets and acquisition-related costs | 2,810 | 3,662 | 9,052 | 13,986 |
Impairment of intangible assets | 0 | 7,000 | 0 | 7,000 |
Change in fair value of contingent consideration for business acquisition | 0 | (1,110) | 0 | (3,509) |
Restructuring charges, net | 5,654 | 1,759 | 16,471 | 1,770 |
Total operating expenses | 300,523 | 395,259 | 956,026 | 1,123,856 |
Operating income | 176,745 | 262,751 | 419,625 | 645,243 |
Interest income | 4,665 | 278 | 9,573 | 795 |
Other income (expense), net | 1,406 | (3,673) | (18,367) | (1,941) |
Income before income taxes | 182,816 | 259,356 | 410,831 | 644,097 |
Provision for income taxes | 42,663 | 49,345 | 87,751 | 107,789 |
Net income | $ 140,153 | $ 210,011 | $ 323,080 | $ 536,308 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.87 | $ 1.26 | $ 1.98 | $ 3.19 |
Diluted (in dollars per share) | $ 0.86 | $ 1.24 | $ 1.96 | $ 3.14 |
Weighted average shares used to compute net income per share: | ||||
Basic (in shares) | 161,244 | 167,090 | 163,042 | 167,953 |
Diluted (in shares) | 162,529 | 169,707 | 164,427 | 171,027 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 140,153 | $ 210,011 | $ 323,080 | $ 536,308 |
Currency translation gain (loss): | ||||
Currency translation gain (loss), net of taxes | 33,076 | (5,806) | (6,207) | (9,733) |
Reclassification of cumulative translation adjustments included in other income (expense), net | 219 | 0 | 219 | 1,051 |
Defined benefit plans: | ||||
Net gain (loss) and prior service costs, net of taxes | (104) | (443) | 8 | (848) |
Reclassification of amortization included in other income (expense), net | (112) | 211 | (338) | 634 |
Hedging gain (loss): | ||||
Deferred hedging gain (loss), net of taxes | (6,325) | 1,061 | 5,239 | 3,723 |
Reclassification of hedging gain included in cost of goods sold | (4,728) | (3,200) | (11,766) | (5,108) |
Total other comprehensive gain (loss) | 22,026 | (8,177) | (12,845) | (10,281) |
Total comprehensive income | $ 162,179 | $ 201,834 | $ 310,235 | $ 526,027 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Mar. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,036,131 | $ 1,328,716 |
Accounts receivable, net | 802,435 | 675,604 |
Inventories | 797,695 | 933,124 |
Other current assets | 125,088 | 135,478 |
Total current assets | 2,761,349 | 3,072,922 |
Non-current assets: | ||
Property, plant and equipment, net | 118,183 | 109,807 |
Goodwill | 454,471 | 448,175 |
Other intangible assets, net | 69,364 | 83,779 |
Other assets | 335,879 | 320,722 |
Total assets | 3,739,246 | 4,035,405 |
Current liabilities: | ||
Accounts payable | 491,488 | 636,306 |
Accrued and other current liabilities | 705,569 | 784,848 |
Total current liabilities | 1,197,057 | 1,421,154 |
Non-current liabilities: | ||
Income taxes payable | 117,608 | 83,380 |
Other non-current liabilities | 165,915 | 132,133 |
Total liabilities | 1,480,580 | 1,636,667 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Registered shares, CHF 0.25 par value: Issued shares - 173,106 at September 30, 2022 and March 31, 2022 Additional shares that may be be issued out of conditional capitals - 50,000 at September 30,2022 and March 31, 2022 Additional shares that may be issued out of authorized capital - 17,311 at September 30, 2022 and March 31, 2022 | 30,148 | 30,148 |
Additional paid-in capital | 116,012 | 129,925 |
Shares in treasury, at cost — 12,470 at December 31, 2022 and 7,855 at March 31, 2022 | (906,606) | (632,893) |
Retained earnings | 3,136,080 | 2,975,681 |
Accumulated other comprehensive loss | (116,968) | (104,123) |
Total shareholders’ equity | 2,258,666 | 2,398,738 |
Total liabilities and shareholders’ equity | $ 3,739,246 | $ 4,035,405 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - SFr / shares shares in Thousands | Dec. 31, 2022 | Mar. 31, 2022 |
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) | 17,311 | 17,311 |
Treasury, at cost, shares (in shares) | 12,470 | 7,855 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 323,080 | $ 536,308 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 56,698 | 65,387 |
Amortization of intangible assets | 18,173 | 24,223 |
Impairment of intangible assets | 0 | 7,000 |
Loss on investments | 13,065 | 1,421 |
Share-based compensation expense | 51,740 | 72,465 |
Deferred income taxes | 24,228 | 27,369 |
Change in fair value of contingent consideration for business acquisition | 0 | (3,509) |
Other | 1,411 | 1,068 |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable, net | (123,547) | (236,358) |
Inventories | 126,309 | (177,828) |
Other assets | 20,918 | (20,569) |
Accounts payable | (134,848) | (80,637) |
Accrued and other liabilities | (60,060) | (17,612) |
Net cash provided by operating activities | 317,167 | 198,728 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (69,122) | (63,726) |
Investment in privately held companies | (2,626) | (1,260) |
Acquisitions, net of cash acquired | (8,527) | (15,886) |
Purchases of short-term investments | 0 | (10,000) |
Proceeds from the sale of short-term investments | 0 | 1,225 |
Purchases of deferred compensation investments | (5,186) | (3,644) |
Proceeds from sales of deferred compensation investments | 4,750 | 4,285 |
Net cash used in investing activities | (80,711) | (89,006) |
Cash flows from financing activities: | ||
Payment of cash dividends | (158,680) | (159,410) |
Payment of contingent consideration for business acquisition | (5,954) | (880) |
Purchases of registered shares | (327,731) | (290,625) |
Proceeds from exercises of stock options and purchase rights | 16,064 | 16,644 |
Tax withholdings related to net share settlements of restricted stock units | (28,734) | (58,528) |
Net cash used in financing activities | (505,035) | (492,799) |
Effect of exchange rate changes on cash and cash equivalents | (24,006) | (2,839) |
Net decrease in cash and cash equivalents | (292,585) | (385,916) |
Cash and cash equivalents, beginning of the period | 1,328,716 | 1,750,327 |
Cash and cash equivalents, end of the period | 1,036,131 | 1,364,411 |
Non-cash investing and financing activities: | ||
Property, plant and equipment purchased during the period and included in period end liability accounts | 9,250 | 13,707 |
Non-cash contingent consideration for acquisition | 2,151 | 9,013 |
Right-of-use assets obtained in exchange for operating lease liabilities | 42,814 | 0 |
Supplemental cash flow information: | ||
Income taxes paid, net | $ 65,154 | $ 175,775 |
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, 2021 | $ 2,261,789 | $ 30,148 | $ 129,519 | $ (279,541) | $ 2,490,578 | $ (108,915) |
Beginning of the period (in shares) at Mar. 31, 2021 | 173,106 | |||||
Beginning of the period (in shares) at Mar. 31, 2021 | 4,799 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Total comprehensive income | 526,027 | 536,308 | (10,281) | |||
Purchases of registered shares | (290,625) | $ (290,625) | ||||
Purchases of registered shares (in shares) | 3,035 | |||||
Sales of shares upon exercise of stock options and purchase rights | 16,644 | 8,397 | $ 8,247 | |||
Sales of shares upon exercise of stock options and purchase rights (in shares) | (226) | |||||
Issuance of shares upon vesting of restricted stock units | (58,528) | (93,967) | $ 35,439 | |||
Issuance of shares upon vesting of restricted stock units (in shares) | (969) | |||||
Share-based compensation | 72,045 | 72,045 | ||||
Cash dividends | (159,410) | (159,410) | ||||
End of the period at Dec. 31, 2021 | 2,367,942 | $ 30,148 | 115,994 | $ (526,480) | 2,867,476 | (119,196) |
End of the period (in shares) at Dec. 31, 2021 | 173,106 | |||||
End of the period (in shares) at Dec. 31, 2021 | 6,639 | |||||
Beginning of the period at Sep. 30, 2021 | 2,262,683 | $ 30,148 | 99,434 | $ (413,345) | 2,657,465 | (111,019) |
Beginning of the period (in shares) at Sep. 30, 2021 | 173,106 | |||||
Beginning of the period (in shares) at Sep. 30, 2021 | 5,331 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Total comprehensive income | 201,834 | 210,011 | (8,177) | |||
Purchases of registered shares | (116,245) | $ (116,245) | ||||
Purchases of registered shares (in shares) | 1,379 | |||||
Sales of shares upon exercise of stock options and purchase rights | 8 | 8 | ||||
Issuance of shares upon vesting of restricted stock units | (3,777) | (6,887) | $ 3,110 | |||
Issuance of shares upon vesting of restricted stock units (in shares) | (71) | |||||
Share-based compensation | 23,439 | 23,439 | ||||
End of the period at Dec. 31, 2021 | 2,367,942 | $ 30,148 | 115,994 | $ (526,480) | 2,867,476 | (119,196) |
End of the period (in shares) at Dec. 31, 2021 | 173,106 | |||||
End of the period (in shares) at Dec. 31, 2021 | 6,639 | |||||
Beginning of the period at Mar. 31, 2022 | $ 2,398,738 | $ 30,148 | 129,925 | $ (632,893) | 2,975,681 | (104,123) |
Beginning of the period (in shares) at Mar. 31, 2022 | 173,106 | |||||
Beginning of the period (in shares) at Mar. 31, 2022 | 7,855 | 7,855 | ||||
Increase (Decrease) in Shareholders' Equity | ||||||
Total comprehensive income | $ 310,235 | 323,080 | (12,845) | |||
Purchases of registered shares | (327,731) | $ (327,731) | ||||
Purchases of registered shares (in shares) | 5,967 | |||||
Sales of shares upon exercise of stock options and purchase rights | 16,064 | (930) | $ 16,994 | |||
Sales of shares upon exercise of stock options and purchase rights (in shares) | (423) | |||||
Issuance of shares upon vesting of restricted stock units | (28,734) | (65,758) | $ 37,024 | |||
Issuance of shares upon vesting of restricted stock units (in shares) | (929) | |||||
Share-based compensation | 52,775 | 52,775 | ||||
Cash dividends | (162,681) | (162,681) | ||||
End of the period at Dec. 31, 2022 | $ 2,258,666 | $ 30,148 | 116,012 | $ (906,606) | 3,136,080 | (116,968) |
End of the period (in shares) at Dec. 31, 2022 | 173,106 | |||||
End of the period (in shares) at Dec. 31, 2022 | 12,470 | 12,470 | ||||
Beginning of the period at Sep. 30, 2022 | $ 2,168,561 | $ 30,148 | 106,130 | $ (824,650) | 2,995,927 | (138,994) |
Beginning of the period (in shares) at Sep. 30, 2022 | 173,106 | |||||
Beginning of the period (in shares) at Sep. 30, 2022 | 10,943 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Total comprehensive income | 162,179 | 140,153 | 22,026 | |||
Purchases of registered shares | (90,170) | $ (90,170) | ||||
Purchases of registered shares (in shares) | 1,746 | |||||
Sales of shares upon exercise of stock options and purchase rights | 3,214 | (2,582) | $ 5,796 | |||
Sales of shares upon exercise of stock options and purchase rights (in shares) | (155) | |||||
Issuance of shares upon vesting of restricted stock units | (1,992) | (4,410) | $ 2,418 | |||
Issuance of shares upon vesting of restricted stock units (in shares) | (64) | |||||
Share-based compensation | 16,874 | 16,874 | ||||
End of the period at Dec. 31, 2022 | $ 2,258,666 | $ 30,148 | $ 116,012 | $ (906,606) | $ 3,136,080 | $ (116,968) |
End of the period (in shares) at Dec. 31, 2022 | 173,106 | |||||
End of the period (in shares) at Dec. 31, 2022 | 12,470 | 12,470 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) | 9 Months Ended | |||
Dec. 31, 2022 $ / shares | Dec. 31, 2022 SFr / shares | Dec. 31, 2021 $ / shares | Dec. 31, 2021 SFr / shares | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends per share (in dollars per share) | (per share) | $ 1 | SFr 0.96 | $ 0.95 | SFr 0.87 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies and Estimates | 9 Months Ended |
Dec. 31, 2022 | |
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. Over forty years ago, Logitech created products to improve experiences around the personal computer ("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 computing, gaming, video, and music, 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, e-tailers and enterprise customers, 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 Hautemorges, 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. 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 ("U.S. GAAP") for interim financial information and therefore do not include all the information required by U.S. 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, 2022, included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on May 18, 2022. 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, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2023, or any future periods. Changes in Significant Accounting Policies Other than the recent accounting pronouncements adopted and discussed below under Recent Accounting Pronouncements Adopted , there have bee n no material changes in the Company’s significant accounting policies during the nine months ended December 31, 2022 compared with the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended March 31, 2022. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. 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 and intangible assets acquired from business acquisitions, contingent consideration for a business acquisition and periodic reassessment of its fair value, valuation of investment in privately held companies classified under Level 3 fair value hierarchy, pension obligations, accruals for customer incentives, cooperative marketing, and pricing programs and related breakage when appropriate, 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 those estimates. Risks and Uncertainties Impacts of Macroeconomic and Geopolitical Conditions and Other Factors on the Company's Business In March 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic, which continues to spread throughout the world. The COVID-19 pandemic resulted in industry-wide global supply chain challenges, including manufacturing, transportation and logistics. The Company purchases certain products and key components from a limited number of sources, and depends on the supply chain, including freight, to receive components, transport finished goods and deliver the Company's products across the world. More recently, the Company has also been impacted by adverse macroeconomic and geopolitical conditions. These conditions include but are not limited to inflation, foreign currency fluctuations, and slowdown of economic activity around the world, in part due to rising interest rates, and lower consumer and enterprise spending . In addition, the war in Ukraine increased global supply chain, logistics, and inflationary challenges. Such global or regional economic and political conditions adversely affect demand for the Company's products. These conditions also have an impact on the Company's suppliers, contract manufacturers, logistics providers, and distributors, causing volatility in cost of materials and shipping and transportation rates, and as a result impacting the pricing of the Company's products. Price increases may not successfully offset cost increases or may cause the Company to lose market share and in turn adversely impact the Company's results of operations. While global supply chain challenges have improved since the second quarter of fiscal year 2023, including logistics costs and shipping lead times, the increase of COVID-19 infections in China during the third quarter of fiscal year 2023 causes uncertainty in supply availability. If macroeconomic and geopolitical conditions and COVID-19 related factors do not improve or worsen, the Company's results of operations will continue to be adversely impacted. Recent Accounting Pronouncements Adopted In October 2021, the Financial Accounting Standard Board issued ASU 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers " (ASU 2021-08). The update requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers , as if it had originated the contracts. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. The Company early adopted the standard effective April 1, 2022 and applies the standard prospectively to business combinations that occurred on or after April 1, 2022. The adoption of ASU 2021-08 did not have a material impact on the Company's condensed consolidated financial statements. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021 (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Net income $ 140,153 $ 210,011 $ 323,080 $ 536,308 Shares used in net income per share computation: Weighted average shares outstanding - basic 161,244 167,090 163,042 167,953 Effect of potentially dilutive equivalent shares 1,285 2,617 1,385 3,074 Weighted average shares outstanding - diluted 162,529 169,707 164,427 171,027 Net income per share: Basic $ 0.87 $ 1.26 $ 1.98 $ 3.19 Diluted $ 0.86 $ 1.24 $ 1.96 $ 3.14 Share equivalents attributable to outstanding stock options, restricted stock units ("RSUs") and employee share purchase plans ("ESPP") totalin g 1.6 million and 0.8 million for the three months ended December 31, 2022 and 2021, respectively, and 2.0 million and 0.9 million for the nine months ended December 31, 2022 and 2021, respectively, were excluded from the calculation of diluted net income per share because their effect would have been anti-dilutive. A small number of performance-based awards were not included in the calculation because all necessary conditions had not been satisfied by the end of the respective period, and those shares were not issuable if the end of the reporting period were the end of the performance contingency period. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Employee Share Purchase Plans and Stock Incentive Plans As of December 31, 2022, 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"), and the 2006 Stock Incentive Plan ("2006 Plan") as amended and restated. Shares issued to employees as a result of purchases or exercises under these plans are generally issued from shares held in treasury stock. 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, 2022 and 2021 (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Cost of goods sold $ 1,324 $ 1,782 $ 4,228 $ 5,253 Marketing and selling 8,014 10,699 25,240 28,987 Research and development 2,756 4,510 11,568 14,295 General and administrative 3,711 7,801 10,704 23,930 Total share-based compensation expense 15,805 24,792 51,740 72,465 Income tax benefit (3,276) (3,581) (7,496) (23,460) Total share-based compensation expense, net of income tax benefit $ 12,529 $ 21,211 $ 44,244 $ 49,005 The income tax benefit in the respective periods primarily consisted of tax benefits 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. Share-based compensation costs capitalized as part of inventory were $1.3 million and $1.1 million for the three months ended December 31, 2022 and 2021, respectively, and $4.4 million and $4.1 million for the nine months ended December 31, 2022 and 2021, 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 of $2.7 million and $3.4 million recorded for the three months ended December 31, 2022 and 2021, respectively, and $8.3 million and $10.0 million for the nine months ended December 31, 2022 and 2021, respectively, were primarily related to service costs. |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2022 | |
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 and nine months ended December 31, 2022 was $42.7 million and $87.8 million, based on an effective income tax rate of 23.3% and 21.4% of pre-tax income, respectively. The income tax provision for the same periods ended December 30, 2021 was $49.3 million and $107.8 million, based on an effective income tax rate of 19.0% and 16.7% of pre-tax income, respectively. The change in the effective income tax rate for the three and nine months ended December 31, 2022 was primarily due to the mix of income and losses in the various tax jurisdictions in which the Company operates. There were discrete tax benefits of $0.2 million and $1.4 million from the recognition of excess tax benefits in the United States in the three and nine months ended December 31, 2022, respectively. In addition, there were discrete tax benefits of $1.7 million and $3.2 million from the reversal of uncertain tax positions from the expiration of statutes of limitations, respectively, in the three and nine month period ended December 31, 2022. The change in the effective income tax rate for the three and nine months ended December 31, 2021 was primarily due to the mix of income and losses in the various tax jurisdictions in which the Company operates. There were discrete tax benefits of $0.8 million and $15.2 million from the recognition of excess tax benefits in the United States in the three and nine months ended December 31, 2021, respectively. Furthermore, there were discrete tax benefits of $1.3 million and $2.8 million from the reversal of uncertain tax positions from the expiration of statutes of limitations, respectively, in the three and nine month period ended December 31, 2021. As of December 31, 2022 and March 31, 2022, the total amount of unrecognized tax benefits due to uncertain tax positions was $184.0 million and $176.0 million, respectively, all of which would affect the effective income tax rate if recognized. As of December 31, 2022 and March 31, 2022, the Company had $117.6 million and $83.4 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 the income tax provision. As of December 31, 2022 and March 31, 2022, the Company had $5.2 million and $3.6 million, respectively, of accrued interest and penalties related to uncertain tax positions in non-current income taxes payable. Although the Company has adequately provided for uncertain tax positions, the provisions related to these positions may change as revised estimates are made or the underlying matters are settled or otherwise resolved. During fiscal year 2023, 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 |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Dec. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components The following table presents the components of certain balance sheet asset amounts (in thousands): December 31, 2022 March 31, 2022 Accounts receivable, net: Accounts receivable $ 1,121,377 $ 964,766 Allowance for doubtful accounts — (2,212) Allowance for sales returns (14,021) (12,321) Allowance for cooperative marketing arrangements (62,734) (56,372) Allowance for customer incentive programs (114,160) (97,460) Allowance for pricing programs (128,027) (120,797) $ 802,435 $ 675,604 Inventories: Raw materials $ 202,798 $ 226,155 Finished goods 594,897 706,969 $ 797,695 $ 933,124 Other current assets: Value-added tax ("VAT") receivables $ 51,681 $ 58,850 Prepaid expenses and other assets 73,407 76,628 $ 125,088 $ 135,478 Property, plant and equipment, net: Property, plant and equipment $ 496,830 $ 459,413 Less: accumulated depreciation and amortization (378,647) (349,606) $ 118,183 $ 109,807 Other assets: Deferred tax assets $ 190,558 $ 193,629 Investments in privately held companies 32,600 43,068 Right-of-use assets 69,953 40,661 Investments for deferred compensation plan 27,665 28,431 Other assets 15,103 14,933 $ 335,879 $ 320,722 The following table presents the components of certain balance sheet liability amounts (in thousands): December 31, 2022 March 31, 2022 Accrued and other current liabilities: Accrued customer marketing, pricing and incentive programs $ 238,518 $ 232,393 Accrued personnel expenses 113,486 165,090 Accrued sales return liability 42,743 40,507 Warranty accrual 29,999 32,987 VAT payable 34,149 39,602 Income taxes payable 17,839 35,355 Accrued payables - non-inventory 18,398 26,722 Operating lease liabilities 11,577 13,690 Contingent consideration 6,368 8,042 Other current liabilities 192,492 190,460 $ 705,569 $ 784,848 Other non-current liabilities: Employee benefit plan obligations $ 49,082 $ 50,741 Operating lease liabilities 61,414 28,207 Obligation for deferred compensation plan 27,665 28,431 Warranty accrual 12,632 13,232 Deferred tax liabilities 3,500 1,962 Contingent consideration 245 4,217 Other non-current liabilities 11,377 5,343 $ 165,915 $ 132,133 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [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, 2022 March 31, 2022 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Cash equivalents $ 603,163 $ — $ — $ 762,055 $ — $ — Investments for deferred compensation plan included in other assets: Cash $ 10 $ — $ — $ 108 $ — $ — Common stock 705 — — 2,329 — — Money market funds 9,728 — — 6,765 — — Mutual funds 17,222 — — 19,229 — — Total investments for deferred compensation plan $ 27,665 $ — $ — $ 28,431 $ — $ — Currency derivative assets $ — $ 668 $ — $ — $ 1,517 $ — Liabilities: Contingent consideration included in accrued and other current liabilities $ — $ — $ 6,368 $ — $ — $ 8,042 Contingent consideration included in other non-current liabilities $ — $ — $ — $ — $ — $ 3,971 Currency derivative liabilities $ — $ 3,519 $ — $ — $ 165 $ — Contingent Consideration for Business Acquisitions The following table summarizes the change in the fair value of the Company's contingent consideration balance during the nine months ended December 31, 2022 and 2021 (in thousands): Nine Months Ended 2022 2021 Beginning of the period $ 12,259 $ 6,967 Fair value of contingent consideration upon acquisition (1) 2,151 9,973 Change in fair value of contingent consideration — (3,509) Settlement of contingent consideration (5,954) (880) Effect of foreign currency exchange rate changes (1,843) — End of the period $ 6,613 $ 12,551 (1) Represents the contingent consideration related to the technology acquisitions during the periods. The contingent consideration arising from the technology acquisition on May 19, 2021, represents the future potential earn-out payments of up to $10.0 million payable in cash only upon the achievement of three technical development milestones required to be completed as of December 31, 2021, June 30, 2022, and June 30, 2023. The fair value of the contingent consideration as of the acquisition date was $10.0 million, which was determined using a probability-weighted expected payment model and discounted at the estimated cost of debt. During the third quarter of fiscal year 2022, $0.9 million of the contingent consideration was released from other current liabilities upon cash settlement of the contingent consideration for the first technical development milestone. During the second quarter of fiscal year 2023, the Company paid $4.0 million for the contingent consideration related to the second technical development milestone. The contingent consideration arising from the Mevo Acquisition on February 17, 2021 represents the future potential earn-out payments of up to $17.0 million payable in cash only upon the achievement of certain net sales for the period from December 26, 2020 to December 31, 2021. As of March 31, 2021 the fair value of the contingent consideration was $3.4 million. A s of December 31, 2021, the fair value of the contingent consideration was released from other current liabilities as the net sales milestone was not achieved upon completion of the earn-out period. The contingent consideration arising from the technology acquisition on January 4, 2021, represents the future potential earn-out payments of up to $3.0 million payable in cash upon the achievement of two technical development milestones required to be completed as of December 31, 2021 and March 31, 2022. The fair value of the contingent amount was determined using a probability-weighted expected payment model and discounted at the estimated cost of debt. During the second quarter of fiscal year 2023, the Company paid $2.0 million for the contingent consideration related to the first technical development milestone. The Company expects to pay the remaining $1.0 million for the second technical development milestone within next twelve months. Although the estimate of contingent consideration is based on management’s best knowledge of current events, the estimate could change significantly from period to period. Actual results that differ from the assumptions used and any changes to the significant assumptions and unobservable inputs used could have an impact on future results of operations. Investment for Deferred Compensation Plan The marketable securities for the Company's deferred compensation plan were recorded at a fair value of $27.7 million and $28.4 million, as of December 31, 2022 and March 31, 2022, 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 marketable securities for the three and nine months ended December 31, 2022 and 2021 were not material and were included in other income (expense), net in the Company's condensed consolidated statements of operations. Equity Method Investments The Company has certain non-marketable investments included in other assets that are accounted for as equity method investments, with a carrying value of $21.3 million and $40.2 million as of December 31, 2022 and March 31, 2022, respectively. Gains (losses) related to equity method investments for the three and nine months ended December 31, 2022 and 2021 were not material and are included in other income (expense), net in the Company's condensed consolidated statements of operations. During the nine months ended December 31, 2022 , the Company recorded an impairment charge, before tax, of $21.4 million for one of its equity method investments as it was determined that the carrying value of the investment was not recoverable. The impairment charge is included in other income (expense), net in the Company's condensed consolidated statement of operations for the nine months ended December 31, 2022. There was no impairment of equity method investments during the three months ended December 31, 2022 and 2021 and the nine months ended December 31, 2021. Other Assets Measured at Fair Value on a Nonrecurring Basis Financial Assets. The Company has certain equity 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 the same or similar security from the same issuer. The amount of these equity investments without readily determinable fair value included in other assets was $10.9 million and $2.9 million as of December 31, 2022 and March 31, 2022, respectively. During the nine months ended December 31, 2022, the Company recorded an unrealized gain, before tax, of $6.9 million for its investment in a private company as a result of observable price changes for similar securities issued by this company (level 2 fair value measurement). There was no impairment of these financial assets during the three and nine months ended December 31, 2022 and 2021, other than an immaterial impairment charge related to one of the Company’s investments without readily determinable fair value recorded during the second quarter of fiscal year 2023 . Non-Financial Assets. Goodwill, intangible assets, and property, plant and equipment, are not required to be measured at fair value on a recurring basis. However, if the Company is required to evaluate these non-financial assets for impairment, whether due to certain triggering events or because of the required annual impairment test, and a resulting impairment is recorded to reduce the carrying value to the fair value, the non-financial assets are measured at fair value during such period. There was no impairment of non-financial assets during the three and nine months ended December 31, 2022. During the three and nine months ended December 31, 2021, the Company recorded impairment charges of $7.0 million for the Jaybird-related |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Dec. 31, 2022 | |
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 in other current assets and accrued and other current liabilities, respectively, on the condensed consolidated balance sheets as of December 31, 2022 and March 31, 2022. See Note 6 for the fair values of the Company’s derivative instruments as of December 31, 2022 and March 31, 2022. 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 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. The notional amounts of foreign currency exchange forward contracts outstanding related to forecasted inventory purchases were $111.7 million and $125.4 million as of December 31, 2022 and March 31, 2022, respectively. The Company had $4.7 million of net losses related to its cash flow hedges included in accumulated other comprehensive loss as of December 31, 2022, which will be reclassified into earnings within the next twelve months. The following table presents the amounts of gain (loss) on the Company’s derivative instruments designated as hedging instruments for the three and nine months ended December 31, 2022 and 2021 and their locations on its condensed consolidated statements of operations and condensed consolidated statements of comprehensive income (in thousands): Three Months Ended Amount of Gain (Loss) Amount of Gain 2022 2021 2022 2021 Cash flow hedges $ (6,325) $ 1,061 $ (4,728) $ (3,200) Nine Months Ended Amount of Gain Amount of Gain 2022 2021 2022 2021 Cash flow hedges $ 5,239 $ 3,723 $ (11,766) $ (5,108) The Company presents the earnings impact from forward points in the same line item that is used to present the earnings impact of the hedged item, i.e. cost of goods sold, for hedging forecasted inventory purchases and such amount is not material for all periods presented. 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 a 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 not material and included i n 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, 2022 and March 31, 2022 were $217.6 million and $226.5 million, respectively. Foreign currency exchange forward and swap contracts outstanding as of December 31, 2022 primarily consist of contracts in Japanese Yen, Brazilian Real, Canadian Dollar, and Australian Dollar to be se ttled at future dates at pre-determined exchange rates. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Dec. 31, 2022 | |
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 reporting unit may be less than its carrying amount. The Company conducted its annual impairment analysis of goodwill as of December 31, 2022 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, 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 (in thousands): As of March 31, 2022 $ 448,175 Acquisitions 7,976 Effects of foreign currency translation (1,680) As of December 31, 2022 $ 454,471 The Company's acquired intangible assets were as follows (in thousands): December 31, 2022 March 31, 2022 Gross Carrying Amount Accumulated Net Carrying Amount Gross Carrying Amount Accumulated Net Carrying Amount Trademark and trade names $ 36,790 $ (25,787) $ 11,003 $ 36,790 $ (22,295) $ 14,495 Developed technology 123,530 (93,058) 30,472 119,407 (83,540) 35,867 Customer contracts/relationships 71,110 (46,026) 25,084 71,110 (40,971) 30,139 In-process R&D 3,526 — 3,526 3,826 — 3,826 Effects of foreign currency translation (1,077) 356 (721) (634) 86 (548) Total $ 233,879 $ (164,515) $ 69,364 $ 230,499 $ (146,720) $ 83,779 |
Financing Arrangements
Financing Arrangements | 9 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements The Company had several uncommitted, unsecured bank lines of credit aggregating $179.2 million and $195.0 million as of December 31, 2022 and March 31, 2022, respectively. There are no financial covenants under these lines of credit with which the Company must comply. As of December 31, 2022 and March 31, 2022, the Company had outstanding bank guarantees of $11.6 million and $25.5 million, respectively, under these lines of credit. There was no borrowing outstanding under these lines of credit as of December 31, 2022 or March 31, 2022. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021 were as follows (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Beginning of the period $ 41,960 $ 49,173 $ 46,219 $ 48,832 Provision 8,920 6,962 23,440 23,503 Settlements (8,979) (8,056) (26,358) (24,219) Effects of foreign currency translation 730 (144) (670) (181) End of the period $ 42,631 $ 47,935 $ 42,631 $ 47,935 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, 2022, no material 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 and 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, 2022 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Share Repurchases In May 2020, the Company's Board of Directors approved the 2020 share repurchase program, which authorized the Company to use up to $250.0 million to purchase up to 17.3 million of Logitech shares. 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. In April 2021, the Company's Board of Directors approved an increase of $750.0 million of the 2020 share repurchase program, to an aggregate amount of $1.0 billion. The Swiss Takeover Board approved this increase and it became effective on May 21, 2021. In July 2022, the Company’s Board of Directors approved an increase of $500 million to the 2020 share repurchase program, to an aggregate amount of up to $1.5 billion to purchase up to 17.3 million of Logitech shares. The Swiss Takeover Board approved this increase and it became effective on August 19, 2022. As of December 31, 2022 , $596.3 m illion was available for repurchase under the 2020 repurchase program. The 2020 share repurchase program is expected to remain in effect for a period of three years through July 27, 2023. Dividends During the nine months ended December 31, 2022, the Company declared and paid cash dividends of CHF 0.96 (USD equivalent of $1.00 based on the exchange rate on the date of declaration) per share, totaling $162.7 million on the Company's outstanding shares. During the nine months ended December 31, 2021, the Company declared and paid cash dividends of CHF 0.87 (USD equivalent of $0.95 based on the exchange rate on the date of declaration) per share, totaling $159.4 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): Cumulative Translation Adjustment Defined Benefit Plans Deferred Hedging Gains (Losses) Total March 31, 2022 $ (102,461) $ (3,495) $ 1,833 $ (104,123) Other comprehensive income (loss) (5,988) (330) (6,527) (12,845) December 31, 2022 $ (108,449) $ (3,825) $ (4,694) $ (116,968) |
Segment Information
Segment Information | 9 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company 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, net, share-based compensation expense, amortization and impairment of intangible assets, acquisition-related costs and change in fair value of contingent consideration from business acquisitions. Sales by product categories and sales channels, excluding intercompany transactions, for the three and nine months ended December 31, 2022 and 2021 were as follows (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Pointing Devices $ 199,106 $ 231,090 $ 567,589 $ 602,982 Keyboards & Combos 220,059 281,608 648,632 736,237 PC Webcams 58,481 115,115 178,033 319,504 Tablet & Other Accessories 65,157 82,859 185,945 242,932 Gaming (1) 391,975 469,282 972,457 1,135,456 Video Collaboration 226,374 287,187 708,796 753,725 Mobile Speakers 38,321 56,748 99,826 124,724 Audio & Wearables 69,104 104,280 211,821 318,965 Other (2) 1,348 4,613 5,642 16,582 Total Sales $ 1,269,925 $ 1,632,782 $ 3,578,741 $ 4,251,107 (1) Gaming includes streaming services revenue generated by Streamlabs. (2) Other includes Smart Home. Sales by geographic region (based on the customers’ locations) for the three and nine months ended December 31, 2022 and 2021 were as follows (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Americas $ 513,835 $ 674,393 $ 1,508,318 $ 1,828,474 EMEA 428,532 552,133 1,016,187 1,309,542 Asia Pacific 327,558 406,256 1,054,236 1,113,091 Total sales $ 1,269,925 $ 1,632,782 $ 3,578,741 $ 4,251,107 Revenue from sales to customers in the United States, Germany and China each represented 10% or more of the total consolidated sales for each of the periods presented herein. 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% and 3% of the Company's total consolidated sales for the three months ended December 31, 2022 and 2021, respectively, and 3% for each of the nine months ended December 31, 2022 and 2021. Three customers of the Company each represented 10% or more of the total consolidated gross sales for each of the three and nine months ended December 31, 2022. Two customers of the Company each represented 10% or more of the total consolidated sales for each of the three and nine months ended December 31, 2021. Property, plant and equipment, net (excluding software) and right-of-use assets by geographic region were as follows (in thousands): December 31, 2022 March 31, 2022 Americas $ 49,447 $ 22,578 EMEA 38,380 23,830 Asia Pacific 78,458 87,265 Total $ 166,285 $ 133,673 Property, plant and equipment, net (excluding software) and right-of-use assets in the United States, China, and Ireland were $48.9 million, $56.8 million, and $17.6 million, respectively, as of December 31, 2022, and $21.7 million, $66.8 million, and $0.9 million respectively, as of March 31, 2022. Property, plant and equipment, net (excluding software) and right-of-use assets in Switzerland, the Company’s country of incorporation, were $12.9 million and $13.6 million as of December 31, 2022 and March 31, 2022, respectively. No other countries |
Restructuring
Restructuring | 9 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During the second quarter of fiscal year 2023, the Company initiated a restructuring plan to realign its business group and engineering structure with its go-to-market strategy to more effectively compete within the enterprise market and to better serve end-users. As a result, the Company recorded pre-tax restructuring charges of $5.7 million and $16.5 million for the three and nine months ended December 31, 2022, respectively, which are included in restructuring charges, net in the condensed consolidated statements of operations. The restructuring charges of $5.7 million for the three months ended December 31, 2022 primarily include contract termination and other costs. The restructuring charges for the nine months ended December 31, 2022 include $11.3 million employee severance and other termination benefits and $5.2 million contract termination and other costs. As of December 31, 2022, restructuring liabilities of $8.3 million related to this restructuring plan are included in accrued and other current liabilities in the condensed consolidated balance sheet, which include $3.6 million related to employee severance and other termination benefits and $4.7 million related to contract termination and other costs. The Company expects to substantially complete this restructuring plan within the next nine months. During the third quarter of fiscal year 2022, as part of the Company's strategic review, the Company decided to cease future product launches under the Jaybird brand within the Audio & Wearables product category. As a result, the Company recorded $7.6 million in cost of goods sold related to write-offs for excess inventories, $7.0 million impairment to the intangible assets acquired as part of the Jaybird acquisition (see Note 8), and $1.8 million in restructuring charges, net, primarily related to production cancellation costs, for the three and nine months ended December 31, 2021. This restructuring plan has been substantially completed. |
The Company and Summary of Si_2
The Company and Summary of Significant Accounting Policies and Estimates (Policies) | 9 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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 ("U.S. GAAP") for interim financial information and therefore do not include all the information required by U.S. 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, 2022, included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on May 18, 2022. 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, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2023, or any future periods. |
Changes in Significant Accounting Policies and Recent Accounting Pronouncements Adopted | Changes in Significant Accounting Policies Other than the recent accounting pronouncements adopted and discussed below under Recent Accounting Pronouncements Adopted , there have bee n no material changes in the Company’s significant accounting policies during the nine months ended December 31, 2022 compared with the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended March 31, 2022. Recent Accounting Pronouncements Adopted In October 2021, the Financial Accounting Standard Board issued ASU 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers " (ASU 2021-08). The update requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers , as if it had originated the contracts. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. The Company early adopted the standard effective April 1, 2022 and applies the standard prospectively to business combinations that occurred on or after April 1, 2022. The adoption of ASU 2021-08 did not have a material impact on the Company's condensed consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. 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 and intangible assets acquired from business acquisitions, contingent consideration for a business acquisition and periodic reassessment of its fair value, valuation of investment in privately held companies classified under Level 3 fair value hierarchy, pension obligations, accruals for customer incentives, cooperative marketing, and pricing programs and related breakage when appropriate, inventory valuation, share-based compensation expense, uncertain tax positions, and valuation allowances for deferred tax assets. Although these |
Risks and Uncertainties | Risks and Uncertainties Impacts of Macroeconomic and Geopolitical Conditions and Other Factors on the Company's Business In March 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic, which continues to spread throughout the world. The COVID-19 pandemic resulted in industry-wide global supply chain challenges, including manufacturing, transportation and logistics. The Company purchases certain products and key components from a limited number of sources, and depends on the supply chain, including freight, to receive components, transport finished goods and deliver the Company's products across the world. More recently, the Company has also been impacted by adverse macroeconomic and geopolitical conditions. These conditions include but are not limited to inflation, foreign currency fluctuations, and slowdown of economic activity around the world, in part due to rising interest rates, and lower consumer and enterprise spending . In addition, the war in Ukraine increased global supply chain, logistics, and inflationary challenges. Such global or regional economic and political conditions adversely affect demand for the Company's products. These conditions also have an impact on the Company's suppliers, contract manufacturers, logistics providers, and distributors, causing volatility in cost of materials and shipping and transportation rates, and as a result impacting the pricing of the Company's products. Price increases may not successfully offset cost increases or may cause the Company to lose market share and in turn adversely impact the Company's results of operations. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021 (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Net income $ 140,153 $ 210,011 $ 323,080 $ 536,308 Shares used in net income per share computation: Weighted average shares outstanding - basic 161,244 167,090 163,042 167,953 Effect of potentially dilutive equivalent shares 1,285 2,617 1,385 3,074 Weighted average shares outstanding - diluted 162,529 169,707 164,427 171,027 Net income per share: Basic $ 0.87 $ 1.26 $ 1.98 $ 3.19 Diluted $ 0.86 $ 1.24 $ 1.96 $ 3.14 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Share-based Compensation Expenses and Related Tax Benefits 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, 2022 and 2021 (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Cost of goods sold $ 1,324 $ 1,782 $ 4,228 $ 5,253 Marketing and selling 8,014 10,699 25,240 28,987 Research and development 2,756 4,510 11,568 14,295 General and administrative 3,711 7,801 10,704 23,930 Total share-based compensation expense 15,805 24,792 51,740 72,465 Income tax benefit (3,276) (3,581) (7,496) (23,460) Total share-based compensation expense, net of income tax benefit $ 12,529 $ 21,211 $ 44,244 $ 49,005 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Components of Certain Balance Sheet Asset Amounts | The following table presents the components of certain balance sheet asset amounts (in thousands): December 31, 2022 March 31, 2022 Accounts receivable, net: Accounts receivable $ 1,121,377 $ 964,766 Allowance for doubtful accounts — (2,212) Allowance for sales returns (14,021) (12,321) Allowance for cooperative marketing arrangements (62,734) (56,372) Allowance for customer incentive programs (114,160) (97,460) Allowance for pricing programs (128,027) (120,797) $ 802,435 $ 675,604 Inventories: Raw materials $ 202,798 $ 226,155 Finished goods 594,897 706,969 $ 797,695 $ 933,124 Other current assets: Value-added tax ("VAT") receivables $ 51,681 $ 58,850 Prepaid expenses and other assets 73,407 76,628 $ 125,088 $ 135,478 Property, plant and equipment, net: Property, plant and equipment $ 496,830 $ 459,413 Less: accumulated depreciation and amortization (378,647) (349,606) $ 118,183 $ 109,807 Other assets: Deferred tax assets $ 190,558 $ 193,629 Investments in privately held companies 32,600 43,068 Right-of-use assets 69,953 40,661 Investments for deferred compensation plan 27,665 28,431 Other assets 15,103 14,933 $ 335,879 $ 320,722 |
Schedule of Components of Certain Balance Sheet Liability Amounts | The following table presents the components of certain balance sheet liability amounts (in thousands): December 31, 2022 March 31, 2022 Accrued and other current liabilities: Accrued customer marketing, pricing and incentive programs $ 238,518 $ 232,393 Accrued personnel expenses 113,486 165,090 Accrued sales return liability 42,743 40,507 Warranty accrual 29,999 32,987 VAT payable 34,149 39,602 Income taxes payable 17,839 35,355 Accrued payables - non-inventory 18,398 26,722 Operating lease liabilities 11,577 13,690 Contingent consideration 6,368 8,042 Other current liabilities 192,492 190,460 $ 705,569 $ 784,848 Other non-current liabilities: Employee benefit plan obligations $ 49,082 $ 50,741 Operating lease liabilities 61,414 28,207 Obligation for deferred compensation plan 27,665 28,431 Warranty accrual 12,632 13,232 Deferred tax liabilities 3,500 1,962 Contingent consideration 245 4,217 Other non-current liabilities 11,377 5,343 $ 165,915 $ 132,133 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities, Classified by Level | 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, 2022 March 31, 2022 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Cash equivalents $ 603,163 $ — $ — $ 762,055 $ — $ — Investments for deferred compensation plan included in other assets: Cash $ 10 $ — $ — $ 108 $ — $ — Common stock 705 — — 2,329 — — Money market funds 9,728 — — 6,765 — — Mutual funds 17,222 — — 19,229 — — Total investments for deferred compensation plan $ 27,665 $ — $ — $ 28,431 $ — $ — Currency derivative assets $ — $ 668 $ — $ — $ 1,517 $ — Liabilities: Contingent consideration included in accrued and other current liabilities $ — $ — $ 6,368 $ — $ — $ 8,042 Contingent consideration included in other non-current liabilities $ — $ — $ — $ — $ — $ 3,971 Currency derivative liabilities $ — $ 3,519 $ — $ — $ 165 $ — |
Schedule of Change in Fair Value of Contingent Consideration | The following table summarizes the change in the fair value of the Company's contingent consideration balance during the nine months ended December 31, 2022 and 2021 (in thousands): Nine Months Ended 2022 2021 Beginning of the period $ 12,259 $ 6,967 Fair value of contingent consideration upon acquisition (1) 2,151 9,973 Change in fair value of contingent consideration — (3,509) Settlement of contingent consideration (5,954) (880) Effect of foreign currency exchange rate changes (1,843) — End of the period $ 6,613 $ 12,551 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Gains on Derivative Instruments | The following table presents the amounts of gain (loss) on the Company’s derivative instruments designated as hedging instruments for the three and nine months ended December 31, 2022 and 2021 and their locations on its condensed consolidated statements of operations and condensed consolidated statements of comprehensive income (in thousands): Three Months Ended Amount of Gain (Loss) Amount of Gain 2022 2021 2022 2021 Cash flow hedges $ (6,325) $ 1,061 $ (4,728) $ (3,200) Nine Months Ended Amount of Gain Amount of Gain 2022 2021 2022 2021 Cash flow hedges $ 5,239 $ 3,723 $ (11,766) $ (5,108) |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Activity In Goodwill Balance | The following table summarizes the activities in the Company’s goodwill balance (in thousands): As of March 31, 2022 $ 448,175 Acquisitions 7,976 Effects of foreign currency translation (1,680) As of December 31, 2022 $ 454,471 |
Schedule of Intangible Assets Subject to Amortization | The Company's acquired intangible assets were as follows (in thousands): December 31, 2022 March 31, 2022 Gross Carrying Amount Accumulated Net Carrying Amount Gross Carrying Amount Accumulated Net Carrying Amount Trademark and trade names $ 36,790 $ (25,787) $ 11,003 $ 36,790 $ (22,295) $ 14,495 Developed technology 123,530 (93,058) 30,472 119,407 (83,540) 35,867 Customer contracts/relationships 71,110 (46,026) 25,084 71,110 (40,971) 30,139 In-process R&D 3,526 — 3,526 3,826 — 3,826 Effects of foreign currency translation (1,077) 356 (721) (634) 86 (548) Total $ 233,879 $ (164,515) $ 69,364 $ 230,499 $ (146,720) $ 83,779 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in Warranty Liability | Changes in the Company’s warranty liability for the three and nine months ended December 31, 2022 and 2021 were as follows (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Beginning of the period $ 41,960 $ 49,173 $ 46,219 $ 48,832 Provision 8,920 6,962 23,440 23,503 Settlements (8,979) (8,056) (26,358) (24,219) Effects of foreign currency translation 730 (144) (670) (181) End of the period $ 42,631 $ 47,935 $ 42,631 $ 47,935 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Income (Loss) | The accumulated other comprehensive income (loss) was as follows (in thousands): Cumulative Translation Adjustment Defined Benefit Plans Deferred Hedging Gains (Losses) Total March 31, 2022 $ (102,461) $ (3,495) $ 1,833 $ (104,123) Other comprehensive income (loss) (5,988) (330) (6,527) (12,845) December 31, 2022 $ (108,449) $ (3,825) $ (4,694) $ (116,968) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021 were as follows (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Pointing Devices $ 199,106 $ 231,090 $ 567,589 $ 602,982 Keyboards & Combos 220,059 281,608 648,632 736,237 PC Webcams 58,481 115,115 178,033 319,504 Tablet & Other Accessories 65,157 82,859 185,945 242,932 Gaming (1) 391,975 469,282 972,457 1,135,456 Video Collaboration 226,374 287,187 708,796 753,725 Mobile Speakers 38,321 56,748 99,826 124,724 Audio & Wearables 69,104 104,280 211,821 318,965 Other (2) 1,348 4,613 5,642 16,582 Total Sales $ 1,269,925 $ 1,632,782 $ 3,578,741 $ 4,251,107 (1) Gaming includes streaming services revenue generated by Streamlabs. (2) Other includes Smart Home. |
Schedule of Net Sales by Geographic Region | Sales by geographic region (based on the customers’ locations) for the three and nine months ended December 31, 2022 and 2021 were as follows (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Americas $ 513,835 $ 674,393 $ 1,508,318 $ 1,828,474 EMEA 428,532 552,133 1,016,187 1,309,542 Asia Pacific 327,558 406,256 1,054,236 1,113,091 Total sales $ 1,269,925 $ 1,632,782 $ 3,578,741 $ 4,251,107 |
Schedule of Long-Lived Assets by Geographic Region | Property, plant and equipment, net (excluding software) and right-of-use assets by geographic region were as follows (in thousands): December 31, 2022 March 31, 2022 Americas $ 49,447 $ 22,578 EMEA 38,380 23,830 Asia Pacific 78,458 87,265 Total $ 166,285 $ 133,673 |
Net Income Per Share - Computat
Net Income Per Share - Computations 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, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 140,153 | $ 210,011 | $ 323,080 | $ 536,308 |
Net income | $ 140,153 | $ 210,011 | $ 323,080 | $ 536,308 |
Shares used in net income per share computation: | ||||
Weighted average shares outstanding - basic (in shares) | 161,244 | 167,090 | 163,042 | 167,953 |
Effect of potentially dilutive equivalent shares (in shares) | 1,285 | 2,617 | 1,385 | 3,074 |
Weighted average shares outstanding - diluted (in shares) | 162,529 | 169,707 | 164,427 | 171,027 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.87 | $ 1.26 | $ 1.98 | $ 3.19 |
Diluted (in dollars per share) | $ 0.86 | $ 1.24 | $ 1.96 | $ 3.14 |
Anti-dilutive equivalents shares excluded (in shares) | 1,600 | 800 | 2,000 | 900 |
Employee Benefit Plans - Share-
Employee Benefit Plans - Share-based Compensation Expenses and Related Tax Benefits Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based compensation expense and related tax benefit | ||||
Total share-based compensation expense | $ 15,805 | $ 24,792 | $ 51,740 | $ 72,465 |
Income tax benefit | (3,276) | (3,581) | (7,496) | (23,460) |
Total share-based compensation expense, net of income tax benefit | 12,529 | 21,211 | 44,244 | 49,005 |
Cost of goods sold | ||||
Share-based compensation expense and related tax benefit | ||||
Total share-based compensation expense | 1,324 | 1,782 | 4,228 | 5,253 |
Marketing and selling | ||||
Share-based compensation expense and related tax benefit | ||||
Total share-based compensation expense | 8,014 | 10,699 | 25,240 | 28,987 |
Research and development | ||||
Share-based compensation expense and related tax benefit | ||||
Total share-based compensation expense | 2,756 | 4,510 | 11,568 | 14,295 |
General and administrative | ||||
Share-based compensation expense and related tax benefit | ||||
Total share-based compensation expense | $ 3,711 | $ 7,801 | $ 10,704 | $ 23,930 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||||
Share-based compensation expenses capitalized as inventory | $ 1.3 | $ 1.1 | $ 4.4 | $ 4.1 |
Net periodic benefit cost | $ 2.7 | $ 3.4 | $ 8.3 | $ 10 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Provision for income taxes | $ 42,663 | $ 49,345 | $ 87,751 | $ 107,789 | |
Effective income tax rates (as a percent) | 23.30% | 19% | 21.40% | 16.70% | |
Discrete tax provision (benefit) from recognition of excess tax benefits | $ (200) | $ (800) | $ (1,400) | $ (15,200) | |
Expense (benefit) related to reversal of uncertain tax positions | (1,700) | $ (1,300) | (3,200) | $ (2,800) | |
Unrecognized tax benefits | 184,000 | 184,000 | $ 176,000 | ||
Income taxes payable | 117,608 | 117,608 | 83,380 | ||
Accrued interest and penalties related to uncertain tax positions | 5,200 | 5,200 | $ 3,600 | ||
Expected decrease in uncertain tax positions | $ 4,300 | $ 4,300 |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Certain Balance Sheet Asset Amounts (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Mar. 31, 2022 |
Accounts receivable, net: | ||
Accounts receivable | $ 1,121,377 | $ 964,766 |
Accounts receivable, net | 802,435 | 675,604 |
Inventories: | ||
Raw materials | 202,798 | 226,155 |
Finished goods | 594,897 | 706,969 |
Inventory, net | 797,695 | 933,124 |
Other current assets: | ||
Value-added tax ("VAT") receivables | 51,681 | 58,850 |
Prepaid expenses and other assets | 73,407 | 76,628 |
Other current assets, total | 125,088 | 135,478 |
Property, plant and equipment, net: | ||
Property, plant and equipment | 496,830 | 459,413 |
Less: accumulated depreciation and amortization | (378,647) | (349,606) |
Property, plant and equipment, net | 118,183 | 109,807 |
Other assets: | ||
Deferred tax assets | 190,558 | 193,629 |
Investments in privately held companies | 32,600 | 43,068 |
Right-of-use assets | 69,953 | 40,661 |
Investments for deferred compensation plan | 27,665 | 28,431 |
Other assets | 15,103 | 14,933 |
Other assets, total | 335,879 | 320,722 |
Allowance for doubtful accounts | ||
Accounts receivable, net: | ||
Valuation allowance for accounts receivable | 0 | (2,212) |
Allowance for sales returns | ||
Accounts receivable, net: | ||
Valuation allowance for accounts receivable | (14,021) | (12,321) |
Allowance for cooperative marketing arrangements | ||
Accounts receivable, net: | ||
Valuation allowance for accounts receivable | (62,734) | (56,372) |
Allowance for customer incentive programs | ||
Accounts receivable, net: | ||
Valuation allowance for accounts receivable | (114,160) | (97,460) |
Allowance for pricing programs | ||
Accounts receivable, net: | ||
Valuation allowance for accounts receivable | $ (128,027) | $ (120,797) |
Balance Sheet Components - Co_2
Balance Sheet Components - Components of Certain Balance Sheet Liability Amounts (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Mar. 31, 2022 |
Accrued and other current liabilities: | ||
Accrued customer marketing, pricing and incentive programs | $ 238,518 | $ 232,393 |
Accrued personnel expenses | 113,486 | 165,090 |
Accrued sales return liability | 42,743 | 40,507 |
Warranty accrual | 29,999 | 32,987 |
VAT payable | 34,149 | 39,602 |
Income taxes payable | 17,839 | 35,355 |
Accrued payables - non-inventory | 18,398 | 26,722 |
Operating lease liabilities | 11,577 | 13,690 |
Contingent consideration | 6,368 | 8,042 |
Other current liabilities | 192,492 | 190,460 |
Accrued and other current liabilities | 705,569 | 784,848 |
Other non-current liabilities: | ||
Employee benefit plan obligations | 49,082 | 50,741 |
Operating lease liabilities | 61,414 | 28,207 |
Obligation for deferred compensation plan | 27,665 | 28,431 |
Warranty accrual | 12,632 | 13,232 |
Deferred tax liabilities | 3,500 | 1,962 |
Contingent consideration | 245 | 4,217 |
Other non-current liabilities | 11,377 | 5,343 |
Non-current liabilities | $ 165,915 | $ 132,133 |
Balance Sheet Components - Narr
Balance Sheet Components - Narrative (Details) $ in Millions | 9 Months Ended |
Dec. 31, 2022 USD ($) | |
Balance Sheet Related Disclosures [Abstract] | |
Increase in right-of-use assets | $ 43 |
Increase in operating lease liabilities | $ 43 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities, Classified by Level (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Mar. 31, 2022 |
Liabilities: | ||
Contingent consideration included in accrued and other current liabilities | $ 6,368 | $ 8,042 |
Contingent consideration included in other non-current liabilities | 245 | 4,217 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Cash equivalents | 603,163 | 762,055 |
Investments for deferred compensation plan | 27,665 | 28,431 |
Currency derivative assets included in other current assets | 0 | 0 |
Liabilities: | ||
Contingent consideration included in accrued and other current liabilities | 0 | 0 |
Contingent consideration included in other non-current liabilities | 0 | 0 |
Currency derivative liabilities included in accrued and other current liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Cash | ||
Assets: | ||
Investments for deferred compensation plan | 10 | 108 |
Fair Value, Measurements, Recurring | Level 1 | Common stock | ||
Assets: | ||
Investments for deferred compensation plan | 705 | 2,329 |
Fair Value, Measurements, Recurring | Level 1 | Money market funds | ||
Assets: | ||
Investments for deferred compensation plan | 9,728 | 6,765 |
Fair Value, Measurements, Recurring | Level 1 | Mutual funds | ||
Assets: | ||
Investments for deferred compensation plan | 17,222 | 19,229 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Investments for deferred compensation plan | 0 | 0 |
Currency derivative assets included in other current assets | 668 | 1,517 |
Liabilities: | ||
Contingent consideration included in accrued and other current liabilities | 0 | 0 |
Contingent consideration included in other non-current liabilities | 0 | 0 |
Currency derivative liabilities included in accrued and other current liabilities | 3,519 | 165 |
Fair Value, Measurements, Recurring | Level 2 | Cash | ||
Assets: | ||
Investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Common stock | ||
Assets: | ||
Investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Money market funds | ||
Assets: | ||
Investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Mutual funds | ||
Assets: | ||
Investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Investments for deferred compensation plan | 0 | 0 |
Currency derivative assets included in other current assets | 0 | 0 |
Liabilities: | ||
Contingent consideration included in accrued and other current liabilities | 6,368 | 8,042 |
Contingent consideration included in other non-current liabilities | 0 | 3,971 |
Currency derivative liabilities included in accrued and other current liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Cash | ||
Assets: | ||
Investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Common stock | ||
Assets: | ||
Investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Money market funds | ||
Assets: | ||
Investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Mutual funds | ||
Assets: | ||
Investments for deferred compensation plan | $ 0 | $ 0 |
Fair Value Measurements - Chang
Fair Value Measurements - Change in Fair Value of Contingent Consideration (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Change in Fair Value of Contingent Consideration [Roll Forward] | ||
Beginning of the period | $ 12,259 | $ 6,967 |
Fair value of contingent consideration upon acquisition | 2,151 | 9,973 |
Change in fair value of contingent consideration | 0 | (3,509) |
Settlement of contingent consideration | (5,954) | (880) |
Effect of foreign currency exchange rate changes | (1,843) | 0 |
End of the period | $ 6,613 | $ 12,551 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||||||||
May 19, 2021 USD ($) milestone | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | Feb. 17, 2021 USD ($) | Jan. 04, 2021 USD ($) milestone | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Fair value of contingent consideration upon acquisition | $ 2,151,000 | $ 9,973,000 | ||||||||
Payment of contingent consideration for business acquisition | 5,954,000 | 880,000 | ||||||||
Equity method investments | $ 21,300,000 | 21,300,000 | $ 40,200,000 | |||||||
Impairment of non-marketable investments | 0 | $ 0 | 21,400,000 | 0 | ||||||
Equity investments included in other assets | 10,900,000 | 10,900,000 | 2,900,000 | |||||||
Unrealized gain, before tax | 6,900,000 | |||||||||
Impairment of long-lived assets held-for-use | 0 | 0 | 0 | 0 | ||||||
Impairment of non-financial assets | 0 | 0 | ||||||||
Impairment of intangible assets | 0 | 7,000,000 | 0 | $ 7,000,000 | ||||||
Fair Value, Measurements, Recurring | Level 1 | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Investments for deferred compensation plan | 27,665,000 | 27,665,000 | $ 28,431,000 | |||||||
Small Technology Acquisition | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Future potential earn-out payments | $ 10,000,000 | |||||||||
Number of technical development milestones | milestone | 3 | |||||||||
Fair value of contingent consideration upon acquisition | $ 10,000,000 | |||||||||
Small Technology Acquisition | First Technical Development Milestone | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Payment of contingent consideration for business acquisition | $ 900,000 | |||||||||
Small Technology Acquisition | Second Technical Development Milestone | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Payment of contingent consideration for business acquisition | $ 4,000,000 | |||||||||
Mevo | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Future potential earn-out payments | $ 17,000,000 | |||||||||
Contingent consideration | $ 3,400,000 | |||||||||
Second Small Technology Acquisition | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Future potential earn-out payments | $ 3,000,000 | |||||||||
Number of technical development milestones | milestone | 2 | |||||||||
Second Small Technology Acquisition | First Technical Development Milestone | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Payment of contingent consideration for business acquisition | $ 2,000,000 | |||||||||
Second Small Technology Acquisition | Second Technical Development Milestone | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Contingent consideration | $ 1,000,000 | $ 1,000,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |||||
Dec. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2021 | |
Derivative [Line Items] | ||||||
Equity | $ 2,258,666 | $ 2,168,561 | $ 2,398,738 | $ 2,367,942 | $ 2,262,683 | $ 2,261,789 |
Deferred Hedging Gains (Losses) | ||||||
Derivative [Line Items] | ||||||
Equity | $ (4,694) | 1,833 | ||||
Not Designated as Hedging Instrument | Foreign Exchange Forward And Swap | ||||||
Derivative [Line Items] | ||||||
Derivative term of contract | 1 month | |||||
Foreign Exchange Forward | Designated as hedging instruments | Cash flow hedges | ||||||
Derivative [Line Items] | ||||||
Derivative term of contract | 4 months | |||||
Derivative, notional amount | $ 111,700 | 125,400 | ||||
Foreign Exchange Forward | Designated as hedging instruments | Cash flow hedges | Deferred Hedging Gains (Losses) | ||||||
Derivative [Line Items] | ||||||
Equity | (4,700) | |||||
Foreign Exchange Forward And Swap | Not Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Derivative, notional amount | $ 217,600 | $ 226,500 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Gains and Losses on Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Amounts of gains and losses on the derivative instruments | ||||
Amount of Gain Deferred as a Component of Accumulated Other Comprehensive Loss | $ (6,325) | $ 1,061 | $ 5,239 | $ 3,723 |
Amount of Gain Reclassified from Accumulated Other Comprehensive Loss to Costs of Goods Sold | (4,728) | (3,200) | (11,766) | (5,108) |
Designated as hedging instruments | Cash flow hedges | ||||
Amounts of gains and losses on the derivative instruments | ||||
Amount of Gain Deferred as a Component of Accumulated Other Comprehensive Loss | (6,325) | 1,061 | 5,239 | 3,723 |
Amount of Gain Reclassified from Accumulated Other Comprehensive Loss to Costs of Goods Sold | $ (4,728) | $ (3,200) | $ (11,766) | $ (5,108) |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Activity In Goodwill Balance (Details) $ in Thousands | 9 Months Ended |
Dec. 31, 2022 USD ($) | |
Goodwill | |
Balance at the beginning of the period | $ 448,175 |
Acquisitions | 7,976 |
Effects of foreign currency translation | (1,680) |
Balance at the end of the period | $ 454,471 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Mar. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 233,879 | $ 230,499 |
Accumulated Amortization | (164,515) | (146,720) |
Net Carrying Amount | 69,364 | 83,779 |
Effects of foreign currency translation, Gross Carrying Amount | (1,077) | (634) |
Effects of foreign currency translation, Accumulated Amortization | 356 | 86 |
Effects of foreign currency translation, Net Carrying Amount | (721) | (548) |
In-process R&D | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,526 | 3,826 |
Net Carrying Amount | 3,526 | 3,826 |
Trademark and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 36,790 | 36,790 |
Accumulated Amortization | (25,787) | (22,295) |
Net Carrying Amount | 11,003 | 14,495 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 123,530 | 119,407 |
Accumulated Amortization | (93,058) | (83,540) |
Net Carrying Amount | 30,472 | 35,867 |
Customer contracts/relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 71,110 | 71,110 |
Accumulated Amortization | (46,026) | (40,971) |
Net Carrying Amount | $ 25,084 | $ 30,139 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible assets | $ 0 | $ 7,000 | $ 0 | $ 7,000 |
Financing Arrangements (Details
Financing Arrangements (Details) - Line of Credit - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 |
Financing Arrangements | ||
Maximum borrowing capacity | $ 179,200,000 | $ 195,000,000 |
Outstanding bank guarantees | 11,600,000 | 25,500,000 |
Outstanding borrowings | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Changes in Warranty Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in the warranty liability: | ||||
Beginning of the period | $ 41,960 | $ 49,173 | $ 46,219 | $ 48,832 |
Provision | 8,920 | 6,962 | 23,440 | 23,503 |
Settlements | (8,979) | (8,056) | (26,358) | (24,219) |
Effects of foreign currency translation | 730 | (144) | (670) | (181) |
End of the period | $ 42,631 | $ 47,935 | $ 42,631 | $ 47,935 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) | Dec. 31, 2022 USD ($) |
Indemnification agreement | |
Other Commitments [Line Items] | |
Amount accrued for indemnification provisions | $ 0 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 9 Months Ended | |||||
Jul. 31, 2022 USD ($) shares | Apr. 30, 2021 USD ($) | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2022 USD ($) SFr / shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2021 SFr / shares | May 31, 2020 USD ($) shares | |
Class of Stock [Line Items] | |||||||
Cash dividends per share (in dollars per share) | (per share) | $ 1 | SFr 0.96 | $ 0.95 | SFr 0.87 | |||
Payment of cash dividends | $ 162,681,000 | $ 159,410,000 | |||||
May 2020 | |||||||
Class of Stock [Line Items] | |||||||
Authorized amount in buyback program | $ 1,500,000,000 | $ 1,000,000,000 | $ 250,000,000 | ||||
Shares authorized to be repurchased (in shares) | shares | 17.3 | 17.3 | |||||
Increase in authorized amount | $ 500,000,000 | $ 750,000,000 | |||||
Amount available for repurchase | $ 596,300,000 | SFr 596,300,000 | |||||
Period to complete share repurchase program | 3 years |
Shareholders' Equity - Componen
Shareholders' Equity - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning of the period | $ 2,168,561 | $ 2,262,683 | $ 2,398,738 | $ 2,261,789 |
Other comprehensive income (loss) | 22,026 | (8,177) | (12,845) | (10,281) |
End of the period | 2,258,666 | 2,367,942 | 2,258,666 | 2,367,942 |
Cumulative Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning of the period | (102,461) | |||
Other comprehensive income (loss) | (5,988) | |||
End of the period | (108,449) | (108,449) | ||
Defined Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning of the period | (3,495) | |||
Other comprehensive income (loss) | (330) | |||
End of the period | (3,825) | (3,825) | ||
Deferred Hedging Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning of the period | 1,833 | |||
Other comprehensive income (loss) | (6,527) | |||
End of the period | (4,694) | (4,694) | ||
Total | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning of the period | (138,994) | (111,019) | (104,123) | (108,915) |
End of the period | $ (116,968) | $ (119,196) | $ (116,968) | $ (119,196) |
Segment Information - Net Sales
Segment Information - Net Sales by Product Categories, Excluding Intercompany Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,269,925 | $ 1,632,782 | $ 3,578,741 | $ 4,251,107 |
Pointing Devices | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 199,106 | 231,090 | 567,589 | 602,982 |
Keyboards & Combos | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 220,059 | 281,608 | 648,632 | 736,237 |
PC Webcams | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 58,481 | 115,115 | 178,033 | 319,504 |
Tablet & Other Accessories | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 65,157 | 82,859 | 185,945 | 242,932 |
Gaming | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 391,975 | 469,282 | 972,457 | 1,135,456 |
Video Collaboration | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 226,374 | 287,187 | 708,796 | 753,725 |
Mobile Speakers | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 38,321 | 56,748 | 99,826 | 124,724 |
Audio & Wearables | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 69,104 | 104,280 | 211,821 | 318,965 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,348 | $ 4,613 | $ 5,642 | $ 16,582 |
Segment Information - Net Sal_2
Segment Information - Net Sales and Long-Lived Assets by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | |
Net sales to unaffiliated customers and long-lived assets by geographic region | |||||
Net sales | $ 1,269,925 | $ 1,632,782 | $ 3,578,741 | $ 4,251,107 | |
Property, plant and equipment, net | 166,285 | 166,285 | $ 133,673 | ||
Americas | |||||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||||
Net sales | 513,835 | 674,393 | 1,508,318 | 1,828,474 | |
Property, plant and equipment, net | 49,447 | 49,447 | 22,578 | ||
EMEA | |||||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||||
Net sales | 428,532 | 552,133 | 1,016,187 | 1,309,542 | |
Property, plant and equipment, net | 38,380 | 38,380 | 23,830 | ||
Asia Pacific | |||||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||||
Net sales | 327,558 | $ 406,256 | 1,054,236 | $ 1,113,091 | |
Property, plant and equipment, net | $ 78,458 | $ 78,458 | $ 87,265 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 | Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 | Mar. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of operating segments (in segments) | segment | 1 | ||||
Long lived assets | $ 166,285 | $ 166,285 | $ 133,673 | ||
Switzerland | |||||
Segment Reporting Information [Line Items] | |||||
Long lived assets | 12,900 | 12,900 | 13,600 | ||
United States | |||||
Segment Reporting Information [Line Items] | |||||
Long lived assets | 48,900 | 48,900 | 21,700 | ||
China | |||||
Segment Reporting Information [Line Items] | |||||
Long lived assets | 56,800 | 56,800 | 66,800 | ||
IRELAND | |||||
Segment Reporting Information [Line Items] | |||||
Long lived assets | $ 17,600 | $ 17,600 | $ 900 | ||
Geographic Concentration | Consolidated net sales from continuing operations | Switzerland | |||||
Segment Reporting Information [Line Items] | |||||
Percentage of consolidated net sales | 4% | 3% | 3% | 3% |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges, net | $ 5,654 | $ 1,759 | $ 16,471 | $ 1,770 |
Impairment of intangible assets | 0 | 7,000 | 0 | 7,000 |
Discontinued operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Inventory write-offs in cost of goods sold | 7,600 | 7,600 | ||
Employee severance termination benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges, net | 11,300 | |||
Restructuring reserve | 3,600 | 3,600 | ||
Contract termination | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges, net | 5,700 | 5,200 | ||
Restructuring reserve | 4,700 | 4,700 | ||
Employee severance and contract termination costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | $ 8,300 | $ 8,300 | ||
Purchase order cancellation fees | Discontinued operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges, net | $ 1,800 | $ 1,800 |