COVER PAGE
COVER PAGE - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | May 03, 2023 | Sep. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2023 | ||
Current Fiscal Year End Date | --03-31 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 7,408,622,598 | ||
Entity Common Stock, Shares Outstanding | 158,737,710 | ||
Documents Incorporated by Reference | Portions of the registrant's Proxy Statement for the 2023 Annual Meeting of Shareholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. | ||
Entity Central Index Key | 0001032975 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Mar. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 185 |
Auditor Name | KPMG LLP |
Auditor Location | San Francisco, California |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 4,538,818 | $ 5,481,101 | $ 5,252,279 |
Cost of goods sold | 2,806,438 | 3,204,072 | 2,903,215 |
Amortization of intangible assets | 12,865 | 14,023 | 13,329 |
Gross profit | 1,719,515 | 2,263,006 | 2,335,735 |
Operating expenses: | |||
Marketing and selling | 809,182 | 1,025,899 | 770,284 |
Research and development | 280,796 | 291,844 | 226,023 |
General and administrative | 124,652 | 148,648 | 166,577 |
Amortization of intangible assets and acquisition-related costs | 11,843 | 16,947 | 19,064 |
Impairment of intangible assets | 0 | 7,000 | 0 |
Change in fair value of contingent consideration for business acquisition | 0 | (3,509) | 5,716 |
Restructuring charges (credits), net | 34,573 | 2,165 | (54) |
Total operating expenses | 1,261,046 | 1,488,994 | 1,187,610 |
Operating income | 458,469 | 774,012 | 1,148,125 |
Interest income | 18,331 | 1,246 | 1,784 |
Other income (expense), net | (13,278) | 560 | (1,789) |
Income before income taxes | 463,522 | 775,818 | 1,148,120 |
Provision for income taxes | 98,947 | 131,305 | 200,863 |
Net income | $ 364,575 | $ 644,513 | $ 947,257 |
Net income per share: | |||
Basic (in dollars per share) | $ 2.25 | $ 3.85 | $ 5.62 |
Diluted (in dollars per share) | $ 2.23 | $ 3.78 | $ 5.51 |
Weighted average shares used to compute net income per share: | |||
Basic (in shares) | 162,302 | 167,447 | 168,523 |
Diluted (in shares) | 163,704 | 170,414 | 171,775 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 364,575 | $ 644,513 | $ 947,257 |
Currency translation gain (loss): | |||
Currency translation gain (loss), net of taxes | 1,373 | (14,051) | 12,695 |
Reclassification of cumulative translation adjustments included in other income (expense), net | 219 | 1,051 | (1,738) |
Defined benefit plans: | |||
Net gain (loss) and prior service costs, net of taxes | 16,089 | 22,328 | (4,701) |
Reclassification of amortization included in other income (expense), net | (8,069) | (2,623) | 1,517 |
Hedging gain (loss): | |||
Deferred hedging gain (loss), net of taxes | 2,625 | 6,308 | (4,071) |
Reclassification of hedging loss (gain) included in cost of goods sold | (8,391) | (8,221) | 8,043 |
Total other comprehensive income | 3,846 | 4,792 | 11,745 |
Total comprehensive income | $ 368,421 | $ 649,305 | $ 959,002 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,149,023 | $ 1,328,716 |
Accounts receivable, net | 630,382 | 675,604 |
Inventories | 682,893 | 933,124 |
Other current assets | 142,876 | 135,478 |
Total current assets | 2,605,174 | 3,072,922 |
Non-current assets: | ||
Property, plant and equipment, net | 121,503 | 109,807 |
Goodwill | 454,610 | 448,175 |
Other intangible assets, net | 63,173 | 83,779 |
Other assets | 316,293 | 320,722 |
Total assets | 3,560,753 | 4,035,405 |
Current liabilities: | ||
Accounts payable | 406,968 | 636,306 |
Accrued and other current liabilities | 643,139 | 784,848 |
Total current liabilities | 1,050,107 | 1,421,154 |
Non-current liabilities: | ||
Income taxes payable | 106,391 | 83,380 |
Other non-current liabilities | 146,695 | 132,133 |
Total liabilities | 1,303,193 | 1,636,667 |
Commitments and contingencies (Note 13) | ||
Shareholders' equity: | ||
Registered shares, CHF 0.25 par value: Issued shares —173,106 at March 31, 2023 and 2022 Additional shares that may be issued out of conditional capital — 50,000 at March 31, 2023 and 2022 Additional shares that may be issued out of authorized capital — 17,311 at March 31, 2023 and 2022 | 30,148 | 30,148 |
Additional paid-in capital | 127,380 | 129,925 |
Shares in treasury, at cost — 13,763 and 7,855 shares at March 31, 2023 and 2022, respectively | (977,266) | (632,893) |
Retained earnings | 3,177,575 | 2,975,681 |
Accumulated other comprehensive loss | (100,277) | (104,123) |
Total shareholders' equity | 2,257,560 | 2,398,738 |
Total liabilities and shareholders' equity | $ 3,560,753 | $ 4,035,405 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - SFr / shares shares in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Shares, par value (in CHF per share) | SFr 0.25 | SFr 0.25 |
Issued shares (in shares) | 173,106 | 173,106 |
Additional shares that may be issued out of conditional capital (in shares) | 50,000 | 50,000 |
Additional shares that may be issued out of authorized capital (in shares) | 17,311 | 17,311 |
Shares in treasury, at cost (in shares) | 13,763 | 7,855 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 364,575 | $ 644,513 | $ 947,257 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 76,309 | 88,361 | 50,752 |
Amortization of intangible assets | 24,407 | 30,179 | 31,818 |
Impairment of intangible assets | 0 | 7,000 | 0 |
Loss on investments | 14,073 | 1,683 | 5,910 |
Share-based compensation expense | 70,782 | 93,479 | 86,019 |
Deferred income taxes | 30,714 | 27,334 | 34,484 |
Change in fair value of contingent consideration for business acquisition | 0 | (3,509) | 5,716 |
Pension curtailment gains | (4,225) | 0 | 0 |
Other | 1,005 | 1,140 | (1,784) |
Changes in assets and liabilities, net of acquisitions: | |||
Accounts receivable, net | 51,185 | (71,510) | (201,220) |
Inventories | 247,309 | (276,640) | (427,501) |
Other assets | 5,634 | (18,169) | (67,708) |
Accounts payable | (219,051) | (181,303) | 553,960 |
Accrued and other liabilities | (128,707) | (44,240) | 440,935 |
Net cash provided by operating activities | 534,010 | 298,318 | 1,458,638 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (92,353) | (89,152) | (76,189) |
Investment in privately held companies | (4,357) | (1,463) | (4,115) |
Acquisitions, net of cash acquired | (8,527) | (16,236) | (43,523) |
Proceeds from return of strategic investments | 0 | 0 | 2,934 |
Purchases of short-term investments | 0 | (10,000) | 0 |
Proceeds from the sale of short-term investments | 0 | 8,260 | 0 |
Purchases of deferred compensation investments | (6,702) | (5,058) | (12,336) |
Proceeds from sales of deferred compensation investments | 6,209 | 5,786 | 13,247 |
Net cash used in investing activities | (105,730) | (107,863) | (119,982) |
Cash flows from financing activities: | |||
Payment of cash dividends | (158,680) | (159,410) | (146,705) |
Payment of contingent consideration for business acquisition | (5,954) | (880) | 0 |
Purchases of registered shares | (418,346) | (412,022) | (164,952) |
Proceeds from exercises of stock options and purchase rights | 28,790 | 29,649 | 43,810 |
Tax withholdings related to net share settlements of restricted stock units | (29,163) | (64,156) | (32,082) |
Net cash used in financing activities | (583,353) | (606,819) | (299,929) |
Effect of exchange rate changes on cash and cash equivalents | (24,620) | (5,247) | (3,966) |
Net (decrease) increase in cash and cash equivalents | (179,693) | (421,611) | 1,034,761 |
Cash and cash equivalents at beginning of the period | 1,328,716 | 1,750,327 | 715,566 |
Cash and cash equivalents at end of the period | 1,149,023 | 1,328,716 | 1,750,327 |
Non-cash investing and financing activities: | |||
Property, plant and equipment purchased during the period and included in period end liability accounts | 8,593 | 11,890 | 16,819 |
Non-cash payment for contingent consideration for acquisition | 0 | 292 | 28,463 |
Fair value of contingent consideration in accrued and other liabilities | 2,151 | 9,013 | 0 |
Supplemental cash flow information: | |||
Income taxes paid, net | $ 71,955 | $ 192,898 | $ 23,041 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Registered shares | Additional paid-in capital | Treasury shares | Retained earnings | Retained earnings Cumulative Effect, Period of Adoption, Adjustment | Accumulated other comprehensive loss |
Beginning of the period (in shares) at Mar. 31, 2020 | 173,106 | |||||||
Beginning of the period (in shares) at Mar. 31, 2020 | 6,210 | |||||||
Beginning of the period at Mar. 31, 2020 | $ 1,489,268 | $ (553) | $ 30,148 | $ 75,097 | $ (185,896) | $ 1,690,579 | $ (553) | $ (120,660) |
Increase (Decrease) in Shareholders' Equity | ||||||||
Total comprehensive income | 959,002 | 947,257 | 11,745 | |||||
Purchases of registered shares (in shares) | 1,845 | |||||||
Purchases of registered shares | (164,952) | $ (164,952) | ||||||
Sale of shares upon exercise of stock options and purchase rights (in shares) | (1,786) | |||||||
Sale of shares upon exercise of stock options and purchase rights | 43,810 | 3,130 | $ 40,680 | |||||
Issuance of shares upon vesting of restricted stock units (in shares) | (1,080) | |||||||
Issuance of shares upon vesting of restricted stock units | (32,082) | (53,093) | $ 21,011 | |||||
Issuance of shares for contingent consideration (in shares) | (390) | |||||||
Issuance of shares from contingent consideration | 28,463 | 18,847 | $ 9,616 | |||||
Share-based compensation | 85,538 | 85,538 | ||||||
Cash dividends | (146,705) | (146,705) | ||||||
End of the period (in shares) at Mar. 31, 2021 | 173,106 | |||||||
End of the period (in shares) at Mar. 31, 2021 | 4,799 | |||||||
End of the period balance at Mar. 31, 2021 | 2,261,789 | $ 30,148 | 129,519 | $ (279,541) | 2,490,578 | (108,915) | ||
Increase (Decrease) in Shareholders' Equity | ||||||||
Total comprehensive income | 649,305 | 644,513 | 4,792 | |||||
Purchases of registered shares (in shares) | 4,607 | |||||||
Purchases of registered shares | (412,022) | $ (412,022) | ||||||
Sale of shares upon exercise of stock options and purchase rights (in shares) | (410) | |||||||
Sale of shares upon exercise of stock options and purchase rights | 29,649 | 12,971 | $ 16,678 | |||||
Issuance of shares upon vesting of restricted stock units (in shares) | (1,137) | |||||||
Issuance of shares upon vesting of restricted stock units | (64,156) | (105,972) | $ 41,816 | |||||
Issuance of shares for contingent consideration (in shares) | (4) | |||||||
Issuance of shares from contingent consideration | 292 | 116 | $ 176 | |||||
Share-based compensation | 93,291 | 93,291 | ||||||
Cash dividends | $ (159,410) | (159,410) | ||||||
End of the period (in shares) at Mar. 31, 2022 | 173,106 | |||||||
End of the period (in shares) at Mar. 31, 2022 | 7,855 | 7,855 | ||||||
End of the period balance at Mar. 31, 2022 | $ 2,398,738 | $ 30,148 | 129,925 | $ (632,893) | 2,975,681 | (104,123) | ||
Increase (Decrease) in Shareholders' Equity | ||||||||
Total comprehensive income | 368,421 | 364,575 | 3,846 | |||||
Purchases of registered shares (in shares) | 7,562 | |||||||
Purchases of registered shares | (418,346) | $ (418,346) | ||||||
Sale of shares upon exercise of stock options and purchase rights (in shares) | (686) | |||||||
Sale of shares upon exercise of stock options and purchase rights | 28,790 | (5,636) | $ 34,426 | |||||
Issuance of shares upon vesting of restricted stock units (in shares) | (968) | |||||||
Issuance of shares upon vesting of restricted stock units | (29,163) | (68,710) | $ 39,547 | |||||
Share-based compensation | 71,801 | 71,801 | ||||||
Cash dividends | $ (162,681) | (162,681) | ||||||
End of the period (in shares) at Mar. 31, 2023 | 173,106 | |||||||
End of the period (in shares) at Mar. 31, 2023 | 13,763 | 13,763 | ||||||
End of the period balance at Mar. 31, 2023 | $ 2,257,560 | $ 30,148 | $ 127,380 | $ (977,266) | $ 3,177,575 | $ (100,277) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) | 1 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2022 $ / shares | Sep. 30, 2022 SFr / shares | Sep. 30, 2021 $ / shares | Sep. 30, 2021 SFr / shares | Sep. 30, 2020 $ / shares | Sep. 30, 2020 SFr / shares | Mar. 31, 2023 $ / shares | Mar. 31, 2022 $ / shares | Mar. 31, 2021 $ / shares | |
Statement of Stockholders' Equity [Abstract] | |||||||||
Cash dividends per share (in dollars per share) | (per share) | $ 0.98 | SFr 0.96 | $ 0.95 | SFr 0.87 | $ 0.87 | SFr 0.79 | $ 1 | $ 0.95 | $ 0.87 |
The Company
The Company | 12 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | The Company Logitech International S.A, together with its consolidated subsidiaries ("Logitech" or the "Company"), designs, manufactures and sells products that help businesses thrive and bring people together when working, creating, gaming and streaming. The Company sells its products to a broad network of international customers, including direct sales to retailers, e-tailers and end consumers through the Company's e-commerce platform, and indirect sales to end customers 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Logitech and its subsidiaries. All intercompany balances and transactions have been eliminated. The consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). Fiscal Year The Company's fiscal year ends on March 31. Interim quarters are generally thirteen-week periods, each ending on a Friday. For purposes of presentation, the Company has indicated its quarterly periods end on the last day of the calendar quarter. Reference to Sales References to "sales" in the Notes to the consolidated financial statements means net sales, except as otherwise specified. 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 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 ("Customer 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 on the Company's Business In fiscal year 2023, the Company's business was impacted by adverse macroeconomic and geopolitical conditions. These conditions included 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 resulted in global supply chain, logistics, and inflationary challenges. The Company had no revenue in Russia and Ukraine in fiscal year 2023 as it has indefinitely ceased all sales and shipments to Russia and sales in Ukraine have also been halted due to the ongoing military operations on the Ukrainian territory. The global and regional economic and political conditions adversely affect demand for the Company's products. These conditions also had 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. Currencies The functional currency of the Company's operations is primarily the U.S. Dollar. Certain operations use the Euro, Chinese Renminbi, Swiss Franc, or other local currencies as their functional currencies. The financial statements of the Company's subsidiaries whose functional currency is other than the U.S. Dollar are translated to U.S. Dollars using period-end rates of exchange for assets and liabilities and monthly average rates for sales, income and expenses. Cumulative translation gains and losses are included as a component of shareholders' equity in accumulated other comprehensive income (loss). Gains and losses arising from transactions denominated in currencies other than a subsidiary's functional currency are reported in other income (expense), net in the consolidated statements of operations. Revenue Recognition Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the transaction price the Company expects to receive in exchange for those goods or services. Substantially all revenue recognized by the Company relates to the contracts with customers to sell products that allow people to connect through gaming, video, computing, music and other digital platforms. These products are hardware devices, which may include embedded software that function together, and are considered as one performance obligation. Hardware devices are generally plug and play, requiring no configuration and little or no installation. Revenue is recognized at a point in time when control of the products is transferred to the customer which generally occurs upon shipment. The Company’s sales contracts with its customers have a one year or shorter term. The Company elects not disclosing the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. The Company also provides post-contract customer support (“PCS”) for certain products and related software, which includes unspecified software updates and upgrades, bug fixes and maintenance. The transaction price is allocated to two performance obligations in such contracts, based on a relative standalone selling price. The transaction price allocated to PCS is recognized as revenue on a straight-line basis, which reflects the pattern of delivery of PCS, over the estimated term of the support that is between one The Company also recognizes revenue from subscription services that provide professional streamers with access to streaming software and tools that represent a single stand-ready performance obligation. Subscriptions are paid for at the time of or in advance of delivering the services. The proceeds received in advance from such arrangements is recognized as deferred revenue and then recognized as revenue ratably over the subscription period. The Company normally requires payment from customers within thirty The transaction price received by the Company from sales to its distributors, retail companies ("retailers"), and authorized resellers is calculated as selling price net of variable consideration which may include product returns and the Company’s payments for Customer Programs related to current period product revenue. The estimated impact of these programs is recorded as a reduction of transaction price or as an operating expense if the Company receives a distinct good or service from the customer and can reasonably estimate the fair value of that good or service received. Customer Programs require management to estimate the percentage of those programs which will not be claimed in the current period or will not be earned by customers, which is commonly referred to as "breakage." Breakage is estimated based on historical claim experience, the period in which customer claims are expected to be submitted, specific terms and conditions with customers and other factors. The Company accounts for breakage as part of variable consideration, subject to constraint, and records the estimated impact in the same period when revenue is recognized at the expected value. Assessing the period in which claims are expected to be submitted and the relevance of the historical claim experience require significant management judgment to estimate the breakage of Customer Programs in any accounting period. The Company enters into cooperative marketing arrangements with many of its customers and with certain indirect partners, allowing customers to receive a credit equal to a set percentage of their purchases of the Company's products, or a fixed dollar amount for various marketing and incentive programs. The objective of these arrangements is to encourage advertising and promotional events to increase sales of the Company's products. Customer incentive programs include consumer rebates and performance-based incentives. Consumer rebates are offered to the Company's customers and indirect partners at the Company's discretion for the primary benefit of end-users. In addition, the Company offers performance-based incentives to many of its customers and indirect partners based on predetermined performance criteria. At management's discretion, the Company also offers special pricing discounts to certain customers. Special pricing discounts are usually offered only for limited time periods or for sales of selected products to specific indirect partners. Cooperative marketing arrangements and customer incentive programs are considered variable consideration, which the Company estimates and records as a reduction to revenue at the time of sale based on negotiated terms, historical experiences, forecasted incentives, anticipated volume of future purchases, and inventory levels in the channel. The Company has agreements with certain customers that contain terms allowing price protection credits to be issued in the event of a subsequent price reduction. Management's decision to make price reductions is influenced by product life cycle stage, market acceptance of products, the competitive environment, new product introductions and other factors. Accruals for estimated expected future pricing actions and Customer Programs are recognized at the time of sale based on analyses of historical pricing actions by customer and by product, inventories owned by and located at customers, current customer demand, current operating conditions, and other relevant customer and product information, such as stage of product life-cycle. Product return rights vary by customer. Estimates of expected future product returns qualify as variable consideration and are recorded as a reduction of the transaction price of the contract at the time of sale based on an analyses of historical return trends by customer and by product, inventories owned by and located at customers, current customer demand, current operating conditions, and other relevant customer and product information. The Company assesses the estimated asset for recovery value for impairment and adjusts the value of the asset for any impairment. Return trends are influenced by product life cycle status, new product introductions, market acceptance of products, sales levels, product sell-through, the type of customer, seasonality, product quality issues, competitive pressures, operational policies and procedures, and other factors. Return rates can fluctuate over time but are sufficiently predictable to allow the Company to estimate expected future product returns. Typically, variable consideration does not need to be constrained as estimates are based on predictive historical data or future commitments that are planned and controlled by the Company. However, the Company continues to assess variable consideration estimates such that it is probable that a significant reversal of revenue will not occur. The Company regularly evaluates the adequacy of its estimates for Customer Programs and product returns. Future market conditions and product transitions may require the Company to take action to change such programs and related estimates. When the variables used to estimate these costs change, or if actual costs differ significantly from the estimates, the Company would be required to increase or reduce revenue or operating expenses to reflect the impact. During the year ended March 31, 2023, changes to these estimates related to performance obligations satisfied in prior periods were not material. Sales taxes and value-added taxes (“VAT”) collected from customers, if applicable, which are remitted to governmental authorities are not included in revenue, and are reflected as a liability on the consolidated balance sheets. Shipping and Handling Costs The Company's shipping and handling costs are included in the cost of goods sold in the consolidated statements of operations for all periods presented. Contract Balances The Company records accounts receivable from contracts with customers when it has an unconditional right to consideration, as accounts receivable, net on the consolidated balance sheets. The Company records contract liabilities when cash payments are received or due in advance of performance, primarily for implied support and subscriptions. Contract liabilities are included in accrued and other current liabilities and other non-current liabilities on the consolidated balance sheets. As of March 31, 2023 and 2022, the Company did not have any material contract liabilities balances or changes. Contract Costs The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that otherwise would have been recognized is one year or less. These costs are included in marketing and selling expenses in the consolidated statements of operations. As of March 31, 2023 and 2022, the Company did not have any material deferred contract costs. Research and Development Costs Costs related to research, design and development of products, which consist primarily of personnel, product design and infrastructure expenses, are charged to research and development expense as they are incurred. Advertising Costs Advertising costs are recorded as either a marketing and selling expense or a deduction from revenue as they are incurred. Advertising costs paid or reimbursed by the Company to direct or indirect customers must have an identifiable benefit and an estimable fair value in order to be classified as an operating expense. If these criteria are not met, the payment is classified as a reduction of revenue. Advertising costs recorded as marketing and selling expense are expensed as incurred. Total advertising costs including those characterized as revenue deductions during fiscal years 2023, 2022 and 2021 were $341.1 million, $628.9 million and $450.0 million, respectively, out of which $24.8 million, $267.8 million, and $168.2 million, respectively, were included as operating expense in the consolidated statements of operations. Cash Equivalents The Company classifies all highly liquid instruments purchased, such as bank time deposits, with an original maturity of three months or less at the date of purchase, to be cash equivalents. Cash equivalents are carried at cost, which approximates their fair value. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents with various creditworthy financial institutions and has a policy to limit exposure with any one financial institution, but is exposed to credit risk in the event of default by financial institutions to the extent that cash balances with individual financial institutions are in excess of amounts that are insured. The Company periodically assesses the credit risk associated with these financial institutions. The Company sells to large distributors, retailers, and e-tailers and, as a result, maintains individually significant receivable balances with such customers. The Company had the following customers that individually comprised 10% or more of its gross sales: Years Ended March 31, 2023 2022 2021 Customer A 13 % 15 % 14 % Customer B 19 % 17 % 13 % Customer C (1) 15 % 14 % N/A (1) (1) The Company's two customers merged during fiscal year 2022 and the percentages for fiscal year 2023 and 2022 reflect the gross sales to the combined company. The percentage for fiscal year 2021 is not disclosed as gross sales to each customer accounted for less than 10% of the Company's gross sales. The Company had the following customers that individually comprised 10% or more of its accounts receivable: March 31, 2023 2022 Customer A 12 % 15 % Customer B 21 % 17 % Customer C 15 % 15 % The Company manages its accounts receivable credit risk through ongoing credit evaluation of its customers' financial conditions. The Company generally does not require collateral from its customers. Allowances for Doubtful Accounts Allowances for doubtful accounts are maintained for expected credit losses resulting from the Company's customers' inability to make required payments. The allowances are based on the Company's regular assessment of various factors, including the credit-worthiness and financial condition of specific customers, historical experience with bad debts and customer deductions, receivables aging, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company's ability to collect from customers. Inventories Inventories are stated at the lower of cost and net realizable value. Costs are computed under the standard cost method, which approximates actual costs determined on the first-in, first-out basis. The Company records write-downs of inventories which are obsolete or in excess of anticipated demand or net realizable value based on a consideration of marketability and product life cycle stage, product development plans, component cost trends, historical sales and demand forecasts which consider the assumptions about future demand and market conditions. Inventory on hand which is not expected to be sold or utilized is considered excess, and the Company recognizes the write-down in cost of goods sold at the time of such determination. The write-down is determined by the excess of cost over net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. At the time of loss recognition, new cost basis per unit and lower-cost basis for that inventory are established and subsequent changes in facts and circumstances would not result in an increase in the cost basis. The Company recorded liabilities arising from firm, non-cancelable, and unhedged inventory purchase commitments in excess of anticipated demand or net realizable value consistent with its valuation of excess and obsolete inventory. Such liability is included in accrued and other current liabilities on the consolidated balance sheets. Property, Plant and Equipment Property, plant and equipment are stated at cost. Additions and improvements are capitalized, and maintenance and repairs are expensed as incurred. The Company capitalizes the cost of software developed for internal use in connection with major projects. Costs incurred during the preliminary project stage and post implementation stage are expensed, whereas direct costs incurred during the application development stage are capitalized. Depreciation expense is recognized using the straight-line method. Plant and buildings are depreciated over estimated useful lives of twenty-five years, equipment over useful lives from three software over useful lives from three When property and equipment is retired or otherwise disposed of, the cost and accumulated depreciation are relieved from the accounts and the net gain or loss is included in cost of goods sold or operating expenses, depending on the nature of the property and equipment. Leases The Company determines if an arrangement is a lease or contains a lease at contract inception. The Company determines if a lease is an operating or finance lease and recognizes right-of-use ("ROU") assets and lease liabilities upon lease commencement. Operating lease ROU assets are included in other assets accrued and other current liabilities other non-current liabilities For operating leases, the lease liability is initially measured at the present value of the unpaid lease payments at lease commencement date. As most of the leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate as the discount rate for the leases. The Company's incremental borrowing rate is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Because the Company does not generally borrow in a collateralized basis, it uses its understanding of what its collateralized credit rating would be as an input to deriving an appropriate incremental borrowing rate. The operating lease ROU assets include prepaid lease payments and exclude lease incentives. Intangible Assets The Company's intangible assets principally include goodwill, acquired technology, trademarks, and customer contracts and related relationships. Intangible assets with finite lives, which include acquired technology, trademarks, customer contracts and related relationships, and others are carried at cost and amortized using the straight-line method over their useful lives ranging from one n-process research and development ("IPR&D") , are recorded at cost and evaluated at least annually for impairment. IPR&D is reclassified as intangible assets with finite lives and amortized over its estimated useful life upon completion of the underlying projects. Impairment of Long-Lived Assets The Company reviews long-lived assets, such as property and equipment, and finite-lived intangible assets, for impairment whenever events indicate that the carrying amounts might not be recoverable. Recoverability of long-lived assets is measured by comparing the projected undiscounted net cash flows associated with those assets to their carrying values. If an asset is considered impaired, it is written down to its fair value, which is determined based on the asset's projected discounted cash flows or appraised value, depending on the nature of the asset. For purposes of recognition of impairment for assets held for use, the Company groups assets and liabilities at the lowest level for which cash flows are separately identifiable. Impairment of Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. The Company conducts a goodwill impairment analysis annually at December 31 or more frequently if indicators of impairment exist or if a decision is made to sell or exit a business. Significant judgments are involved in determining if an indicator of impairment has occurred. Such indicators may include deterioration in general economic conditions, negative developments in equity and credit markets, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows, or a trend of negative or declining cash flows over multiple periods, among others. The fair value that could be realized in an actual transaction may differ from that used to evaluate the impairment of goodwill. In reviewing goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (greater than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. The Company also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test. The ultimate outcome of the goodwill impairment review for a reporting unit should be the same whether the Company chooses to perform the qualitative assessment or proceeds directly to the quantitative impairment test. The Company operates as one reporting unit. For the year ended March 31, 2023, the Company elected to perform a qualitative assessment and concluded that it was more likely than not that the fair value of its reporting unit exceeds its carrying amount. Income Taxes The Company provides for income taxes using the asset and liability method, which requires that deferred tax assets and liabilities be recognized for the expected future tax consequences of temporary differences resulting from differing treatment of items for tax and financial reporting purposes, and for operating losses and tax credit carryforwards. In estimating future tax consequences, expected future events are taken into consideration, with the exception of potential tax law or tax rate changes. The Company records a valuation allowance to reduce deferred tax assets to amounts management believes are more likely than not to be realized. The Company's assessment of uncertain tax positions requires that management makes estimates and judgments about the application of tax law, the expected resolution of uncertain tax positions and other matters. In the event that uncertain tax positions are resolved for amounts different than the Company's estimates, or the related statutes of limitations expire without the assessment of additional income taxes, the Company will be required to adjust the amounts of the related assets and liabilities in the period in which such events occur. Such adjustments may have a material impact on the Company's income tax provision and its results of operations. Fair Value of Financial Instruments The carrying value of certain of the Company's financial instruments, including cash equivalents, accounts receivable and accounts payable approximates their fair value due to their short maturities. The Company's investment securities portfolio consists of bank time deposits with an original maturity of three months or less and marketable securities (money market and mutual funds) related to a deferred compensation plan. The Company's investments related to the deferred compensation plan are reported at fair value based on quoted market prices. The marketable securities related to the deferred compensation plan are classified as non-current investments, as they are intended to fund the deferred compensation plan's long-term liability. Participants in the deferred compensation plan may select the mutual funds in which their compensation deferrals are invested within the confines of the Rabbi Trust which holds the marketable securities. These securities are recorded at fair value based on quoted market prices. Earnings, gains and losses on deferred compensation investments are included in other income (expense), net in the consolidated statements of operations. The Company also holds certain non-marketable investments that are accounted for as equity method investments and included in other assets in the consolidated balance sheets. In addition, 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. The Company elected the measurement alternative to record these investments at cost and to adjust for impairments and observable price changes resulting from transactions with the same issuer within the statements of operations. Net Income per Share Basic net income per share is computed by dividing net income by the weighted average outstanding shares. Diluted net income per share is computed using the weighted average outstanding shares and dilutive share equivalents. Dilutive share equivalents consist of share-based awards, including stock options, purchase rights under employee share purchase plan, and restricted stock units. The dilutive effect of in-the-money share-based compensation awards is calculated based on the average share price for each fiscal period using the treasury stock method. Share-Based Compensation Expense Share-based compensation expense includes compensation expense for share-based awards granted based on the grant date fair value. The grant date fair value for stock options and stock purchase rights is estimated using the Black-Scholes-Merton option-pricing valuation model. The grant date fair value of service-based restricted stock units ("RSUs") is calculated based on the market price on the date of grant, reduced by estimated dividend yield prior to vesting. The grant date fair value of restricted stock units which vest upon meeting certain market- and performance-based conditions ("PSUs") is estimated using the Monte-Carlo simulation method including the effect of the market condition. Stock-based compensation expense is recognized ratably over the respective requisite service periods of the awards and forfeitures are accounted for when they occur. For PSUs, the Company recognizes compensation expense using its estimate of probable outcome at the end of the performance period (i.e., the estimated performance against the performance targets). The Company periodically adjusts the cumulative stock-based compensation expense recorded when the probable outcome for the PSUs is updated based upon changes in actual and forecasted financial results. Product Warranty All of the Company's products are covered by standard warranty to be free from defects in material and workmanship for periods ranging from one year to three years. The warranty period varies by product and by region. The Company’s standard warranty does not provide a service beyond assuring that the product complies with agreed-upon specifications and is not sold separately. The standard warranty the Company provides qualifies as an assurance warranty and is not treated as a separate performance obligation. The Company estimates cost of product warranties at the time the related revenue is recognized based on historical warranty claim rates, historical costs, and knowledge of specific product failures that are outside of the Company's typical experience. The Company accrues a warranty liability for estimated costs to provide products, parts or services to repair or replace products in satisfaction of the warranty obligation. Each quarter, the Company reevaluates estimates to assess the adequacy of recorded warranty liabilities. When the Company experiences changes in warranty claim activity or costs associated with fulfilling those claims, the warranty liability is adjusted accordingly. Comprehensive Income (Loss) Comprehensive income (loss) is defined as the total change in shareholders' equity during the period other than from transactions with shareholders. Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) is comprised of currency translation adjustments from those entities not using the U.S. Dollar as their functional currency, net deferred gains and losses and prior service costs and credits for defined benefit pension plans, and net deferred gains and losses on hedging activity. Treasury Shares The Company periodically repurchases shares in the market at fair value. Shares repurchased are recorded at cost as a reduction of total shareholders' equity. Treasury shares held may be reissued to satisfy the exercise of employee stock options and purchase rights, the vesting of restricted stock units, and acquisitions, or may be canceled with shareholder approval. Treasury shares that are reissued are accounted for using the first-in, first-out basis. Derivative Financial Instruments The Company enters into foreign exchange forward contracts to reduce the short-term effects of currency fluctuations on certain foreign currency receivables or payables and to hedge against exposure to changes in currency exchange rates related to its subsidiaries' forecasted inventory purchases. Gains or losses from changes in the fair value of forward contracts that offset transaction losses or gains on foreign currency receivables or payables are recognized immediately and included in other income (expense), net in the consolidated statements of operations. Gains and losses for changes in the fair value of the effective portion of the Company's forward contracts related to forecasted inventory purchases are deferred as a component of accumulated other comprehensive loss until the hedged inventory purchases are sold, at which time the gains or losses are reclassified to cost of goods sold. The Company 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. Restructuring Charges The Company's restructuring charges consist of employee severance, one-time termination benefits and ongoing benefits related to the reduction of its workforce, and other costs. Liabilities for costs associated with a restructuring activity are measured at fair value and are recognized when the liability is incurred, as opposed to when management commits to a restructuring plan. One-time termination benefits are expensed at the date the entity notifies the employee, unless the employee must provide futu |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Mar. 31, 2023 | |
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 fiscal years 2023, 2022 and 2021 (in thousands except per share amounts): Years Ended March 31, 2023 2022 2021 Net income $ 364,575 $ 644,513 $ 947,257 Shares used in net income per share computation: Weighted average shares outstanding - basic 162,302 167,447 168,523 Effect of potentially dilutive equivalent shares 1,402 2,967 3,252 Weighted average shares outstanding - diluted 163,704 170,414 171,775 Net income per share: Basic $ 2.25 $ 3.85 $ 5.62 Diluted $ 2.23 $ 3.78 $ 5.51 Share equivalents attributable to outstanding stock options, RSUs, PSUs and employee share purchase plans ("ESPP") totaling 2.0 million , 2.0 million, and 0.1 million shares during fiscal years 2023, 2022 and 2021, respectively, were excluded from the calculation of diluted net income per share because their effect would have been anti-dilutive. For fiscal years 2023 and 2022, a small number of performance-based awards were not included in the dilutive net income per share 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 Stock-Based Compensati
Employee Stock-Based Compensation | 12 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Employee Stock-Based Compensation | Employee Stock-Based Compensation As of March 31, 2023, 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. Under the 1996 ESPP and 2006 ESPP plans, eligible employees may purchase shares at the lower of 85% of the fair market value at the beginning or the end of each offering period, which is generally six months. Subject to continued participation in these plans, purchase agreements are automatically executed at the end of each offering period. An aggregate of 29.0 million shares were reserved for issuance under the 1996 and 2006 ESPP plans. As of March 31, 2023, a total o f 3.6 million sha res were available for new awards under these plans. The 2006 Plan provides for the grant to eligible employees and non-employee directors of stock options, stock appreciation rights, and restricted stock units. Awards under the 2006 Plan may be conditioned on continued employment, the passage of time or the satisfaction of performance and market vesting criteria. The 2006 Plan, as amended, has no expiration date. On June 29, 2022, the Board authorized 3.3 million additional shares for issuance under the 2006 Plan. An aggregate of 33.8 million shares were reserved for issuance under the 2006 Plan. As of March 31, 2023, a total of 8.4 million shares were available for new awards under this plan. Stock options granted to employees under the 2006 Plan have terms not exceeding ten years and are issued at exercise prices not less than the fair market value on the date of grant. Service-based restricted stock units ("RSUs") granted to employees under the 2006 Plan generally vest in four equal annual installments on the grant date anniversary. RSUs granted to non-executive board members under the 2006 Plan vest on the grant date anniversary, or if earlier and only if the non-executive board member is not re-elected as a director at such annual general meeting, the date of the next annual general meeting following the grant date. Restricted stock units with certain market- and performance-based conditions ("PSUs") granted to employees under the 2006 Plan vest at the end of the three-year performance period upon meeting predetermined financial metrics over three years, with the number of shares to be received upon vesting determined based on weighted average constant currency revenue growth rate and the Company's total shareholder return ("TSR") relative to the performance of companies in the Russell 3000 Index over the same three years period. The following table summarizes share-based compensation expense and total income tax benefit recognized for fiscal years 2023, 2022 and 2021 (in thousands): Years Ended March 31, 2023 2022 2021 Cost of goods sold $ 5,635 $ 6,695 $ 6,438 Marketing and selling 34,707 37,796 36,788 Research and development 15,292 18,356 14,179 General and administrative 15,148 30,632 28,614 Total share-based compensation expense 70,782 93,479 86,019 Income tax benefit (9,750) (26,987) (19,472) Total share-based compensation expense, net of income tax benefit $ 61,032 $ 66,492 $ 66,547 Share-based compensation costs capitalized as part of inventory were $5.6 million , $5.2 million, and $4.3 million for the fiscal year ended March 31, 2023, 2022 and 2021, respectively. As of March 31, 2023, there was $125.2 million of total future stock-based compensation cost to be recognized over a weighted-average period of 2.4 years. The estimates of share-based compensation expense require a number of complex and subjective assumptions including stock price volatility, employee exercise patterns, probability of achievement of the set performance condition, dividend yield, related tax effects and the selection of an appropriate fair value model. The grant date fair value of the stock options and ESPP using the Black-Scholes-Merton option-pricing valuation model and the grant date fair value of the PSUs using the Monte-Carlo simulation method are determined with the following assumptions and values: Stock Options (1) Employee Stock Purchase Plans Year Ended March 31, Years Ended March 31, 2022 2023 2022 2021 Expected dividend rate 1.18 % 1.78 % 1.03 % 1.04 % Risk-free interest rate 1.99 % 3.86 % 0.27 % 0.10 % Expected volatility 34 % 46 % 35 % 47 % Expected term (years) 6.2 0.5 0.5 0.5 Weighted average grant date fair value per share $ 25.88 $ 16.32 $ 23.55 $ 24.67 (1) No stock options were granted for fiscal years 2023 and 2021. PSUs Years Ended March 31, 2023 2022 2021 Expected dividend rate 1.46 % 0.78 % 1.24 % Risk-free interest rate 2.78 % 0.31 % 0.21 % Expected volatility 39 % 37 % 31 % Expected term (years) 3.0 3.0 3.0 The expected dividend rate assumption is based on the Company's history and future expectations of dividend payouts. The unvested PSUs or unexercised options are not eligible for these dividends. The expected term is based on the purchase offerings periods expected to remain outstanding for employee stock purchase plan or the performance period for PSUs. The expected term for stock options represents the estimated period of time until option exercise. Since the Company has limited historical stock option exercise experience, the Company used the simplified method in estimating the expected term, which is calculated as the average of the sum of the vesting term and the original contractual term of the stock options. Expected volatility is based on historical volatility using the Company's daily closing prices, or including the volatility of components of the Russell 3000 Index for PSUs, over the expected term. The Company considers the historical price volatility of its shares as most representative of future volatility. The risk-free interest rate assumptions are based upon the implied yield of U.S. Treasury zero-coupon issues appropriate for the expected term of the Company's share-based awards. For PSUs, the Company estimates the probability and timing of the achievement of the set performance condition at the time of the grant based on the historical financial performance and the financial forecast in the remaining performance period and reassesses the probability in subsequent periods when actual results or new information become available. A summary of the Company's stock option activities under all stock plans for fiscal years 2023, 2022 and 2021 is as follows: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (In thousands) (Years) (In thousands) Outstanding, March 31, 2020 1,969 Exercised (1,347) $ 68,596 Outstanding, March 31, 2021 622 Granted 842 Exercised (71) $ 5,573 Outstanding, March 31, 2022 1,393 $ 62 8.3 $ 21,830 Exercised (155) $ 21 $ 6,482 Forfeited (118) $ 80 Outstanding, March 31, 2023 1,120 $ 66 7.6 $ 7,491 Vested and exercisable, March 31, 2023 396 $ 39 5.2 $ 7,491 The tax benefit realized for the tax deduction from options exercised during fiscal years 2023, 2022 and 2021 was $0.1 million, $1.2 million and $0.6 million, respectively. A summary of the Company's RSU and PSU activities for fiscal years 2023, 2022 and 2021 is as follows: Number of Shares Weighted-Average Grant Date Fair Value Aggregate (In thousands) (In thousands) Outstanding, March 31, 2020 3,951 $ 36 Granted—RSUs 1,046 $ 60 Granted—PSUs 303 $ 67 Vested (1,444) $ 168,816 Forfeited (213) Outstanding, March 31, 2021 3,643 $ 45 Granted—RSUs 868 $ 103 Granted—PSUs 203 $ 124 Vested (1,463) $ 133,977 Forfeited (205) Outstanding, March 31, 2022 3,046 $ 68 Granted—RSUs 1,584 $ 53 Granted—PSUs 407 $ 69 Vested (1,143) $ 48 $ 85,152 Forfeited (438) $ 68 Outstanding, March 31, 2023 3,456 $ 66 The shares outstanding as of March 31, 2023 above include 0.8 million shares of PSUs. The Company presents the number of PSUs at 100 percent of the performance target; however, the aggregate fair value of shares vested during the year is based on the actual number of stock units vested based on the achievement of the financial metrics over the performance period. The tax benefit realized for the tax deduction from RSUs and PSUs that vested during fiscal years 2023, 2022 and 2021 was $11.1 million, $25.2 million and $16.3 million, respectively. Defined Benefit Plans Certain of the Company's subsidiaries sponsor defined benefit pension plans or non-retirement post-employment benefits covering substantially all of their employees. Benefits are provided based on employees' years of service and earnings, or in accordance with applicable employee benefit regulations. The Company's practice is to fund amounts sufficient to meet the requirements set forth in the applicable employee benefit and tax regulations. The Company recognizes the overfunded or underfunded status of defined benefit pension plans and non-retirement post-employment benefit obligations as an asset or liability in its consolidated balance sheets and recognizes changes in the funded status of defined benefit pension plans in the year in which the changes occur through accumulated other comprehensive income (loss), which is a component of shareholders' equity. Each plan's assets and benefit obligations are generally remeasured as of March 31 each year. The net periodic benefit cost of the defined benefit pension plans and the non-retirement post-employment benefit obligations for fiscal years 2023, 2022 and 2021 was as follows (in thousands): Years Ended March 31, 2023 2022 2021 Service costs $ 13,195 $ 14,693 $ 12,121 Interest costs 2,408 920 1,047 Expected return on plan assets (3,754) (2,930) (2,535) Amortization: Net prior service credit recognized (458) (465) (467) Net actuarial loss (gain) recognized (3,047) (2,158) 2,144 Curtailment gain (4,225) — — Settlement gain (339) — — Total net periodic benefit cost $ 3,780 $ 10,060 $ 12,310 The components of net periodic benefit cost other than the service costs component are included in other income (expense), net in the consolidated statements of operations. The changes in projected benefit obligations for fiscal years 2023 and 2022 were as follows (in thousands): Years Ended March 31, 2023 2022 Projected benefit obligations, beginning of the year $ 207,551 $ 202,348 Service costs 13,195 14,693 Interest costs 2,408 920 Plan participant contributions 6,870 6,092 Actuarial gain (22,965) (31,198) Benefits paid (2,646) (3,904) Transfer of prior vested benefits 11,579 14,963 Settlement (15,348) — Curtailment (3,923) — Administrative expense paid (147) (130) Currency exchange rate changes (1,238) 3,767 Projected benefit obligations, end of the year $ 195,336 $ 207,551 The accumulated benefit obligation for all defined benefit pension plans as of March 31, 2023 and 2022 was $170.3 million and $178.5 million, respectively. Actuarial gains related to the change in the benefit obligation for the Company's pension plans for fiscal years 2023 and 2022 w ere primarily due to an increase in discount rate. The following table presents the changes in the fair value of defined benefit pension plan assets for fiscal years 2023 and 2022 (in thousands): Years Ended March 31, 2023 2022 Fair value of plan assets, beginning of the year $ 156,118 $ 128,061 Actual return on plan assets (6,008) (2,156) Employer contributions 11,645 10,877 Plan participant contributions 6,870 6,092 Benefits paid (2,646) (3,904) Transfer of prior vested benefits 11,579 14,963 Settlement (15,348) — Administrative expenses paid (147) (130) Currency exchange rate changes 536 2,315 Fair value of plan assets, end of the year $ 162,599 $ 156,118 The Company's investment objectives are to ensure that the assets of its defined benefit plans are invested to provide an optimal rate of investment return on the total investment portfolio, consistent with the assumption of a reasonable risk level, and to ensure that pension funds are available to meet the plans' benefit obligations as they become due. The Company believes that a well-diversified investment portfolio will result in the highest attainable investment return with an acceptable level of overall risk. Investment strategies and allocation decisions are also governed by applicable governmental regulatory agencies. The Company's investment strategy with respect to its largest defined benefit plan, which is available only to Swiss employees, is to invest per the following allocation: 33% in equities, 28% in bonds, 28% in real estate, 4% in cash and cash equivalents and the remaining in other investments. The Company can invest in real estate funds, commodity funds, and hedge funds depending upon economic conditions. The following tables present the fair value of the defined benefit pension plan assets by major categories and by levels within the fair value hierarchy as of March 31, 2023 and 2022 (in thousands): March 31, 2023 2022 Level 1 Level 2 Total Level 1 Level 2 Total Cash and cash equivalents $ 7,071 $ — $ 7,071 $ 16,317 $ — $ 16,317 Equity securities 51,963 — 51,963 48,591 — 48,591 Debt securities 43,493 — 43,493 38,513 — 38,513 Real estate funds 21,197 23,710 44,907 25,146 13,077 38,223 Hedge funds 606 7,907 8,513 — 8,076 8,076 Other 6,248 404 6,652 6,034 364 6,398 Total fair value of plan assets $ 130,578 $ 32,021 $ 162,599 $ 134,601 $ 21,517 $ 156,118 The funded status of the plans was as follows (in thousands): Years Ended March 31, 2023 2022 Fair value of plan assets $ 162,599 $ 156,118 Less: projected benefit obligations 195,336 207,551 Underfunded status $ (32,737) $ (51,433) Amounts recognized on the balance sheets for the plans were as follows (in thousands): March 31, 2023 2022 Current liabilities $ 1,407 $ 1,677 Non-current liabilities 31,330 49,756 Total liabilities $ 32,737 $ 51,433 Amounts recognized in accumulated other comprehensive income (loss) related to defined benefit pension plans were as follows (in thousands): March 31, 2023 2022 Net prior service credits $ 2,201 $ 2,883 Net actuarial gain (loss) 5,690 (4,304) Accumulated other comprehensive income (loss) 7,891 (1,421) Deferred taxes (3,366) (2,074) Accumulated other comprehensive income (loss), net of tax $ 4,525 $ (3,495) The actuarial assumptions for the defined benefit plans were as follows: Years Ended March 31, 2023 2022 Benefit Obligations: Discount rate 1.00% - 7.25% 1.00% - 6.75% Estimated rate of compensation increase 2.25% - 10.00% 2.00% - 10.00% Cash balance interest credit rate 0.00% - 1.75% 0.00% - 1.75% Years Ended March 31, 2023 2022 2021 Net Periodic Costs: Discount rate 0.50% - 6.75% 0.25% - 6.00% 0.50% - 6.75% Estimated rate of compensation increase 2.00% - 10.00% 2.00% - 10.00% 2.25% - 10.00% Expected average rate of return on plan assets 1.00% - 2.50% 1.00% - 2.25% 1.00% - 2.50% Cash balance interest credit rate 0.00% - 1.75% 0.00% - 1.75% 0.00% - 1.75% The discount rate is estimated based on corporate bond yields or securities of similar quality in the respective country, with a duration approximating the period over which the benefit obligations are expected to be paid. The Company bases the compensation increase assumptions on historical experience and future expectations. The expected average rate of return for the Company's defined benefit pension plans represents the average rate of return expected to be earned on plan assets over the period that the benefit obligations are expected to be paid, based on government bond notes in the respective country, adjusted for corporate risk premiums as appropriate. The following table reflects the benefit payments that the Company expects the plans to pay in the periods noted (in thousands): Years Ending March 31, 2024 $ 26,765 2025 11,728 2026 12,046 2027 14,440 2028 12,772 Next five fiscal years 66,302 Total expected benefit payments by the plan $ 144,053 The Company expects to contribute $9.4 million to its defined benefit pension plans during fiscal year 2024. Defined Contribution Plans Certain of the Company's subsidiaries have defined contribution employee benefit plans covering all or a portion of their employees. Contributions to these plans are discretionary for certain plans and are based on specified or statutory requirements for others. The charges to expense for these plans for fiscal years 2023, 2022 and 2021, were $14.4 million, $13.9 million and $10.6 million, respectively. Deferred Compensation Plan One of the Company's subsidiaries offers a deferred compensation plan that permits eligible employees to make 100% vested salary and incentive compensation deferrals within established limits. The Company does not make contributions to the plan. The deferred compensation plan's assets consist of marketable securities and are included in other assets on the consolidated balance sheets. The marketable securities were recorded at a fair value of $28.2 million and $28.4 million as of March 31, 2023 and 2022, respectively, based on quoted market prices (see Note 9). The Company also had deferred compensation liability of $28.2 million and $28.4 million, which are included in other non-current liabilities on the consolidated balance sheets as of March 31, 2023 and 2022, respectively. Earnings, gains and losses on deferred compensation investments are included in other income (expense), net and corresponding changes in deferred compensation liability are included in operating expenses and cost of goods sold in the consolidated statements of operations (see Note 6). |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Mar. 31, 2023 | |
Compensation Related Costs [Abstract] | |
Employee Benefit Plans | Employee Stock-Based Compensation As of March 31, 2023, 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. Under the 1996 ESPP and 2006 ESPP plans, eligible employees may purchase shares at the lower of 85% of the fair market value at the beginning or the end of each offering period, which is generally six months. Subject to continued participation in these plans, purchase agreements are automatically executed at the end of each offering period. An aggregate of 29.0 million shares were reserved for issuance under the 1996 and 2006 ESPP plans. As of March 31, 2023, a total o f 3.6 million sha res were available for new awards under these plans. The 2006 Plan provides for the grant to eligible employees and non-employee directors of stock options, stock appreciation rights, and restricted stock units. Awards under the 2006 Plan may be conditioned on continued employment, the passage of time or the satisfaction of performance and market vesting criteria. The 2006 Plan, as amended, has no expiration date. On June 29, 2022, the Board authorized 3.3 million additional shares for issuance under the 2006 Plan. An aggregate of 33.8 million shares were reserved for issuance under the 2006 Plan. As of March 31, 2023, a total of 8.4 million shares were available for new awards under this plan. Stock options granted to employees under the 2006 Plan have terms not exceeding ten years and are issued at exercise prices not less than the fair market value on the date of grant. Service-based restricted stock units ("RSUs") granted to employees under the 2006 Plan generally vest in four equal annual installments on the grant date anniversary. RSUs granted to non-executive board members under the 2006 Plan vest on the grant date anniversary, or if earlier and only if the non-executive board member is not re-elected as a director at such annual general meeting, the date of the next annual general meeting following the grant date. Restricted stock units with certain market- and performance-based conditions ("PSUs") granted to employees under the 2006 Plan vest at the end of the three-year performance period upon meeting predetermined financial metrics over three years, with the number of shares to be received upon vesting determined based on weighted average constant currency revenue growth rate and the Company's total shareholder return ("TSR") relative to the performance of companies in the Russell 3000 Index over the same three years period. The following table summarizes share-based compensation expense and total income tax benefit recognized for fiscal years 2023, 2022 and 2021 (in thousands): Years Ended March 31, 2023 2022 2021 Cost of goods sold $ 5,635 $ 6,695 $ 6,438 Marketing and selling 34,707 37,796 36,788 Research and development 15,292 18,356 14,179 General and administrative 15,148 30,632 28,614 Total share-based compensation expense 70,782 93,479 86,019 Income tax benefit (9,750) (26,987) (19,472) Total share-based compensation expense, net of income tax benefit $ 61,032 $ 66,492 $ 66,547 Share-based compensation costs capitalized as part of inventory were $5.6 million , $5.2 million, and $4.3 million for the fiscal year ended March 31, 2023, 2022 and 2021, respectively. As of March 31, 2023, there was $125.2 million of total future stock-based compensation cost to be recognized over a weighted-average period of 2.4 years. The estimates of share-based compensation expense require a number of complex and subjective assumptions including stock price volatility, employee exercise patterns, probability of achievement of the set performance condition, dividend yield, related tax effects and the selection of an appropriate fair value model. The grant date fair value of the stock options and ESPP using the Black-Scholes-Merton option-pricing valuation model and the grant date fair value of the PSUs using the Monte-Carlo simulation method are determined with the following assumptions and values: Stock Options (1) Employee Stock Purchase Plans Year Ended March 31, Years Ended March 31, 2022 2023 2022 2021 Expected dividend rate 1.18 % 1.78 % 1.03 % 1.04 % Risk-free interest rate 1.99 % 3.86 % 0.27 % 0.10 % Expected volatility 34 % 46 % 35 % 47 % Expected term (years) 6.2 0.5 0.5 0.5 Weighted average grant date fair value per share $ 25.88 $ 16.32 $ 23.55 $ 24.67 (1) No stock options were granted for fiscal years 2023 and 2021. PSUs Years Ended March 31, 2023 2022 2021 Expected dividend rate 1.46 % 0.78 % 1.24 % Risk-free interest rate 2.78 % 0.31 % 0.21 % Expected volatility 39 % 37 % 31 % Expected term (years) 3.0 3.0 3.0 The expected dividend rate assumption is based on the Company's history and future expectations of dividend payouts. The unvested PSUs or unexercised options are not eligible for these dividends. The expected term is based on the purchase offerings periods expected to remain outstanding for employee stock purchase plan or the performance period for PSUs. The expected term for stock options represents the estimated period of time until option exercise. Since the Company has limited historical stock option exercise experience, the Company used the simplified method in estimating the expected term, which is calculated as the average of the sum of the vesting term and the original contractual term of the stock options. Expected volatility is based on historical volatility using the Company's daily closing prices, or including the volatility of components of the Russell 3000 Index for PSUs, over the expected term. The Company considers the historical price volatility of its shares as most representative of future volatility. The risk-free interest rate assumptions are based upon the implied yield of U.S. Treasury zero-coupon issues appropriate for the expected term of the Company's share-based awards. For PSUs, the Company estimates the probability and timing of the achievement of the set performance condition at the time of the grant based on the historical financial performance and the financial forecast in the remaining performance period and reassesses the probability in subsequent periods when actual results or new information become available. A summary of the Company's stock option activities under all stock plans for fiscal years 2023, 2022 and 2021 is as follows: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (In thousands) (Years) (In thousands) Outstanding, March 31, 2020 1,969 Exercised (1,347) $ 68,596 Outstanding, March 31, 2021 622 Granted 842 Exercised (71) $ 5,573 Outstanding, March 31, 2022 1,393 $ 62 8.3 $ 21,830 Exercised (155) $ 21 $ 6,482 Forfeited (118) $ 80 Outstanding, March 31, 2023 1,120 $ 66 7.6 $ 7,491 Vested and exercisable, March 31, 2023 396 $ 39 5.2 $ 7,491 The tax benefit realized for the tax deduction from options exercised during fiscal years 2023, 2022 and 2021 was $0.1 million, $1.2 million and $0.6 million, respectively. A summary of the Company's RSU and PSU activities for fiscal years 2023, 2022 and 2021 is as follows: Number of Shares Weighted-Average Grant Date Fair Value Aggregate (In thousands) (In thousands) Outstanding, March 31, 2020 3,951 $ 36 Granted—RSUs 1,046 $ 60 Granted—PSUs 303 $ 67 Vested (1,444) $ 168,816 Forfeited (213) Outstanding, March 31, 2021 3,643 $ 45 Granted—RSUs 868 $ 103 Granted—PSUs 203 $ 124 Vested (1,463) $ 133,977 Forfeited (205) Outstanding, March 31, 2022 3,046 $ 68 Granted—RSUs 1,584 $ 53 Granted—PSUs 407 $ 69 Vested (1,143) $ 48 $ 85,152 Forfeited (438) $ 68 Outstanding, March 31, 2023 3,456 $ 66 The shares outstanding as of March 31, 2023 above include 0.8 million shares of PSUs. The Company presents the number of PSUs at 100 percent of the performance target; however, the aggregate fair value of shares vested during the year is based on the actual number of stock units vested based on the achievement of the financial metrics over the performance period. The tax benefit realized for the tax deduction from RSUs and PSUs that vested during fiscal years 2023, 2022 and 2021 was $11.1 million, $25.2 million and $16.3 million, respectively. Defined Benefit Plans Certain of the Company's subsidiaries sponsor defined benefit pension plans or non-retirement post-employment benefits covering substantially all of their employees. Benefits are provided based on employees' years of service and earnings, or in accordance with applicable employee benefit regulations. The Company's practice is to fund amounts sufficient to meet the requirements set forth in the applicable employee benefit and tax regulations. The Company recognizes the overfunded or underfunded status of defined benefit pension plans and non-retirement post-employment benefit obligations as an asset or liability in its consolidated balance sheets and recognizes changes in the funded status of defined benefit pension plans in the year in which the changes occur through accumulated other comprehensive income (loss), which is a component of shareholders' equity. Each plan's assets and benefit obligations are generally remeasured as of March 31 each year. The net periodic benefit cost of the defined benefit pension plans and the non-retirement post-employment benefit obligations for fiscal years 2023, 2022 and 2021 was as follows (in thousands): Years Ended March 31, 2023 2022 2021 Service costs $ 13,195 $ 14,693 $ 12,121 Interest costs 2,408 920 1,047 Expected return on plan assets (3,754) (2,930) (2,535) Amortization: Net prior service credit recognized (458) (465) (467) Net actuarial loss (gain) recognized (3,047) (2,158) 2,144 Curtailment gain (4,225) — — Settlement gain (339) — — Total net periodic benefit cost $ 3,780 $ 10,060 $ 12,310 The components of net periodic benefit cost other than the service costs component are included in other income (expense), net in the consolidated statements of operations. The changes in projected benefit obligations for fiscal years 2023 and 2022 were as follows (in thousands): Years Ended March 31, 2023 2022 Projected benefit obligations, beginning of the year $ 207,551 $ 202,348 Service costs 13,195 14,693 Interest costs 2,408 920 Plan participant contributions 6,870 6,092 Actuarial gain (22,965) (31,198) Benefits paid (2,646) (3,904) Transfer of prior vested benefits 11,579 14,963 Settlement (15,348) — Curtailment (3,923) — Administrative expense paid (147) (130) Currency exchange rate changes (1,238) 3,767 Projected benefit obligations, end of the year $ 195,336 $ 207,551 The accumulated benefit obligation for all defined benefit pension plans as of March 31, 2023 and 2022 was $170.3 million and $178.5 million, respectively. Actuarial gains related to the change in the benefit obligation for the Company's pension plans for fiscal years 2023 and 2022 w ere primarily due to an increase in discount rate. The following table presents the changes in the fair value of defined benefit pension plan assets for fiscal years 2023 and 2022 (in thousands): Years Ended March 31, 2023 2022 Fair value of plan assets, beginning of the year $ 156,118 $ 128,061 Actual return on plan assets (6,008) (2,156) Employer contributions 11,645 10,877 Plan participant contributions 6,870 6,092 Benefits paid (2,646) (3,904) Transfer of prior vested benefits 11,579 14,963 Settlement (15,348) — Administrative expenses paid (147) (130) Currency exchange rate changes 536 2,315 Fair value of plan assets, end of the year $ 162,599 $ 156,118 The Company's investment objectives are to ensure that the assets of its defined benefit plans are invested to provide an optimal rate of investment return on the total investment portfolio, consistent with the assumption of a reasonable risk level, and to ensure that pension funds are available to meet the plans' benefit obligations as they become due. The Company believes that a well-diversified investment portfolio will result in the highest attainable investment return with an acceptable level of overall risk. Investment strategies and allocation decisions are also governed by applicable governmental regulatory agencies. The Company's investment strategy with respect to its largest defined benefit plan, which is available only to Swiss employees, is to invest per the following allocation: 33% in equities, 28% in bonds, 28% in real estate, 4% in cash and cash equivalents and the remaining in other investments. The Company can invest in real estate funds, commodity funds, and hedge funds depending upon economic conditions. The following tables present the fair value of the defined benefit pension plan assets by major categories and by levels within the fair value hierarchy as of March 31, 2023 and 2022 (in thousands): March 31, 2023 2022 Level 1 Level 2 Total Level 1 Level 2 Total Cash and cash equivalents $ 7,071 $ — $ 7,071 $ 16,317 $ — $ 16,317 Equity securities 51,963 — 51,963 48,591 — 48,591 Debt securities 43,493 — 43,493 38,513 — 38,513 Real estate funds 21,197 23,710 44,907 25,146 13,077 38,223 Hedge funds 606 7,907 8,513 — 8,076 8,076 Other 6,248 404 6,652 6,034 364 6,398 Total fair value of plan assets $ 130,578 $ 32,021 $ 162,599 $ 134,601 $ 21,517 $ 156,118 The funded status of the plans was as follows (in thousands): Years Ended March 31, 2023 2022 Fair value of plan assets $ 162,599 $ 156,118 Less: projected benefit obligations 195,336 207,551 Underfunded status $ (32,737) $ (51,433) Amounts recognized on the balance sheets for the plans were as follows (in thousands): March 31, 2023 2022 Current liabilities $ 1,407 $ 1,677 Non-current liabilities 31,330 49,756 Total liabilities $ 32,737 $ 51,433 Amounts recognized in accumulated other comprehensive income (loss) related to defined benefit pension plans were as follows (in thousands): March 31, 2023 2022 Net prior service credits $ 2,201 $ 2,883 Net actuarial gain (loss) 5,690 (4,304) Accumulated other comprehensive income (loss) 7,891 (1,421) Deferred taxes (3,366) (2,074) Accumulated other comprehensive income (loss), net of tax $ 4,525 $ (3,495) The actuarial assumptions for the defined benefit plans were as follows: Years Ended March 31, 2023 2022 Benefit Obligations: Discount rate 1.00% - 7.25% 1.00% - 6.75% Estimated rate of compensation increase 2.25% - 10.00% 2.00% - 10.00% Cash balance interest credit rate 0.00% - 1.75% 0.00% - 1.75% Years Ended March 31, 2023 2022 2021 Net Periodic Costs: Discount rate 0.50% - 6.75% 0.25% - 6.00% 0.50% - 6.75% Estimated rate of compensation increase 2.00% - 10.00% 2.00% - 10.00% 2.25% - 10.00% Expected average rate of return on plan assets 1.00% - 2.50% 1.00% - 2.25% 1.00% - 2.50% Cash balance interest credit rate 0.00% - 1.75% 0.00% - 1.75% 0.00% - 1.75% The discount rate is estimated based on corporate bond yields or securities of similar quality in the respective country, with a duration approximating the period over which the benefit obligations are expected to be paid. The Company bases the compensation increase assumptions on historical experience and future expectations. The expected average rate of return for the Company's defined benefit pension plans represents the average rate of return expected to be earned on plan assets over the period that the benefit obligations are expected to be paid, based on government bond notes in the respective country, adjusted for corporate risk premiums as appropriate. The following table reflects the benefit payments that the Company expects the plans to pay in the periods noted (in thousands): Years Ending March 31, 2024 $ 26,765 2025 11,728 2026 12,046 2027 14,440 2028 12,772 Next five fiscal years 66,302 Total expected benefit payments by the plan $ 144,053 The Company expects to contribute $9.4 million to its defined benefit pension plans during fiscal year 2024. Defined Contribution Plans Certain of the Company's subsidiaries have defined contribution employee benefit plans covering all or a portion of their employees. Contributions to these plans are discretionary for certain plans and are based on specified or statutory requirements for others. The charges to expense for these plans for fiscal years 2023, 2022 and 2021, were $14.4 million, $13.9 million and $10.6 million, respectively. Deferred Compensation Plan One of the Company's subsidiaries offers a deferred compensation plan that permits eligible employees to make 100% vested salary and incentive compensation deferrals within established limits. The Company does not make contributions to the plan. The deferred compensation plan's assets consist of marketable securities and are included in other assets on the consolidated balance sheets. The marketable securities were recorded at a fair value of $28.2 million and $28.4 million as of March 31, 2023 and 2022, respectively, based on quoted market prices (see Note 9). The Company also had deferred compensation liability of $28.2 million and $28.4 million, which are included in other non-current liabilities on the consolidated balance sheets as of March 31, 2023 and 2022, respectively. Earnings, gains and losses on deferred compensation investments are included in other income (expense), net and corresponding changes in deferred compensation liability are included in operating expenses and cost of goods sold in the consolidated statements of operations (see Note 6). |
Other Income (Expense), net
Other Income (Expense), net | 12 Months Ended |
Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), net | Other Income (Expense), net Other income (expense), net comprises of the following (in thousands): Years Ended March 31, 2023 2022 2021 Investment (loss) gain related to the deferred compensation plan $ (1,961) $ 1,231 $ 5,916 Currency exchange loss, net (7,337) (4,604) (2,688) Loss on investments, net (1) (14,073) (1,683) (5,910) Non-service cost net pension income (expense) and other (2) 10,093 5,616 893 Other income (expense), net $ (13,278) $ 560 $ (1,789) (1) Includes realized gain (loss) on sales of investments, unrealized gain (loss) from the change in fair value of investments, gain (loss) on equity-method investments, and impairment of investments during the periods presented, as applicable, (see Note 9). (2) Includes the components of net periodic benefit cost of defined benefit plans other than the service cost component (see Note 5). |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2023 | |
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 is generated outside of Switzerland. Income from continuing operations before income taxes for fiscal years 2023, 2022 and 2021 is summarized as follows (in thousands): Years Ended March 31, 2023 2022 2021 Swiss $ 282,970 $ 579,258 $ 984,185 Non-Swiss 180,552 196,560 163,935 Income before taxes $ 463,522 $ 775,818 $ 1,148,120 The provision for (benefit from) income taxes is summarized as follows (in thousands): Years Ended March 31, 2023 2022 2021 Current: Swiss $ 19,405 $ 59,659 $ 121,199 Non-Swiss 48,829 44,094 45,056 Deferred: Swiss 26,629 29,198 31,558 Non-Swiss 4,085 (1,646) 3,050 Provision for income taxes $ 98,947 $ 131,305 $ 200,863 The difference between the provision for (benefit from) income taxes and the expected tax provision (tax benefit) at the statutory income tax rate of 8.5% is reconciled below (in thousands): Years Ended March 31, 2023 2022 2021 Expected tax provision at statutory income tax rates $ 39,399 $ 65,945 $ 97,590 Income taxes at different rates 38,467 61,296 88,760 Research and development tax credits (152) (5,957) (3,844) Executive compensation 749 4,683 4,821 Stock-based compensation 5,736 (9,141) (3,161) Deferred tax effects from TRAF — — 1,944 Valuation allowance 908 887 (247) Impairment 1,881 — — Restructuring charges / (credits) (1,764) — (5) Unrecognized tax benefits 13,284 16,577 15,978 Audit settlement — (3,655) — Other, net 439 670 (973) Provision for income taxes $ 98,947 $ 131,305 $ 200,863 Deferred income tax assets and liabilities consist of the following (in thousands): March 31, 2023 2022 Deferred tax assets: Tax attributes carryforward $ 36,700 $ 34,736 Accruals 85,786 88,060 Depreciation and amortization 707 585 Tax step-up of goodwill from TRAF 100,514 118,000 Share-based compensation 11,093 13,152 Gross deferred tax assets 234,800 254,533 Valuation allowance (30,766) (29,858) Deferred tax assets after valuation allowance 204,034 224,675 Deferred tax liabilities: Acquired intangible assets and other (34,848) (33,008) Deferred tax liabilities (34,848) (33,008) Deferred tax assets, net $ 169,186 $ 191,667 Included in tax attributes carryforward above are net operating loss and tax credit carryforwards. Management regularly assesses the ability to realize deferred tax assets recorded in the Company's entities based upon the weight of available evidence, including such factors as recent earnings history and expected future taxable income. In the event that the Company changes its determination as to the amount of deferred tax assets that can be realized, the Company will adjust its valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made. The Company had a valuation allowance against deferred tax assets of $30.8 million at March 31, 2023, compared to $29.9 million at March 31, 2022. The Company had a valuation allowance of $30.8 million as of March 31, 2023 against deferred tax assets in the state of California, an increase from $29.7 million as of March 31, 2022 from activities during the year. The Company determined that it is more likely than not that the Company would not generate sufficient taxable income in the future to utilize such deferred tax assets. As of March 31, 2023, the Company had net operating loss carryforwards in Switzerland for income tax purposes of $17.7 million which will begin to expire in fiscal year 2028. The Company had net operating loss and tax credit carryforwards in the United States for income tax purposes of $60.2 million and $74.6 million, respectively. Unused net operating loss carryforwards will expire at various dates beginning in fiscal year 2030. Certain net operating loss carryforwards in the United States relate to acquisitions and, as a result, are limited in the amount that can be utilized in any one year. The tax credit carryforwards will begin to expire in fiscal year 2030. Swiss income taxes and non-Swiss withholding taxes associated with the repatriation of earnings or for other temporary differences related to investments in non-Swiss subsidiaries have not been provided for, as the Company intends to reinvest the earnings of such subsidiaries indefinitely. If these earnings were distributed to Switzerland in the form of dividends or otherwise, or if the shares of the relevant non-Swiss subsidiaries were sold or otherwise transferred, the Company may be subject to additional Swiss income taxes and non-Swiss withholding taxes. As of March 31, 2023, the cumulative amount of unremitted earnings of non-Swiss subsidiaries for which no income taxes have been provided is approximately $323.8 million. The amount of unrecognized deferred income tax liability related to these earnings is estimated to be approximately $9.5 million. The Company follows a two-step approach in recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. As of March 31, 2023 and 2022, the total amount of unrecognized tax benefits due to uncertain tax positions was $186.8 million and $176.0 million, respectively, all of which would affect the effective income tax rate if recognized. As of March 31, 2023 and 2022, the Company had $106.4 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 aggregate changes in gross unrecognized tax benefits in fiscal years 2023, 2022 and 2021 were as follows (in thousands). March 31, 2020 $ 143,497 Lapse of statute of limitations (4,024) Increases in balances related to tax positions taken during the year 23,780 March 31, 2021 $ 163,253 Lapse of statute of limitations (4,232) Settlements with taxing authorities (2,015) Increases in balances related to tax positions taken during the year 22,366 March 31, 2022 $ 179,372 Lapse of statute of limitations (3,586) Increases in balances related to tax positions taken during the year 15,214 March 31, 2023 $ 191,000 Fiscal year 2020 includes gross unrecognized tax benefits recorded as a result of the enactment of the Tax Reform and AHV Financing ("TRAF") in Switzerland. The Company recognizes interest and penalties related to unrecognized tax positions in income tax expense. The Company recognized $2.7 million, $1.5 million, and $1.1 million in interest and penalties in income tax expense during fiscal years 2023, 2022 and 2021, respectively. As of March 31, 2023 and 2022, the Company had $6.1 million, and $3.6 million, respectively, of accrued interest and penalties related to uncertain tax positions. The Company files Swiss and foreign tax returns. The Company received final tax assessments in Switzerland through fiscal year 2019. For other material foreign jurisdictions such as the United States and China, the Company is generally not subject to tax examinations for years prior to fiscal year 2020 and calendar year 2020, respectively. In the United States, the federal and state tax agencies have the authority to examine periods prior to fiscal year 2020, to the extent allowed by law, where tax attributes were generated, carried forward, and being utilized in subsequent years. The Company is under examination in foreign tax jurisdictions. If the examinations are resolved unfavorably, there is a possibility they may have a material negative impact on its results of operations. In fiscal year 2022, uncertain tax positions decreased by $4.2 million from an effective settlement of an income tax audit in a foreign jurisdiction. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Mar. 31, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components The following table presents the components of certain balance sheet asset amounts as of March 31, 2023 and 2022 (in thousands): March 31, 2023 2022 Accounts receivable, net: Accounts receivable $ 851,576 $ 964,766 Allowance for doubtful accounts (86) (2,212) Allowance for sales returns (10,146) (12,321) Allowance for cooperative marketing arrangements (40,495) (56,372) Allowance for customer incentive programs (71,645) (97,460) Allowance for pricing programs (98,822) (120,797) $ 630,382 $ 675,604 Inventories: Raw materials $ 171,790 $ 226,155 Finished goods 511,103 706,969 $ 682,893 $ 933,124 Other current assets: VAT receivables $ 60,343 $ 58,850 Prepaid expenses and other assets 82,533 76,628 $ 142,876 $ 135,478 Property, plant and equipment, net: Plant, buildings and improvements $ 69,360 $ 68,477 Equipment and tooling 309,151 268,164 Computer equipment 31,535 31,562 Software 79,118 72,391 489,164 440,594 Less: accumulated depreciation and amortization (396,855) (349,606) 92,309 90,988 Construction-in-process 26,399 15,915 Land 2,795 2,904 $ 121,503 $ 109,807 Other assets: Deferred tax assets $ 171,989 $ 193,629 Right-of-use assets 67,330 40,661 Investments in privately held companies 33,323 43,068 Investments for deferred compensation plan 28,213 28,431 Other assets 15,438 14,933 $ 316,293 $ 320,722 The following table presents the components of certain balance sheet liability amounts as of March 31, 2023 and 2022 (in thousands): March 31, 2023 2022 Accrued and other current liabilities: Accrued customer marketing, pricing and incentive programs $ 206,546 $ 232,393 Accrued personnel expenses 103,592 165,090 Accrued sales return liability 49,462 40,507 Accrued loss for inventory purchase commitments 46,608 46,361 VAT payable 33,328 39,602 Warranty liabilities 28,861 32,987 Income taxes payable 18,788 35,355 Operating lease liabilities 12,655 13,690 Contingent consideration 6,629 8,042 Other current liabilities 136,670 170,821 $ 643,139 $ 784,848 Other non-current liabilities: Operating lease liabilities $ 58,361 $ 28,207 Employee benefit plan obligations 32,421 50,741 Obligation for deferred compensation plan 28,213 28,431 Warranty liabilities 12,025 13,232 Deferred tax liabilities 2,803 1,962 Contingent consideration — 4,217 Other non-current liabilities 12,872 5,343 $ 146,695 $ 132,133 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2023 | |
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): March 31, 2023 March 31, 2022 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Cash equivalents $ 661,884 $ — $ — $ 762,055 $ — $ — Investments for deferred compensation plan included in other assets: Cash $ 41 $ — $ — $ 108 $ — $ — Common stock 988 — — 2,329 — — Money market funds 9,606 — — 6,765 — — Mutual funds 17,578 — — 19,229 — — Total of investments for deferred compensation plan $ 28,213 $ — $ — $ 28,431 $ — $ — Currency derivative assets included in other current assets $ — $ 107 $ — $ — $ 1,517 $ — Liabilities: Contingent consideration included in accrued and other current liabilities $ — $ — $ 6,629 $ — $ — $ 8,042 Contingent consideration included in other non-current liabilities $ — $ — $ — $ — $ — $ 3,971 Currency derivative liabilities included in accrued and other current liabilities $ — $ 2,187 $ — $ — $ 165 $ — Contingent Consideration for Business Acquisitions The following table summarizes the change in the Company's contingent consideration balance during fiscal year 2023 and 2022 (in thousands): Year Ended March 31, 2023 2022 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 — (3,509) Settlements of contingent consideration (5,954) (1,172) Effect of foreign currency exchange rate changes $ (1,827) — End of the period $ 6,629 $ 12,259 On May 19, 2021, the Company made a technology acquisition for a total cash consideration of $25.6 million, which included contingent consideration of $10.0 million payable in cash upon the achievement of three technical development milestones to be completed as of December 31, 2021, June 30, 2022, and June 30, 2023. The fair value of the contingent consideration was $10.0 million at the acquisition date, which was determined using a probability-weighted expected payment model and discounted at the estimated cost of debt. During fiscal year 2022, the Company paid $0.9 million for the contingent consideration related to the first technical development milestone. During fiscal year 2023, the Company paid $4.0 million for the contingent consideration related to the second technical development milestone. The Company expects to pay the contingent consideration for the third technical development milestone within the next twelve months. On February 17, 2021, the Company acquired all equity interests of Mevo Inc. ("Mevo") for a total cash consideration of $33.2 million, plus additional contingent consideration of up to $17.0 million payable in cash only upon the achievement of certain net revenues for the period from December 26, 2020 to December 31, 2021. The fair value of the contingent consideration as of the acquisition date was $3.4 million, which was determined by using a Black-Scholes-Merton valuation model to calculate the probability of the earn-out threshold being met, times the value of the earn-out payment, and discounted at the risk-free rate. The valuation included significant assumptions and unobservable inputs such as the projected sales of Mevo over the earn-out period, risk-free rate, and the net sales volatility. Projected sales were based on the Company's internal projections, including analysis of the target market and historical sales of Mevo products. As of March 31, 2021 the fair value of the contingent consideration remained as $3.4 million. As 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. On January 4, 2021, the Company made a technology acquisition for a total cash consideration of $11.0 million, which included contingent consideration of $3.0 million payable in cash upon the achievement of two technical development milestones to be completed as of December 31, 2021 and March 31, 2022. The fair value of the contingent consideration was determined using a probability-weighted expected payment model and discounted at the estimated cost of debt. During 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 the next twelve months. In connection with the acquisition of Streamlabs on October 31, 2019, the Company agreed to pay a total earn-out payment of $29.0 million, payable in stock, only upon the achievement of certain net revenues for the period from January 1, 2020 to June 30, 2020. During fiscal year 2021 and 2022, the Company issued 390,397 and 4,010 shares, respectively, out of treasury stock to former security holders of Streamlabs, in satisfaction of payment of the contingent consideration that was earned during the earn-out period. The issuances of such shares were deemed to be exempt from registration under the Securities Act of 1933 (the "Securities Act"), in reliance on Regulation D of the Securities Act as transactions by an issuer not involving a public offering. 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. Investments for Deferred Compensation Plan The marketable securities for the Company's deferred compensation plan are recorded at a fair value of $28.2 million and $28.4 million as of March 31, 2023 and 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 fiscal years 2023, 2022 and 2021 are included in other income (expense), net in the consolidated statements of operations (see Note 6). 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 $20.5 million and $40.2 million as of March 31, 2023 and 2022, respectively. G ains (losses) related to equity method investments for fiscal years 2023, 2022 and 2021 were not material and are included in other income (expense), net in the Company's consolidated statements of operations (see Note 6). During fiscal year 2023, 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 consolidated statement of operations for fiscal year 2023. There was no impairment of equity method investments during fiscal years 2022 and 2021 . 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 $12.6 million and $2.9 million as of March 31, 2023 and 2022, respectively. During fiscal year 2023, 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 investments during fiscal year 2022 and the impairment charges related to these investments were not material during fiscal years 2023 and 2021. 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. See Note 2 for additional information about how the Company tests various asset classes for impairment. There was no impairment of non-financial assets during the fiscal years of 2023 and 2021. During fiscal year 2022, the Company recorded impairment charges of $7.0 million for the Jaybird-related intangible assets (see Note 11). |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Mar. 31, 2023 | |
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 on the consolidated balance sheets as of March 31, 2023 and 2022. See Note 9 for the fair values of the Company’s derivative instruments as of March 31, 2023 and 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 approximately 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 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 invento ry purch ases were $72.6 million and $125.4 million as of March 31, 2023 and 2022, respectively. The Company had $3.9 million of net losses related to its cash flow hedges included in accumulated other comprehensive loss as of March 31, 2023, 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 fiscal years 2023, 2022 and 2021 and their locations on its consolidated statements of operations and consolidated statements of comprehensive income (in thousands): Amount of Amount of Loss (Gain) 2023 2022 2021 2023 2022 2021 Cash flow hedges $ 2,625 $ 6,308 $ (4,071) $ (8,391) $ (8,221) $ 8,043 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 approximately 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 in other income (expense), net in the consolidated statements of operations based on the changes in fair value. The notional amounts of these contracts outstanding as of March 31, 2023 and 2022 were $111.2 million and $226.5 million, respectively. Foreign currency exchange forward and swap contracts outstanding as of March 31, 2023 primarily consisted of contracts in Brazilian Real, Japanese Yen, and Mexican Peso to be settled at future dates at pre-determined exchange rates. The fair value of all foreign currency exchange forward and swap contracts is determined based on observable market transactions of spot currency rates and forward rates. Cash flows from these contracts are classified as operating activities in the consolidated statements of cash flows. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Mar. 31, 2023 | |
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 or more frequently 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 exceeded 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 twelve months ended December 31, 2022. There have been no triggering events identified affecting the valuation of goodwill subsequent to the annual impairment test. The following table summarizes the activities in the Company's goodwill balance (in thousands): Years Ended March 31, 2023 2022 Beginning of the period $ 448,175 $ 429,604 Acquisitions 7,976 20,721 Effects of foreign currency translation (1,541) (2,150) End of the period $ 454,610 $ 448,175 The Company's acquired intangible assets were as follows (in thousands): March 31, 2023 2022 Gross Carrying Amount Accumulated Net Carrying Amount Gross Carrying Amount Accumulated Net Carrying Amount Trademarks and trade names $ 36,790 $ (26,774) $ 10,016 $ 36,790 $ (22,295) $ 14,495 Developed technology 121,730 (94,792) 26,938 119,407 (83,540) 35,867 Customer contracts/relationships 71,110 (47,688) 23,422 71,110 (40,971) 30,139 In-process R&D 3,526 — 3,526 3,826 — 3,826 Effects of foreign currency translation (1,021) 292 (729) (634) 86 (548) Total $ 232,135 $ (168,962) $ 63,173 $ 230,499 $ (146,720) $ 83,779 During fiscal year 2022, the Company recognized a pre-tax impairment charge of $7.0 million to Jaybird-related intangible assets, primarily related to customer contracts and relationships, as a result of its decision to discontinue Jaybird-branded products. For fiscal years 2023, 2022 and 2021, amortization expense for intangible assets was $24.4 million , $30.2 million and $31.8 million, respectively. The Company expects that annual amortization expense for fiscal years 2024, 2025, 2026, 2027 and 2028 will be $20.3 million, $18.2 million, $11.9 million, $4.9 million and $3.3 million, respectively, and $1.0 million |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements The Company had several uncommitted, unsecured bank lines of credit aggregating $181.3 million and $195.0 million as of March 31, 2023 and 2022, respectively. There are no financial covenants under these lines of credit with which the Company must comply. As of March 31, 2023 and 2022, the Company had outstanding bank guarantees of $13.6 million and $25.5 million, respectively, under these lines of credit. There was no borrowing outstanding under these lines of cre dit as of March 31, 2023 and 2022. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Product Warranties Changes in the Company's warranty liabilities for fiscal years 2023 and 2022 were as follows (in thousands): Years Ended March 31, 2023 2022 Beginning of the period $ 46,219 $ 48,832 Provision 31,089 29,812 Settlements (35,919) (32,082) Effects of foreign currency translation (503) (343) End of the period $ 40,886 $ 46,219 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 March 31, 2023, 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 or results of operations in a particular period. Any claims or proceedings against the Company, whether meritorious or not, can have an adverse impact because of defense costs, diversion of management and operational resources, negative publicity and other factors. Any failure to obtain a necessary license or other rights, or litigation arising out of intellectual property claims, could adversely affect the Company's business. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity Share Capital The Company's nominal share capital is CHF 43.3 million, consisting of 173,106,620 issued shares with a par value of CHF 0.25 each, of which 13,763,347 were held in treasury shares as of March 31, 2023. The Company has reserved conditional capital of 25,000,000 shares for potential issuance on the exercise of rights granted under the Company's employee equity incentive plans and additional conditional capital for financing purposes, representing the issuance of up to 25,000,000 shares to cover any conversion rights under a future convertible bond issuance. At the 2020 Annual General Meeting, the shareholders of the Company authorized the Board of Directors to issue up to an additional 17,310,662 shares of the Company until September 9, 2022, which was authorized at the 2022 Annual General Meeting to be extended to September 14, 2024. Dividends Pursuant to Swiss corporate law, the payment of dividends is limited to certain amounts of unappropriated retained earnings (approximately CHF 1.2 billion, or USD equivalent of $1.3 billion as of March 31, 2023) and is subject to shareholder approval. In May 2023, the Board of Directors recommended that the Company pay cash dividends for fiscal year 2023 of CHF 1.06 per share (USD equivalent of approximately $1.16 per share, which would result in a gross aggregate dividend of approximately $184.2 million, based on the exchange rate and shares outstanding, net of treasury shares, on March 31, 2023). In September 2022, the Company paid gross cash dividends of CHF 0.96 (USD equivalent of $0.98 ) per common share, totaling $158.7 million on the Company's outstanding common shares. In September 2021, the Company paid cash dividends of CHF 0.87 (USD equivalent of $0.95) per common share, totaling $159.4 million on the Company’s outstanding common shares. In September 2020, the Company paid cash dividends of CHF 0.79 (USD equivalent of $0.87) per common share, totaling $146.7 million on the Company's outstanding common shares. Any future dividends will be subject to the approval of the Company's shareholders. Legal Reserves Under Swiss corporate law, a minimum of 5% of the Company's annual net income must be retained in a legal reserve until this legal reserve equals 20% of the Company's issued and outstanding aggregate par value per share capital. These legal reserves represent an appropriation of retained earnings that are not available for distribution and totaled $10.4 million at March 31, 2023 (based on the exchange rate at March 31, 2023). 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 beca me 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. The 2020 share repurchase program is expected to remain in effect for a period of three years through July 27, 2023. As of March 31, 2023 , $505.8 million was available for repurchase under the 2020 repurchase program. A summary of the approved and active share repurchase program in fiscal year 2023 is shown in the following table (in thousands, excluding transaction costs): Approved Repurchased Share Repurchase Program Shares (1) Amounts Shares Amounts May 2020 17,311 $ 1,500,000 14,014 $ 994,156 (1) The approval of the share repurchase program by the Swiss Takeover Board limits the number of shares that the Company may repurchase to no more than 10% of its authorized share capital and voting rights. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss were as follows (in thousands): Currency Translation Defined Deferred Total March 31, 2022 $ (102,461) $ (3,495) $ 1,833 $ (104,123) Other comprehensive income (loss) 1,592 8,020 (5,766) 3,846 March 31, 2023 $ (100,869) $ 4,525 $ (3,933) $ (100,277) |
Segment Information
Segment Information | 12 Months Ended |
Mar. 31, 2023 | |
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, gaming, video conferencing, and other digital platforms. Operating performance measures are provided directly to the Company's CEO, who is considered to be the Company’s Chief Operating Decision Maker. The CEO periodically reviews information such as sales and adjusted operating income (loss) to make business decisions. These operating performance measures do not include restructuring charges (credits), net, share-based compensation expense, amortization and impairment of intangible assets, acquisition-related costs and change in fair value of contingent consideration from business acquisitions. Sales by product categories were as follows (in thousands): Years Ended March 31, 2023 2022 2021 Pointing Devices $ 728,357 $ 781,108 $ 680,907 Keyboards & Combos 836,432 967,301 784,488 PC Webcams 227,692 403,651 439,865 Tablet & Other Accessories 254,374 310,123 384,301 Gaming (1) 1,211,485 1,451,883 1,239,005 Video Collaboration 887,517 997,164 1,044,935 Mobile Speakers 111,649 149,782 174,895 Audio & Wearables 274,231 401,424 468,776 Other (2) 7,081 18,665 35,107 Total Sales $ 4,538,818 $ 5,481,101 $ 5,252,279 (1) Gaming includes streaming services revenue generated by Streamlabs. (2) Other includes Smart Home. Sales by geographic region (based on the customers' locations) for fiscal years 2023, 2022 and 2021 were as follows (in thousands): Years Ended March 31, 2023 2022 2021 Americas $ 1,930,908 $ 2,317,941 $ 2,206,552 EMEA 1,299,657 1,724,027 1,735,682 Asia Pacific 1,308,253 1,439,133 1,310,045 Total Sales $ 4,538,818 $ 5,481,101 $ 5,252,279 Revenues from sales to customers in the United States represented 35%, 34% and 35% of sales in fiscal years 2023, 2022 and 2021, respectively. Revenues from sales to customers in Germany represented 14%, 15% and 16% of sales in fiscal years 2023 , 2022 and 2021, respectively. Revenues from sales to customers in China represented 11% and 10% of sales in fiscal years 2023 and 2022, respectively. No other country represented more than 10% of sales during these periods presented herein. Revenues from sales to customers in Switzerland, the Company's country of domicile, represented 3% of sales in each of fiscal years 2023, 2022 and 2021. Property, plant and equipment, net (excluding software) and right-of-use assets by geographic region were as follows (in thousands): March 31, 2023 2022 Americas $ 59,183 $ 22,578 EMEA 38,890 23,830 Asia Pacific 69,939 87,265 Total $ 168,012 $ 133,673 Property, plant and equipment, net (excluding software) and right-of-use assets in the United States, China, and Ireland were $58.7 million, $48.8 million, and $17.7 million, respectively, as of March 31, 2023. Property, plant and equipment, net (excluding software) and right-of-use assets in the United States and China were $21.7 million and $66.8 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 domicile, were $13.7 million and $13.6 million as of March 31, 2023 and 2022, respectively. No other countries represented more than 10% of the Company's total consolidated property, plant and equipment, net (excluding software) and right-of-use assets |
Restructuring
Restructuring | 12 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring The following table summarizes restructuring-related activities during fiscal years 2023 and 2022 (in thousands): Termination Contract Termination and Other Total Accrued restructuring liability at March 31, 2021 (1) $ 627 $ — $ 627 Charges, net 879 1,286 2,165 Cash payments (945) (390) (1,335) Accrued restructuring liability at March 31, 2022 (1) $ 561 $ 896 $ 1,457 Charges, net 27,631 6,942 34,573 Cash payments (14,015) (2,481) (16,496) Accrued restructuring liability at March 31, 2023 (1) $ 14,177 $ 5,357 $ 19,534 (1) The accrual balances are included in accrued and other current liabilities on the Company’s consolidated balance sheets. 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. During the fourth quarter of fiscal year 2023, the Company undertook further actions to remove organization layers as well as streamline its marketing organization to increase efficiency. These actions resulted in charges related to employee severance and other termination benefits as well as contract termination and other costs. The Company recorded pre-tax charges totaling $34.6 million in restructuring charges, net in the consolidated statement of operations for the year ended March 31, 2023 . The Company expects to substantially complete these restructuring activities within the next twelve 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 11), and $2.2 million in restructuring charges, net, related to production cancellation costs and employee severance and other termination benefits, for the year ended March 31, 2022. This restructuring plan has been substantially completed during fiscal year 2023. |
Leases
Leases | 12 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company is a lessee in various noncancellable operating leases, primarily real estate facilities for office space. As of March 31, 2023, t he Company's lease arrangements are comprised of operating leases with various expiration dates through November 30, 2033 . The lease term for all of the Company’s leases includes the noncancellable period of the lease. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into the Company's determination of the duration of the lease arrangement. The Company's leases do not contain any material residual value guarantees. The total operating lease costs including short-term lease costs were $21.2 million, $17.3 million and $15.0 million as of March 31, 2023, 2022, and 2021, respectively. Total variable lease costs were not material during the year ended March 31, 2023, 2022 and 2021. The total operating and variable lease costs were included in cost of goods sold, marketing and selling, research and development, and general and administrative in the Company's consolidated statements of operations. Supplemental cash flow information related to operating leases (in thousands): Years Ended March 31, 2023 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 16,565 $ 15,400 $ 13,865 ROU assets obtained in the exchange for operating lease liabilities $ 43,093 $ 22,174 $ 15,659 Future lease payments included in the measurement of operating lease liabilities as of March 31, 2023 for the following five fiscal years and thereafter are as follows (in thousands): Years Ending March 31, 2024 $ 13,409 2025 13,657 2026 10,769 2027 10,155 2028 9,107 Thereafter 40,889 Total lease payments $ 97,986 Less: imputed interest (15,416) Less: tenant improvement allowance (1) (11,554) Present value of lease liabilities $ 71,016 (1) The operating leases for two real estate facilities in the Americas region provide for tenant improvement allowances, for which the lessors reimburse the Company for the costs of constructing leasehold improvements up to $11.6 million. Weighted-average lease terms and discount rates were as follows: Years Ended March 31, 2023 2022 Weighted-average remaining lease terms (in years) 8.1 4.6 Weighted-average discount rate 3.7 % 2.8 % |
Schedule II - VALUATION AND QUA
Schedule II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Mar. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - VALUATION AND QUALIFYING ACCOUNTS | VALUATION AND QUALIFYING ACCOUNTS For the Fiscal Years Ended March 31, 2023, 2022 and 2021 (in thousands) The Company's Schedule II includes valuation and qualifying accounts related to allowances for doubtful accounts, sales returns, cooperative marketing arrangements, customer incentive programs, and pricing programs, for direct customers and tax valuation allowances. The Company also has sales incentive programs for indirect customers with whom it does not have a direct sales and receivable relationship. These programs are recorded as accrued liabilities and are not considered valuation or qualifying accounts. Balance at Charged (Credited) to Statement of Operations (1) Claims and Adjustments Applied Against Allowances (1) Balance at Allowance for doubtful accounts: 2023 $ 2,212 $ (2,019) $ (107) $ 86 2022 $ 1,161 $ 1,691 $ (640) $ 2,212 2021 $ 1,894 $ (533) $ (200) $ 1,161 Allowance for sales returns: 2023 $ 12,321 $ 157,619 $ (159,794) $ 10,146 2022 $ 14,438 $ 162,381 $ (164,498) $ 12,321 2021 $ 6,599 $ 122,803 $ (114,964) $ 14,438 Allowance for cooperative marketing arrangements: 2023 $ 56,372 $ 262,363 $ (278,240) $ 40,495 2022 $ 43,276 $ 286,116 $ (273,020) $ 56,372 2021 $ 38,794 $ 222,732 $ (218,250) $ 43,276 Allowance for customer incentive programs: 2023 $ 97,460 $ 329,666 $ (355,481) $ 71,645 2022 $ 76,200 $ 348,072 $ (326,812) $ 97,460 2021 $ 55,741 $ 256,755 $ (236,296) $ 76,200 Allowance for pricing programs: 2023 $ 120,797 $ 784,835 $ (806,810) $ 98,822 2022 $ 120,568 $ 885,228 $ (884,999) $ 120,797 2021 $ 100,168 $ 782,734 $ (762,334) $ 120,568 Tax valuation allowance: 2023 $ 29,858 $ 908 $ — $ 30,766 2022 $ 28,926 $ 887 $ 45 $ 29,858 2021 $ 29,171 $ (245) $ — $ 28,926 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Logitech and its subsidiaries. All intercompany balances and transactions have been eliminated. The consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). |
Fiscal Year | Fiscal Year The Company's fiscal year ends on March 31. Interim quarters are generally thirteen-week periods, each ending on a Friday. For purposes of presentation, the Company has indicated its quarterly periods end on the last day of the calendar quarter. |
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 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 ("Customer 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 | Risks and Uncertainties Impacts of Macroeconomic and Geopolitical Conditions on the Company's Business In fiscal year 2023, the Company's business was impacted by adverse macroeconomic and geopolitical conditions. These conditions included 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 resulted in global supply chain, logistics, and inflationary challenges. The Company had no revenue in Russia and Ukraine in fiscal year 2023 as it has indefinitely ceased all sales and shipments to Russia and sales in Ukraine have also been halted due to the ongoing military operations on the Ukrainian territory. |
Currencies | Currencies The functional currency of the Company's operations is primarily the U.S. Dollar. Certain operations use the Euro, Chinese Renminbi, Swiss Franc, or other local currencies as their functional currencies. The financial statements of the Company's subsidiaries whose functional currency is other than the U.S. Dollar are translated to U.S. Dollars using period-end rates of exchange for assets and liabilities and monthly average rates for sales, income and expenses. Cumulative translation gains and losses are included as a component of shareholders' equity in accumulated other comprehensive income (loss). Gains and losses arising from transactions denominated in currencies other than a subsidiary's functional currency are reported in other income (expense), net in the consolidated statements of operations. |
Revenue Recognition | Revenue Recognition Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the transaction price the Company expects to receive in exchange for those goods or services. Substantially all revenue recognized by the Company relates to the contracts with customers to sell products that allow people to connect through gaming, video, computing, music and other digital platforms. These products are hardware devices, which may include embedded software that function together, and are considered as one performance obligation. Hardware devices are generally plug and play, requiring no configuration and little or no installation. Revenue is recognized at a point in time when control of the products is transferred to the customer which generally occurs upon shipment. The Company’s sales contracts with its customers have a one year or shorter term. The Company elects not disclosing the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. The Company also provides post-contract customer support (“PCS”) for certain products and related software, which includes unspecified software updates and upgrades, bug fixes and maintenance. The transaction price is allocated to two performance obligations in such contracts, based on a relative standalone selling price. The transaction price allocated to PCS is recognized as revenue on a straight-line basis, which reflects the pattern of delivery of PCS, over the estimated term of the support that is between one The Company also recognizes revenue from subscription services that provide professional streamers with access to streaming software and tools that represent a single stand-ready performance obligation. Subscriptions are paid for at the time of or in advance of delivering the services. The proceeds received in advance from such arrangements is recognized as deferred revenue and then recognized as revenue ratably over the subscription period. The Company normally requires payment from customers within thirty The transaction price received by the Company from sales to its distributors, retail companies ("retailers"), and authorized resellers is calculated as selling price net of variable consideration which may include product returns and the Company’s payments for Customer Programs related to current period product revenue. The estimated impact of these programs is recorded as a reduction of transaction price or as an operating expense if the Company receives a distinct good or service from the customer and can reasonably estimate the fair value of that good or service received. Customer Programs require management to estimate the percentage of those programs which will not be claimed in the current period or will not be earned by customers, which is commonly referred to as "breakage." Breakage is estimated based on historical claim experience, the period in which customer claims are expected to be submitted, specific terms and conditions with customers and other factors. The Company accounts for breakage as part of variable consideration, subject to constraint, and records the estimated impact in the same period when revenue is recognized at the expected value. Assessing the period in which claims are expected to be submitted and the relevance of the historical claim experience require significant management judgment to estimate the breakage of Customer Programs in any accounting period. The Company enters into cooperative marketing arrangements with many of its customers and with certain indirect partners, allowing customers to receive a credit equal to a set percentage of their purchases of the Company's products, or a fixed dollar amount for various marketing and incentive programs. The objective of these arrangements is to encourage advertising and promotional events to increase sales of the Company's products. Customer incentive programs include consumer rebates and performance-based incentives. Consumer rebates are offered to the Company's customers and indirect partners at the Company's discretion for the primary benefit of end-users. In addition, the Company offers performance-based incentives to many of its customers and indirect partners based on predetermined performance criteria. At management's discretion, the Company also offers special pricing discounts to certain customers. Special pricing discounts are usually offered only for limited time periods or for sales of selected products to specific indirect partners. Cooperative marketing arrangements and customer incentive programs are considered variable consideration, which the Company estimates and records as a reduction to revenue at the time of sale based on negotiated terms, historical experiences, forecasted incentives, anticipated volume of future purchases, and inventory levels in the channel. The Company has agreements with certain customers that contain terms allowing price protection credits to be issued in the event of a subsequent price reduction. Management's decision to make price reductions is influenced by product life cycle stage, market acceptance of products, the competitive environment, new product introductions and other factors. Accruals for estimated expected future pricing actions and Customer Programs are recognized at the time of sale based on analyses of historical pricing actions by customer and by product, inventories owned by and located at customers, current customer demand, current operating conditions, and other relevant customer and product information, such as stage of product life-cycle. Product return rights vary by customer. Estimates of expected future product returns qualify as variable consideration and are recorded as a reduction of the transaction price of the contract at the time of sale based on an analyses of historical return trends by customer and by product, inventories owned by and located at customers, current customer demand, current operating conditions, and other relevant customer and product information. The Company assesses the estimated asset for recovery value for impairment and adjusts the value of the asset for any impairment. Return trends are influenced by product life cycle status, new product introductions, market acceptance of products, sales levels, product sell-through, the type of customer, seasonality, product quality issues, competitive pressures, operational policies and procedures, and other factors. Return rates can fluctuate over time but are sufficiently predictable to allow the Company to estimate expected future product returns. Typically, variable consideration does not need to be constrained as estimates are based on predictive historical data or future commitments that are planned and controlled by the Company. However, the Company continues to assess variable consideration estimates such that it is probable that a significant reversal of revenue will not occur. The Company regularly evaluates the adequacy of its estimates for Customer Programs and product returns. Future market conditions and product transitions may require the Company to take action to change such programs and related estimates. When the variables used to estimate these costs change, or if actual costs differ significantly from the estimates, the Company would be required to increase or reduce revenue or operating expenses to reflect the impact. During the year ended March 31, 2023, changes to these estimates related to performance obligations satisfied in prior periods were not material. Sales taxes and value-added taxes (“VAT”) collected from customers, if applicable, which are remitted to governmental authorities are not included in revenue, and are reflected as a liability on the consolidated balance sheets. |
Shipping and Handling Costs | Shipping and Handling Costs The Company's shipping and handling costs are included in the cost of goods sold in the consolidated statements of operations for all periods presented. |
Contract Balances | Contract Balances The Company records accounts receivable from contracts with customers when it has an unconditional right to consideration, as accounts receivable, net on the consolidated balance sheets. The Company records contract liabilities when cash payments are received or due in advance of performance, primarily for implied support and subscriptions. Contract liabilities are included in accrued and other current liabilities and other non-current liabilities on the consolidated balance sheets. |
Contract Costs | Contract CostsThe Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that otherwise would have been recognized is one year or less. These costs are included in marketing and selling expenses in the consolidated statements of operations. |
Research and Development Costs | Research and Development Costs Costs related to research, design and development of products, which consist primarily of personnel, product design and infrastructure expenses, are charged to research and development expense as they are incurred. |
Advertising Costs | Advertising CostsAdvertising costs are recorded as either a marketing and selling expense or a deduction from revenue as they are incurred. Advertising costs paid or reimbursed by the Company to direct or indirect customers must have an identifiable benefit and an estimable fair value in order to be classified as an operating expense. If these criteria are not met, the payment is classified as a reduction of revenue. Advertising costs recorded as marketing and selling expense are expensed as incurred. |
Cash Equivalents | Cash EquivalentsThe Company classifies all highly liquid instruments purchased, such as bank time deposits, with an original maturity of three months or less at the date of purchase, to be cash equivalents. Cash equivalents are carried at cost, which approximates their fair value. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents with various creditworthy financial institutions and has a policy to limit exposure with any one financial institution, but is exposed to credit risk in the event of default by financial institutions to the extent that cash balances with individual financial institutions are in excess of amounts that are insured. The Company periodically assesses the credit risk associated with these financial institutions. The Company sells to large distributors, retailers, and e-tailers and, as a result, maintains individually significant receivable balances with such customers. |
Allowances for Doubtful Accounts | Allowances for Doubtful Accounts Allowances for doubtful accounts are maintained for expected credit losses resulting from the Company's customers' inability to make required payments. The allowances are based on the Company's regular assessment of various factors, including the credit-worthiness and financial condition of specific customers, historical experience with bad debts and customer deductions, receivables aging, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company's ability to collect from customers. |
Inventories | InventoriesInventories are stated at the lower of cost and net realizable value. Costs are computed under the standard cost method, which approximates actual costs determined on the first-in, first-out basis. The Company records write-downs of inventories which are obsolete or in excess of anticipated demand or net realizable value based on a consideration of marketability and product life cycle stage, product development plans, component cost trends, historical sales and demand forecasts which consider the assumptions about future demand and market conditions. Inventory on hand which is not expected to be sold or utilized is considered excess, and the Company recognizes the write-down in cost of goods sold at the time of such determination. The write-down is determined by the excess of cost over net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. At the time of loss recognition, new cost basis per unit and lower-cost basis for that inventory are established and subsequent changes in facts and circumstances would not result in an increase in the cost basis. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost. Additions and improvements are capitalized, and maintenance and repairs are expensed as incurred. The Company capitalizes the cost of software developed for internal use in connection with major projects. Costs incurred during the preliminary project stage and post implementation stage are expensed, whereas direct costs incurred during the application development stage are capitalized. Depreciation expense is recognized using the straight-line method. Plant and buildings are depreciated over estimated useful lives of twenty-five years, equipment over useful lives from three software over useful lives from three When property and equipment is retired or otherwise disposed of, the cost and accumulated depreciation are relieved from the accounts and the net gain or loss is included in cost of goods sold or operating expenses, depending on the nature of the property and equipment. |
Leases | Leases The Company determines if an arrangement is a lease or contains a lease at contract inception. The Company determines if a lease is an operating or finance lease and recognizes right-of-use ("ROU") assets and lease liabilities upon lease commencement. Operating lease ROU assets are included in other assets accrued and other current liabilities other non-current liabilities For operating leases, the lease liability is initially measured at the present value of the unpaid lease payments at lease commencement date. As most of the leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate as the discount rate for the leases. The Company's incremental borrowing rate is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Because the Company does not generally borrow in a collateralized basis, it uses its understanding of what its collateralized credit rating would be as an input to deriving an appropriate incremental borrowing rate. The operating lease ROU assets include prepaid lease payments and exclude lease incentives. |
Intangible Assets | Intangible Assets The Company's intangible assets principally include goodwill, acquired technology, trademarks, and customer contracts and related relationships. Intangible assets with finite lives, which include acquired technology, trademarks, customer contracts and related relationships, and others are carried at cost and amortized using the straight-line method over their useful lives ranging from one n-process research and development ("IPR&D") , are recorded at cost and evaluated at least annually for impairment. IPR&D is reclassified as intangible assets with finite lives and amortized over its estimated useful life upon completion of the underlying projects. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets, such as property and equipment, and finite-lived intangible assets, for impairment whenever events indicate that the carrying amounts might not be recoverable. Recoverability of long-lived assets is measured by comparing the projected undiscounted net cash flows associated with those assets to their carrying values. If an asset is considered impaired, it is written down to its fair value, which is determined based on the asset's projected discounted cash flows or appraised value, depending on the nature of the asset. For purposes of recognition of impairment for assets held for use, the Company groups assets and liabilities at the lowest level for which cash flows are separately identifiable. |
Impairment of Goodwill | Impairment of Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. The Company conducts a goodwill impairment analysis annually at December 31 or more frequently if indicators of impairment exist or if a decision is made to sell or exit a business. Significant judgments are involved in determining if an indicator of impairment has occurred. Such indicators may include deterioration in general economic conditions, negative developments in equity and credit markets, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows, or a trend of negative or declining cash flows over multiple periods, among others. The fair value that could be realized in an actual transaction may differ from that used to evaluate the impairment of goodwill. In reviewing goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (greater than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. The Company also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative |
Income Taxes | Income Taxes The Company provides for income taxes using the asset and liability method, which requires that deferred tax assets and liabilities be recognized for the expected future tax consequences of temporary differences resulting from differing treatment of items for tax and financial reporting purposes, and for operating losses and tax credit carryforwards. In estimating future tax consequences, expected future events are taken into consideration, with the exception of potential tax law or tax rate changes. The Company records a valuation allowance to reduce deferred tax assets to amounts management believes are more likely than not to be realized. The Company's assessment of uncertain tax positions requires that management makes estimates and judgments about the application of tax law, the expected resolution of uncertain tax positions and other matters. In the event that uncertain tax positions are resolved for amounts different than the Company's estimates, or the related statutes of limitations expire without the assessment of additional income taxes, the Company will be required to adjust the amounts of the related assets and liabilities in the period in which such events occur. Such adjustments may have a material impact on the Company's income tax provision and its results of operations. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying value of certain of the Company's financial instruments, including cash equivalents, accounts receivable and accounts payable approximates their fair value due to their short maturities. The Company's investment securities portfolio consists of bank time deposits with an original maturity of three months or less and marketable securities (money market and mutual funds) related to a deferred compensation plan. The Company's investments related to the deferred compensation plan are reported at fair value based on quoted market prices. The marketable securities related to the deferred compensation plan are classified as non-current investments, as they are intended to fund the deferred compensation plan's long-term liability. Participants in the deferred compensation plan may select the mutual funds in which their compensation deferrals are invested within the confines of the Rabbi Trust which holds the marketable securities. These securities are recorded at fair value based on quoted market prices. Earnings, gains and losses on deferred compensation investments are included in other income (expense), net in the consolidated statements of operations. The Company also holds certain non-marketable investments that are accounted for as equity method investments and included in other assets in the consolidated balance sheets. In addition, 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. The Company elected the measurement alternative to record these investments at cost and to adjust for impairments and observable price changes resulting from transactions with the same issuer within the statements of operations. |
Net Income per Share | Net Income per Share Basic net income per share is computed by dividing net income by the weighted average outstanding shares. Diluted net income per share is computed using the weighted average outstanding shares and dilutive share equivalents. Dilutive share equivalents consist of share-based awards, including stock options, purchase rights under employee share purchase plan, and restricted stock units. |
Share-Based Compensation Expense | Share-Based Compensation Expense Share-based compensation expense includes compensation expense for share-based awards granted based on the grant date fair value. The grant date fair value for stock options and stock purchase rights is estimated using the Black-Scholes-Merton option-pricing valuation model. The grant date fair value of service-based restricted stock units ("RSUs") is calculated based on the market price on the date of grant, reduced by estimated dividend yield |
Product Warranty | Product Warranty All of the Company's products are covered by standard warranty to be free from defects in material and workmanship for periods ranging from one year to three years. The warranty period varies by product and by region. The Company’s standard warranty does not provide a service beyond assuring that the product complies with agreed-upon specifications and is not sold separately. The standard warranty the Company provides qualifies as an assurance warranty and is not treated as a separate performance obligation. The Company estimates cost of product warranties at the time the related revenue is recognized based on historical warranty claim rates, historical costs, and knowledge of specific product failures that are outside of the Company's typical experience. The Company accrues a warranty liability for estimated costs to provide products, parts or services to repair or replace products in satisfaction of the warranty obligation. Each quarter, the Company reevaluates estimates to assess the adequacy of recorded warranty liabilities. When the Company experiences changes in warranty claim activity or costs associated with fulfilling those claims, the warranty liability is adjusted accordingly. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is defined as the total change in shareholders' equity during the period other than from transactions with shareholders. Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) is comprised of currency translation adjustments from those entities not using the U.S. Dollar as their functional currency, net deferred gains and losses and prior service costs and credits for defined benefit pension plans, and net deferred gains and losses on hedging activity. |
Treasury Shares | Treasury Shares The Company periodically repurchases shares in the market at fair value. Shares repurchased are recorded at cost as a reduction of total shareholders' equity. Treasury shares held may be reissued to satisfy the exercise of employee stock options and purchase rights, the vesting of restricted stock units, and acquisitions, or may be canceled with shareholder approval. Treasury shares that are reissued are accounted for using the first-in, first-out basis. |
Derivative Financial Instruments | Derivative Financial Instruments The Company enters into foreign exchange forward contracts to reduce the short-term effects of currency fluctuations on certain foreign currency receivables or payables and to hedge against exposure to changes in currency exchange rates related to its subsidiaries' forecasted inventory purchases. Gains or losses from changes in the fair value of forward contracts that offset transaction losses or gains on foreign currency receivables or payables are recognized immediately and included in other income (expense), net in the consolidated statements of operations. Gains and losses for changes in the fair value of the effective portion of the Company's forward contracts related to forecasted inventory purchases are deferred as a component of accumulated other comprehensive loss until the hedged inventory purchases are sold, at which time the gains or losses are reclassified to cost of goods sold. The Company 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. |
Restructuring Charges | Restructuring ChargesThe Company's restructuring charges consist of employee severance, one-time termination benefits and ongoing benefits related to the reduction of its workforce, and other costs. Liabilities for costs associated with a restructuring activity are measured at fair value and are recognized when the liability is incurred, as opposed to when management commits to a restructuring plan. One-time termination benefits are expensed at the date the entity notifies the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period. Ongoing benefits are expensed when restructuring activities are probable and the benefit amounts are estimable. Other costs primarily consist of legal, consulting, and other costs related to employee terminations, and are expensed when incurred. Termination benefits are calculated based on regional benefit practices and local statutory requirements. |
Recent Accounting Pronouncements Adopted | Recent Accounting Pronouncements Adopted In October 2021, the Financial Accounting Standard Board issued Accounting Standards Update 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 applied 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 consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedules of Concentration of Risk | The Company had the following customers that individually comprised 10% or more of its gross sales: Years Ended March 31, 2023 2022 2021 Customer A 13 % 15 % 14 % Customer B 19 % 17 % 13 % Customer C (1) 15 % 14 % N/A (1) (1) The Company's two customers merged during fiscal year 2022 and the percentages for fiscal year 2023 and 2022 reflect the gross sales to the combined company. The percentage for fiscal year 2021 is not disclosed as gross sales to each customer accounted for less than 10% of the Company's gross sales. The Company had the following customers that individually comprised 10% or more of its accounts receivable: March 31, 2023 2022 Customer A 12 % 15 % Customer B 21 % 17 % Customer C 15 % 15 % |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
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 fiscal years 2023, 2022 and 2021 (in thousands except per share amounts): Years Ended March 31, 2023 2022 2021 Net income $ 364,575 $ 644,513 $ 947,257 Shares used in net income per share computation: Weighted average shares outstanding - basic 162,302 167,447 168,523 Effect of potentially dilutive equivalent shares 1,402 2,967 3,252 Weighted average shares outstanding - diluted 163,704 170,414 171,775 Net income per share: Basic $ 2.25 $ 3.85 $ 5.62 Diluted $ 2.23 $ 3.78 $ 5.51 |
Employee Stock-Based Compensa_2
Employee Stock-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-Based Compensation Expense and Related Tax Benefit Recognized | The following table summarizes share-based compensation expense and total income tax benefit recognized for fiscal years 2023, 2022 and 2021 (in thousands): Years Ended March 31, 2023 2022 2021 Cost of goods sold $ 5,635 $ 6,695 $ 6,438 Marketing and selling 34,707 37,796 36,788 Research and development 15,292 18,356 14,179 General and administrative 15,148 30,632 28,614 Total share-based compensation expense 70,782 93,479 86,019 Income tax benefit (9,750) (26,987) (19,472) Total share-based compensation expense, net of income tax benefit $ 61,032 $ 66,492 $ 66,547 |
Schedule of Assumptions Applied for the Fair Value of Market-Based RSUs Using the Monte-Carlo Simulation Method | The grant date fair value of the stock options and ESPP using the Black-Scholes-Merton option-pricing valuation model and the grant date fair value of the PSUs using the Monte-Carlo simulation method are determined with the following assumptions and values: Stock Options (1) Employee Stock Purchase Plans Year Ended March 31, Years Ended March 31, 2022 2023 2022 2021 Expected dividend rate 1.18 % 1.78 % 1.03 % 1.04 % Risk-free interest rate 1.99 % 3.86 % 0.27 % 0.10 % Expected volatility 34 % 46 % 35 % 47 % Expected term (years) 6.2 0.5 0.5 0.5 Weighted average grant date fair value per share $ 25.88 $ 16.32 $ 23.55 $ 24.67 (1) No stock options were granted for fiscal years 2023 and 2021. PSUs Years Ended March 31, 2023 2022 2021 Expected dividend rate 1.46 % 0.78 % 1.24 % Risk-free interest rate 2.78 % 0.31 % 0.21 % Expected volatility 39 % 37 % 31 % Expected term (years) 3.0 3.0 3.0 |
Schedule of Stock Option Activity | A summary of the Company's stock option activities under all stock plans for fiscal years 2023, 2022 and 2021 is as follows: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (In thousands) (Years) (In thousands) Outstanding, March 31, 2020 1,969 Exercised (1,347) $ 68,596 Outstanding, March 31, 2021 622 Granted 842 Exercised (71) $ 5,573 Outstanding, March 31, 2022 1,393 $ 62 8.3 $ 21,830 Exercised (155) $ 21 $ 6,482 Forfeited (118) $ 80 Outstanding, March 31, 2023 1,120 $ 66 7.6 $ 7,491 Vested and exercisable, March 31, 2023 396 $ 39 5.2 $ 7,491 |
Schedule of Time, Market and Performance-Based RSU Activity | A summary of the Company's RSU and PSU activities for fiscal years 2023, 2022 and 2021 is as follows: Number of Shares Weighted-Average Grant Date Fair Value Aggregate (In thousands) (In thousands) Outstanding, March 31, 2020 3,951 $ 36 Granted—RSUs 1,046 $ 60 Granted—PSUs 303 $ 67 Vested (1,444) $ 168,816 Forfeited (213) Outstanding, March 31, 2021 3,643 $ 45 Granted—RSUs 868 $ 103 Granted—PSUs 203 $ 124 Vested (1,463) $ 133,977 Forfeited (205) Outstanding, March 31, 2022 3,046 $ 68 Granted—RSUs 1,584 $ 53 Granted—PSUs 407 $ 69 Vested (1,143) $ 48 $ 85,152 Forfeited (438) $ 68 Outstanding, March 31, 2023 3,456 $ 66 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Compensation Related Costs [Abstract] | |
Schedule of Net Periodic Benefit Costs | The net periodic benefit cost of the defined benefit pension plans and the non-retirement post-employment benefit obligations for fiscal years 2023, 2022 and 2021 was as follows (in thousands): Years Ended March 31, 2023 2022 2021 Service costs $ 13,195 $ 14,693 $ 12,121 Interest costs 2,408 920 1,047 Expected return on plan assets (3,754) (2,930) (2,535) Amortization: Net prior service credit recognized (458) (465) (467) Net actuarial loss (gain) recognized (3,047) (2,158) 2,144 Curtailment gain (4,225) — — Settlement gain (339) — — Total net periodic benefit cost $ 3,780 $ 10,060 $ 12,310 |
Schedule of Changes in Projected Benefit Obligations | The changes in projected benefit obligations for fiscal years 2023 and 2022 were as follows (in thousands): Years Ended March 31, 2023 2022 Projected benefit obligations, beginning of the year $ 207,551 $ 202,348 Service costs 13,195 14,693 Interest costs 2,408 920 Plan participant contributions 6,870 6,092 Actuarial gain (22,965) (31,198) Benefits paid (2,646) (3,904) Transfer of prior vested benefits 11,579 14,963 Settlement (15,348) — Curtailment (3,923) — Administrative expense paid (147) (130) Currency exchange rate changes (1,238) 3,767 Projected benefit obligations, end of the year $ 195,336 $ 207,551 |
Schedule of Changes in the Fair Value of Defined Benefit Pension Plan Assets | The following table presents the changes in the fair value of defined benefit pension plan assets for fiscal years 2023 and 2022 (in thousands): Years Ended March 31, 2023 2022 Fair value of plan assets, beginning of the year $ 156,118 $ 128,061 Actual return on plan assets (6,008) (2,156) Employer contributions 11,645 10,877 Plan participant contributions 6,870 6,092 Benefits paid (2,646) (3,904) Transfer of prior vested benefits 11,579 14,963 Settlement (15,348) — Administrative expenses paid (147) (130) Currency exchange rate changes 536 2,315 Fair value of plan assets, end of the year $ 162,599 $ 156,118 |
Schedule of Fair Value of the Defined Benefit Pension Plan Assets by Major Categories and by Levels within the Fair Value Hierarchy | The following tables present the fair value of the defined benefit pension plan assets by major categories and by levels within the fair value hierarchy as of March 31, 2023 and 2022 (in thousands): March 31, 2023 2022 Level 1 Level 2 Total Level 1 Level 2 Total Cash and cash equivalents $ 7,071 $ — $ 7,071 $ 16,317 $ — $ 16,317 Equity securities 51,963 — 51,963 48,591 — 48,591 Debt securities 43,493 — 43,493 38,513 — 38,513 Real estate funds 21,197 23,710 44,907 25,146 13,077 38,223 Hedge funds 606 7,907 8,513 — 8,076 8,076 Other 6,248 404 6,652 6,034 364 6,398 Total fair value of plan assets $ 130,578 $ 32,021 $ 162,599 $ 134,601 $ 21,517 $ 156,118 |
Schedule of Net Funded Status | The funded status of the plans was as follows (in thousands): Years Ended March 31, 2023 2022 Fair value of plan assets $ 162,599 $ 156,118 Less: projected benefit obligations 195,336 207,551 Underfunded status $ (32,737) $ (51,433) |
Schedule of Amounts Recognized on the Balance Sheet for the Plans | Amounts recognized on the balance sheets for the plans were as follows (in thousands): March 31, 2023 2022 Current liabilities $ 1,407 $ 1,677 Non-current liabilities 31,330 49,756 Total liabilities $ 32,737 $ 51,433 |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss | Amounts recognized in accumulated other comprehensive income (loss) related to defined benefit pension plans were as follows (in thousands): March 31, 2023 2022 Net prior service credits $ 2,201 $ 2,883 Net actuarial gain (loss) 5,690 (4,304) Accumulated other comprehensive income (loss) 7,891 (1,421) Deferred taxes (3,366) (2,074) Accumulated other comprehensive income (loss), net of tax $ 4,525 $ (3,495) |
Schedule of Actuarial Assumptions for the Pension Plans | The actuarial assumptions for the defined benefit plans were as follows: Years Ended March 31, 2023 2022 Benefit Obligations: Discount rate 1.00% - 7.25% 1.00% - 6.75% Estimated rate of compensation increase 2.25% - 10.00% 2.00% - 10.00% Cash balance interest credit rate 0.00% - 1.75% 0.00% - 1.75% Years Ended March 31, 2023 2022 2021 Net Periodic Costs: Discount rate 0.50% - 6.75% 0.25% - 6.00% 0.50% - 6.75% Estimated rate of compensation increase 2.00% - 10.00% 2.00% - 10.00% 2.25% - 10.00% Expected average rate of return on plan assets 1.00% - 2.50% 1.00% - 2.25% 1.00% - 2.50% Cash balance interest credit rate 0.00% - 1.75% 0.00% - 1.75% 0.00% - 1.75% |
Schedule of Expected Benefit Payments | The following table reflects the benefit payments that the Company expects the plans to pay in the periods noted (in thousands): Years Ending March 31, 2024 $ 26,765 2025 11,728 2026 12,046 2027 14,440 2028 12,772 Next five fiscal years 66,302 Total expected benefit payments by the plan $ 144,053 |
Other Income (Expense), net (Ta
Other Income (Expense), net (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income (Expense), Net | Other income (expense), net comprises of the following (in thousands): Years Ended March 31, 2023 2022 2021 Investment (loss) gain related to the deferred compensation plan $ (1,961) $ 1,231 $ 5,916 Currency exchange loss, net (7,337) (4,604) (2,688) Loss on investments, net (1) (14,073) (1,683) (5,910) Non-service cost net pension income (expense) and other (2) 10,093 5,616 893 Other income (expense), net $ (13,278) $ 560 $ (1,789) (1) Includes realized gain (loss) on sales of investments, unrealized gain (loss) from the change in fair value of investments, gain (loss) on equity-method investments, and impairment of investments during the periods presented, as applicable, (see Note 9). (2) Includes the components of net periodic benefit cost of defined benefit plans other than the service cost component (see Note 5). |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Taxes | Income from continuing operations before income taxes for fiscal years 2023, 2022 and 2021 is summarized as follows (in thousands): Years Ended March 31, 2023 2022 2021 Swiss $ 282,970 $ 579,258 $ 984,185 Non-Swiss 180,552 196,560 163,935 Income before taxes $ 463,522 $ 775,818 $ 1,148,120 |
Schedule of Provision (Benefit) for Income Taxes | The provision for (benefit from) income taxes is summarized as follows (in thousands): Years Ended March 31, 2023 2022 2021 Current: Swiss $ 19,405 $ 59,659 $ 121,199 Non-Swiss 48,829 44,094 45,056 Deferred: Swiss 26,629 29,198 31,558 Non-Swiss 4,085 (1,646) 3,050 Provision for income taxes $ 98,947 $ 131,305 $ 200,863 |
Schedule of Difference Between the Provision (Benefit) for Income Taxes and Expected Tax Provision (Benefit) at the Statutory Income Tax Rate | The difference between the provision for (benefit from) income taxes and the expected tax provision (tax benefit) at the statutory income tax rate of 8.5% is reconciled below (in thousands): Years Ended March 31, 2023 2022 2021 Expected tax provision at statutory income tax rates $ 39,399 $ 65,945 $ 97,590 Income taxes at different rates 38,467 61,296 88,760 Research and development tax credits (152) (5,957) (3,844) Executive compensation 749 4,683 4,821 Stock-based compensation 5,736 (9,141) (3,161) Deferred tax effects from TRAF — — 1,944 Valuation allowance 908 887 (247) Impairment 1,881 — — Restructuring charges / (credits) (1,764) — (5) Unrecognized tax benefits 13,284 16,577 15,978 Audit settlement — (3,655) — Other, net 439 670 (973) Provision for income taxes $ 98,947 $ 131,305 $ 200,863 |
Schedule of Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities consist of the following (in thousands): March 31, 2023 2022 Deferred tax assets: Tax attributes carryforward $ 36,700 $ 34,736 Accruals 85,786 88,060 Depreciation and amortization 707 585 Tax step-up of goodwill from TRAF 100,514 118,000 Share-based compensation 11,093 13,152 Gross deferred tax assets 234,800 254,533 Valuation allowance (30,766) (29,858) Deferred tax assets after valuation allowance 204,034 224,675 Deferred tax liabilities: Acquired intangible assets and other (34,848) (33,008) Deferred tax liabilities (34,848) (33,008) Deferred tax assets, net $ 169,186 $ 191,667 |
Schedule of Aggregate Changes in Gross Unrecognized Tax Benefits | The aggregate changes in gross unrecognized tax benefits in fiscal years 2023, 2022 and 2021 were as follows (in thousands). March 31, 2020 $ 143,497 Lapse of statute of limitations (4,024) Increases in balances related to tax positions taken during the year 23,780 March 31, 2021 $ 163,253 Lapse of statute of limitations (4,232) Settlements with taxing authorities (2,015) Increases in balances related to tax positions taken during the year 22,366 March 31, 2022 $ 179,372 Lapse of statute of limitations (3,586) Increases in balances related to tax positions taken during the year 15,214 March 31, 2023 $ 191,000 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Components of Balance Sheet Asset | The following table presents the components of certain balance sheet asset amounts as of March 31, 2023 and 2022 (in thousands): March 31, 2023 2022 Accounts receivable, net: Accounts receivable $ 851,576 $ 964,766 Allowance for doubtful accounts (86) (2,212) Allowance for sales returns (10,146) (12,321) Allowance for cooperative marketing arrangements (40,495) (56,372) Allowance for customer incentive programs (71,645) (97,460) Allowance for pricing programs (98,822) (120,797) $ 630,382 $ 675,604 Inventories: Raw materials $ 171,790 $ 226,155 Finished goods 511,103 706,969 $ 682,893 $ 933,124 Other current assets: VAT receivables $ 60,343 $ 58,850 Prepaid expenses and other assets 82,533 76,628 $ 142,876 $ 135,478 Property, plant and equipment, net: Plant, buildings and improvements $ 69,360 $ 68,477 Equipment and tooling 309,151 268,164 Computer equipment 31,535 31,562 Software 79,118 72,391 489,164 440,594 Less: accumulated depreciation and amortization (396,855) (349,606) 92,309 90,988 Construction-in-process 26,399 15,915 Land 2,795 2,904 $ 121,503 $ 109,807 Other assets: Deferred tax assets $ 171,989 $ 193,629 Right-of-use assets 67,330 40,661 Investments in privately held companies 33,323 43,068 Investments for deferred compensation plan 28,213 28,431 Other assets 15,438 14,933 $ 316,293 $ 320,722 |
Schedule of Components of Balance Sheet Liability | The following table presents the components of certain balance sheet liability amounts as of March 31, 2023 and 2022 (in thousands): March 31, 2023 2022 Accrued and other current liabilities: Accrued customer marketing, pricing and incentive programs $ 206,546 $ 232,393 Accrued personnel expenses 103,592 165,090 Accrued sales return liability 49,462 40,507 Accrued loss for inventory purchase commitments 46,608 46,361 VAT payable 33,328 39,602 Warranty liabilities 28,861 32,987 Income taxes payable 18,788 35,355 Operating lease liabilities 12,655 13,690 Contingent consideration 6,629 8,042 Other current liabilities 136,670 170,821 $ 643,139 $ 784,848 Other non-current liabilities: Operating lease liabilities $ 58,361 $ 28,207 Employee benefit plan obligations 32,421 50,741 Obligation for deferred compensation plan 28,213 28,431 Warranty liabilities 12,025 13,232 Deferred tax liabilities 2,803 1,962 Contingent consideration — 4,217 Other non-current liabilities 12,872 5,343 $ 146,695 $ 132,133 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Accounted for at Fair Value and Classified by Level within the Fair Value Hierarchy | The following table presents the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis, excluding assets related to the Company's defined benefit pension plans, classified by the level within the fair value hierarchy (in thousands): March 31, 2023 March 31, 2022 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Cash equivalents $ 661,884 $ — $ — $ 762,055 $ — $ — Investments for deferred compensation plan included in other assets: Cash $ 41 $ — $ — $ 108 $ — $ — Common stock 988 — — 2,329 — — Money market funds 9,606 — — 6,765 — — Mutual funds 17,578 — — 19,229 — — Total of investments for deferred compensation plan $ 28,213 $ — $ — $ 28,431 $ — $ — Currency derivative assets included in other current assets $ — $ 107 $ — $ — $ 1,517 $ — Liabilities: Contingent consideration included in accrued and other current liabilities $ — $ — $ 6,629 $ — $ — $ 8,042 Contingent consideration included in other non-current liabilities $ — $ — $ — $ — $ — $ 3,971 Currency derivative liabilities included in accrued and other current liabilities $ — $ 2,187 $ — $ — $ 165 $ — |
Schedule of Change in Fair Value of Contingent Consideration | The following table summarizes the change in the Company's contingent consideration balance during fiscal year 2023 and 2022 (in thousands): Year Ended March 31, 2023 2022 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 — (3,509) Settlements of contingent consideration (5,954) (1,172) Effect of foreign currency exchange rate changes $ (1,827) — End of the period $ 6,629 $ 12,259 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Gains and Losses on Derivative Instruments | The following table presents the amounts of gain (loss) on the Company's derivative instruments designated as hedging instruments for fiscal years 2023, 2022 and 2021 and their locations on its consolidated statements of operations and consolidated statements of comprehensive income (in thousands): Amount of Amount of Loss (Gain) 2023 2022 2021 2023 2022 2021 Cash flow hedges $ 2,625 $ 6,308 $ (4,071) $ (8,391) $ (8,221) $ 8,043 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Activity | The following table summarizes the activities in the Company's goodwill balance (in thousands): Years Ended March 31, 2023 2022 Beginning of the period $ 448,175 $ 429,604 Acquisitions 7,976 20,721 Effects of foreign currency translation (1,541) (2,150) End of the period $ 454,610 $ 448,175 |
Schedule of Finite-Lived Intangible Assets | The Company's acquired intangible assets were as follows (in thousands): March 31, 2023 2022 Gross Carrying Amount Accumulated Net Carrying Amount Gross Carrying Amount Accumulated Net Carrying Amount Trademarks and trade names $ 36,790 $ (26,774) $ 10,016 $ 36,790 $ (22,295) $ 14,495 Developed technology 121,730 (94,792) 26,938 119,407 (83,540) 35,867 Customer contracts/relationships 71,110 (47,688) 23,422 71,110 (40,971) 30,139 In-process R&D 3,526 — 3,526 3,826 — 3,826 Effects of foreign currency translation (1,021) 292 (729) (634) 86 (548) Total $ 232,135 $ (168,962) $ 63,173 $ 230,499 $ (146,720) $ 83,779 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Warranty Liabilities | Changes in the Company's warranty liabilities for fiscal years 2023 and 2022 were as follows (in thousands): Years Ended March 31, 2023 2022 Beginning of the period $ 46,219 $ 48,832 Provision 31,089 29,812 Settlements (35,919) (32,082) Effects of foreign currency translation (503) (343) End of the period $ 40,886 $ 46,219 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Repurchased Shares Under Share Buyback Program | A summary of the approved and active share repurchase program in fiscal year 2023 is shown in the following table (in thousands, excluding transaction costs): Approved Repurchased Share Repurchase Program Shares (1) Amounts Shares Amounts May 2020 17,311 $ 1,500,000 14,014 $ 994,156 |
Schedule of Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss were as follows (in thousands): Currency Translation Defined Deferred Total March 31, 2022 $ (102,461) $ (3,495) $ 1,833 $ (104,123) Other comprehensive income (loss) 1,592 8,020 (5,766) 3,846 March 31, 2023 $ (100,869) $ 4,525 $ (3,933) $ (100,277) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Product Categories, Excluding Intercompany Transactions | Sales by product categories were as follows (in thousands): Years Ended March 31, 2023 2022 2021 Pointing Devices $ 728,357 $ 781,108 $ 680,907 Keyboards & Combos 836,432 967,301 784,488 PC Webcams 227,692 403,651 439,865 Tablet & Other Accessories 254,374 310,123 384,301 Gaming (1) 1,211,485 1,451,883 1,239,005 Video Collaboration 887,517 997,164 1,044,935 Mobile Speakers 111,649 149,782 174,895 Audio & Wearables 274,231 401,424 468,776 Other (2) 7,081 18,665 35,107 Total Sales $ 4,538,818 $ 5,481,101 $ 5,252,279 (1) Gaming includes streaming services revenue generated by Streamlabs. |
Schedule of Net Sales to Unaffiliated Customers by Geographic Region | Sales by geographic region (based on the customers' locations) for fiscal years 2023, 2022 and 2021 were as follows (in thousands): Years Ended March 31, 2023 2022 2021 Americas $ 1,930,908 $ 2,317,941 $ 2,206,552 EMEA 1,299,657 1,724,027 1,735,682 Asia Pacific 1,308,253 1,439,133 1,310,045 Total Sales $ 4,538,818 $ 5,481,101 $ 5,252,279 |
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): March 31, 2023 2022 Americas $ 59,183 $ 22,578 EMEA 38,890 23,830 Asia Pacific 69,939 87,265 Total $ 168,012 $ 133,673 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Related Activities | The following table summarizes restructuring-related activities during fiscal years 2023 and 2022 (in thousands): Termination Contract Termination and Other Total Accrued restructuring liability at March 31, 2021 (1) $ 627 $ — $ 627 Charges, net 879 1,286 2,165 Cash payments (945) (390) (1,335) Accrued restructuring liability at March 31, 2022 (1) $ 561 $ 896 $ 1,457 Charges, net 27,631 6,942 34,573 Cash payments (14,015) (2,481) (16,496) Accrued restructuring liability at March 31, 2023 (1) $ 14,177 $ 5,357 $ 19,534 (1) The accrual balances are included in accrued and other current liabilities on the Company’s consolidated balance sheets. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of Supplemental Information Related to Operating Leases | Supplemental cash flow information related to operating leases (in thousands): Years Ended March 31, 2023 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 16,565 $ 15,400 $ 13,865 ROU assets obtained in the exchange for operating lease liabilities $ 43,093 $ 22,174 $ 15,659 Weighted-average lease terms and discount rates were as follows: Years Ended March 31, 2023 2022 Weighted-average remaining lease terms (in years) 8.1 4.6 Weighted-average discount rate 3.7 % 2.8 % |
Schedule of Maturity of Lease Liabilities Under Non-Cancelable Operating Leases | Future lease payments included in the measurement of operating lease liabilities as of March 31, 2023 for the following five fiscal years and thereafter are as follows (in thousands): Years Ending March 31, 2024 $ 13,409 2025 13,657 2026 10,769 2027 10,155 2028 9,107 Thereafter 40,889 Total lease payments $ 97,986 Less: imputed interest (15,416) Less: tenant improvement allowance (1) (11,554) Present value of lease liabilities $ 71,016 (1) The operating leases for two real estate facilities in the Americas region provide for tenant improvement allowances, for which the lessors reimburse the Company for the costs of constructing leasehold improvements up to $11.6 million. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Mar. 31, 2023 USD ($) reporting_unit | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | |
Revenue Recognition | |||
Sales contract with customer term (in years) | 1 year | ||
Advertising Costs | |||
Advertising costs | $ 341.1 | $ 628.9 | $ 450 |
Leases | |||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued and other current liabilities | Accrued and other current liabilities | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent | |
Impairment of Goodwill | |||
Number of reporting units | reporting_unit | 1 | ||
Plant and Buildings | |||
Property, Plant and Equipment | |||
Estimated useful life (in years) | 25 years | ||
Operating Expense | |||
Advertising Costs | |||
Advertising costs | $ 24.8 | $ 267.8 | $ 168.2 |
Minimum | |||
Revenue Recognition | |||
Post-contract customer support revenue recognition period (in years) | 1 year | ||
Required customer payment period (in days) | 30 days | ||
Intangible Assets | |||
Estimated useful life (in years) | 1 year | ||
Product Warranties | |||
Product warranty period (in years) | 1 year | ||
Minimum | Equipment | |||
Property, Plant and Equipment | |||
Estimated useful life (in years) | 3 years | ||
Minimum | Internal-Use Software | |||
Property, Plant and Equipment | |||
Estimated useful life (in years) | 3 years | ||
Minimum | Tooling | |||
Property, Plant and Equipment | |||
Estimated useful life (in years) | 6 months | ||
Maximum | |||
Revenue Recognition | |||
Post-contract customer support revenue recognition period (in years) | 2 years | ||
Required customer payment period (in days) | 60 days | ||
Intangible Assets | |||
Estimated useful life (in years) | 10 years | ||
Product Warranties | |||
Product warranty period (in years) | 3 years | ||
Maximum | Equipment | |||
Property, Plant and Equipment | |||
Estimated useful life (in years) | 5 years | ||
Maximum | Internal-Use Software | |||
Property, Plant and Equipment | |||
Estimated useful life (in years) | 10 years | ||
Maximum | Tooling | |||
Property, Plant and Equipment | |||
Estimated useful life (in years) | 1 year | ||
Maximum | Leasehold Improvements | |||
Property, Plant and Equipment | |||
Estimated useful life (in years) | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Schedule of Concentration Risk) (Details) - customer | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Concentration Risk [Line Items] | |||
Number of customers merged | 2 | 2 | |
Customer A | Gross Sales | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration credit risk by major customer (as a percent) | 13% | 15% | 14% |
Customer A | Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration credit risk by major customer (as a percent) | 12% | 15% | |
Customer B | Gross Sales | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration credit risk by major customer (as a percent) | 19% | 17% | 13% |
Customer B | Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration credit risk by major customer (as a percent) | 21% | 17% | |
Customer C | Gross Sales | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration credit risk by major customer (as a percent) | 15% | 14% | |
Customer C | Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration credit risk by major customer (as a percent) | 15% | 15% |
Net Income Per Share (Computati
Net Income Per Share (Computation of Basic and Diluted Net Income per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Net income | |||
Net income | $ 364,575 | $ 644,513 | $ 947,257 |
Net income | $ 364,575 | $ 644,513 | $ 947,257 |
Shares used in net income per share computation: | |||
Weighted average shares outstanding - basic (in shares) | 162,302 | 167,447 | 168,523 |
Effect of potentially dilutive equivalent shares (in shares) | 1,402 | 2,967 | 3,252 |
Weighted average shares outstanding - diluted (in shares) | 163,704 | 170,414 | 171,775 |
Net income per share: | |||
Basic (in dollars per share) | $ 2.25 | $ 3.85 | $ 5.62 |
Diluted (in dollars per share) | $ 2.23 | $ 3.78 | $ 5.51 |
Net Income Per Share (Narrative
Net Income Per Share (Narratives) (Details) - shares shares in Millions | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive equivalents shares excluded (in shares) | 2 | 2 | 0.1 |
Employee Stock-Based Compensa_3
Employee Stock-Based Compensation (Additional Information For Share Based Compensation) (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||||
Jun. 29, 2022 shares | Mar. 31, 2023 USD ($) installment shares | Mar. 31, 2022 USD ($) $ / shares shares | Mar. 31, 2021 USD ($) shares | Mar. 31, 2020 shares | |
Employee Benefit Plan | |||||
Share-based compensation expenses capitalized as inventory | $ | $ 5.6 | $ 5.2 | $ 4.3 | ||
Future stock-based compensation cost | $ | $ 125.2 | ||||
Recognized weighted cost (in years) | 2 years 4 months 24 days | ||||
Tax benefit realized for the tax deduction from options exercised | $ | $ 0.1 | $ 1.2 | $ 0.6 | ||
1996 ESPP and 2006 ESPP | |||||
Employee Benefit Plan | |||||
Purchase price of shares expressed as percentage of the fair market value (as a percent) | 85% | ||||
Offering period of ESPP Plan (in months) | 6 months | ||||
Number of shares reserved for issuance (in shares) | 29,000 | ||||
Number of shares available for issuance (in shares) | 3,600 | ||||
2006 Plan | |||||
Employee Benefit Plan | |||||
Number of shares reserved for issuance (in shares) | 33,800 | ||||
Number of shares available for issuance (in shares) | 8,400 | ||||
Additional issuance shares (in shares) | 3,300 | ||||
Stock Options | |||||
Employee Benefit Plan | |||||
Weighted average grant date fair value per share (in dollars per share) | $ / shares | $ 25.88 | ||||
Stock Options | 2006 Plan | |||||
Employee Benefit Plan | |||||
Expiration period (in years) | 10 years | ||||
Service-Based RSU | 2006 Plan | Maximum | |||||
Employee Benefit Plan | |||||
Vesting installment | installment | 4 | ||||
Granted—PSUs | |||||
Employee Benefit Plan | |||||
RSUs outstanding (in shares) | 800 | ||||
Percent of granted and vested of target number (as a percent) | 100% | ||||
Granted—PSUs | 2006 Plan | |||||
Employee Benefit Plan | |||||
Performance period (in years) | 3 years | ||||
Restricted Stock Units (RSUs) | |||||
Employee Benefit Plan | |||||
RSUs outstanding (in shares) | 3,456 | 3,046 | 3,643 | 3,951 | |
Tax benefit realized for the tax deduction from RSUs vested during period | $ | $ 11.1 | $ 25.2 | $ 16.3 |
Employee Stock-Based Compensa_4
Employee Stock-Based Compensation (Share-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based compensation expense and related tax benefit | |||
Total share-based compensation expense | $ 70,782 | $ 93,479 | $ 86,019 |
Income tax benefit | (9,750) | (26,987) | (19,472) |
Total share-based compensation expense, net of income tax benefit | 61,032 | 66,492 | 66,547 |
Cost of goods sold | |||
Share-based compensation expense and related tax benefit | |||
Total share-based compensation expense | 5,635 | 6,695 | 6,438 |
Marketing and selling | |||
Share-based compensation expense and related tax benefit | |||
Total share-based compensation expense | 34,707 | 37,796 | 36,788 |
Research and development | |||
Share-based compensation expense and related tax benefit | |||
Total share-based compensation expense | 15,292 | 18,356 | 14,179 |
General and administrative | |||
Share-based compensation expense and related tax benefit | |||
Total share-based compensation expense | $ 15,148 | $ 30,632 | $ 28,614 |
Employee Stock-Based Compensa_5
Employee Stock-Based Compensation (Fair Value Assumptions) (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Stock Options | |||
Employee Benefit Plan | |||
Expected dividend rate | 1.18% | ||
Risk-free interest rate | 1.99% | ||
Expected volatility | 34% | ||
Expected term (years) | 6 years 2 months 12 days | ||
Weighted average grant date fair value per share (in dollars per share) | $ 25.88 | ||
Employee Stock Purchase Plans | |||
Employee Benefit Plan | |||
Expected dividend rate | 1.78% | 1.03% | 1.04% |
Risk-free interest rate | 3.86% | 0.27% | 0.10% |
Expected volatility | 46% | 35% | 47% |
Expected term (years) | 6 months | 6 months | 6 months |
Granted (in dollars per share) | $ 16.32 | $ 23.55 | $ 24.67 |
Weighted average grant date fair value per share (in dollars per share) | $ 16.32 | $ 23.55 | $ 24.67 |
PSUs | |||
Employee Benefit Plan | |||
Expected dividend rate | 1.46% | 0.78% | 1.24% |
Risk-free interest rate | 2.78% | 0.31% | 0.21% |
Expected volatility | 39% | 37% | 31% |
Expected term (years) | 3 years | 3 years | 3 years |
Granted (in dollars per share) | $ 69 | $ 124 | $ 67 |
Weighted average grant date fair value per share (in dollars per share) | $ 69 | $ 124 | $ 67 |
Employee Stock-Based Compensa_6
Employee Stock-Based Compensation (Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Number of Shares | |||
Granted (in shares) | 0 | 0 | |
Stock Options | |||
Number of Shares | |||
Options outstanding, beginning of period (in shares) | 1,393,000 | 622,000 | 1,969,000 |
Exercised (in shares) | (155,000) | (71,000) | (1,347,000) |
Granted (in shares) | 842,000 | ||
Forfeited (in shares) | (118,000) | ||
Options outstanding, end of period (in shares) | 1,120,000 | 1,393,000 | 622,000 |
Vested and exercisable (in shares) | 396,000 | ||
Weighted-Average Exercise Price | |||
Beginning of period (in dollars per share) | $ 62 | ||
Exercised (in dollars per share) | 21 | ||
Forfeited (in dollars per share) | 80 | ||
End of period (in dollars per share) | 66 | $ 62 | |
Vested and exercisable (in dollars per share) | $ 39 | ||
Weighted-Average Remaining Contractual Term | |||
Outstanding, Weighted-Average Remaining Contractual Term (in years) | 7 years 7 months 6 days | 8 years 3 months 18 days | |
Vested and exercisable, Weighted-Average Remaining Contractual Term (in years) | 5 years 2 months 12 days | ||
Aggregate Intrinsic Value | |||
Exercised | $ 6,482 | $ 5,573 | $ 68,596 |
Outstanding, March 31, 2023 | 7,491 | $ 21,830 | |
Vested and exercisable, March 31, 2023 | $ 7,491 |
Employee Stock-Based Compensa_7
Employee Stock-Based Compensation (PSU and RSU Rollforward) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Restricted Stock Units (RSUs) | |||
Number of Shares | |||
Outstanding, beginning of period (in shares) | 3,046 | 3,643 | 3,951 |
Vested (in shares) | (1,143) | (1,463) | (1,444) |
Forfeited (in shares) | (438) | (205) | (213) |
Outstanding, end of period (in shares) | 3,456 | 3,046 | 3,643 |
Weighted-Average Grant Date Fair Value | |||
Outstanding, beginning of period (in dollars per share) | $ 68 | $ 45 | $ 36 |
Vested (in dollars per share) | 48 | ||
Forfeited (in dollars per share) | 68 | ||
Outstanding, end of period (in dollars per share) | $ 66 | $ 68 | $ 45 |
Aggregate Fair Value | |||
Aggregate Fair Value, Vested | $ 85,152 | $ 133,977 | $ 168,816 |
Granted—RSUs | |||
Number of Shares | |||
Granted (in shares) | 1,584 | 868 | 1,046 |
Weighted-Average Grant Date Fair Value | |||
Granted (in dollars per share) | $ 53 | $ 103 | $ 60 |
Granted—PSUs | |||
Number of Shares | |||
Granted (in shares) | 407 | 203 | 303 |
Outstanding, end of period (in shares) | 800 | ||
Weighted-Average Grant Date Fair Value | |||
Granted (in dollars per share) | $ 69 | $ 124 | $ 67 |
Employee Benefit Plans ( Net Pe
Employee Benefit Plans ( Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Compensation Related Costs [Abstract] | |||
Service costs | $ 13,195 | $ 14,693 | $ 12,121 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax |
Interest costs | $ 2,408 | $ 920 | $ 1,047 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax |
Expected return on plan assets | $ (3,754) | $ (2,930) | $ (2,535) |
Amortization: | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax |
Net prior service credit recognized | $ (458) | $ (465) | $ (467) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Immediate Recognition of Actuarial Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax |
Net actuarial loss (gain) recognized | $ (3,047) | $ (2,158) | $ 2,144 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Curtailment Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | ||
Curtailment gain | $ (4,225) | $ 0 | $ 0 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Settlement Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax |
Settlement gain | $ (339) | $ 0 | $ 0 |
Total net periodic benefit cost | $ 3,780 | $ 10,060 | $ 12,310 |
Employee Benefit Plans (Changes
Employee Benefit Plans (Changes in Projected Benefit Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Changes in projected benefit obligations | |||
Projected benefit obligations, beginning of the year | $ 207,551 | $ 202,348 | |
Service costs | 13,195 | 14,693 | $ 12,121 |
Interest costs | 2,408 | 920 | 1,047 |
Plan participant contributions | 6,870 | 6,092 | |
Actuarial gain | (22,965) | (31,198) | |
Benefits paid | (2,646) | (3,904) | |
Transfer of prior vested benefits | 11,579 | 14,963 | |
Settlement | (15,348) | 0 | |
Curtailment | (3,923) | 0 | |
Administrative expense paid | (147) | (130) | |
Currency exchange rate changes | (1,238) | 3,767 | |
Projected benefit obligations, end of the year | $ 195,336 | $ 207,551 | $ 202,348 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 170,300 | $ 178,500 | |
Company's expected contribution to defined benefit pension plans in next fiscal year | 9,400 | ||
Expense for defined contribution plans | $ 14,400 | 13,900 | $ 10,600 |
Deferred Compensation Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of vested salary and incentive compensation deferrals permitted to eligible employees (as a percent) | 100% | ||
Investments for deferred compensation plan | $ 28,213 | 28,431 | |
Deferred Compensation Plan | Other Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments for deferred compensation plan | 28,200 | 28,400 | |
Deferred Compensation Plan | Other Liabilities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments for deferred compensation plan | $ 28,200 | $ 28,400 | |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations (as a percent) | 33% | ||
Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations (as a percent) | 28% | ||
Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations (as a percent) | 28% | ||
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations (as a percent) | 4% |
Employee Benefit Plans (Chang_2
Employee Benefit Plans (Changes in the Fair Value of Defined Benefit Pension Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, beginning of year | $ 156,118 | $ 128,061 |
Actual return on plan assets | (6,008) | (2,156) |
Employer contributions | 11,645 | 10,877 |
Plan participant contributions | 6,870 | 6,092 |
Benefits paid | (2,646) | (3,904) |
Transfer of prior vested benefits | 11,579 | 14,963 |
Settlement | (15,348) | 0 |
Administrative expense paid | (147) | (130) |
Currency exchange rate changes | 536 | 2,315 |
Fair value of plan assets, end of year | $ 162,599 | $ 156,118 |
Employee Benefit Plans (Fair Va
Employee Benefit Plans (Fair Value of the Defined Benefit Pension Plan Assets by Major Categories and by Levels within the Fair Value Hierarchy) General (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets | $ 162,599 | $ 156,118 | $ 128,061 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets | 130,578 | 134,601 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets | 32,021 | 21,517 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets | 7,071 | 16,317 | |
Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets | 7,071 | 16,317 | |
Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets | 0 | 0 | |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets | 51,963 | 48,591 | |
Equity securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets | 51,963 | 48,591 | |
Equity securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets | 0 | 0 | |
Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets | 43,493 | 38,513 | |
Debt securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets | 43,493 | 38,513 | |
Debt securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets | 0 | 0 | |
Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets | 44,907 | 38,223 | |
Real estate funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets | 21,197 | 25,146 | |
Real estate funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets | 23,710 | 13,077 | |
Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets | 8,513 | 8,076 | |
Hedge funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets | 606 | 0 | |
Hedge funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets | 7,907 | 8,076 | |
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets | 6,652 | 6,398 | |
Other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets | 6,248 | 6,034 | |
Other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets | $ 404 | $ 364 |
Employee Benefit Plans (Net Fun
Employee Benefit Plans (Net Funded Status) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 |
Compensation Related Costs [Abstract] | |||
Fair value of plan assets | $ 162,599 | $ 156,118 | $ 128,061 |
Less: projected benefit obligations | 195,336 | 207,551 | $ 202,348 |
Underfunded status | $ (32,737) | $ (51,433) |
Employee Benefit Plans (Amounts
Employee Benefit Plans (Amounts Recognized on the Balance Sheet for the Plans) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Compensation Related Costs [Abstract] | ||
Current liabilities | $ 1,407 | $ 1,677 |
Non-current liabilities | 31,330 | 49,756 |
Total liabilities | $ 32,737 | $ 51,433 |
Employee Benefit Plans (Amoun_2
Employee Benefit Plans (Amounts Recognized in Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Compensation Related Costs [Abstract] | ||
Net prior service credits | $ 2,201 | $ 2,883 |
Net actuarial gain (loss) | 5,690 | (4,304) |
Accumulated other comprehensive income (loss) | 7,891 | (1,421) |
Deferred taxes | (3,366) | (2,074) |
Accumulated other comprehensive income (loss), net of tax | $ 4,525 | $ (3,495) |
Employee Benefit Plans (Actuari
Employee Benefit Plans (Actuarial Assumptions for the Pension Plans) (Details) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Minimum | |||
Benefit Obligations: | |||
Discount rate (as a percent) | 1% | 1% | |
Estimated rate of compensation increase (as a percent) | 2.25% | 2% | |
Cash balance interest credit rate (as a percent) | 0% | 0% | |
Net Periodic Costs: | |||
Discount rate (as a percent) | 0.50% | 0.25% | 0.50% |
Estimated rate of compensation increase (as a percent) | 2% | 2% | 2.25% |
Expected average rate of return on plan assets (as a percent) | 1% | 1% | 1% |
Cash balance interest credit rate (as a percent) | 0% | 0% | 0% |
Maximum | |||
Benefit Obligations: | |||
Discount rate (as a percent) | 7.25% | 6.75% | |
Estimated rate of compensation increase (as a percent) | 10% | 10% | |
Cash balance interest credit rate (as a percent) | 1.75% | 1.75% | |
Net Periodic Costs: | |||
Discount rate (as a percent) | 6.75% | 6% | 6.75% |
Estimated rate of compensation increase (as a percent) | 10% | 10% | 10% |
Expected average rate of return on plan assets (as a percent) | 2.50% | 2.25% | 2.50% |
Cash balance interest credit rate (as a percent) | 1.75% | 1.75% | 1.75% |
Employee Benefit Plans (Expecte
Employee Benefit Plans (Expected Benefit Payments) (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Compensation Related Costs [Abstract] | |
2024 | $ 26,765 |
2025 | 11,728 |
2026 | 12,046 |
2027 | 14,440 |
2028 | 12,772 |
Next five fiscal years | 66,302 |
Total expected benefit payments by the plan | $ 144,053 |
Other Income (Expense), net (Sc
Other Income (Expense), net (Schedule of Other Income (Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Other income (expense), net | |||
Investment (loss) gain related to the deferred compensation plan | $ (1,961) | $ 1,231 | $ 5,916 |
Currency exchange loss, net | (7,337) | (4,604) | (2,688) |
Loss on investments, net | (14,073) | (1,683) | (5,910) |
Non-service cost net pension income (expense) and other | 10,093 | 5,616 | 893 |
Other income (expense), net | $ (13,278) | $ 560 | $ (1,789) |
Income Taxes (Income (Loss) Bef
Income Taxes (Income (Loss) Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Swiss | $ 282,970 | $ 579,258 | $ 984,185 |
Non-Swiss | 180,552 | 196,560 | 163,935 |
Income before income taxes | $ 463,522 | $ 775,818 | $ 1,148,120 |
Income Taxes (Provision for (Be
Income Taxes (Provision for (Benefit From) Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Current: | |||
Swiss | $ 19,405 | $ 59,659 | $ 121,199 |
Non-Swiss | 48,829 | 44,094 | 45,056 |
Deferred: | |||
Swiss | 26,629 | 29,198 | 31,558 |
Non-Swiss | 4,085 | (1,646) | 3,050 |
Provision for income taxes | $ 98,947 | $ 131,305 | $ 200,863 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Net operating loss and tax credit carryforwards | ||||
Valuation allowance | $ 30,766 | $ 29,858 | ||
Cumulative amount of unremitted earnings of non-Swiss subsidiaries | 323,800 | |||
Deferred income tax liability | 9,500 | |||
Unrecognized tax benefits that would impact effective tax rate | 186,800 | 176,000 | ||
Unrecognized tax benefits, uncertain tax positions | 191,000 | 179,372 | $ 163,253 | $ 143,497 |
Interest and penalties in income tax expense | 2,700 | 1,500 | 1,100 | |
Accrued interest and penalties related to uncertain tax positions | 6,100 | 3,600 | ||
Decrease in uncertain tax positions | 3,586 | 4,232 | $ 4,024 | |
Possible decreases in balances related to lapse of statutes of limitations | 5,000 | |||
Non-current income tax payable | ||||
Net operating loss and tax credit carryforwards | ||||
Unrecognized tax benefits, uncertain tax positions | 106,400 | $ 83,400 | ||
Swiss Federal Tax Administration (FTA) | ||||
Net operating loss and tax credit carryforwards | ||||
Foreign net operating loss carryforwards | $ 17,700 | |||
Swiss | ||||
Net operating loss and tax credit carryforwards | ||||
Statutory income tax rate (as a percent) | 8.50% | 8.50% | 8.50% | |
State and Local Jurisdiction | California Franchise Tax Board | ||||
Net operating loss and tax credit carryforwards | ||||
Valuation allowance | $ 30,800 | $ 29,700 | ||
Foreign | ||||
Net operating loss and tax credit carryforwards | ||||
Foreign net operating loss carryforwards | 60,200 | |||
Foreign tax credit carryforwards | $ 74,600 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Expected tax provision at statutory income tax rates | $ 39,399 | $ 65,945 | $ 97,590 |
Income taxes at different rates | 38,467 | 61,296 | 88,760 |
Research and development tax credits | (152) | (5,957) | (3,844) |
Executive compensation | 749 | 4,683 | 4,821 |
Stock-based compensation | 5,736 | (9,141) | (3,161) |
Deferred tax effects from TRAF | 0 | 0 | 1,944 |
Valuation allowance | 908 | 887 | (247) |
Impairment | 1,881 | 0 | 0 |
Restructuring charges / (credits) | (1,764) | 0 | (5) |
Unrecognized tax benefits | 13,284 | 16,577 | 15,978 |
Audit settlement | 0 | (3,655) | 0 |
Other, net | 439 | 670 | (973) |
Provision for income taxes | $ 98,947 | $ 131,305 | $ 200,863 |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Deferred tax assets: | ||
Tax attributes carryforward | $ 36,700 | $ 34,736 |
Accruals | 85,786 | 88,060 |
Depreciation and amortization | 707 | 585 |
Tax step-up of goodwill from TRAF | 100,514 | 118,000 |
Share-based compensation | 11,093 | 13,152 |
Gross deferred tax assets | 234,800 | 254,533 |
Valuation allowance | (30,766) | (29,858) |
Deferred tax assets after valuation allowance | 204,034 | 224,675 |
Deferred tax liabilities: | ||
Acquired intangible assets and other | (34,848) | (33,008) |
Deferred tax liabilities | (34,848) | (33,008) |
Deferred tax assets, net | $ 169,186 | $ 191,667 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at the beginning of the period | $ 179,372 | $ 163,253 | $ 143,497 |
Lapse of statute of limitations | (3,586) | (4,232) | (4,024) |
Settlements with taxing authorities | (2,015) | ||
Increases in balances related to tax positions taken during the year | 15,214 | 22,366 | 23,780 |
Balance at the end of the period | $ 191,000 | $ 179,372 | $ 163,253 |
Balance Sheet Components (Asset
Balance Sheet Components (Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Accounts receivable, net: | ||
Accounts receivable | $ 851,576 | $ 964,766 |
Accounts receivable, net | 630,382 | 675,604 |
Inventories: | ||
Raw materials | 171,790 | 226,155 |
Finished goods | 511,103 | 706,969 |
Inventory, net | 682,893 | 933,124 |
Other current assets: | ||
VAT receivables | 60,343 | 58,850 |
Prepaid expenses and other assets | 82,533 | 76,628 |
Other current assets, total | 142,876 | 135,478 |
Property, plant and equipment, net: | ||
Property, plant and equipment, gross | 489,164 | 440,594 |
Less: accumulated depreciation and amortization | (396,855) | (349,606) |
Property, plant and equipment before land and construction in progress | 92,309 | 90,988 |
Property, plant and equipment, net | 121,503 | 109,807 |
Other assets: | ||
Deferred tax assets | 171,989 | 193,629 |
Right-of-use assets | 67,330 | 40,661 |
Investments in privately held companies | 33,323 | 43,068 |
Other assets | 15,438 | 14,933 |
Other assets, total | 316,293 | 320,722 |
Deferred Compensation Plan | ||
Other assets: | ||
Investments for deferred compensation plan | 28,213 | 28,431 |
Plant, buildings and improvements | ||
Property, plant and equipment, net: | ||
Property, plant and equipment, gross | 69,360 | 68,477 |
Equipment and tooling | ||
Property, plant and equipment, net: | ||
Property, plant and equipment, gross | 309,151 | 268,164 |
Computer equipment | ||
Property, plant and equipment, net: | ||
Property, plant and equipment, gross | 31,535 | 31,562 |
Software | ||
Property, plant and equipment, net: | ||
Property, plant and equipment, gross | 79,118 | 72,391 |
Construction-in-process | ||
Property, plant and equipment, net: | ||
Property, plant and equipment, gross | 26,399 | 15,915 |
Land | ||
Property, plant and equipment, net: | ||
Property, plant and equipment, gross | 2,795 | 2,904 |
Allowance for doubtful accounts | ||
Accounts receivable, net: | ||
Allowance for receivables | (86) | (2,212) |
Allowance for sales returns | ||
Accounts receivable, net: | ||
Allowance for receivables | (10,146) | (12,321) |
Allowance for cooperative marketing arrangements | ||
Accounts receivable, net: | ||
Allowance for receivables | (40,495) | (56,372) |
Allowance for customer incentive programs | ||
Accounts receivable, net: | ||
Allowance for receivables | (71,645) | (97,460) |
Allowance for pricing programs | ||
Accounts receivable, net: | ||
Allowance for receivables | $ (98,822) | $ (120,797) |
Balance Sheet Components (Balan
Balance Sheet Components (Balance Sheet Liability) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Accrued and other current liabilities: | ||
Accrued customer marketing, pricing and incentive programs | $ 206,546 | $ 232,393 |
Accrued personnel expenses | 103,592 | 165,090 |
Accrued sales return liability | 49,462 | 40,507 |
Accrued loss for inventory purchase commitments | 46,608 | 46,361 |
VAT payable | 33,328 | 39,602 |
Warranty liabilities | 28,861 | 32,987 |
Income taxes payable | 18,788 | 35,355 |
Operating lease liabilities | 12,655 | 13,690 |
Contingent consideration | 6,629 | 8,042 |
Other current liabilities | 136,670 | 170,821 |
Accrued and other current liabilities | 643,139 | 784,848 |
Other non-current liabilities: | ||
Operating lease liabilities | 58,361 | 28,207 |
Employee benefit plan obligations | 32,421 | 50,741 |
Warranty liabilities | 12,025 | 13,232 |
Deferred tax liabilities | 2,803 | 1,962 |
Contingent consideration | 0 | 4,217 |
Other non-current liabilities | 12,872 | 5,343 |
Non-current liabilities | 146,695 | 132,133 |
Deferred Compensation Plan | ||
Other non-current liabilities: | ||
Obligation for deferred compensation plan | $ 28,213 | $ 28,431 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Assets and Liabilities, Classified by Level) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Contingent consideration included in accrued and other current liabilities | $ 6,629 | $ 8,042 |
Contingent consideration included in other non-current liabilities | 0 | 4,217 |
Deferred Compensation Plan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments for deferred compensation plan | 28,213 | 28,431 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 661,884 | 762,055 |
Investments for deferred compensation plan | 28,200 | 28,400 |
Contingent consideration included in accrued and other current liabilities | 0 | 0 |
Contingent consideration included in other non-current liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign Exchange Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Currency derivative assets included in other current assets | 0 | 0 |
Currency derivative liabilities included in accrued and other current liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Deferred Compensation Plan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments for deferred compensation plan | 28,213 | 28,431 |
Fair Value, Measurements, Recurring | Level 1 | Deferred Compensation Plan | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments for deferred compensation plan | 41 | 108 |
Fair Value, Measurements, Recurring | Level 1 | Deferred Compensation Plan | Common stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments for deferred compensation plan | 988 | 2,329 |
Fair Value, Measurements, Recurring | Level 1 | Deferred Compensation Plan | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments for deferred compensation plan | 9,606 | 6,765 |
Fair Value, Measurements, Recurring | Level 1 | Deferred Compensation Plan | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments for deferred compensation plan | 17,578 | 19,229 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Contingent consideration included in accrued and other current liabilities | 0 | 0 |
Contingent consideration included in other non-current liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Foreign Exchange Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Currency derivative assets included in other current assets | 107 | 1,517 |
Currency derivative liabilities included in accrued and other current liabilities | 2,187 | 165 |
Fair Value, Measurements, Recurring | Level 2 | Deferred Compensation Plan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Deferred Compensation Plan | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Deferred Compensation Plan | Common stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Deferred Compensation Plan | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Deferred Compensation Plan | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Contingent consideration included in accrued and other current liabilities | 6,629 | 8,042 |
Contingent consideration included in other non-current liabilities | 0 | 3,971 |
Fair Value, Measurements, Recurring | Level 3 | Foreign Exchange Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Currency derivative assets included in other current assets | 0 | 0 |
Currency derivative liabilities included in accrued and other current liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Deferred Compensation Plan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Deferred Compensation Plan | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Deferred Compensation Plan | Common stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Deferred Compensation Plan | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Deferred Compensation Plan | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments for deferred compensation plan | $ 0 | $ 0 |
Fair Value Measurements (Change
Fair Value Measurements (Change in Fair Value of Contingent Consideration) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
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) |
Business Combination, Contingent Consideration, Liability, Fair Value by Fair Value Hierarchy Level [Extensible Enumeration] | Change in fair value of contingent consideration for business acquisition | Change in fair value of contingent consideration for business acquisition |
Settlements of contingent consideration | $ (5,954) | $ (1,172) |
Effect of foreign currency exchange rate changes | (1,827) | 0 |
End of the period | $ 6,629 | $ 12,259 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) | 9 Months Ended | 12 Months Ended | ||||||
May 19, 2021 USD ($) milestone | Feb. 17, 2021 USD ($) | Jan. 04, 2021 USD ($) milestone | Dec. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) shares | Mar. 31, 2021 USD ($) shares | Oct. 31, 2019 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||||
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 | $ 0 | |||||
Equity method investment | 20,500,000 | 40,200,000 | ||||||
Impairment of equity method investments | 21,400,000 | 0 | 0 | |||||
Initial cost basis of securities | 12,600,000 | 2,900,000 | ||||||
Equity securities without readily determinable fair value, upward price adjustment, annual amount | 6,900,000 | |||||||
Financial asset impairment charges | 0 | 0 | 0 | |||||
Non-financial asset impairment charges | 0 | 0 | ||||||
Impairment of intangible assets | 0 | 7,000,000 | 0 | |||||
Discontinued operations | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||||
Impairment of intangible assets | 7,000,000 | |||||||
Level 1 | Fair Value, Measurements, Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||||
Fair value of marketable securities | 28,200,000 | $ 28,400,000 | ||||||
Small Technology Acquisition | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||||
Payments to acquire businesses, gross | $ 25,600,000 | |||||||
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 | ||||||||
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 | ||||||||
Payment of contingent consideration for business acquisition | 4,000,000 | |||||||
Mevo | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||||
Payments to acquire businesses, gross | $ 33,200,000 | |||||||
Future potential earn-out payments | 17,000,000 | |||||||
Fair value of contingent consideration upon acquisition | $ 3,400,000 | |||||||
Fair value of contingent consideration (earn-out) | $ 3,400,000 | |||||||
Small Technology Acquisition Two | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||||
Payments to acquire businesses, gross | $ 11,000,000 | |||||||
Number of technical development milestones | milestone | 2 | |||||||
Fair value of contingent consideration (earn-out) | $ 3,000,000 | |||||||
Small Technology Acquisition Two | First Technical Development Milestone | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||||
Payment of contingent consideration for business acquisition | 2,000,000 | |||||||
Small Technology Acquisition Two | Second Technical Development Milestone | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||||
Fair value of contingent consideration (earn-out) | $ 1,000,000 | |||||||
Streamlabs | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||||
Total earn out payment | $ 29,000,000 | |||||||
Treasury shares reissued (in shares) | shares | 4,010 | 390,397 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Foreign Exchange Forward And Swap | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative term of contract (in months) | 1 month | |
Derivative, notional amount | $ 111.2 | $ 226.5 |
Foreign Exchange Forward | Cash flow hedges | Designated as Hedging Instruments | ||
Derivative [Line Items] | ||
Derivative term of contract (in months) | 4 months | |
Derivative, notional amount | $ 72.6 | $ 125.4 |
Net losses to be reclassified into earnings in the next 12 months | $ (3.9) |
Derivative Financial Instrume_4
Derivative Financial Instruments (Gains and Losses on Derivative Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Deferred as a Component of Accumulated Other Comprehensive Loss | $ 2,625 | $ 6,308 | $ (4,071) |
Amount of Loss (Gain) Reclassified from Accumulated Other Comprehensive Loss to Costs of Goods Sold | (8,391) | (8,221) | 8,043 |
Cash flow hedges | Designated as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Deferred as a Component of Accumulated Other Comprehensive Loss | 2,625 | 6,308 | (4,071) |
Amount of Loss (Gain) Reclassified from Accumulated Other Comprehensive Loss to Costs of Goods Sold | $ (8,391) | $ (8,221) | $ 8,043 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill [Roll Forward] | ||
Beginning of the period | $ 448,175 | $ 429,604 |
Acquisitions | 7,976 | 20,721 |
Effects of foreign currency translation | (1,541) | (2,150) |
End of the period | $ 454,610 | $ 448,175 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 232,135 | $ 230,499 |
Accumulated Amortization | (168,962) | (146,720) |
Net Carrying Amount | 63,173 | 83,779 |
Effects of foreign currency translation, Gross Carrying Amount | (1,021) | (634) |
Effects of foreign currency translation, Accumulated Amortization | 292 | 86 |
Total, Net Carrying Amount | (729) | (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 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 36,790 | 36,790 |
Accumulated Amortization | (26,774) | (22,295) |
Net Carrying Amount | 10,016 | 14,495 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 121,730 | 119,407 |
Accumulated Amortization | (94,792) | (83,540) |
Net Carrying Amount | 26,938 | 35,867 |
Customer contracts/relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 71,110 | 71,110 |
Accumulated Amortization | (47,688) | (40,971) |
Net Carrying Amount | $ 23,422 | $ 30,139 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impairment of intangible assets | $ 0 | $ 7,000 | $ 0 |
Amortization of intangible assets | 24,407 | $ 30,179 | $ 31,818 |
2024 | 20,300 | ||
2025 | 18,200 | ||
2026 | 11,900 | ||
2027 | 4,900 | ||
2028 | 3,300 | ||
Thereafter | $ 1,000 |
Financing Arrangements (Details
Financing Arrangements (Details) - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Financing Arrangements | ||
Borrowing outstanding | $ 0 | $ 0 |
Line of Credit | ||
Financing Arrangements | ||
Maximum borrowing capacity | 181,300,000 | 195,000,000 |
Letters of credit outstanding | $ 13,600,000 | $ 25,500,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Product Warranties) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Changes in the warranty liability: | ||
Beginning of the period | $ 46,219 | $ 48,832 |
Provision | 31,089 | 29,812 |
Settlements | (35,919) | (32,082) |
Effects of foreign currency translation | (503) | (343) |
End of the period | $ 40,886 | $ 46,219 |
Commitments and Contingencies_3
Commitments and Contingencies (Narrative) (Details) | Mar. 31, 2023 USD ($) |
Indemnification Agreement | |
Commitment and Contingency [Line Items] | |
Loss contingency accrual | $ 0 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) SFr / shares in Units, $ / shares in Units, SFr in Millions | 1 Months Ended | 12 Months Ended | |||||||||||||||
May 31, 2023 SFr / shares | May 31, 2023 USD ($) $ / shares | Sep. 30, 2022 SFr / shares | Sep. 30, 2022 USD ($) $ / shares | Jul. 31, 2022 USD ($) shares | Sep. 30, 2021 SFr / shares | Sep. 30, 2021 USD ($) $ / shares | Apr. 30, 2021 USD ($) | Sep. 30, 2020 SFr / shares | Sep. 30, 2020 USD ($) $ / shares | Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) $ / shares | Mar. 31, 2021 USD ($) $ / shares | Mar. 31, 2023 CHF (SFr) SFr / shares shares | Mar. 31, 2022 SFr / shares shares | Dec. 31, 2020 shares | May 31, 2020 USD ($) shares | |
Shareholder's equity | |||||||||||||||||
Nominal share capital issued (CHF) | SFr | SFr 43.3 | ||||||||||||||||
Common stock outstanding (in shares) | 173,106,620 | 173,106,620 | |||||||||||||||
Conditionally authorized shares (in shares) | 17,310,662 | ||||||||||||||||
Shares, par value (in CHF per share) | SFr / shares | SFr 0.25 | SFr 0.25 | |||||||||||||||
Treasury shares (in shares) | 13,763,347 | 13,763,347 | |||||||||||||||
Shares that may be issued out of conditional capital (in shares) | 50,000,000 | 50,000,000 | 50,000,000 | ||||||||||||||
Dividends | |||||||||||||||||
Unappropriated retained earnings | $ 1,300,000,000 | SFr 1,200 | |||||||||||||||
Cash dividends paid per share (in dollars/CHF per share) | (per share) | SFr 0.96 | $ 0.98 | SFr 0.87 | $ 0.95 | SFr 0.79 | $ 0.87 | $ 1 | $ 0.95 | $ 0.87 | ||||||||
Payment of cash dividends | $ | $ 158,700,000 | $ 159,400,000 | $ 146,700,000 | $ 158,680,000 | $ 159,410,000 | $ 146,705,000 | |||||||||||
Legal Reserves | |||||||||||||||||
Minimum percentage of annual net income to be retained in legal reserves (as a percent) | 5% | ||||||||||||||||
Threshold of legal reserves as a percentage of issued and outstanding aggregate par value per share capital at which a minimum percentage of annual net income is no longer required to be retained (as a percent) | 20% | 20% | |||||||||||||||
Portion of appropriated retained earnings representing legal reserves | $ | $ 10,400,000 | ||||||||||||||||
Subsequent event | |||||||||||||||||
Dividends | |||||||||||||||||
Cash dividends declared per share (in dollars/CHF per share) | (per share) | SFr 1.06 | $ 1.16 | |||||||||||||||
Common stock dividends | $ | $ 184,200,000 | ||||||||||||||||
May 2020 | |||||||||||||||||
Share Repurchases | |||||||||||||||||
Share repurchase, authorized amount (up to) | $ | $ 1,500,000,000 | $ 1,000,000,000 | $ 1,500,000,000 | $ 250,000,000 | |||||||||||||
Shares approved (in shares) (up to) | 17,300,000 | 17,311,000 | 17,311,000 | 17,300,000 | |||||||||||||
Increase in authorized amount | $ | $ 500,000,000 | $ 750,000,000 | |||||||||||||||
Period for which repurchase program will remain in effect (in years) | 3 years | ||||||||||||||||
Amount of authorized shares available for repurchase | $ | $ 505,800,000 | ||||||||||||||||
Common Stock Capital Shares Reserved For Future Issuance Employee Equity Incentive Plans | |||||||||||||||||
Shareholder's equity | |||||||||||||||||
Shares that may be issued out of conditional capital (in shares) | 25,000,000 | 25,000,000 | |||||||||||||||
Common Stock Capital Shares Reserved For Future Issuance Conversion Rights Under Future Convertible Bond Issuance | |||||||||||||||||
Shareholder's equity | |||||||||||||||||
Shares that may be issued out of conditional capital (in shares) | 25,000,000 | 25,000,000 |
Shareholders' Equity (Share Buy
Shareholders' Equity (Share Buyback Programs) (Details) - USD ($) | 12 Months Ended | 35 Months Ended | |||||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2023 | Jul. 31, 2022 | Apr. 30, 2021 | May 31, 2020 | |
Class of Stock [Line Items] | |||||||
Shares repurchased | $ 418,346,000 | $ 412,022,000 | $ 164,952,000 | ||||
Shares authorized for repurchase maximum voting share (as a percent) | 10% | ||||||
May 2020 | |||||||
Class of Stock [Line Items] | |||||||
Shares approved (in shares) (up to) | 17,311,000 | 17,311,000 | 17,300,000 | 17,300,000 | |||
Shares approved | $ 1,500,000,000 | $ 1,500,000,000 | $ 1,500,000,000 | $ 1,000,000,000 | $ 250,000,000 | ||
Shares repurchased (in shares) | 14,014,000 | ||||||
Shares repurchased | $ 994,156,000 |
Shareholders' Equity (Accumulat
Shareholders' Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of the period | $ 2,398,738 | $ 2,261,789 | $ 1,489,268 |
Other comprehensive income (loss) | 3,846 | 4,792 | 11,745 |
End of the period balance | 2,257,560 | 2,398,738 | 2,261,789 |
Currency Translation Adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of the period | (102,461) | ||
Other comprehensive income (loss) | 1,592 | ||
End of the period balance | (100,869) | (102,461) | |
Defined Benefit Plans | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of the period | (3,495) | ||
Other comprehensive income (loss) | 8,020 | ||
End of the period balance | 4,525 | (3,495) | |
Deferred Hedging Gains (Losses) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of the period | 1,833 | ||
Other comprehensive income (loss) | (5,766) | ||
End of the period balance | (3,933) | 1,833 | |
Accumulated other comprehensive loss | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of the period | (104,123) | (108,915) | (120,660) |
End of the period balance | $ (100,277) | $ (104,123) | $ (108,915) |
Segment Information (Narratives
Segment Information (Narratives) (Details) | 12 Months Ended |
Mar. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment Information (Net Sales
Segment Information (Net Sales by Product Categories) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Net sales to unaffiliated customers and long-lived assets by geographic region | |||
Total Sales | $ 4,538,818 | $ 5,481,101 | $ 5,252,279 |
Pointing Devices | |||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||
Total Sales | 728,357 | 781,108 | 680,907 |
Keyboards & Combos | |||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||
Total Sales | 836,432 | 967,301 | 784,488 |
PC Webcams | |||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||
Total Sales | 227,692 | 403,651 | 439,865 |
Tablet & Other Accessories | |||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||
Total Sales | 254,374 | 310,123 | 384,301 |
Gaming | |||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||
Total Sales | 1,211,485 | 1,451,883 | 1,239,005 |
Video Collaboration | |||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||
Total Sales | 887,517 | 997,164 | 1,044,935 |
Mobile Speakers | |||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||
Total Sales | 111,649 | 149,782 | 174,895 |
Audio & Wearables | |||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||
Total Sales | 274,231 | 401,424 | 468,776 |
Other | |||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||
Total Sales | $ 7,081 | $ 18,665 | $ 35,107 |
Segment Information (Net Sale_2
Segment Information (Net Sales by Geographic Region) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Net sales to unaffiliated customers and long-lived assets by geographic region | |||
Net sales | $ 4,538,818 | $ 5,481,101 | $ 5,252,279 |
Americas | |||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||
Net sales | 1,930,908 | 2,317,941 | 2,206,552 |
EMEA | |||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||
Net sales | 1,299,657 | 1,724,027 | 1,735,682 |
Asia Pacific | |||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||
Net sales | $ 1,308,253 | $ 1,439,133 | $ 1,310,045 |
United States | Consolidated Net Sales | Geographic Concentration | |||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||
Concentration credit risk by major customer (as a percent) | 35% | 34% | 35% |
Germany | Consolidated Net Sales | Geographic Concentration | |||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||
Concentration credit risk by major customer (as a percent) | 14% | 15% | 16% |
China | Consolidated Net Sales | Geographic Concentration | |||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||
Concentration credit risk by major customer (as a percent) | 11% | 10% | |
Switzerland | Consolidated Net Sales | Geographic Concentration | |||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||
Concentration credit risk by major customer (as a percent) | 3% |
Segment Information (Geographic
Segment Information (Geographic Long-Lived Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Net sales to unaffiliated customers and long-lived assets by geographic region | ||
Total long-lived assets | $ 168,012 | $ 133,673 |
Americas | ||
Net sales to unaffiliated customers and long-lived assets by geographic region | ||
Total long-lived assets | 59,183 | 22,578 |
EMEA | ||
Net sales to unaffiliated customers and long-lived assets by geographic region | ||
Total long-lived assets | 38,890 | 23,830 |
Asia Pacific | ||
Net sales to unaffiliated customers and long-lived assets by geographic region | ||
Total long-lived assets | 69,939 | 87,265 |
United States | ||
Net sales to unaffiliated customers and long-lived assets by geographic region | ||
Total long-lived assets | 58,700 | 21,700 |
China | ||
Net sales to unaffiliated customers and long-lived assets by geographic region | ||
Total long-lived assets | 48,800 | 66,800 |
IRELAND | ||
Net sales to unaffiliated customers and long-lived assets by geographic region | ||
Total long-lived assets | 17,700 | |
Switzerland | ||
Net sales to unaffiliated customers and long-lived assets by geographic region | ||
Total long-lived assets | $ 13,700 | $ 13,600 |
Restructuring (Summary of Restr
Restructuring (Summary of Restructuring Related Activities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring reserve | |||
Charges, net | $ 34,573 | $ 2,165 | $ (54) |
Continuing operations | |||
Restructuring reserve | |||
Balance at the beginning of the period | 1,457 | 627 | |
Charges, net | 34,573 | 2,165 | |
Cash payments | (16,496) | (1,335) | |
Balance at the end of the period | 19,534 | 1,457 | 627 |
Continuing operations | Termination Benefits | |||
Restructuring reserve | |||
Balance at the beginning of the period | 561 | 627 | |
Charges, net | 27,631 | 879 | |
Cash payments | (14,015) | (945) | |
Balance at the end of the period | 14,177 | 561 | 627 |
Continuing operations | Contract Termination and Other | |||
Restructuring reserve | |||
Balance at the beginning of the period | 896 | 0 | |
Charges, net | 6,942 | 1,286 | |
Cash payments | (2,481) | (390) | |
Balance at the end of the period | $ 5,357 | $ 896 | $ 0 |
Restructuring (Narratives) (Det
Restructuring (Narratives) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring related charges: | |||
Restructuring charges (credits), net | $ 34,573 | $ 2,165 | $ (54) |
Operating Segments | |||
Restructuring related charges: | |||
Restructuring charges (credits), net | $ 34,600 | ||
Discontinued operations | |||
Restructuring related charges: | |||
Inventory write-offs in cost of goods sold | 7,600 | ||
Total restructuring charges | 7,000 | ||
Discontinued operations | Purchase Order Cancellation Fees | |||
Restructuring related charges: | |||
Restructuring charges (credits), net | $ 2,200 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 USD ($) Facility | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | |
Leases [Abstract] | |||
Operating lease costs | $ 21,200 | $ 17,300 | $ 15,000 |
Number of real estate facilities subject to leasehold improvement reimbursement | Facility | 2 | ||
Less: tenant improvement allowance | $ (11,554) |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 16,565 | $ 15,400 | $ 13,865 |
ROU assets obtained in the exchange for operating lease liabilities | $ 43,093 | $ 22,174 | $ 15,659 |
Leases (Maturity of Lease Liabi
Leases (Maturity of Lease Liabilities) (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 13,409 |
2025 | 13,657 |
2026 | 10,769 |
2027 | 10,155 |
2028 | 9,107 |
Thereafter | 40,889 |
Total lease payments | 97,986 |
Less: imputed interest | (15,416) |
Tenant improvement allowance | 11,554 |
Present value of lease liabilities | $ 71,016 |
Leases (Average Lease Terms and
Leases (Average Lease Terms and Discount Rates) (Details) | Mar. 31, 2023 | Mar. 31, 2022 |
Leases [Abstract] | ||
Weighted-average remaining lease terms (in years) | 8 years 1 month 6 days | 4 years 7 months 6 days |
Weighted-average discount rate | 3.70% | 2.80% |
Schedule II - VALUATION AND Q_2
Schedule II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Allowance for doubtful accounts: | |||
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning of Year | $ 2,212 | $ 1,161 | $ 1,894 |
Charged (Credited) to Statement of Operations | (2,019) | 1,691 | (533) |
Claims and Adjustments Applied Against Allowances | (107) | (640) | (200) |
Balance at End of Year | 86 | 2,212 | 1,161 |
Allowance for sales returns | |||
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning of Year | 12,321 | 14,438 | 6,599 |
Charged (Credited) to Statement of Operations | 157,619 | 162,381 | 122,803 |
Claims and Adjustments Applied Against Allowances | (159,794) | (164,498) | (114,964) |
Balance at End of Year | 10,146 | 12,321 | 14,438 |
Allowance for cooperative marketing arrangements | |||
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning of Year | 56,372 | 43,276 | 38,794 |
Charged (Credited) to Statement of Operations | 262,363 | 286,116 | 222,732 |
Claims and Adjustments Applied Against Allowances | (278,240) | (273,020) | (218,250) |
Balance at End of Year | 40,495 | 56,372 | 43,276 |
Allowance for customer incentive programs | |||
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning of Year | 97,460 | 76,200 | 55,741 |
Charged (Credited) to Statement of Operations | 329,666 | 348,072 | 256,755 |
Claims and Adjustments Applied Against Allowances | (355,481) | (326,812) | (236,296) |
Balance at End of Year | 71,645 | 97,460 | 76,200 |
Allowance for pricing programs | |||
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning of Year | 120,797 | 120,568 | 100,168 |
Charged (Credited) to Statement of Operations | 784,835 | 885,228 | 782,734 |
Claims and Adjustments Applied Against Allowances | (806,810) | (884,999) | (762,334) |
Balance at End of Year | 98,822 | 120,797 | 120,568 |
Tax valuation allowance: | |||
VALUATION AND QUALIFYING ACCOUNTS | |||
Balance at Beginning of Year | 29,858 | 28,926 | 29,171 |
Charged (Credited) to Statement of Operations | 908 | 887 | (245) |
Claims and Adjustments Applied Against Allowances | 0 | 45 | 0 |
Balance at End of Year | $ 30,766 | $ 29,858 | $ 28,926 |
Uncategorized Items - logi-2023
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2014-09 [Member] |