Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Sep. 30, 2013 | Oct. 28, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'LOGITECH INTERNATIONAL SA | ' |
Entity Central Index Key | '0001032975 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 160,592,874 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' | ' |
Net sales | $531,972 | $547,693 | $1,009,896 | $1,016,297 |
Cost of goods sold | 348,559 | 351,919 | 658,128 | 675,177 |
Gross profit | 183,413 | 195,774 | 351,768 | 341,120 |
Operating expenses: | ' | ' | ' | ' |
Marketing and selling | 93,710 | 110,522 | 194,345 | 211,419 |
Research and development | 37,633 | 38,114 | 73,824 | 77,137 |
General and administrative | 29,395 | 25,980 | 58,543 | 58,460 |
Restructuring charges (credits) | 5,465 | -2,671 | 7,799 | 28,556 |
Total operating expenses | 166,203 | 171,945 | 334,511 | 375,572 |
Operating income (loss) | 17,210 | 23,829 | 17,257 | -34,452 |
Interest income, net | 183 | 153 | 160 | 537 |
Other income (expense) | 62 | -509 | 279 | -668 |
Income (loss) before income taxes | 17,455 | 23,473 | 17,696 | -34,583 |
Provision for (benefit from) income taxes | 3,057 | -31,076 | 2,255 | -37,986 |
Net income | $14,398 | $54,549 | $15,441 | $3,403 |
Net income per share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.09 | $0.35 | $0.10 | $0.02 |
Diluted (in dollars per share) | $0.09 | $0.35 | $0.10 | $0.02 |
Shares used to compute net income per share: | ' | ' | ' | ' |
Basic (in shares) | 159,969 | 156,736 | 159,637 | 158,723 |
Diluted (in shares) | 161,183 | 157,932 | 160,875 | 159,853 |
Cash dividends per share (in dollars per share) | $0.22 | $0.85 | $0.22 | $0.85 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' | ' |
Net income | $14,398 | $54,549 | $15,441 | $3,403 |
Other comprehensive income: | ' | ' | ' | ' |
Foreign currency translation gain (loss) | 2,728 | 2,441 | 2,829 | -4,420 |
Change in net loss (gain), and prior service cost related to defined benefit pension plans: | ' | ' | ' | ' |
Net loss (gain) and prior service cost | -804 | 6,457 | -1,000 | 7,920 |
Less amortization included in operating expenses | 309 | 301 | 615 | 756 |
Net change in hedging gain (loss): | ' | ' | ' | ' |
Unrealized hedging loss | -1,373 | -5,466 | -2,286 | -4,261 |
Less reclassification adjustment for gain (loss) included in cost of goods sold | -94 | 1,683 | 184 | 1,577 |
Net change in unrealized investment loss: | ' | ' | ' | ' |
Reclassification adjustment for gain included in other income (expense) | ' | ' | ' | -343 |
Other comprehensive income | 766 | 5,416 | 342 | 1,229 |
Total comprehensive income | $15,164 | $59,965 | $15,783 | $4,632 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $294,796 | $333,824 |
Accounts receivable | 258,858 | 179,565 |
Inventories | 292,777 | 261,083 |
Other current assets | 65,808 | 58,103 |
Assets held for sale | ' | 10,960 |
Total current assets | 912,239 | 843,535 |
Non-current assets: | ' | ' |
Property, plant and equipment, net | 87,133 | 87,649 |
Goodwill | 344,759 | 341,357 |
Other intangible assets | 17,747 | 26,024 |
Other assets | 71,817 | 75,098 |
Total assets | 1,433,695 | 1,373,663 |
Current liabilities: | ' | ' |
Accounts payable | 303,089 | 265,995 |
Accrued and other current liabilities | 219,646 | 192,774 |
Liabilities held for sale | ' | 3,202 |
Total current liabilities | 522,735 | 461,971 |
Non-current liabilities | 202,556 | 195,882 |
Total liabilities | 725,291 | 657,853 |
Commitments and contingencies (Note 11) | ' | ' |
Shareholders' equity: | ' | ' |
Shares, par value CHF 0.25 - 173,106 issued and authorized and 50,000 conditionally authorized at September 30, 2013 and March 31, 2013 | 30,148 | 30,148 |
Less: shares in treasury, at cost, 12,556 at September 30, 2013 and 13,855 at March 31, 2013 | -155,807 | -177,847 |
Retained earnings | 926,714 | 956,502 |
Accumulated other comprehensive loss | -92,651 | -92,993 |
Total shareholders' equity | 708,404 | 715,810 |
Total liabilities and shareholders' equity | $1,433,695 | $1,373,663 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (CHF) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Shares, par value (in CHF per share) | 0.25 | 0.25 |
Shares, issued | 173,106 | 173,106 |
Shares, authorized | 173,106 | 173,106 |
Shares, conditionally authorized | 50,000 | 50,000 |
Treasury, at cost, shares | 12,556 | 13,855 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $15,441 | $3,403 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 19,283 | 22,307 |
Amortization of other intangible assets | 10,518 | 12,589 |
Investment impairment and loss | 530 | ' |
Share-based compensation expense | 8,499 | 13,437 |
Loss on disposal of property, plant and equipment | 2,456 | ' |
Gain on sales of available-for-sale securities | ' | -831 |
Excess tax benefits from share-based compensation | ' | -22 |
Deferred income taxes and other | -3,902 | -3,806 |
Changes in assets and liabilities, net of acquisitions: | ' | ' |
Accounts receivable | -77,042 | -58,533 |
Inventories | -21,350 | -31,825 |
Other assets | -5,893 | -7,570 |
Accounts payable | 39,555 | 71,095 |
Accrued and other liabilities | 26,091 | -10,997 |
Net cash provided by operating activities | 14,186 | 9,247 |
Cash flows from investing activities: | ' | ' |
Purchases of property, plant and equipment | -23,063 | -32,817 |
Investment in a privately-held company | ' | -3,970 |
Acquisitions, net of cash acquired | -650 | ' |
Proceeds from sales of available-for-sale securities | ' | 917 |
Purchases of trading investments for deferred compensation plan | -6,146 | -1,648 |
Proceeds from sales of trading investments for deferred compensation plan | 6,602 | 1,638 |
Net cash used in investing activities | -23,257 | -35,880 |
Cash flows from financing activities: | ' | ' |
Payment of cash dividends | -36,123 | -133,462 |
Purchases of treasury shares | ' | -87,812 |
Proceeds from sales of shares upon exercise of options and purchase rights | 6,135 | 9,008 |
Tax withholdings related to net share settlements of restricted stock units | -453 | -635 |
Excess tax benefits from share-based compensation | ' | 22 |
Net cash used in financing activities | -30,441 | -212,879 |
Effect of exchange rate changes on cash and cash equivalents | 484 | -1,825 |
Net decrease in cash and cash equivalents | -39,028 | -241,337 |
Cash and cash equivalents at beginning of period | 333,824 | 478,370 |
Cash and cash equivalents at end of period | 294,796 | 237,033 |
Non-cash investing activities: | ' | ' |
Property, plant and equipment purchased during the period and included in period end accounts payable | $1,935 | $1,702 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Registered Shares | Additional Paid-in Capital | Treasury Shares | Retained Earnings | Accumulated Other Comprehensive Loss |
In Thousands, unless otherwise specified | ||||||
Balance at Mar. 31, 2012 | $1,122,232 | $33,370 | ' | ($343,829) | $1,528,620 | ($95,929) |
Balance (in shares) at Mar. 31, 2012 | ' | 191,606 | ' | 27,173 | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' |
Total comprehensive income | 4,632 | ' | ' | ' | 3,403 | 1,229 |
Purchase of treasury shares | -87,812 | ' | ' | -87,812 | ' | ' |
Purchase of treasury shares (in shares) | ' | ' | ' | 8,600 | ' | ' |
Tax benefit from exercise of stock options | -3,011 | ' | -3,011 | ' | ' | ' |
Sale of shares upon exercise of options and purchase rights | 9,017 | ' | -1,756 | 41,058 | -30,285 | ' |
Sale of shares upon exercise of options and purchase rights (in shares) | ' | ' | ' | -1,347 | ' | ' |
Issuance of shares upon vesting of restricted stock units | -580 | ' | -8,526 | 7,946 | ' | ' |
Issuance of shares upon vesting of restricted stock units (in shares) | ' | ' | ' | -288 | ' | ' |
Share-based compensation expense | 13,293 | ' | 13,293 | ' | ' | ' |
Cash dividends | -133,462 | ' | ' | ' | -133,462 | ' |
Balance at Sep. 30, 2012 | 924,309 | 33,370 | ' | -382,637 | 1,368,276 | -94,700 |
Balance (in shares) at Sep. 30, 2012 | ' | 191,606 | ' | 34,138 | ' | ' |
Balance at Mar. 31, 2013 | 715,810 | 30,148 | ' | -177,847 | 956,502 | -92,993 |
Balance (in shares) at Mar. 31, 2013 | ' | 173,106 | ' | 13,855 | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' |
Total comprehensive income | 15,783 | ' | ' | ' | 15,441 | 342 |
Deferred tax asset adjustment related to share-based compensation expense | -1,304 | ' | -1,304 | ' | ' | ' |
Sale of shares upon exercise of options and purchase rights | 6,079 | ' | -3,021 | 18,206 | -9,106 | ' |
Sale of shares upon exercise of options and purchase rights (in shares) | ' | ' | ' | -1,074 | ' | ' |
Issuance of shares upon vesting of restricted stock units | -397 | ' | -4,231 | 3,834 | ' | ' |
Issuance of shares upon vesting of restricted stock units (in shares) | ' | ' | ' | -225 | ' | ' |
Share-based compensation expense | 8,556 | ' | 8,556 | ' | ' | ' |
Cash dividends | -36,123 | ' | ' | ' | -36,123 | ' |
Balance at Sep. 30, 2013 | $708,404 | $30,148 | ' | ($155,807) | $926,714 | ($92,651) |
Balance (in shares) at Sep. 30, 2013 | ' | 173,106 | ' | 12,556 | ' | ' |
The_Company
The Company | 6 Months Ended |
Sep. 30, 2013 | |
The Company | ' |
The Company | ' |
Note 1 — The Company | |
Logitech International S.A, together with its consolidated subsidiaries, (“Logitech” or the “Company”) develops and markets innovative hardware and software products that enable or enhance digital navigation, music and video entertainment, gaming, social networking, and audio and video communication over the Internet. | |
Logitech has two operating segments, peripherals and video conferencing. Logitech’s peripherals segment encompasses the design, manufacturing and marketing of peripherals for PCs (personal computers), tablets and other digital platforms. Logitech’s video conferencing segment offers scalable HD (high-definition) video communications endpoints, HD video conferencing systems with integrated monitors, video bridges and other infrastructure software and hardware to support large-scale video deployments, and services to support these products. | |
Logitech sells its peripheral products to a network of distributors, retailers and OEMs (original equipment manufacturers). Logitech sells its video conferencing products and services to distributors, value-added resellers, OEMs, and, occasionally, direct enterprise customers. The large majority of its sales have historically been derived from peripheral products for use by consumers. | |
Logitech was founded in Switzerland in 1981, and Logitech International S.A. has been the parent holding company of Logitech since 1988. Logitech International S.A. is a Swiss holding company with its registered office in Apples, Switzerland, which conducts its business through subsidiaries in the Americas, EMEA (Europe, Middle East, Africa) and Asia Pacific. Shares of Logitech International S.A. are listed on both the Nasdaq Global Select Market, under the trading symbol LOGI, and the SIX Swiss Exchange, under the trading symbol LOGN. |
Revision_of_PreviouslyIssued_F
Revision of Previously-Issued Financial Statements | 6 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Revision of Previously-Issued Financial Statements | ' | |||||||||||||||||||
Revision of Previously-Issued Financial Statements | ' | |||||||||||||||||||
Note 2 — Revision of Previously-Issued Financial Statements | ||||||||||||||||||||
In the first quarter of fiscal year 2014, the Company identified errors related to the accounting for its product warranty liability and amortization expense of certain intangible assets. The errors impacted prior reporting periods, starting prior to fiscal year 2009. While these errors were not material to any previously issued annual or quarterly consolidated financial statements, management concluded that correcting the cumulative errors and related tax effects, which amounted to $19.1 million, in the first quarter of fiscal year 2014 would be material to the consolidated financial statements for the three months ended June 30, 2013 and to the expected results of operations for the fiscal year ending March 31, 2014. | ||||||||||||||||||||
The Company evaluated the cumulative impact of the errors on prior periods under the guidance in ASC 250-10 relating to SEC Staff Accounting Bulletin (“SAB”) No. 99, Materiality. The Company also evaluated the impact of correcting the errors through an adjustment to its financial statements and concluded, based on the guidance within ASC 250-10 relating to SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, to revise its previously issued financial statements to reflect the impact of the correction of these errors when it files subsequent reports on Form 10-Q and Form 10-K. Accordingly, the Company has revised its consolidated financial statements for the quarter ended June 30, 2012, to correct these errors. In addition, as a result of the decision to revise its previously issued consolidated financial statements to correct for the errors described above, the Company also corrected other immaterial errors that were previously uncorrected. On August 7, 2013, the Company filed a Form 10-K/A to revise its financial statements for the years ended March 31, 2011, 2012 and 2013 to correct for the same errors. As a result, the Company has also revised its financial statements for the three and six months ended September 30, 2012 from what it previously reported. | ||||||||||||||||||||
The revised financial statements correct the following errors, which are included in the tables below, with associated footnotes: | ||||||||||||||||||||
(1) - Warranty accrual — The Company determined that its prior warranty model did not accurately estimate warranty costs and liabilities at each reporting period. The inherent flaws in the prior model involved use of generic assumptions, incomplete warranty cost data and inter-regional methodological differences. This error impacted prior reporting periods, starting prior to fiscal year 2009, and impacted deferred tax asset classification between current and non-current assets. | ||||||||||||||||||||
(2) - Amortization of intangibles — The Company determined that $4.2 million in intangible assets originating from a November 2009 acquisition were never amortized. The impact of this adjustment was $2.0 million in amortization expense not properly recorded during the periods from the quarter ended December 31, 2009 through the end of fiscal year 2013. | ||||||||||||||||||||
(3) - Other adjustments — The Company also corrected a number of other immaterial errors, including the cumulative translation adjustment related to the purchase of treasury shares, and an adjustment affecting the amount of property, plant and equipment purchased during the first quarter of fiscal year 2013. | ||||||||||||||||||||
Consolidated Statements of Operations. | ||||||||||||||||||||
The following table presents the impact of the accounting errors on the Company’s previously-reported consolidated statement of operations for the three and six months ended September 30, 2012 (in thousands): | ||||||||||||||||||||
Three Months ended September 30, 2012 | Six Months ended September 30, 2012 | |||||||||||||||||||
As Reported | Adjustments | As Revised | As Reported | Adjustments | As Revised | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||
Net sales | $ | 547,693 | 150 | -1 | $ | 547,693 | $ | 1,016,297 | (1,015 | )(1) | $ | 1,016,297 | ||||||||
Cost of goods sold | 351,698 | 71 | -2 | 351,919 | 676,050 | 142 | -2 | 675,177 | ||||||||||||
Gross profit | 195,995 | (221 | ) | 195,774 | 340,247 | 873 | 341,120 | |||||||||||||
Operating expenses: | ||||||||||||||||||||
Marketing and selling | 110,522 | — | 110,522 | 211,419 | — | 211,419 | ||||||||||||||
Research and development | 38,019 | 95 | -2 | 38,114 | 76,947 | 190 | -2 | 77,137 | ||||||||||||
General and administrative | 25,980 | — | 25,980 | 58,460 | — | 58,460 | ||||||||||||||
Restructuring charges (credits) | (2,671 | ) | — | (2,671 | ) | 28,556 | — | 28,556 | ||||||||||||
Total operating expenses | 171,850 | 95 | 171,945 | 375,382 | 190 | 375,572 | ||||||||||||||
Operating income (loss) | 24,145 | (316 | ) | 23,829 | (35,135 | ) | 683 | (34,452 | ) | |||||||||||
Interest income, net | 153 | — | 153 | 537 | — | 537 | ||||||||||||||
Other expense, net | (509 | ) | — | (509 | ) | (668 | ) | — | (668 | ) | ||||||||||
Income (loss) before income taxes | 23,789 | (316 | ) | 23,473 | (35,266 | ) | 683 | (34,583 | ) | |||||||||||
Benefit from income taxes | (31,076 | ) | — | (31,076 | ) | (37,986 | ) | — | (37,986 | ) | ||||||||||
Net Income | $ | 54,865 | $ | (316 | ) | $ | 54,549 | $ | 2,720 | $ | 683 | $ | 3,403 | |||||||
Net income per share: | $ | 0.35 | $ | 0.35 | $ | 0.02 | $ | 0.02 | ||||||||||||
Basic | $ | 0.35 | $ | 0.35 | $ | 0.02 | $ | 0.02 | ||||||||||||
Diluted | ||||||||||||||||||||
Shares used to compute net income per share: | ||||||||||||||||||||
Basic | 156,736 | 156,736 | 158,723 | 158,723 | ||||||||||||||||
Diluted | 157,932 | 157,932 | 159,853 | 159,853 | ||||||||||||||||
Consolidated Statements of Comprehensive Income | ||||||||||||||||||||
The Company’s following table presents the impact of the accounting errors on the Company’s previously-reported consolidated statements of comprehensive income for the three and six months ended September 30, 2012 (in thousands): | ||||||||||||||||||||
Three Months ended September 30, 2012 | Six Months ended September 30, 2012 | |||||||||||||||||||
As Reported | Adjustments | As Revised | As Reported | Adjustments | As Revised | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||
Net Income | $ | 54,865 | $ | (150 | )(1) | $ | 54,549 | $ | 2,720 | $ | 1,015 | -1 | $ | 3,403 | ||||||
$ | (166 | )(2) | $ | (332 | )(2) | |||||||||||||||
Other comprehensive income: | ||||||||||||||||||||
Foreign currency translation gain (loss) | 4,970 | (2,529 | )(3) | 2,441 | (1,295 | ) | (3,125 | )(3) | (4,420 | ) | ||||||||||
Change in net loss, and prior service cost related to defined benefit pension plans: | ||||||||||||||||||||
Net loss and prior service cost | 6,457 | — | 6,457 | 7,920 | 7,920 | |||||||||||||||
Less amortization included in operating expenses | 301 | — | 301 | 756 | — | 756 | ||||||||||||||
Net change in hedging gain (loss): | ||||||||||||||||||||
Unrealized hedging loss | (5,466 | ) | — | (5,466 | ) | (4,261 | ) | — | (4,261 | ) | ||||||||||
Less reclassification adjustment for gain included in cost of goods sold | 1,683 | — | 1,683 | 1,577 | — | 1,577 | ||||||||||||||
Net change in unrealized investment loss: | ||||||||||||||||||||
Reclassification adjustment for gain included in other income (expense) | — | — | — | (343 | ) | — | (343 | ) | ||||||||||||
Other comprehensive income | 7,945 | (2,529 | ) | 5,416 | 4,354 | (3,125 | ) | 1,229 | ||||||||||||
Total comprehensive income | $ | 62,810 | $ | (2,845 | ) | $ | 59,965 | $ | 7,074 | $ | (2,442 | ) | $ | 4,632 | ||||||
Consolidated Statements of Cash Flows | ||||||||||||||||||||
The following table presents the impact of the accounting errors on the Company’s previously-reported consolidated statement of cash flows for the six months ended September 30, 2012 (in thousands): | ||||||||||||||||||||
Six Months ended | ||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||
As Reported | Adjustments | As Revised | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | $ | 2,720 | $ | 1,015 | -1 | $ | 3,403 | |||||||||||||
(332 | )(2) | |||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation | 22,307 | — | 22,307 | |||||||||||||||||
Amortization of other intangible assets | 12,257 | 332 | -2 | 12,589 | ||||||||||||||||
Share-based compensation expense | 13,437 | — | 13,437 | |||||||||||||||||
Gain on sale of available-for-sale securities | (831 | ) | — | (831 | ) | |||||||||||||||
Excess tax benefits from share-based compensation | (22 | ) | — | (22 | ) | |||||||||||||||
Deferred income taxes and other | (3,806 | ) | — | (3,806 | ) | |||||||||||||||
Changes in assets and liabilities, net of acquisition: | — | |||||||||||||||||||
Accounts receivable | (58,272 | ) | (261 | )(3) | (58,533 | ) | ||||||||||||||
Inventories | (30,733 | ) | (1,092 | )(3) | (31,825 | ) | ||||||||||||||
Other assets | (7,339 | ) | (231 | )(3) | (7,570 | ) | ||||||||||||||
Accounts payable | 68,875 | 2,220 | -3 | 71,095 | ||||||||||||||||
Accrued and other liabilities | (9,498 | ) | (1,015 | )(1) | (10,997 | ) | ||||||||||||||
(484 | )(3) | |||||||||||||||||||
Net cash provided by operating activities | 9,095 | 152 | 9,247 | |||||||||||||||||
Cash flows from investing activities: | — | |||||||||||||||||||
Purchases of property, plant and equipment | (30,522 | ) | (2,295 | )(3) | (32,817 | ) | ||||||||||||||
Investment in privately-held company | (3,970 | ) | — | (3,970 | ) | |||||||||||||||
Proceeds from sale of available-for-sale securities | 917 | — | 917 | |||||||||||||||||
Purchases of trading investments for deferred compensation plan | (1,648 | ) | — | (1,648 | ) | |||||||||||||||
Proceeds from sales of trading investments for deferred compensation plan | 1,638 | — | 1,638 | |||||||||||||||||
Net cash used in investing activities | (33,585 | ) | (2,295 | ) | (35,880 | ) | ||||||||||||||
Cash flows from financing activities: | — | |||||||||||||||||||
Payment of cash dividends | (133,462 | ) | — | (133,462 | ) | |||||||||||||||
Purchases of treasury shares | (89,955 | ) | 2,143 | -3 | (87,812 | ) | ||||||||||||||
Proceeds from sale of shares upon exercise of options and purchase rights | 9,008 | — | 9,008 | |||||||||||||||||
Tax withholdings related to net share settlements of restricted stock units | (635 | ) | — | (635 | ) | |||||||||||||||
Excess tax benefits from share-based compensation | 22 | — | 22 | |||||||||||||||||
Net cash used in financing activities | (215,022 | ) | 2,143 | (212,879 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (1,825 | ) | — | (1,825 | ) | |||||||||||||||
Net decrease in cash and cash equivalents | (241,337 | ) | — | (241,337 | ) | |||||||||||||||
Cash and cash equivalents at beginning of period | 478,370 | — | 478,370 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | 237,033 | $ | — | $ | 237,033 | ||||||||||||||
Other Revisions | ||||||||||||||||||||
During fiscal year 2013, the Company also determined that geographic net sales (Note 13), previously reported in its Form 10-Q for the three and six months ended September 30, 2012, were not property stated. These revisions had no impact on the previously reported consolidated statements of operations. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended |
Sep. 30, 2013 | |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | ' |
Note 3 — Summary of Significant Accounting Policies | |
Basis of Presentation | |
The consolidated interim 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 U.S. GAAP (accounting principles generally accepted in the United States of America) for interim financial information and therefore do not include all the information required by U.S. GAAP for complete financial statements. They should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year ended March 31, 2013, included in its Annual Report on Form 10-K/A. In the opinion of management, these consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the periods presented. Operating results for the three and six months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending March 31, 2014, or any future periods. | |
Certain prior period financial statement amounts have been reclassified to conform to the current period presentation with no impact on previously reported net income. | |
Fiscal Years | |
The Company’s fiscal years end on March 31. Interim quarters are thirteen-week periods, each ending on a Friday. For purposes of presentation, the Company has indicated its quarterly periods as ending on the month end. | |
Changes in Significant Accounting Policies | |
There have been no substantial changes in the Company’s significant accounting policies during the three and six months ended September 30, 2013, compared with the significant accounting policies described in its Annual Report on Form 10-K/A for the fiscal year ended March 31, 2013. | |
Use of Estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect reported amounts of assets, liabilities, net sales and expenses, and the disclosure of contingent assets and liabilities. Examples of significant estimates and assumptions made by management involve the fair value of goodwill, accruals for customer programs, inventory valuation, valuation allowances for deferred tax assets and warranty accruals. Although these estimates are based on management’s best knowledge of current events and actions that may impact the Company in the future, actual results could differ from those estimates. | |
Recent Accounting Pronouncements | |
In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. The ASU provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. ASU No. 2013-11 is effective for interim and annual periods beginning after December 15, 2013. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. |
Net_Income_per_Share
Net Income per Share | 6 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Net Income per Share | ' | |||||||||||||
Net Income per Share | ' | |||||||||||||
Note 4 — Net Income per Share | ||||||||||||||
The computations of basic and diluted net income per share for the Company were as follows (in thousands, except per share amounts): | ||||||||||||||
Three Months ended September 30, | Six Months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
As Revised | As Revised | |||||||||||||
Net income | $ | 14,398 | $ | 54,549 | $ | 15,441 | $ | 3,403 | ||||||
Weighted average shares - basic | 159,969 | 156,736 | 159,637 | 158,723 | ||||||||||
Effect of potentially dilutive share equivalents | 1,214 | 1,196 | 1,238 | 1,130 | ||||||||||
Weighted average shares - diluted | 161,183 | 157,932 | 160,875 | 159,853 | ||||||||||
Net income per share - basic | $ | 0.09 | $ | 0.35 | $ | 0.1 | $ | 0.02 | ||||||
Net income per share - diluted | $ | 0.09 | $ | 0.35 | $ | 0.1 | $ | 0.02 | ||||||
Share equivalents attributable to outstanding stock options and RSUs (restricted stock units) of 15,408,542 and 14,929,137 for the three months ended September 30, 2013 and 2012, and 16,829,424 and 15,127,253 for the six months ended September 30, 2013 and 2012 were excluded from the calculation of diluted net income per share because the combined exercise price, average unamortized fair value and assumed tax benefits upon exercise of these options and RSUs were greater than the average market price of the Company’s shares, and therefore their inclusion would have been anti-dilutive. |
Employee_Benefit_Plans
Employee Benefit Plans | 6 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Employee Benefit Plans | ' | |||||||||||||
Employee Benefit Plans | ' | |||||||||||||
Note 5 — Employee Benefit Plans | ||||||||||||||
Employee Share Purchase Plans and Stock Incentive Plans | ||||||||||||||
As of September 30, 2013, the Company offers the 2006 ESPP (2006 Employee Share Purchase Plan (Non-U.S.)), the 1996 ESPP (1996 Employee Share Purchase Plan (U.S.)), the 2006 Plan (2006 Stock Incentive Plan) and the 2012 Plan (2012 Stock Inducement Equity Plan). On September 4, 2013, at the fiscal year 2013 Annual General Meeting of Shareholders, Logitech shareholders approved amendments to and restatement of the1996 ESPP and the 2006 ESPP, which included the increase of 8.0 million additional shares to be issued under these plans. Shares issued to employees as a result of purchases or exercises under these plans are generally issued from shares held in treasury. | ||||||||||||||
The following table summarizes the share-based compensation expense and related tax benefit recognized for the three and six months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||
Three Months ended | Six Months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Cost of goods sold | $ | 594 | $ | 608 | $ | 1,171 | $ | 1,397 | ||||||
Share-based compensation expense included in gross profit | 594 | 608 | 1,171 | 1,397 | ||||||||||
Operating expenses: | ||||||||||||||
Marketing and selling | 1,017 | 2,644 | 2,923 | 4,424 | ||||||||||
Research and development | 840 | 1,763 | 1,934 | 3,588 | ||||||||||
General and administrative | 1,658 | 2,251 | 2,471 | 4,028 | ||||||||||
Share-based compensation expense included in operating expenses | 3,515 | 6,658 | 7,328 | 12,040 | ||||||||||
Total share-based compensation expense | 4,109 | 7,266 | 8,499 | 13,437 | ||||||||||
Income tax benefit | (1,300 | ) | (1,671 | ) | (2,175 | ) | (3,047 | ) | ||||||
Share-based compensation expense, net of income tax | $ | 2,809 | $ | 5,595 | $ | 6,324 | $ | 10,390 | ||||||
As of September 30 and March 31, 2013, $0.4 million and $0.4 million of share-based compensation cost was capitalized to inventory. | ||||||||||||||
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 the three months ended September 30, 2013 and 2012 were $1.6 million and $1.8 million, and for the six months ended September 30, 2013 and 2012 were $3.3 million and $4.6 million. | ||||||||||||||
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. | ||||||||||||||
During the quarter ended September 30, 2012, the Company’s Swiss defined benefit pension plan was subject to re-measurement due to the number of plan participants affected by the April 2012 restructuring described in Note 14. The re-measurement resulted in the realization of $2.2 million in previously unrecognized losses residing within accumulated other comprehensive loss that the Company recognized during the three months ended September 30, 2012. | ||||||||||||||
The net periodic benefit cost for defined benefit pension plans and non-retirement post-employment benefit obligations for the three and six months ended September 30, 2013 and 2012 were as follows (in thousands): | ||||||||||||||
Three Months ended September 30, | Six Months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Service cost | $ | 1,972 | $ | 1,726 | $ | 3,929 | $ | 3,601 | ||||||
Interest cost | 430 | 418 | 857 | 912 | ||||||||||
Expected return on plan assets | (490 | ) | (525 | ) | (990 | ) | (618 | ) | ||||||
Amortization of net transition obligation | 1 | 1 | 2 | 2 | ||||||||||
Amortization of net prior service cost | 52 | 38 | 104 | 76 | ||||||||||
Recognized net actuarial loss | 256 | 262 | 508 | 678 | ||||||||||
Settlement cost | — | 2,254 | — | 2,254 | ||||||||||
Net periodic benefit cost | $ | 2,221 | $ | 4,174 | $ | 4,410 | $ | 6,905 |
Income_Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2013 | |
Income Taxes | ' |
Income Taxes | ' |
Note 6 — 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 income taxes are generated outside of Switzerland. | |
The income tax provision for the three months ended September 30, 2013 was $3.1 million based on an effective income tax rate of 17.5% of pre-tax income. The income tax benefit for the three months ended September 30, 2012 was $31.1 million based on an effective income tax rate of (132.4%) of pre-tax income. For the six months ended September 30, 2013, the income tax provision was $2.3 million based on an effective income tax rate of 12.7% of pre-tax income. For the six months ended September 30, 2012, the income tax benefit was $38.0 million based on an effective income rate of 109.8% of pre-tax loss. The change in the effective income tax rate for the three and six months ended September 30, 2013, compared with the same periods in fiscal year 2013, is primarily due to the mix of income and losses in the various tax jurisdictions in which the Company operates, and the treatment of restructuring expenses as a discrete event in determining the annual effective tax rate in fiscal year 2013. In addition, there was a discrete tax benefit of $32.1 million in the three months ended September 30, 2012 from the reversal of uncertain tax positions resulting from the closure of federal income tax examinations in the United States. | |
In fiscal year 2013, the Company incurred $43.7 million of restructuring charges and related expenses to simplify the organization and to align the organization to its strategic priorities, $28.6 million of such charges were incurred through the second quarter of fiscal year 2013 with the remaining balance primarily incurred in the fourth quarter of the fiscal year 2013. In the three and six months ended September 30, 2013, the Company incurred restructuring-related termination benefits and lease exit costs in the amount of $5.5 million and $7.8 million, respectively. In determining the estimated fiscal 2014 annual effective tax rate, the restructuring activities were not treated as a discrete event as the charges were not significantly unusual and infrequent in nature, unlike those that were incurred in fiscal year 2013. The tax benefit associated with the restructuring in the six months ended September 30, 2013 was not material. | |
As of September 30 and March 31, 2013, the total amount of unrecognized tax benefits and related accrued interest and penalties due to uncertain tax positions was $103.5 million and $102.0 million, of which $90.8 million and $90.3 million would affect the effective income tax rate if recognized. The Company classified the unrecognized tax benefits as non-current income taxes payable. | |
The Company continues to recognize interest and penalties related to unrecognized tax positions in income tax expense. As of September 30 and March 31, 2013, the Company had approximately $6.9 million and $6.6 million of accrued interest and penalties related to uncertain tax positions. | |
The Company files Swiss and foreign tax returns. For all these tax returns, the Company is generally not subject to tax examinations for years prior to fiscal year 2001. The Company is under examination and has received assessment notices in foreign tax jurisdictions. At this time, the Company is not able to estimate the potential impact that these examinations may have on income tax expense. If the examinations are resolved unfavorably, there is a possibility they may have a material negative impact on the Company’s results of operations. | |
Although the Company has adequately provided for uncertain tax positions, the provisions on these positions may change as revised estimates are made or the underlying matters are settled or otherwise resolved. It is not possible at this time to reasonably estimate changes in the unrecognized tax benefits within the next twelve months. |
Balance_Sheet_Components
Balance Sheet Components | 6 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Balance Sheet Components | ' | |||||||||||||
Balance Sheet Components | ' | |||||||||||||
Note 7 — Balance Sheet Components | ||||||||||||||
The following table presents the components of certain balance sheet asset amounts as of September 30 and March 31, 2013 (in thousands): | ||||||||||||||
September 30, 2013 | March 31, 2013 | |||||||||||||
Accounts receivable: | ||||||||||||||
Accounts receivable | $ | 413,696 | $ | 325,870 | ||||||||||
Allowance for doubtful accounts | (1,071 | ) | (2,153 | ) | ||||||||||
Allowance for returns | (19,230 | ) | (21,883 | ) | ||||||||||
Allowances for cooperative marketing arrangements | (26,010 | ) | (24,160 | ) | ||||||||||
Allowances for customer incentive programs | (44,788 | ) | (42,857 | ) | ||||||||||
Allowances for pricing programs | (63,739 | ) | (55,252 | ) | ||||||||||
$ | 258,858 | $ | 179,565 | |||||||||||
Inventories: | ||||||||||||||
Raw materials | $ | 34,020 | $ | 37,504 | ||||||||||
Work-in-process | 75 | 41 | ||||||||||||
Finished goods | 258,682 | 223,538 | ||||||||||||
$ | 292,777 | $ | 261,083 | |||||||||||
Other current assets: | ||||||||||||||
Income tax and value-added tax refund receivables | $ | 25,113 | $ | 17,403 | ||||||||||
Deferred taxes | 29,109 | 25,400 | ||||||||||||
Prepaid expenses and other | 11,586 | 15,300 | ||||||||||||
$ | 65,808 | $ | 58,103 | |||||||||||
Property, plant and equipment: | ||||||||||||||
Plant, buildings and improvements | $ | 68,642 | $ | 70,009 | ||||||||||
Equipment | 131,913 | 129,868 | ||||||||||||
Computer equipment | 32,551 | 42,437 | ||||||||||||
Computer software | 80,136 | 80,930 | ||||||||||||
313,242 | 323,244 | |||||||||||||
Less: accumulated depreciation | (236,845 | ) | (247,469 | ) | ||||||||||
76,397 | 75,775 | |||||||||||||
Construction-in-progress | 7,890 | 9,047 | ||||||||||||
Land | 2,846 | 2,827 | ||||||||||||
$ | 87,133 | $ | 87,649 | |||||||||||
Other assets: | ||||||||||||||
Deferred taxes | $ | 51,121 | $ | 53,035 | ||||||||||
Trading investments | 15,435 | 15,599 | ||||||||||||
Other | 5,261 | 6,464 | ||||||||||||
$ | 71,817 | $ | 75,098 | |||||||||||
The following table presents the components of certain balance sheet liability amounts as of September 30 and March 31, 2013 (in thousands): | ||||||||||||||
September 30, 2013 | March 31, 2013 | |||||||||||||
Accrued and other current liabilities: | ||||||||||||||
Accrued personnel expenses | $ | 56,906 | $ | 40,502 | ||||||||||
Accrued marketing expenses | 13,039 | 11,005 | ||||||||||||
Indirect customer incentive programs | 32,539 | 29,464 | ||||||||||||
Accrued restructuring | 5,566 | 13,458 | ||||||||||||
Deferred revenue | 21,562 | 22,698 | ||||||||||||
Accrued freight and duty | 8,596 | 5,882 | ||||||||||||
Value-added tax payable | 8,477 | 8,544 | ||||||||||||
Accrued royalties | 4,012 | 3,358 | ||||||||||||
Warranty accrual | 12,634 | 11,878 | ||||||||||||
Employee benefit plan obligations | 1,571 | 4,351 | ||||||||||||
Income taxes payable | 5,392 | 2,463 | ||||||||||||
Other accrued liabilities | 49,352 | 39,171 | ||||||||||||
$ | 219,646 | $ | 192,774 | |||||||||||
Non-current liabilities: | ||||||||||||||
Income taxes payable | $ | 100,310 | $ | 98,827 | ||||||||||
Warranty accrual | 9,451 | 8,660 | ||||||||||||
Obligation for deferred compensation | 15,435 | 15,631 | ||||||||||||
Employee benefit plan obligations | 40,728 | 35,963 | ||||||||||||
Deferred rent | 23,690 | 24,136 | ||||||||||||
Deferred taxes | 1,872 | 1,989 | ||||||||||||
Other liabilities | 11,070 | 10,676 | ||||||||||||
$ | 202,556 | $ | 195,882 | |||||||||||
The following table presents the changes in the allowance for doubtful accounts during the three and six months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||
Three Months ended September 30, | Six Months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Beginning balance | $ | (2,189 | ) | $ | (2,321 | ) | $ | (2,153 | ) | $ | (2,472 | ) | ||
Bad debt expense reversal, net | 428 | 103 | 359 | 189 | ||||||||||
Write-offs, net of recoveries | 690 | (21 | ) | 723 | 44 | |||||||||
Ending balance | $ | (1,071 | ) | $ | (2,239 | ) | $ | (1,071 | ) | $ | (2,239 | ) |
Financial_Instruments
Financial Instruments | 6 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Financial Instruments | ' | |||||||||||||||||||||||
Financial Instruments | ' | |||||||||||||||||||||||
Note 8 — Financial Instruments | ||||||||||||||||||||||||
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 Company did not have level 3 assets and liabilities as of September 30 and March 31, 2013. The following table presents the Company’s financial assets and liabilities, that were accounted for at fair value, excluding assets related to the Company’s defined benefit pension plans, classified by the level within the fair value hierarchy (in thousands): | ||||||||||||||||||||||||
September 30, 2013 | March 31, 2013 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 1 | Level 2 | |||||||||||||||||||||
Cash equivalents (1) | $ | 99,510 | $ | — | $ | 119,073 | $ | — | ||||||||||||||||
Trading investments for deferred compensation plan: | ||||||||||||||||||||||||
Money market funds | 3,311 | — | 4,220 | — | ||||||||||||||||||||
Mutual funds | 12,124 | — | 11,379 | — | ||||||||||||||||||||
Foreign exchange derivative assets | — | 126 | — | 1,197 | ||||||||||||||||||||
Total assets at fair value | $ | 114,945 | $ | 126 | $ | 134,672 | $ | 1,197 | ||||||||||||||||
Foreign exchange derivative liabilities | $ | — | $ | 1,546 | $ | — | $ | 707 | ||||||||||||||||
Total liabilities at fair value | $ | — | $ | 1,546 | $ | — | $ | 707 | ||||||||||||||||
(1) Excludes cash balances of $195.3 million as of September 30, 2013 and $214.7 million as of March 31, 2013. | ||||||||||||||||||||||||
The following table presents the changes in the Company’s Level 3 available-for-sale securities during the six months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Beginning balance | $ | — | $ | 429 | ||||||||||||||||||||
Proceeds from sales of securities | — | (917 | ) | |||||||||||||||||||||
Reversal of unrealized gains previously recognized in accumulated other comprehensive loss | — | 831 | ||||||||||||||||||||||
Reversal of unrealized losses previously recognized in accumulated other comprehensive loss | — | (343 | ) | |||||||||||||||||||||
Ending balance | $ | — | $ | — | ||||||||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||||||||||
Cash equivalents consist of bank demand deposits and time deposits. The time deposits have original maturities of three months or less. Cash equivalents are carried at cost, which approximates fair value. | ||||||||||||||||||||||||
Investment Securities | ||||||||||||||||||||||||
The Company’s investment securities portfolio consists of marketable securities (money market and mutual funds) related to a deferred compensation plan at September 30, 2013 and March 31, 2013. | ||||||||||||||||||||||||
The marketable securities related to the deferred compensation plan are classified as non-current other assets. Since 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, the Company has designated these marketable securities as trading investments, although there is no intent to actively buy and sell securities within the objective of generating profits on short-term difference in market prices. Management has classified the investments as non-current assets because final sale of the investments or realization of proceeds by plan participants is not expected within the Company’s normal operating cycle of one year. The marketable securities are recorded at a fair value of $15.4 million and $15.6 million as of September 30 and March 31, 2013, based on quoted market prices. Quoted market prices are observable inputs that are classified as Level 1 within the fair value hierarchy. Earnings, and realized and unrealized gains and losses on trading investments are included in other income (expense). Unrealized trading gains of $0.4 million and unrealized trading losses of $0.2 million are included in other income (expense) for the three and six months ended September 30, 2013, respectively and relate to the trading securities held at September 30, 2013. Unrealized trading gains of $0.5 million and $0.2 million are included in other income (expense) for the three and six months ended September 30, 2012 and relate to trading securities held at September 30, 2012. | ||||||||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||||||||
The following table presents the fair values of the Company’s derivative instruments and their locations on its Consolidated Balance Sheets as of September 30 and March 31, 2013 (in thousands): | ||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||
September 30, | March 31, | September 30, | March 31, | |||||||||||||||||||||
Location | 2013 | 2013 | Location | 2013 | 2013 | |||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||
Cash flow hedges | Other assets | $ | 8 | $ | 1,165 | Other liabilities | $ | 754 | $ | — | ||||||||||||||
8 | 1,165 | 754 | — | |||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||
Foreign exchange forward contracts | Other assets | 118 | — | Other liabilities | 240 | 270 | ||||||||||||||||||
Foreign exchange swap contracts | Other assets | — | 32 | Other liabilities | 552 | 437 | ||||||||||||||||||
118 | 32 | 792 | 707 | |||||||||||||||||||||
$ | 126 | $ | 1,197 | $ | 1,546 | $ | 707 | |||||||||||||||||
The following table presents the amounts of gains and losses on the Company’s derivative instruments for the three and six months ended September 30, 2013 and 2012 and their locations on its consolidated statements of operations (in thousands): | ||||||||||||||||||||||||
Net Amount of Gain/(Loss) | Location of | Amount of Gain/(Loss) | Location of | Amount of Gain/(Loss) | ||||||||||||||||||||
Deferred as a Component | Gain/(Loss) | Reclassified from | Gain/(Loss) | Recognized in Income | ||||||||||||||||||||
of Accumulated Other | Reclassified from | Accumulated Other | Recognized in Income | Immediately | ||||||||||||||||||||
Comprehensive Loss | Accumulated | Comprehensive Loss into | ||||||||||||||||||||||
Other | Income | |||||||||||||||||||||||
Comprehensive | ||||||||||||||||||||||||
2013 | 2012 | Loss into Income | 2013 | 2012 | Immediately | 2013 | 2012 | |||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||
Cash flow hedges | $ | (1,467 | ) | $ | (3,783 | ) | Cost of goods sold | $ | (94 | ) | $ | (1,683 | ) | Other income/expense | $ | 16 | $ | 120 | ||||||
(1,467 | ) | (3,783 | ) | (94 | ) | (1,683 | ) | 16 | 120 | |||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||
Foreign exchange forward contracts | — | — | — | Other income/expense | (482 | ) | (92 | ) | ||||||||||||||||
Foreign exchange swap contracts | — | — | — | Other income/expense | 5 | (390 | ) | |||||||||||||||||
— | — | — | (477 | ) | (482 | ) | ||||||||||||||||||
$ | (1,467 | ) | $ | (3,783 | ) | $ | (94 | ) | $ | (1,683 | ) | $ | (461 | ) | $ | (362 | ) | |||||||
Net Amount of Gain/(Loss) | Location of | Amount of Gain/(Loss) | Location of | Amount of Gain/(Loss) | ||||||||||||||||||||
Deferred as a Component | Gain/(Loss) | Reclassified from | Gain/(Loss) | Recognized in Income | ||||||||||||||||||||
of Accumulated Other | Reclassified from | Accumulated Other | Recognized in Income | Immediately | ||||||||||||||||||||
Comprehensive Loss | Accumulated | Comprehensive Loss into | ||||||||||||||||||||||
Other | Income | |||||||||||||||||||||||
Comprehensive | ||||||||||||||||||||||||
2013 | 2012 | Loss into Income | 2013 | 2012 | Immediately | 2013 | 2012 | |||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||
Cash flow hedges | $ | (2,102 | ) | $ | (2,684 | ) | Cost of goods sold | $ | 184 | $ | (1,577 | ) | Other income/expense | $ | 46 | $ | 172 | |||||||
(2,102 | ) | (2,684 | ) | 184 | (1,577 | ) | 46 | 172 | ||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||
Foreign exchange forward contracts | — | — | — | Other income/expense | 165 | (837 | ) | |||||||||||||||||
Foreign exchange swap contracts | — | — | — | Other income/expense | 743 | 435 | ||||||||||||||||||
— | — | — | 908 | (402 | ) | |||||||||||||||||||
$ | (2,102 | ) | $ | (2,684 | ) | $ | 184 | $ | (1,577 | ) | $ | 954 | $ | (230 | ) | |||||||||
Cash Flow Hedges | ||||||||||||||||||||||||
The Company enters into foreign exchange forward contracts to hedge against exposure to changes in foreign currency exchange rates related to its subsidiaries’ forecasted inventory purchases. The Company has one entity with a euro functional currency that purchases inventory in U.S. dollars. The primary risk managed by using derivative instruments is the foreign currency exchange rate risk. The Company has designated these derivatives as cash flow hedges. Logitech does not use derivative financial instruments for trading or speculative purposes. These hedging contracts mature within four months, and are denominated in the same currency as the underlying transactions. Gains and losses in the fair value of the effective portion of the hedges are deferred as a component of accumulated other comprehensive loss until the hedged inventory purchases are sold, at which time the gains or losses are reclassified to cost of goods sold. The Company assesses the effectiveness of the hedges by comparing changes in the spot rate of the currency underlying the forward contract with changes in the spot rate of the currency in which the forecasted transaction will be consummated. If the underlying transaction being hedged fails to occur or if a portion of the hedge does not generate offsetting changes in the foreign currency exposure of forecasted inventory purchases, the Company immediately recognizes the gain or loss on the associated financial instrument in other income (expense). Such gains and losses were immaterial during the three and six months ended September 30, 2013 and 2012. Cash flows from such hedges are classified as operating activities in the consolidated statements of cash flows. The notional amounts of foreign exchange forward contracts outstanding related to forecasted inventory purchases were $56.7 million (€41.9 million) and $38.5 million (€30.1 million) at September 30, 2013 and March 31, 2013, respectively. The notional amount represents the future cash flows under contracts to purchase foreign currencies. | ||||||||||||||||||||||||
Other Derivatives | ||||||||||||||||||||||||
The Company also enters into foreign exchange forward contracts to reduce the short-term effects of foreign currency fluctuations on certain foreign currency receivables or payables. These forward contracts generally mature within three months. The Company may also enter into foreign exchange swap contracts to economically extend the terms of its foreign exchange forward contracts. The primary risk managed by using forward and swap contracts is the foreign currency exchange rate risk. The gains or losses on foreign exchange forward contracts are recognized in other income (expense) based on the changes in fair value. | ||||||||||||||||||||||||
The notional amounts of foreign exchange forward contracts outstanding at September 30 and March 31, 2013 relating to foreign currency receivables or payables were $16.4 million and $14.2 million. Open forward contracts as of September 30, 2013 consisted of contracts in U.S. dollars to purchase Taiwanese dollars and contracts in euros to sell British pounds at future dates at pre-determined exchange rates. Open forward contracts as of March 31, 2013 consisted of contracts in U.S. dollars to purchase Taiwanese dollars and contracts in euros to sell British pounds at future dates at pre-determined exchange rates. The notional amounts of foreign exchange swap contracts outstanding at September 30 and March 31, 2013 were $31.7 million and $19.6 million. Swap contracts outstanding at September 30, 2013 consisted of contracts in Mexican Pesos, Japanese Yen and Australian Dollars. Swap contracts outstanding at March 31, 2013 consisted of contracts in Mexican Pesos, Japanese Yen and Australian Dollars. | ||||||||||||||||||||||||
The fair value of all foreign exchange forward contracts and foreign exchange 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_
Goodwill and Other Intangible Assets | 6 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||||||||
Note 9 — Goodwill and Other Intangible Assets | ||||||||||||||||||||
Interim Goodwill Impairment Testing | ||||||||||||||||||||
During the second quarter of fiscal year 2014, the Company implemented a restructuring plan (“this plan”) associated with its video conferencing reporting unit to simplify its organization, to better align costs with its current business, and to free up resources to pursue growth opportunities. This plan resulted in restructuring charges of $5.4 million in termination benefits to affected employees and $0.6 million in lease exit costs. This plan also involved a $5.2 million write-off of video conferencing discontinued products. In addition, actual performance was significantly less than projected results for the periods since the most recent goodwill impairment assessment performed during the third quarter of fiscal 2013, due to a combination of a changing industry landscape caused by a shift to less expensive, cloud-based video conferencing solutions, an evolving LifeSize product line and challenges in execution. These factors resulted in the Company concluding that it is more likely than not that the fair value of its video conferencing reporting unit was less than its carrying amount. The Company, therefore, performed an interim Step 1 assessment of its video conferencing reporting unit during the second quarter of fiscal year 2014. | ||||||||||||||||||||
The Step 1 assessment involved measuring the recoverability of goodwill by comparing the video conferencing reporting unit’s carrying amount, including goodwill, to the fair value of the reporting unit. The fair value was estimated using both an income approach employing a discounted cash flow (“DCF”) model and a market approach. The DCF model was based on projected cash flows from the Company’s most recent forecast, which was based on a number of key assumptions, including, but not limited to, discount rate, compounded annual growth rate (“CAGR”) during the forecast period, and terminal value. The terminal value was based on an exit price at the end of the assessment forecast using an earnings multiple applied to the final year of the assessment forecast. The discount rate was applied to the projected cash flows to reflect the risks inherent in the timing and amount of the projected cash flows, including the terminal value, and was derived from the weighted average cost of capital of market participants in similar businesses. The market approach model was based on applying certain revenue multiples of comparable companies to the respective revenue and earnings metrics of the reporting unit. The DCF and market approach models require the exercise of significant judgment, including assumptions about appropriate discount rates, long-term growth rates for purposes of determining a terminal value at the end of the discrete forecast period, economic expectations, timing of expected future cash flows, and expectations of returns on equity that will be achieved. Such assumptions are subject to change as a result of changing economic and competitive conditions. | ||||||||||||||||||||
Key assumptions used in the Step 1 income approach analysis included the appropriate discount rates, CAGR during the forecast period, and long-term growth rates for purposes of determining a terminal value at the end of the discrete forecast period. Sensitivity assessment of key assumptions for the video conferencing reporting unit Step 1 test is presented below. | ||||||||||||||||||||
· CAGR assumption was 7.0% through fiscal year 2021, with a forecast decline in the remainder of fiscal year 2014, higher growth rates from fiscal years 2015 through 2019, reducing to a growth rate of 4% in fiscal year 2021. The forecasted growth contrasts with the recent performance of the video conferencing reporting unit, when the Company experienced a decline in revenue (see Note 13 for further details). A hypothetical decrease to 2.1% in the CAGR rate, holding all other assumptions constant, would decrease the fair value of the video conferencing reporting unit below its carrying value and hence would result in the reporting unit failing Step 1 of the goodwill impairment test. | ||||||||||||||||||||
· Discount rate assumptions was 15%. A hypothetical increase to 18.7% in the discount rate, holding all other assumptions constant, would result in the reporting unit failing Step 1 of the goodwill impairment test. | ||||||||||||||||||||
· Terminal growth rate assumption was 4%. A hypothetical decrease to 0% in the terminal growth rate assumption, holding all other assumptions constant, would result in the reporting unit passing Step 1 of the goodwill impairment test. | ||||||||||||||||||||
The assumptions used also included a reduction in future operating expenses as a percentage of revenue, driven by increases in forecast revenue as described above, combined with reduced operating expenses related to the fourth Q4’13 and Q2’14 restructuring activities. | ||||||||||||||||||||
The Step 1 assessment resulted in the Company determining that the video conferencing reporting unit passed the Step 1 test because the estimated fair value exceeded its carrying value by approximately 23%, thus not requiring a Step 2 assessment of this reporting unit. This result presents a future video conferencing reporting unit goodwill impairment risk to the Company since the margin it cleared the current Step 1 assessment was not significant. | ||||||||||||||||||||
The Company continues to evaluate and monitor all key factors impacting the carrying value of its recorded goodwill, as well as other long-lived assets. There are a number of uncertainties associated with the key assumptions described above based primarily on the difficulty of predicting the Company’s revenues and profitability. The Company’s revenues and profitability are difficult to predict due to the nature of the markets in which it competes, fluctuating end-user demand, the uncertainty of current and future global economic conditions, and for many other reasons, including, but not limited to: | ||||||||||||||||||||
· The video conferencing industry is characterized by continual performance enhancements and large, well-financed competitors. There is increased participation in the video conferencing market by companies such as Cisco Systems, Inc. and Polycom, Inc., and as a result, the Company expects competition in the industry to further intensify. | ||||||||||||||||||||
· The Company’s revenues are impacted by end-user consumer demand and future global conditions, which could fluctuate abruptly and significantly during periods of uncertain economic conditions or geographic distress, as well as from shifts in consumer buying patterns. | ||||||||||||||||||||
· The Company must incur a large portion of its costs in advance of sales orders, because it must plan research and production, order components, buy tooling equipment, and enter into development, sales and marketing, and other operating commitments prior to obtaining firm commitments from its customers. This makes it difficult for it to rapidly adjust its costs in response to a revenue shortfall. | ||||||||||||||||||||
· Fluctuations in currency exchange rates can impact the Company’s revenues, expenses and profitability because it reports its financial statements in U.S. dollars, whereas a significant portion of its revenues and expenses are in other currencies. | ||||||||||||||||||||
Determining the fair value of a reporting unit is judgmental in nature and requires the use of significant estimates and assumptions, including revenue growth rates and operating margins, discount rates and future market conditions, among others. It is reasonably possible that changes in the judgments, assumptions and estimates that the Company used in assessing the fair value of the video conferencing reporting unit result in the goodwill to become impaired. A goodwill impairment charge would have the effect of decreasing the Company’s earnings or increasing its losses in such period. If the Company is required to take a substantial impairment charge, its operating results would be materially and adversely affected in such period. | ||||||||||||||||||||
Goodwill and Other Intangible Assets | ||||||||||||||||||||
During the first quarter of fiscal year 2014, the Company decided not to sell its Remotes product category, previously classified as assets held for sale as of March 31, 2013. This decision required the Company to assess whether the fair value of the goodwill and other intangibles related to its Remotes category were less than the carrying value of these assets. For other intangibles, carrying value was adjusted by amortization expense not taken during the period in which this category was classified as assets held for sale. The Company concluded that the carrying value of these assets was less than their fair value. Accordingly, the Company reclassified these assets from assets held for sale back to goodwill and other intangible assets at their respective carrying values, which amounted to $2.5 million for goodwill and $1.6 million for intangibles as of June 30, 2013. | ||||||||||||||||||||
The following table summarizes the activity in the Company’s goodwill during the six months ended September 30, 2013 (in thousands): | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Peripherals | Video | Total | ||||||||||||||||||
Conferencing | ||||||||||||||||||||
Beginning balance | $ | 216,744 | $ | 124,613 | $ | 341,357 | ||||||||||||||
Additions | 202 | — | 202 | |||||||||||||||||
Foreign currency movements | — | 731 | 731 | |||||||||||||||||
Reclassified from assets held for sale | 2,469 | — | 2,469 | |||||||||||||||||
Ending balance | $ | 219,415 | $ | 125,344 | $ | 344,759 | ||||||||||||||
The Company’s acquired other intangible assets subject to amortization were as follows (in thousands): | ||||||||||||||||||||
September 30, 2013 | March 31, 2013 | |||||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | Gross Carrying | Accumulated | Net Carrying | |||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||||||||
Trademark/tradename | $ | 32,085 | $ | (30,127 | ) | $ | 1,958 | $ | 29,842 | $ | (26,558 | ) | $ | 3,284 | ||||||
Technology (1) | 92,007 | (84,144 | ) | 7,863 | 73,249 | (61,560 | ) | 11,689 | ||||||||||||
Customer contracts | 40,345 | (32,419 | ) | 7,926 | 39,068 | (28,017 | ) | 11,051 | ||||||||||||
$ | 164,437 | $ | (146,690 | ) | $ | 17,747 | $ | 142,159 | $ | (116,135 | ) | $ | 26,024 | |||||||
(1) During the six months ended September 30, 2013, the Company changed its classification of its Retail - Remote product category and digital video security product line from assets held for sale to assets held and used. The increase in gross carrying amount and accumulated amortization between March 31, 2013 and September 30, 2013 was due to this change in classification. | ||||||||||||||||||||
Amortization expense for other intangible assets was $5.3 million and $6.2 million for the three months ended September 30, 2013 and 2012, and $10.5 million and $12.6 million for the six months ended September 30, 2013 and 2012. The Company expects that amortization expense for the remaining six months of fiscal year 2014 will be $7.3 million, and annual amortization expense for fiscal years 2015, 2016 and 2017 will be $8.4 million, $1.8 million and $0.1 million, respectively. | ||||||||||||||||||||
Financing_Arrangements
Financing Arrangements | 6 Months Ended |
Sep. 30, 2013 | |
Financing Arrangements | ' |
Financing Arrangements | ' |
Note 10 — Financing Arrangements | |
In December 2011, the Company entered into a Senior Revolving Credit Facility Agreement with a group of primarily Swiss banks that provides for a revolving multicurrency unsecured credit facility in an amount of up to $250.0 million. The Company may, upon notice to the lenders and subject to certain requirements, arrange with existing or new lenders to provide up to an aggregate of $150.0 million in additional commitments, for a total of $400.0 million of unsecured revolving credit. The credit facility may be used for working capital, general corporate purposes, and acquisitions. There were no outstanding borrowings under the credit facility at September 30, 2013. | |
The credit facility matures on October 31, 2016. The Company may prepay the loans under the credit facility in whole or in part at any time without premium or penalty. Borrowings under the credit facility will accrue interest at a per annum rate based on LIBOR (London Interbank Offered Rate), or EURIBOR (Euro Interbank Offered Rate) in the case of loans denominated in euros, plus a variable margin determined quarterly based on the ratio of senior debt-to-earnings before interest, taxes, depreciation and amortization for the preceding four-quarter period, plus, if applicable, an additional rate per annum intended to compensate the lenders for the cost of compliance with regulatory reserve requirements and other banking regulations. The Company also pays a quarterly commitment fee of 40% of the applicable margin on the available commitment. In connection with entering into the credit facility, the Company incurred non-recurring fees totaling $1.5 million, which are amortized on a straight-line basis over the term of the credit facility. | |
The facility agreement contains representations, covenants, including threshold financial covenants, and events of default customary in Swiss credit markets. Affirmative covenants include covenants regarding reporting requirements, maintenance of insurance, maintenance of properties and compliance with applicable laws and regulations, and financial covenants that require the maintenance of net senior debt, interest cover and adjusted equity ratios determined in accordance with the terms of the facility. Negative covenants limit the ability of the Company and its subsidiaries, among other things, to grant liens, make investments, incur debt, make restricted payments, enter into a merger or acquisition, or sell, transfer or dispose of assets, in each case subject to certain exceptions. As of March 31, 2013, the Company was not in compliance with the interest coverage ratio of this credit facility. This situation resulted from the significant operating loss incurred during fiscal year 2013. On June 13, 2013, the Company amended this credit facility to amend the definitions of (a) EBITDA to exclude the effect of impairment of goodwill and other intangible assets and (b) interest coverage ratio calculation to utilize EBITDA rather than EBIT. As of September 30, 2013, the Company was not in compliance with the adjusted equity ratio of this facility. This facility continues to be available for the Company’s use based on a temporary waiver of the adjusted equity ratio covenant through the end of the third quarter of fiscal year 2014. | |
This credit facility stipulates that, upon an uncured event of default under the facility, the lenders may declare all or a portion of the outstanding obligations payable by the Company to be immediately due and payable, terminate their commitments and exercise other rights and remedies provided for under the facility. The events of default under the facility include, among other things, payment defaults, covenant defaults, inaccuracy of representations and warranties, cross defaults with certain other indebtedness, bankruptcy and insolvency events and events that have a material adverse effect (as defined in the facility). Upon a change of control of the Company, lenders whose commitments aggregate more than two-thirds of the total commitments under the facility may terminate the commitments and declare all outstanding obligations to be due and payable. | |
The Company had several uncommitted, unsecured bank lines of credit aggregating $62 million at September 30, 2013. There are no financial covenants under these lines of credit with which the Company must comply. At September 30, 2013, the Company had no outstanding borrowings under these lines of credit. The Company also had credit lines related to corporate credit cards totaling $17.4 million at September 30, 2013. The outstanding borrowings under these credit lines are recorded in other current liabilities. There are no financial covenants under these credit lines. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Commitments and Contingencies | ' | |||||||||||||
Commitments and Contingencies | ' | |||||||||||||
Note 11 — Commitments and Contingencies | ||||||||||||||
Operating Leases | ||||||||||||||
The Company leases facilities under operating leases, certain of which require it to pay property taxes, insurance and maintenance costs. Operating leases for facilities are generally renewable at the Company’s option and usually include escalation clauses linked to inflation. Future minimum annual rentals under non-cancelable operating leases at September 30, 2013 amounted to $84.7 million. | ||||||||||||||
In connection with its leased facilities, the Company has recognized a liability for asset retirement obligations representing the present value of estimated remediation costs to be incurred at lease expiration. | ||||||||||||||
The following table describes changes to the Company’s asset retirement obligation liability for the three and six months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||
Three Months ended September 30, | Six Months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Beginning balance | $ | 1,532 | $ | 2,001 | $ | 1,750 | $ | 1,918 | ||||||
Liabilities incurred | — | — | — | — | ||||||||||
Liabilities settled | (375 | ) | — | (596 | ) | — | ||||||||
Accretion expense | 9 | 4 | 11 | 16 | ||||||||||
Foreign currency translation | 12 | (135 | ) | 13 | (64 | ) | ||||||||
Ending balance | $ | 1,178 | $ | 1,870 | $ | 1,178 | $ | 1,870 | ||||||
Product Warranties | ||||||||||||||
All of the Company’s products are covered by warranty to be free from defects in material and workmanship for periods ranging from one year to five years. At the time of sale, the Company accrues a warranty liability for estimated costs to provide replacement products, parts or services to repair or replace products in satisfaction of the warranty obligation. The Company’s estimate of costs to fulfill its warranty obligations is based on historical experience and expectations of future requirements. When the Company experiences changes in warranty claim activity or costs associated with fulfilling those claims, the warranty liability is adjusted accordingly. Changes in the Company’s warranty liability for the three and six months ended September 30, 2013 and 2012 were as follows (in thousands): | ||||||||||||||
Three Months ended September 30, | Six Months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
As Revised | As Revised | |||||||||||||
Beginning balance | $ | 22,655 | $ | 23,966 | $ | 20,538 | $ | 25,494 | ||||||
Provision during the period | 3,356 | 3,444 | 6,645 | 5,981 | ||||||||||
Settlements made during the year, net of adjustments | (3,926 | ) | (3,873 | ) | (7,425 | ) | (7,938 | ) | ||||||
Amount classified as liabilities held for sale (1) | — | — | 2,327 | — | ||||||||||
Ending balance | $ | 22,085 | $ | 23,537 | $ | 22,085 | $ | 23,537 | ||||||
(1) Represents warranty liability previously allocated to the Company’s Retail — Remotes product category which was classified as an asset held for sale as of March 31, 2013. | ||||||||||||||
Deferred Services Revenue | ||||||||||||||
The Company’s video conferencing reporting unit offers maintenance contracts for sale of the majority of its products which allow for customers to receive service and support in addition to the expiration of the product warranty contractual term. The Company also provides installation services to its customer under contractual arrangements. The Company recognizes these contracts over the life of the service period. Change in the Company’s deferred services revenue during the three and six months ended September 30, 2013 and 2012 were as follows (in thousands): | ||||||||||||||
Three Months ended September 30, | Six Months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Beginning balance | $ | 29,080 | $ | 26,340 | $ | 29,328 | $ | 24,568 | ||||||
Additions for extended warranties issued during the period | 7,914 | 8,112 | 15,830 | 16,394 | ||||||||||
Amortization of deferred revenue for the period | (7,926 | ) | (7,333 | ) | (16,090 | ) | (13,843 | ) | ||||||
Ending balance | $ | 29,068 | $ | 27,119 | $ | 29,068 | $ | 27,119 | ||||||
The cost of providing these services for the three months ended September 30, 2013 and 2012 was $2.1 million and $2.3 million, respectively, and for the six months ended September 30, 2013 and 2012 was $4.2 million and $4.3 million, respectively. | ||||||||||||||
Purchase Commitments | ||||||||||||||
At September 30, 2013, the Company had the following outstanding purchase commitments: | ||||||||||||||
September 30, 2013 | ||||||||||||||
Inventory purchases | $ | 132,782 | ||||||||||||
Operating expenses | 63,426 | |||||||||||||
Capital expenditures | 18,372 | |||||||||||||
$ | 214,580 | |||||||||||||
Commitments for inventory purchases are made in the normal course of business to original design manufacturers, the majority of the contract manufacturers and other suppliers and are expected to be fulfilled by December 2013. Operating expense commitments are for consulting services, marketing arrangements, advertising, outsourced customer services, information technology maintenance and support services, and other services. Fixed purchase commitments for capital expenditures primarily related to commitments for computer hardware and leasehold improvements. Although open purchase orders are considered enforceable and legally binding, the terms generally allow the Company the option to reschedule and adjust its requirements based on the business needs prior to delivery of goods or performance of services. | ||||||||||||||
Guarantees | ||||||||||||||
Logitech International S.A., the parent holding company, has guaranteed payment of the purchase obligations of various subsidiaries from certain component suppliers. These guarantees generally have an unlimited term. The maximum potential future payment under the guarantee arrangements is limited to $30.0 million. At September 30, 2013, there were no purchase obligations outstanding for which the parent holding company was required to guarantee payment. | ||||||||||||||
Logitech Europe S.A., a subsidiary of the parent holding company, has guaranteed the purchase obligations of another Logitech subsidiary under two guarantee agreements. One of these guarantees does not specify a maximum amount. The remaining guarantee has a total limit of $7.0 million. As of September 30, 2013, there was an immaterial amount of guaranteed purchase obligations that were outstanding under these guarantees. Logitech Europe S.A. has also guaranteed payment of the purchase obligations of a third-party contract manufacturer under one guarantee agreement. The maximum amount of this guarantee was $3.5 million as of September 30, 2013. As of September 30, 2013, $2.8 million of guaranteed purchase obligations were outstanding under this agreement. | ||||||||||||||
Logitech International S.A. and Logitech Europe S.A. have guaranteed certain contingent liabilities of various subsidiaries related to transactions occurring in the normal course of business. The maximum amount of the guarantees was $35.0 million as of September 30, 2013 and $5.6 million of guaranteed obligations were outstanding under these agreements. | ||||||||||||||
Indemnifications | ||||||||||||||
Logitech 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. No amounts have been accrued for indemnification provisions at September 30, 2013. 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. | ||||||||||||||
Logitech 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. Logitech is unable to reasonably estimate the maximum amount that could be payable under these arrangements because these exposures are not capped, 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 which arise in the ordinary course of its business. The Company is currently subject to several such claims and a small number of legal proceedings. The Company believes that these matters lack merit and intends to vigorously defend against them. Based on currently available information, the Company does not believe that resolution of pending matters will have a material adverse effect on its financial condition, cash flows or results of operations. However, litigation is subject to inherent uncertainties, and there can be no assurances that the Company’s defenses will be successful or that any such lawsuit or claim would not have a material adverse impact on the Company’s business, financial condition, cash flows and results of operations in a particular period. Any claims or proceedings against us, whether meritorious or not, can have an adverse impact because of defense costs, diversion of management and operational resources, negative publicity and other factors. Any failure to obtain necessary license or other rights, or litigation arising out of intellectual property claims, could adversely affect the Company’s business. |
Shareholders_Equity
Shareholders' Equity | 6 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Shareholders' Equity | ' | |||||||||||||
Shareholders' Equity | ' | |||||||||||||
Note 12 — Shareholders’ Equity | ||||||||||||||
Share Repurchases | ||||||||||||||
In September 2008, the Company’s Board of Directors approved the September 2008 share buyback program for $250.0 million. In November 2011, an amendment to the September 2008 share buyback program (“September 2008 - amended”) was approved by the Company’s Board of Directors to enable future purchases of shares for cancellation. During the three months ended December 31, 2012, 18.5 million shares were cancelled. In August 2013, the September 2008 share buyback and September 2008 - amended share buyback programs expired. The approved share buyback programs are shown in the following table (in thousands, excluding transaction costs). | ||||||||||||||
Date of Announcement | Approved | Approved | Expiration Date | Shares | Amounts | |||||||||
Share | Buyback | Repurchased | ||||||||||||
Buyback | Amount | |||||||||||||
Number | ||||||||||||||
September 2008 - amended | 28,465 | $ | 177,030 | August 2013 | 18,500 | $ | 170,714 | |||||||
September 2008 | 8,344 | $ | 250,000 | August 2013 | 7,609 | $ | 73,134 | |||||||
During the six months ended September 30, 2012, the Company repurchased 18.5 million shares under the September 2008-amended program. No shares were repurchased during the three months ended September 30, 2013 and 2012 and six months ended September 30, 2013. | ||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||
The components of accumulated other comprehensive loss were as follows (in thousands): | ||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||
Cumulative | Defined | Deferred | ||||||||||||
Translation | Benefit | Hedging | ||||||||||||
Adjustment | Plan (1) | Gains (Losses) | Total | |||||||||||
March 31, 2013 (As Revised) | $ | (73,187 | ) | $ | (20,316 | ) | $ | 510 | $ | (92,993 | ) | |||
Net change in other comprehensive loss | 2,829 | (385 | ) | (2,102 | ) | 342 | ||||||||
September 30, 2013 | $ | (70,358 | ) | $ | (20,701 | ) | $ | (1,592 | ) | $ | (92,651 | ) | ||
(1) Net of tax of $315 as of September 30 and March 31, 2013. |
Segment_Information
Segment Information | 6 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Segment Information | ' | |||||||||||||||||||||||||
Segment Information | ' | |||||||||||||||||||||||||
Note 13 — Segment Information | ||||||||||||||||||||||||||
Net sales by product family, excluding intercompany transactions, were as follows (in thousands): | ||||||||||||||||||||||||||
Three Months ended | Six Months ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2013 | 2012(1) | 2013 | 2012(1) | |||||||||||||||||||||||
Peripherals | ||||||||||||||||||||||||||
Retail - Pointing Devices | $ | 130,656 | $ | 122,524 | $ | 245,307 | $ | 238,353 | ||||||||||||||||||
Retail - PC Keyboards & Desktops | 105,236 | 97,069 | 203,186 | 191,628 | ||||||||||||||||||||||
Retail - Tablet Accessories | 34,711 | 33,737 | 73,270 | 49,623 | ||||||||||||||||||||||
Retail - Audio PC | 67,199 | 77,267 | 119,164 | 138,792 | ||||||||||||||||||||||
Retail - Audio - Wearables & Wireless | 25,648 | 19,108 | 44,723 | 33,707 | ||||||||||||||||||||||
Retail - Video | 41,061 | 49,453 | 76,319 | 86,612 | ||||||||||||||||||||||
Retail - PC Gaming | 41,493 | 46,673 | 81,110 | 73,456 | ||||||||||||||||||||||
Retail - Remotes | 13,327 | 16,434 | 27,901 | 30,166 | ||||||||||||||||||||||
Retail - Other | 5,522 | 14,214 | 7,109 | 29,243 | ||||||||||||||||||||||
OEM | 37,526 | 36,718 | 72,039 | 73,393 | ||||||||||||||||||||||
Total peripherals | 502,379 | 513,197 | 950,128 | 944,973 | ||||||||||||||||||||||
Video conferencing | 29,593 | 34,496 | 59,768 | 71,324 | ||||||||||||||||||||||
Total net sales | $ | 531,972 | $ | 547,693 | $ | 1,009,896 | $ | 1,016,297 | ||||||||||||||||||
(1) Certain products within the retail product families as presented in the prior year have been reclassified to conform to the current year presentation, with no impact on previously reported total peripheral sales. | ||||||||||||||||||||||||||
The Company has two reporting segments, peripherals and video conferencing, based on product markets and internal organizational structure. The peripherals segment encompasses the design, manufacturing and marketing of peripherals for PCs, tablets and other digital platforms. The video conferencing segment encompasses the design, manufacturing and marketing of LifeSize video conferencing products, infrastructure and services for the enterprise, public sector and other business markets. The Company’s reporting segments do not record revenue on sales between segments, as such sales are not material. | ||||||||||||||||||||||||||
Operating performance measures for the peripherals segment and the video conferencing segment are reported separately to Logitech’s Chief Executive Officer, who is considered to be the Company’s chief operating decision maker. The Chief Executive Officer periodically reviews information such as net sales and operating income (loss) for each operating segment to make business decisions. These operating performance measures do not include share-based compensation expense, and amortization of intangible assets. Share-based compensation expense and amortization of intangible assets are presented in the following financial information by operating segment as “other charges.” Assets by operating segment are not presented since the Company does not present such data to the chief operating decision maker. Net sales and operating income (loss) for the Company’s reporting segments were as follows (in thousands): | ||||||||||||||||||||||||||
Three Months ended September 30, | Six Months ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Net sales by reporting segment: | ||||||||||||||||||||||||||
Peripherals | $ | 502,379 | $ | 513,197 | $ | 950,128 | $ | 944,973 | ||||||||||||||||||
Video conferencing | 29,593 | 34,496 | 59,768 | 71,324 | ||||||||||||||||||||||
Total net sales | $ | 531,972 | $ | 547,693 | $ | 1,009,896 | $ | 1,016,297 | ||||||||||||||||||
Operating income (loss) by segment: | ||||||||||||||||||||||||||
Peripherals (1) | $ | 39,281 | $ | 39,097 | $ | 52,151 | $ | (5,505 | ) | |||||||||||||||||
Video conferencing (1) | (12,708 | ) | (1,811 | ) | (15,877 | ) | (2,921 | ) | ||||||||||||||||||
Operating income (loss) before other charges | 26,573 | 37,286 | 36,274 | (8,426 | ) | |||||||||||||||||||||
Other charges: | ||||||||||||||||||||||||||
Share-based compensation | (4,109 | ) | (7,266 | ) | (8,499 | ) | (13,437 | ) | ||||||||||||||||||
Amortization | (5,254 | ) | (6,191 | ) | (10,518 | ) | (12,589 | ) | ||||||||||||||||||
Total operating income (loss) | $ | 17,210 | $ | 23,829 | $ | 17,257 | $ | (34,452 | ) | |||||||||||||||||
(1) The previously-reported operating income (loss) for the three and six months ended September 30, 2012 was impacted by the errors described in Note 2 as follows: (a) For the three and six months ended September 30, 2012, Peripherals operating income (loss) decreased by an immaterial amount and increased by $1.2 million, respectively, and (b) For the three and six months ended September 30, 2012, Video Conferencing operating loss decreased by less than $0.1 million and $0.2 million, respectively. These changes resulted from the warranty accrual and amortization of intangibles error correction. | ||||||||||||||||||||||||||
Geographic net sales information in the table below is based on the customer location. Long-lived assets, primarily fixed assets, are reported below based on the location of the asset. | ||||||||||||||||||||||||||
Net sales to unaffiliated customers by geographic region were as follows (in thousands): | ||||||||||||||||||||||||||
Three Months ended September 30, | Six Months ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
As Reported | Adjustments (1) | As Revised | As Reported | Adjustments (1) | As Revised | |||||||||||||||||||||
Americas | $ | 202,381 | $ | 216,596 | $ | (17,079 | ) | $ | 199,517 | $ | 402,834 | $ | 420,522 | $ | (36,438 | ) | $ | 384,084 | ||||||||
EMEA | 203,353 | 212,050 | 10,939 | 222,989 | 358,576 | 362,056 | 24,306 | 386,362 | ||||||||||||||||||
Asia Pacific | 126,238 | 119,047 | 6,140 | 125,187 | 248,486 | 233,719 | 12,132 | 245,851 | ||||||||||||||||||
Total net sales | $ | 531,972 | $ | 547,693 | $ | — | $ | 547,693 | $ | 1,009,896 | $ | 1,016,297 | $ | — | $ | 1,016,297 | ||||||||||
(1) During fiscal year 2013, the Company determined that net sales to unaffiliated customers by geographic regions previously reported, including the three and six months ended September 30, 2012, were not properly stated since amounts related to its Video Conferencing segment and other businesses were improperly allocated solely to the Americas region. | ||||||||||||||||||||||||||
Sales are attributed to countries on the basis of the customers’ locations. The United States represented 34% and 32% of the Company’s total consolidated net sales for the quarter ended September 30, 2013 and 2012. No other single country represented more than 10% of the Company’s total consolidated net sales during those periods. Revenues from sales to customers in Switzerland, the Company’s home domicile, represented 2% of the Company’s total consolidated net sales for the three and six months ended September 30, 2013 and 2012. One customer group of the Company’s peripheral operating segment represented 14% and 13% of sales for the quarters ended September 30, 2013 and 2012. The United States represented 35% and 33% of the Company’s total consolidated net sales for the six months ended September 30, 2013 and 2012. Revenues from sales to customers in Switzerland represented 1% and 2% of the Company’s total consolidated net sales for the six months ended September 30, 2013 and 2012. No other single country represented more than 10% of the Company’s total consolidated net sales during those periods. One customer group of the Company’s peripheral reporting segment represented 14% and 12% of net sales in each of the six month periods ended September 30, 2013 and 2012. | ||||||||||||||||||||||||||
Long-lived assets by geographic region were as follows (in thousands): | ||||||||||||||||||||||||||
September 30, 2013 | March 31, 2013 | |||||||||||||||||||||||||
Americas | $ | 43,386 | $ | 43,357 | ||||||||||||||||||||||
EMEA | 5,875 | 8,315 | ||||||||||||||||||||||||
Asia Pacific | 42,396 | 40,952 | ||||||||||||||||||||||||
Total long-lived assets | $ | 91,657 | $ | 92,624 | ||||||||||||||||||||||
Long-lived assets in the United States and China were $43.2 million and $35.0 million at September 30, 2013 and $43.2 million and $33.1 million at March 31, 2013. No other countries represented more than 10% of the Company’s total consolidated long-lived assets at September 30 and March 31, 2013. Long-lived assets in Switzerland were $1.9 million and $4.2 million at September 30 and March 31, 2013. |
Restructuring
Restructuring | 6 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Restructuring | ' | |||||||||||||
Restructuring | ' | |||||||||||||
Note 14 — Restructuring | ||||||||||||||
During the first quarter of fiscal year 2013, Logitech implemented a restructuring plan to simplify the Company’s organization, to better align costs with its current business, and to free up resources to pursue growth opportunities. A majority of the restructuring activity was completed during the three months ended June 30, 2012. As part of this restructuring plan, the Company reduced its worldwide non-direct labor workforce. Charges and other costs related to the workforce reduction are presented as restructuring charges in the consolidated statements of operations. During the three months ended September 30, 2012, the Company incurred a $3.8 million credit in termination benefits to affected employees due to the further refinement of estimates previously accrued during the three months ended June 30, 2012. For the six months ended September 30, 2012, the Company incurred $24.8 million in termination benefits to affected employees under this plan. In addition, the Company incurred legal, consulting, and other costs of $1.1 million and $2.2 million as a result of the terminations during the three and six months ended September 30, 2012. The Company also incurred $1.5 million in lease exit costs primarily related to costs associated with the closure of existing facilities during the six months ended September 30, 2012. During the six months ended September 30, 2012, charges of approximately $3.0 million related to discontinuance of certain product development efforts are included in cost of goods sold in the consolidated statements of operations. During the quarter ended September 30, 2012, the Company also incurred $2.2 million from the re-measurement of its Swiss defined benefit pension plan caused by the number of plan participants affected by this restructuring that was not included in restructuring charge since it related to prior services. | ||||||||||||||
During the fourth quarter of fiscal year 2013, Logitech implemented an additional restructuring plan to align the organization to its strategic priorities of increasing focus on mobility products, improving profitability in PC-related products and enhancing global operational efficiencies. As part of this restructuring plan, the Company reduced its worldwide non-direct labor workforce. Restructuring charges under this plan primarily consisted of severance and other one-time termination benefits. Charges and other costs related to the workforce reduction are presented as restructuring charges in the consolidated statements of operations. During the three months ended September 30, 2013, the Company incurred a $0.8 million credit in termination benefits to affected employees due to the further refinement of estimates which were previously accrued and a $0.3 million charge in lease exit costs. During the six months ended September 30, 2013, restructuring changes under this plan included $1.2 million in termination benefits to affected employees and $0.6 million in lease exit costs. The Company estimates to complete this restructuring plan by March 31, 2014. | ||||||||||||||
During the second quarter of fiscal year 2014, Logitech implemented a restructuring plan associated with its video conferencing operating segment to simplify its organization, to better align costs with its current business, and to free up resources to pursue growth opportunities. A majority of the restructuring activity was completed during the three months ended September 30, 2013. As part of this restructuring plan, the Company reduced its non-direct labor workforce, which is presented as restructuring charges in the consolidated statements of operations. During the three months ended September 30, 2013, restructuring charges under this plan included $5.4 million in termination benefits to affected employees and $0.6 million in lease exit costs. During the three months ended September 30, 2013, the Company also incurred a $5.2 million write-off of discontinued products, resulting from the restructuring of our video conferencing reporting segment included in cost of goods sold in the consolidated statements of operations. The Company estimates to complete this restructuring plan by March 31, 2014. | ||||||||||||||
Termination benefits were calculated based on regional benefit practices and local statutory requirements. Lease exit costs primarily relate to costs associated with the closure of existing facilities. Other charges primarily consist of legal, consulting and other costs related to employee terminations. | ||||||||||||||
The following table summarizes restructuring related activities (in thousands): | ||||||||||||||
Total | Termination | Lease Exit | Other | |||||||||||
Benefits | Costs | |||||||||||||
Balance at March 31, 2012 | $ | — | $ | — | $ | — | $ | — | ||||||
Charges | 31,227 | 28,655 | 1,472 | 1,100 | ||||||||||
Cash payments | (5,195 | ) | (4,766 | ) | — | (429 | ) | |||||||
Foreign exchange | 63 | 63 | — | — | ||||||||||
Balance at June 30, 2012 | 26,095 | 23,952 | 1,472 | 671 | ||||||||||
Charges (credits) | (2,671 | ) | (3,816 | ) | 48 | 1,097 | ||||||||
Cash payments | (17,652 | ) | (16,642 | ) | (52 | ) | (958 | ) | ||||||
Foreign exchange | 14 | — | — | 14 | ||||||||||
Balance at September 30, 2012 | $ | 5,786 | $ | 3,494 | $ | 1,468 | $ | 824 | ||||||
Charges (credits) | (358 | ) | (188 | ) | (182 | ) | 12 | |||||||
Cash payments | (4,511 | ) | (2,633 | ) | (1,104 | ) | (774 | ) | ||||||
Foreign exchange | — | — | — | — | ||||||||||
Balance at December 30, 2012 | 917 | 673 | 182 | 62 | ||||||||||
Charges (credits) | 15,507 | 16,437 | (30 | ) | (900 | ) | ||||||||
Cash payments | (2,966 | ) | (3,727 | ) | (77 | ) | 838 | |||||||
Foreign exchange | — | — | — | — | ||||||||||
Balance at March 31, 2013 | 13,458 | 13,383 | 75 | — | ||||||||||
Charges | 2,334 | 2,004 | 330 | — | ||||||||||
Cash payments | (8,422 | ) | (8,422 | ) | — | — | ||||||||
Foreign exchange | (170 | ) | (170 | ) | — | — | ||||||||
Balance at June 30, 2013 | 7,200 | 6,795 | 405 | — | ||||||||||
Charges | 5,465 | 4,562 | -1 | 903 | -1 | — | ||||||||
Cash payments | (7,099 | ) | (6,535 | ) | (564 | ) | — | |||||||
Foreign exchange | — | — | — | — | ||||||||||
Balance at September 30, 2013 | $ | 5,566 | $ | 4,822 | $ | 744 | $ | — | ||||||
(1) During the three months ended September 30, 2013, the Company incurred $4.6 million in termination benefits, $5.4 million charge related to the restructuring plan initiated during the second quarter of fiscal year 2014 offset by a $0.8 million credit related to the restructuring plan initiated during the fourth quarter of fiscal year 2013. During the same period, the Company also incurred $0.9 million in lease exit costs, $0.6 million related to the restructuring plan initiated during the second quarter of fiscal year 2014 and $0.3 million related to the restructuring plan initiated during the fourth quarter of fiscal year 2013. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 30, 2013 | |
Summary of Significant Accounting Policies | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The consolidated interim 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 U.S. GAAP (accounting principles generally accepted in the United States of America) for interim financial information and therefore do not include all the information required by U.S. GAAP for complete financial statements. They should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year ended March 31, 2013, included in its Annual Report on Form 10-K/A. In the opinion of management, these consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the periods presented. Operating results for the three and six months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending March 31, 2014, or any future periods. | |
Certain prior period financial statement amounts have been reclassified to conform to the current period presentation with no impact on previously reported net income. | |
Fiscal Years | ' |
Fiscal Years | |
The Company’s fiscal years end on March 31. Interim quarters are thirteen-week periods, each ending on a Friday. For purposes of presentation, the Company has indicated its quarterly periods as ending on the month end. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect reported amounts of assets, liabilities, net sales and expenses, and the disclosure of contingent assets and liabilities. Examples of significant estimates and assumptions made by management involve the fair value of goodwill, accruals for customer programs, inventory valuation, valuation allowances for deferred tax assets and warranty accruals. Although these estimates are based on management’s best knowledge of current events and actions that may impact the Company in the future, actual results could differ from those estimates. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. The ASU provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. ASU No. 2013-11 is effective for interim and annual periods beginning after December 15, 2013. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. |
Revision_of_PreviouslyIssued_F1
Revision of Previously-Issued Financial Statements (Tables) | 6 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Revision of Previously-Issued Financial Statements | ' | |||||||||||||||||||
Schedule of impact of the accounting errors on the Company's previously-reported consolidated statements of operations | ' | |||||||||||||||||||
The following table presents the impact of the accounting errors on the Company’s previously-reported consolidated statement of operations for the three and six months ended September 30, 2012 (in thousands): | ||||||||||||||||||||
Three Months ended September 30, 2012 | Six Months ended September 30, 2012 | |||||||||||||||||||
As Reported | Adjustments | As Revised | As Reported | Adjustments | As Revised | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||
Net sales | $ | 547,693 | 150 | -1 | $ | 547,693 | $ | 1,016,297 | (1,015 | )(1) | $ | 1,016,297 | ||||||||
Cost of goods sold | 351,698 | 71 | -2 | 351,919 | 676,050 | 142 | -2 | 675,177 | ||||||||||||
Gross profit | 195,995 | (221 | ) | 195,774 | 340,247 | 873 | 341,120 | |||||||||||||
Operating expenses: | ||||||||||||||||||||
Marketing and selling | 110,522 | — | 110,522 | 211,419 | — | 211,419 | ||||||||||||||
Research and development | 38,019 | 95 | -2 | 38,114 | 76,947 | 190 | -2 | 77,137 | ||||||||||||
General and administrative | 25,980 | — | 25,980 | 58,460 | — | 58,460 | ||||||||||||||
Restructuring charges (credits) | (2,671 | ) | — | (2,671 | ) | 28,556 | — | 28,556 | ||||||||||||
Total operating expenses | 171,850 | 95 | 171,945 | 375,382 | 190 | 375,572 | ||||||||||||||
Operating income (loss) | 24,145 | (316 | ) | 23,829 | (35,135 | ) | 683 | (34,452 | ) | |||||||||||
Interest income, net | 153 | — | 153 | 537 | — | 537 | ||||||||||||||
Other expense, net | (509 | ) | — | (509 | ) | (668 | ) | — | (668 | ) | ||||||||||
Income (loss) before income taxes | 23,789 | (316 | ) | 23,473 | (35,266 | ) | 683 | (34,583 | ) | |||||||||||
Benefit from income taxes | (31,076 | ) | — | (31,076 | ) | (37,986 | ) | — | (37,986 | ) | ||||||||||
Net Income | $ | 54,865 | $ | (316 | ) | $ | 54,549 | $ | 2,720 | $ | 683 | $ | 3,403 | |||||||
Net income per share: | $ | 0.35 | $ | 0.35 | $ | 0.02 | $ | 0.02 | ||||||||||||
Basic | $ | 0.35 | $ | 0.35 | $ | 0.02 | $ | 0.02 | ||||||||||||
Diluted | ||||||||||||||||||||
Shares used to compute net income per share: | ||||||||||||||||||||
Basic | 156,736 | 156,736 | 158,723 | 158,723 | ||||||||||||||||
Diluted | 157,932 | 157,932 | 159,853 | 159,853 | ||||||||||||||||
Schedule of impact of the accounting errors on the Company's previously-reported consolidated statements of comprehensive income | ' | |||||||||||||||||||
The Company’s following table presents the impact of the accounting errors on the Company’s previously-reported consolidated statements of comprehensive income for the three and six months ended September 30, 2012 (in thousands): | ||||||||||||||||||||
Three Months ended September 30, 2012 | Six Months ended September 30, 2012 | |||||||||||||||||||
As Reported | Adjustments | As Revised | As Reported | Adjustments | As Revised | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||
Net Income | $ | 54,865 | $ | (150 | )(1) | $ | 54,549 | $ | 2,720 | $ | 1,015 | -1 | $ | 3,403 | ||||||
$ | (166 | )(2) | $ | (332 | )(2) | |||||||||||||||
Other comprehensive income: | ||||||||||||||||||||
Foreign currency translation gain (loss) | 4,970 | (2,529 | )(3) | 2,441 | (1,295 | ) | (3,125 | )(3) | (4,420 | ) | ||||||||||
Change in net loss, and prior service cost related to defined benefit pension plans: | ||||||||||||||||||||
Net loss and prior service cost | 6,457 | — | 6,457 | 7,920 | 7,920 | |||||||||||||||
Less amortization included in operating expenses | 301 | — | 301 | 756 | — | 756 | ||||||||||||||
Net change in hedging gain (loss): | ||||||||||||||||||||
Unrealized hedging loss | (5,466 | ) | — | (5,466 | ) | (4,261 | ) | — | (4,261 | ) | ||||||||||
Less reclassification adjustment for gain included in cost of goods sold | 1,683 | — | 1,683 | 1,577 | — | 1,577 | ||||||||||||||
Net change in unrealized investment loss: | ||||||||||||||||||||
Reclassification adjustment for gain included in other income (expense) | — | — | — | (343 | ) | — | (343 | ) | ||||||||||||
Other comprehensive income | 7,945 | (2,529 | ) | 5,416 | 4,354 | (3,125 | ) | 1,229 | ||||||||||||
Total comprehensive income | $ | 62,810 | $ | (2,845 | ) | $ | 59,965 | $ | 7,074 | $ | (2,442 | ) | $ | 4,632 | ||||||
Schedule of impact of the accounting errors on the Company's previously-reported consolidated statements of cash flows | ' | |||||||||||||||||||
The following table presents the impact of the accounting errors on the Company’s previously-reported consolidated statement of cash flows for the six months ended September 30, 2012 (in thousands): | ||||||||||||||||||||
Six Months ended | ||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||
As Reported | Adjustments | As Revised | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | $ | 2,720 | $ | 1,015 | -1 | $ | 3,403 | |||||||||||||
(332 | )(2) | |||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation | 22,307 | — | 22,307 | |||||||||||||||||
Amortization of other intangible assets | 12,257 | 332 | -2 | 12,589 | ||||||||||||||||
Share-based compensation expense | 13,437 | — | 13,437 | |||||||||||||||||
Gain on sale of available-for-sale securities | (831 | ) | — | (831 | ) | |||||||||||||||
Excess tax benefits from share-based compensation | (22 | ) | — | (22 | ) | |||||||||||||||
Deferred income taxes and other | (3,806 | ) | — | (3,806 | ) | |||||||||||||||
Changes in assets and liabilities, net of acquisition: | — | |||||||||||||||||||
Accounts receivable | (58,272 | ) | (261 | )(3) | (58,533 | ) | ||||||||||||||
Inventories | (30,733 | ) | (1,092 | )(3) | (31,825 | ) | ||||||||||||||
Other assets | (7,339 | ) | (231 | )(3) | (7,570 | ) | ||||||||||||||
Accounts payable | 68,875 | 2,220 | -3 | 71,095 | ||||||||||||||||
Accrued and other liabilities | (9,498 | ) | (1,015 | )(1) | (10,997 | ) | ||||||||||||||
(484 | )(3) | |||||||||||||||||||
Net cash provided by operating activities | 9,095 | 152 | 9,247 | |||||||||||||||||
Cash flows from investing activities: | — | |||||||||||||||||||
Purchases of property, plant and equipment | (30,522 | ) | (2,295 | )(3) | (32,817 | ) | ||||||||||||||
Investment in privately-held company | (3,970 | ) | — | (3,970 | ) | |||||||||||||||
Proceeds from sale of available-for-sale securities | 917 | — | 917 | |||||||||||||||||
Purchases of trading investments for deferred compensation plan | (1,648 | ) | — | (1,648 | ) | |||||||||||||||
Proceeds from sales of trading investments for deferred compensation plan | 1,638 | — | 1,638 | |||||||||||||||||
Net cash used in investing activities | (33,585 | ) | (2,295 | ) | (35,880 | ) | ||||||||||||||
Cash flows from financing activities: | — | |||||||||||||||||||
Payment of cash dividends | (133,462 | ) | — | (133,462 | ) | |||||||||||||||
Purchases of treasury shares | (89,955 | ) | 2,143 | -3 | (87,812 | ) | ||||||||||||||
Proceeds from sale of shares upon exercise of options and purchase rights | 9,008 | — | 9,008 | |||||||||||||||||
Tax withholdings related to net share settlements of restricted stock units | (635 | ) | — | (635 | ) | |||||||||||||||
Excess tax benefits from share-based compensation | 22 | — | 22 | |||||||||||||||||
Net cash used in financing activities | (215,022 | ) | 2,143 | (212,879 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (1,825 | ) | — | (1,825 | ) | |||||||||||||||
Net decrease in cash and cash equivalents | (241,337 | ) | — | (241,337 | ) | |||||||||||||||
Cash and cash equivalents at beginning of period | 478,370 | — | 478,370 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | 237,033 | $ | — | $ | 237,033 |
Net_Income_per_Share_Tables
Net Income per Share (Tables) | 6 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Net Income per Share | ' | |||||||||||||
Schedule of computations of basic and diluted net income per share | ' | |||||||||||||
The computations of basic and diluted net income per share for the Company were as follows (in thousands, except per share amounts): | ||||||||||||||
Three Months ended September 30, | Six Months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
As Revised | As Revised | |||||||||||||
Net income | $ | 14,398 | $ | 54,549 | $ | 15,441 | $ | 3,403 | ||||||
Weighted average shares - basic | 159,969 | 156,736 | 159,637 | 158,723 | ||||||||||
Effect of potentially dilutive share equivalents | 1,214 | 1,196 | 1,238 | 1,130 | ||||||||||
Weighted average shares - diluted | 161,183 | 157,932 | 160,875 | 159,853 | ||||||||||
Net income per share - basic | $ | 0.09 | $ | 0.35 | $ | 0.1 | $ | 0.02 | ||||||
Net income per share - diluted | $ | 0.09 | $ | 0.35 | $ | 0.1 | $ | 0.02 |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 6 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Employee Benefit Plans | ' | |||||||||||||
Summary of share-based compensation expense and related tax benefit recognized | ' | |||||||||||||
The following table summarizes the share-based compensation expense and related tax benefit recognized for the three and six months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||
Three Months ended | Six Months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Cost of goods sold | $ | 594 | $ | 608 | $ | 1,171 | $ | 1,397 | ||||||
Share-based compensation expense included in gross profit | 594 | 608 | 1,171 | 1,397 | ||||||||||
Operating expenses: | ||||||||||||||
Marketing and selling | 1,017 | 2,644 | 2,923 | 4,424 | ||||||||||
Research and development | 840 | 1,763 | 1,934 | 3,588 | ||||||||||
General and administrative | 1,658 | 2,251 | 2,471 | 4,028 | ||||||||||
Share-based compensation expense included in operating expenses | 3,515 | 6,658 | 7,328 | 12,040 | ||||||||||
Total share-based compensation expense | 4,109 | 7,266 | 8,499 | 13,437 | ||||||||||
Income tax benefit | (1,300 | ) | (1,671 | ) | (2,175 | ) | (3,047 | ) | ||||||
Share-based compensation expense, net of income tax | $ | 2,809 | $ | 5,595 | $ | 6,324 | $ | 10,390 | ||||||
Schedule of net periodic benefit cost | ' | |||||||||||||
The net periodic benefit cost for defined benefit pension plans and non-retirement post-employment benefit obligations for the three and six months ended September 30, 2013 and 2012 were as follows (in thousands): | ||||||||||||||
Three Months ended September 30, | Six Months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Service cost | $ | 1,972 | $ | 1,726 | $ | 3,929 | $ | 3,601 | ||||||
Interest cost | 430 | 418 | 857 | 912 | ||||||||||
Expected return on plan assets | (490 | ) | (525 | ) | (990 | ) | (618 | ) | ||||||
Amortization of net transition obligation | 1 | 1 | 2 | 2 | ||||||||||
Amortization of net prior service cost | 52 | 38 | 104 | 76 | ||||||||||
Recognized net actuarial loss | 256 | 262 | 508 | 678 | ||||||||||
Settlement cost | — | 2,254 | — | 2,254 | ||||||||||
Net periodic benefit cost | $ | 2,221 | $ | 4,174 | $ | 4,410 | $ | 6,905 |
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 6 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Balance Sheet Components | ' | |||||||||||||
Schedule of components of balance sheet asset | ' | |||||||||||||
The following table presents the components of certain balance sheet asset amounts as of September 30 and March 31, 2013 (in thousands): | ||||||||||||||
September 30, 2013 | March 31, 2013 | |||||||||||||
Accounts receivable: | ||||||||||||||
Accounts receivable | $ | 413,696 | $ | 325,870 | ||||||||||
Allowance for doubtful accounts | (1,071 | ) | (2,153 | ) | ||||||||||
Allowance for returns | (19,230 | ) | (21,883 | ) | ||||||||||
Allowances for cooperative marketing arrangements | (26,010 | ) | (24,160 | ) | ||||||||||
Allowances for customer incentive programs | (44,788 | ) | (42,857 | ) | ||||||||||
Allowances for pricing programs | (63,739 | ) | (55,252 | ) | ||||||||||
$ | 258,858 | $ | 179,565 | |||||||||||
Inventories: | ||||||||||||||
Raw materials | $ | 34,020 | $ | 37,504 | ||||||||||
Work-in-process | 75 | 41 | ||||||||||||
Finished goods | 258,682 | 223,538 | ||||||||||||
$ | 292,777 | $ | 261,083 | |||||||||||
Other current assets: | ||||||||||||||
Income tax and value-added tax refund receivables | $ | 25,113 | $ | 17,403 | ||||||||||
Deferred taxes | 29,109 | 25,400 | ||||||||||||
Prepaid expenses and other | 11,586 | 15,300 | ||||||||||||
$ | 65,808 | $ | 58,103 | |||||||||||
Property, plant and equipment: | ||||||||||||||
Plant, buildings and improvements | $ | 68,642 | $ | 70,009 | ||||||||||
Equipment | 131,913 | 129,868 | ||||||||||||
Computer equipment | 32,551 | 42,437 | ||||||||||||
Computer software | 80,136 | 80,930 | ||||||||||||
313,242 | 323,244 | |||||||||||||
Less: accumulated depreciation | (236,845 | ) | (247,469 | ) | ||||||||||
76,397 | 75,775 | |||||||||||||
Construction-in-progress | 7,890 | 9,047 | ||||||||||||
Land | 2,846 | 2,827 | ||||||||||||
$ | 87,133 | $ | 87,649 | |||||||||||
Other assets: | ||||||||||||||
Deferred taxes | $ | 51,121 | $ | 53,035 | ||||||||||
Trading investments | 15,435 | 15,599 | ||||||||||||
Other | 5,261 | 6,464 | ||||||||||||
$ | 71,817 | $ | 75,098 | |||||||||||
Schedule of components of balance sheet liability | ' | |||||||||||||
The following table presents the components of certain balance sheet liability amounts as of September 30 and March 31, 2013 (in thousands): | ||||||||||||||
September 30, 2013 | March 31, 2013 | |||||||||||||
Accrued and other current liabilities: | ||||||||||||||
Accrued personnel expenses | $ | 56,906 | $ | 40,502 | ||||||||||
Accrued marketing expenses | 13,039 | 11,005 | ||||||||||||
Indirect customer incentive programs | 32,539 | 29,464 | ||||||||||||
Accrued restructuring | 5,566 | 13,458 | ||||||||||||
Deferred revenue | 21,562 | 22,698 | ||||||||||||
Accrued freight and duty | 8,596 | 5,882 | ||||||||||||
Value-added tax payable | 8,477 | 8,544 | ||||||||||||
Accrued royalties | 4,012 | 3,358 | ||||||||||||
Warranty accrual | 12,634 | 11,878 | ||||||||||||
Employee benefit plan obligations | 1,571 | 4,351 | ||||||||||||
Income taxes payable | 5,392 | 2,463 | ||||||||||||
Other accrued liabilities | 49,352 | 39,171 | ||||||||||||
$ | 219,646 | $ | 192,774 | |||||||||||
Non-current liabilities: | ||||||||||||||
Income taxes payable | $ | 100,310 | $ | 98,827 | ||||||||||
Warranty accrual | 9,451 | 8,660 | ||||||||||||
Obligation for deferred compensation | 15,435 | 15,631 | ||||||||||||
Employee benefit plan obligations | 40,728 | 35,963 | ||||||||||||
Deferred rent | 23,690 | 24,136 | ||||||||||||
Deferred taxes | 1,872 | 1,989 | ||||||||||||
Other liabilities | 11,070 | 10,676 | ||||||||||||
$ | 202,556 | $ | 195,882 | |||||||||||
Schedule of changes in the allowance for doubtful accounts | ' | |||||||||||||
The following table presents the changes in the allowance for doubtful accounts during the three and six months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||
Three Months ended September 30, | Six Months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Beginning balance | $ | (2,189 | ) | $ | (2,321 | ) | $ | (2,153 | ) | $ | (2,472 | ) | ||
Bad debt expense reversal, net | 428 | 103 | 359 | 189 | ||||||||||
Write-offs, net of recoveries | 690 | (21 | ) | 723 | 44 | |||||||||
Ending balance | $ | (1,071 | ) | $ | (2,239 | ) | $ | (1,071 | ) | $ | (2,239 | ) |
Financial_Instruments_Tables
Financial Instruments (Tables) | 6 Months Ended | |||||||||||||||||||||||
Sep. 30, 2012 | ||||||||||||||||||||||||
Financial Instruments | ' | |||||||||||||||||||||||
Schedule of financial assets and liabilities accounted for at fair value and classified by level within the fair value hierarchy | ' | |||||||||||||||||||||||
The following table presents the Company’s financial assets and liabilities, that were accounted for at fair value, excluding assets related to the Company’s defined benefit pension plans, classified by the level within the fair value hierarchy (in thousands): | ||||||||||||||||||||||||
September 30, 2013 | March 31, 2013 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 1 | Level 2 | |||||||||||||||||||||
Cash equivalents (1) | $ | 99,510 | $ | — | $ | 119,073 | $ | — | ||||||||||||||||
Trading investments for deferred compensation plan: | ||||||||||||||||||||||||
Money market funds | 3,311 | — | 4,220 | — | ||||||||||||||||||||
Mutual funds | 12,124 | — | 11,379 | — | ||||||||||||||||||||
Foreign exchange derivative assets | — | 126 | — | 1,197 | ||||||||||||||||||||
Total assets at fair value | $ | 114,945 | $ | 126 | $ | 134,672 | $ | 1,197 | ||||||||||||||||
Foreign exchange derivative liabilities | $ | — | $ | 1,546 | $ | — | $ | 707 | ||||||||||||||||
Total liabilities at fair value | $ | — | $ | 1,546 | $ | — | $ | 707 | ||||||||||||||||
(1) Excludes cash balances of $195.3 million as of September 30, 2013 and $214.7 million as of March 31, 2013. | ||||||||||||||||||||||||
Schedule of changes in the Company's Level 3 available-for-sale securities | ' | |||||||||||||||||||||||
The following table presents the changes in the Company’s Level 3 available-for-sale securities during the six months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Beginning balance | $ | — | $ | 429 | ||||||||||||||||||||
Proceeds from sales of securities | — | (917 | ) | |||||||||||||||||||||
Reversal of unrealized gains previously recognized in accumulated other comprehensive loss | — | 831 | ||||||||||||||||||||||
Reversal of unrealized losses previously recognized in accumulated other comprehensive loss | — | (343 | ) | |||||||||||||||||||||
Ending balance | $ | — | $ | — | ||||||||||||||||||||
Schedule of fair values of derivative instruments and their locations on the balance sheets | ' | |||||||||||||||||||||||
The following table presents the fair values of the Company’s derivative instruments and their locations on its Consolidated Balance Sheets as of September 30 and March 31, 2013 (in thousands): | ||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||
September 30, | March 31, | September 30, | March 31, | |||||||||||||||||||||
Location | 2013 | 2013 | Location | 2013 | 2013 | |||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||
Cash flow hedges | Other assets | $ | 8 | $ | 1,165 | Other liabilities | $ | 754 | $ | — | ||||||||||||||
8 | 1,165 | 754 | — | |||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||
Foreign exchange forward contracts | Other assets | 118 | — | Other liabilities | 240 | 270 | ||||||||||||||||||
Foreign exchange swap contracts | Other assets | — | 32 | Other liabilities | 552 | 437 | ||||||||||||||||||
118 | 32 | 792 | 707 | |||||||||||||||||||||
$ | 126 | $ | 1,197 | $ | 1,546 | $ | 707 | |||||||||||||||||
Schedule of amounts of gains and losses on derivative instruments | ' | |||||||||||||||||||||||
The following table presents the amounts of gains and losses on the Company’s derivative instruments for the three and six months ended September 30, 2013 and 2012 and their locations on its consolidated statements of operations (in thousands): | ||||||||||||||||||||||||
Net Amount of Gain/(Loss) | Location of | Amount of Gain/(Loss) | Location of | Amount of Gain/(Loss) | ||||||||||||||||||||
Deferred as a Component | Gain/(Loss) | Reclassified from | Gain/(Loss) | Recognized in Income | ||||||||||||||||||||
of Accumulated Other | Reclassified from | Accumulated Other | Recognized in Income | Immediately | ||||||||||||||||||||
Comprehensive Loss | Accumulated | Comprehensive Loss into | ||||||||||||||||||||||
Other | Income | |||||||||||||||||||||||
Comprehensive | ||||||||||||||||||||||||
2013 | 2012 | Loss into Income | 2013 | 2012 | Immediately | 2013 | 2012 | |||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||
Cash flow hedges | $ | (1,467 | ) | $ | (3,783 | ) | Cost of goods sold | $ | (94 | ) | $ | (1,683 | ) | Other income/expense | $ | 16 | $ | 120 | ||||||
(1,467 | ) | (3,783 | ) | (94 | ) | (1,683 | ) | 16 | 120 | |||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||
Foreign exchange forward contracts | — | — | — | Other income/expense | (482 | ) | (92 | ) | ||||||||||||||||
Foreign exchange swap contracts | — | — | — | Other income/expense | 5 | (390 | ) | |||||||||||||||||
— | — | — | (477 | ) | (482 | ) | ||||||||||||||||||
$ | (1,467 | ) | $ | (3,783 | ) | $ | (94 | ) | $ | (1,683 | ) | $ | (461 | ) | $ | (362 | ) | |||||||
Net Amount of Gain/(Loss) | Location of | Amount of Gain/(Loss) | Location of | Amount of Gain/(Loss) | ||||||||||||||||||||
Deferred as a Component | Gain/(Loss) | Reclassified from | Gain/(Loss) | Recognized in Income | ||||||||||||||||||||
of Accumulated Other | Reclassified from | Accumulated Other | Recognized in Income | Immediately | ||||||||||||||||||||
Comprehensive Loss | Accumulated | Comprehensive Loss into | ||||||||||||||||||||||
Other | Income | |||||||||||||||||||||||
Comprehensive | ||||||||||||||||||||||||
2013 | 2012 | Loss into Income | 2013 | 2012 | Immediately | 2013 | 2012 | |||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||
Cash flow hedges | $ | (2,102 | ) | $ | (2,684 | ) | Cost of goods sold | $ | 184 | $ | (1,577 | ) | Other income/expense | $ | 46 | $ | 172 | |||||||
(2,102 | ) | (2,684 | ) | 184 | (1,577 | ) | 46 | 172 | ||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||
Foreign exchange forward contracts | — | — | — | Other income/expense | 165 | (837 | ) | |||||||||||||||||
Foreign exchange swap contracts | — | — | — | Other income/expense | 743 | 435 | ||||||||||||||||||
— | — | — | 908 | (402 | ) | |||||||||||||||||||
$ | (2,102 | ) | $ | (2,684 | ) | $ | 184 | $ | (1,577 | ) | $ | 954 | $ | (230 | ) |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||||||||
Summary of activity in the goodwill account | ' | |||||||||||||||||||
The following table summarizes the activity in the Company’s goodwill during the six months ended September 30, 2013 (in thousands): | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Peripherals | Video | Total | ||||||||||||||||||
Conferencing | ||||||||||||||||||||
Beginning balance | $ | 216,744 | $ | 124,613 | $ | 341,357 | ||||||||||||||
Additions | 202 | — | 202 | |||||||||||||||||
Foreign currency movements | — | 731 | 731 | |||||||||||||||||
Reclassified from assets held for sale | 2,469 | — | 2,469 | |||||||||||||||||
Ending balance | $ | 219,415 | $ | 125,344 | $ | 344,759 | ||||||||||||||
Schedule of acquired intangible assets subject to amortization | ' | |||||||||||||||||||
The Company’s acquired other intangible assets subject to amortization were as follows (in thousands): | ||||||||||||||||||||
September 30, 2013 | March 31, 2013 | |||||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | Gross Carrying | Accumulated | Net Carrying | |||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||||||||
Trademark/tradename | $ | 32,085 | $ | (30,127 | ) | $ | 1,958 | $ | 29,842 | $ | (26,558 | ) | $ | 3,284 | ||||||
Technology (1) | 92,007 | (84,144 | ) | 7,863 | 73,249 | (61,560 | ) | 11,689 | ||||||||||||
Customer contracts | 40,345 | (32,419 | ) | 7,926 | 39,068 | (28,017 | ) | 11,051 | ||||||||||||
$ | 164,437 | $ | (146,690 | ) | $ | 17,747 | $ | 142,159 | $ | (116,135 | ) | $ | 26,024 | |||||||
(1) During the six months ended September 30, 2013, the Company changed its classification of its Retail - Remote product category and digital video security product line from assets held for sale to assets held and used. The increase in gross carrying amount and accumulated amortization between March 31, 2013 and September 30, 2013 was due to this change in classification. |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 6 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Commitments and Contingencies | ' | |||||||||||||
Schedule of asset retirement obligation liability | ' | |||||||||||||
The following table describes changes to the Company’s asset retirement obligation liability for the three and six months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||
Three Months ended September 30, | Six Months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Beginning balance | $ | 1,532 | $ | 2,001 | $ | 1,750 | $ | 1,918 | ||||||
Liabilities incurred | — | — | — | — | ||||||||||
Liabilities settled | (375 | ) | — | (596 | ) | — | ||||||||
Accretion expense | 9 | 4 | 11 | 16 | ||||||||||
Foreign currency translation | 12 | (135 | ) | 13 | (64 | ) | ||||||||
Ending balance | $ | 1,178 | $ | 1,870 | $ | 1,178 | $ | 1,870 | ||||||
Schedule of warranty liability | ' | |||||||||||||
Changes in the Company’s warranty liability for the three and six months ended September 30, 2013 and 2012 were as follows (in thousands): | ||||||||||||||
Three Months ended September 30, | Six Months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
As Revised | As Revised | |||||||||||||
Beginning balance | $ | 22,655 | $ | 23,966 | $ | 20,538 | $ | 25,494 | ||||||
Provision during the period | 3,356 | 3,444 | 6,645 | 5,981 | ||||||||||
Settlements made during the year, net of adjustments | (3,926 | ) | (3,873 | ) | (7,425 | ) | (7,938 | ) | ||||||
Amount classified as liabilities held for sale (1) | — | — | 2,327 | — | ||||||||||
Ending balance | $ | 22,085 | $ | 23,537 | $ | 22,085 | $ | 23,537 | ||||||
(1) Represents warranty liability previously allocated to the Company’s Retail — Remotes product category which was classified as an asset held for sale as of March 31, 2013. | ||||||||||||||
Schedule of change in the Company's deferred services revenue | ' | |||||||||||||
Change in the Company’s deferred services revenue during the three and six months ended September 30, 2013 and 2012 were as follows (in thousands): | ||||||||||||||
Three Months ended September 30, | Six Months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Beginning balance | $ | 29,080 | $ | 26,340 | $ | 29,328 | $ | 24,568 | ||||||
Additions for extended warranties issued during the period | 7,914 | 8,112 | 15,830 | 16,394 | ||||||||||
Amortization of deferred revenue for the period | (7,926 | ) | (7,333 | ) | (16,090 | ) | (13,843 | ) | ||||||
Ending balance | $ | 29,068 | $ | 27,119 | $ | 29,068 | $ | 27,119 | ||||||
Schedule of outstanding purchase commitments | ' | |||||||||||||
September 30, 2013 | ||||||||||||||
Inventory purchases | $ | 132,782 | ||||||||||||
Operating expenses | 63,426 | |||||||||||||
Capital expenditures | 18,372 | |||||||||||||
$ | 214,580 |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 6 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Shareholders' Equity | ' | |||||||||||||
Schedule of approved share buyback program | ' | |||||||||||||
The approved share buyback programs are shown in the following table (in thousands, excluding transaction costs). | ||||||||||||||
Date of Announcement | Approved | Approved | Expiration Date | Shares | Amounts | |||||||||
Share | Buyback | Repurchased | ||||||||||||
Buyback | Amount | |||||||||||||
Number | ||||||||||||||
September 2008 - amended | 28,465 | $ | 177,030 | August 2013 | 18,500 | $ | 170,714 | |||||||
September 2008 | 8,344 | $ | 250,000 | August 2013 | 7,609 | $ | 73,134 | |||||||
Schedule of components of accumulated other comprehensive loss | ' | |||||||||||||
The components of accumulated other comprehensive loss were as follows (in thousands): | ||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||
Cumulative | Defined | Deferred | ||||||||||||
Translation | Benefit | Hedging | ||||||||||||
Adjustment | Plan (1) | Gains (Losses) | Total | |||||||||||
March 31, 2013 (As Revised) | $ | (73,187 | ) | $ | (20,316 | ) | $ | 510 | $ | (92,993 | ) | |||
Net change in other comprehensive loss | 2,829 | (385 | ) | (2,102 | ) | 342 | ||||||||
September 30, 2013 | $ | (70,358 | ) | $ | (20,701 | ) | $ | (1,592 | ) | $ | (92,651 | ) | ||
(1) Net of tax of $315 as of September 30 and March 31, 2013. |
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Segment Information | ' | |||||||||||||||||||||||||
Schedule of net sales by product family, excluding intercompany transactions | ' | |||||||||||||||||||||||||
Net sales by product family, excluding intercompany transactions, were as follows (in thousands): | ||||||||||||||||||||||||||
Three Months ended | Six Months ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2013 | 2012(1) | 2013 | 2012(1) | |||||||||||||||||||||||
Peripherals | ||||||||||||||||||||||||||
Retail - Pointing Devices | $ | 130,656 | $ | 122,524 | $ | 245,307 | $ | 238,353 | ||||||||||||||||||
Retail - PC Keyboards & Desktops | 105,236 | 97,069 | 203,186 | 191,628 | ||||||||||||||||||||||
Retail - Tablet Accessories | 34,711 | 33,737 | 73,270 | 49,623 | ||||||||||||||||||||||
Retail - Audio PC | 67,199 | 77,267 | 119,164 | 138,792 | ||||||||||||||||||||||
Retail - Audio - Wearables & Wireless | 25,648 | 19,108 | 44,723 | 33,707 | ||||||||||||||||||||||
Retail - Video | 41,061 | 49,453 | 76,319 | 86,612 | ||||||||||||||||||||||
Retail - PC Gaming | 41,493 | 46,673 | 81,110 | 73,456 | ||||||||||||||||||||||
Retail - Remotes | 13,327 | 16,434 | 27,901 | 30,166 | ||||||||||||||||||||||
Retail - Other | 5,522 | 14,214 | 7,109 | 29,243 | ||||||||||||||||||||||
OEM | 37,526 | 36,718 | 72,039 | 73,393 | ||||||||||||||||||||||
Total peripherals | 502,379 | 513,197 | 950,128 | 944,973 | ||||||||||||||||||||||
Video conferencing | 29,593 | 34,496 | 59,768 | 71,324 | ||||||||||||||||||||||
Total net sales | $ | 531,972 | $ | 547,693 | $ | 1,009,896 | $ | 1,016,297 | ||||||||||||||||||
(1) Certain products within the retail product families as presented in the prior year have been reclassified to conform to the current year presentation, with no impact on previously reported total peripheral sales. | ||||||||||||||||||||||||||
Schedule of net sales and operating income (loss) for the Company's reporting segments | ' | |||||||||||||||||||||||||
Net sales and operating income (loss) for the Company’s reporting segments were as follows (in thousands): | ||||||||||||||||||||||||||
Three Months ended September 30, | Six Months ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Net sales by reporting segment: | ||||||||||||||||||||||||||
Peripherals | $ | 502,379 | $ | 513,197 | $ | 950,128 | $ | 944,973 | ||||||||||||||||||
Video conferencing | 29,593 | 34,496 | 59,768 | 71,324 | ||||||||||||||||||||||
Total net sales | $ | 531,972 | $ | 547,693 | $ | 1,009,896 | $ | 1,016,297 | ||||||||||||||||||
Operating income (loss) by segment: | ||||||||||||||||||||||||||
Peripherals (1) | $ | 39,281 | $ | 39,097 | $ | 52,151 | $ | (5,505 | ) | |||||||||||||||||
Video conferencing (1) | (12,708 | ) | (1,811 | ) | (15,877 | ) | (2,921 | ) | ||||||||||||||||||
Operating income (loss) before other charges | 26,573 | 37,286 | 36,274 | (8,426 | ) | |||||||||||||||||||||
Other charges: | ||||||||||||||||||||||||||
Share-based compensation | (4,109 | ) | (7,266 | ) | (8,499 | ) | (13,437 | ) | ||||||||||||||||||
Amortization | (5,254 | ) | (6,191 | ) | (10,518 | ) | (12,589 | ) | ||||||||||||||||||
Total operating income (loss) | $ | 17,210 | $ | 23,829 | $ | 17,257 | $ | (34,452 | ) | |||||||||||||||||
(1) The previously-reported operating income (loss) for the three and six months ended September 30, 2012 was impacted by the errors described in Note 2 as follows: (a) For the three and six months ended September 30, 2012, Peripherals operating income (loss) decreased by an immaterial amount and increased by $1.2 million, respectively, and (b) For the three and six months ended September 30, 2012, Video Conferencing operating loss decreased by less than $0.1 million and $0.2 million, respectively. These changes resulted from the warranty accrual and amortization of intangibles error correction. | ||||||||||||||||||||||||||
Schedule of net sales to unaffiliated customers by geographic region | ' | |||||||||||||||||||||||||
Net sales to unaffiliated customers by geographic region were as follows (in thousands): | ||||||||||||||||||||||||||
Three Months ended September 30, | Six Months ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
As Reported | Adjustments (1) | As Revised | As Reported | Adjustments (1) | As Revised | |||||||||||||||||||||
Americas | $ | 202,381 | $ | 216,596 | $ | (17,079 | ) | $ | 199,517 | $ | 402,834 | $ | 420,522 | $ | (36,438 | ) | $ | 384,084 | ||||||||
EMEA | 203,353 | 212,050 | 10,939 | 222,989 | 358,576 | 362,056 | 24,306 | 386,362 | ||||||||||||||||||
Asia Pacific | 126,238 | 119,047 | 6,140 | 125,187 | 248,486 | 233,719 | 12,132 | 245,851 | ||||||||||||||||||
Total net sales | $ | 531,972 | $ | 547,693 | $ | — | $ | 547,693 | $ | 1,009,896 | $ | 1,016,297 | $ | — | $ | 1,016,297 | ||||||||||
(1) During fiscal year 2013, the Company determined that net sales to unaffiliated customers by geographic regions previously reported, including the three and six months ended September 30, 2012, were not properly stated since amounts related to its Video Conferencing segment and other businesses were improperly allocated solely to the Americas region. | ||||||||||||||||||||||||||
Schedule of long-lived assets by geographic region | ' | |||||||||||||||||||||||||
Long-lived assets by geographic region were as follows (in thousands): | ||||||||||||||||||||||||||
September 30, 2013 | March 31, 2013 | |||||||||||||||||||||||||
Americas | $ | 43,386 | $ | 43,357 | ||||||||||||||||||||||
EMEA | 5,875 | 8,315 | ||||||||||||||||||||||||
Asia Pacific | 42,396 | 40,952 | ||||||||||||||||||||||||
Total long-lived assets | $ | 91,657 | $ | 92,624 |
Restructuring_Tables
Restructuring (Tables) | 6 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Restructuring | ' | |||||||||||||
Summary of restructuring related activities | ' | |||||||||||||
The following table summarizes restructuring related activities (in thousands): | ||||||||||||||
Total | Termination | Lease Exit | Other | |||||||||||
Benefits | Costs | |||||||||||||
Balance at March 31, 2012 | $ | — | $ | — | $ | — | $ | — | ||||||
Charges | 31,227 | 28,655 | 1,472 | 1,100 | ||||||||||
Cash payments | (5,195 | ) | (4,766 | ) | — | (429 | ) | |||||||
Foreign exchange | 63 | 63 | — | — | ||||||||||
Balance at June 30, 2012 | 26,095 | 23,952 | 1,472 | 671 | ||||||||||
Charges (credits) | (2,671 | ) | (3,816 | ) | 48 | 1,097 | ||||||||
Cash payments | (17,652 | ) | (16,642 | ) | (52 | ) | (958 | ) | ||||||
Foreign exchange | 14 | — | — | 14 | ||||||||||
Balance at September 30, 2012 | $ | 5,786 | $ | 3,494 | $ | 1,468 | $ | 824 | ||||||
Charges (credits) | (358 | ) | (188 | ) | (182 | ) | 12 | |||||||
Cash payments | (4,511 | ) | (2,633 | ) | (1,104 | ) | (774 | ) | ||||||
Foreign exchange | — | — | — | — | ||||||||||
Balance at December 30, 2012 | 917 | 673 | 182 | 62 | ||||||||||
Charges (credits) | 15,507 | 16,437 | (30 | ) | (900 | ) | ||||||||
Cash payments | (2,966 | ) | (3,727 | ) | (77 | ) | 838 | |||||||
Foreign exchange | — | — | — | — | ||||||||||
Balance at March 31, 2013 | 13,458 | 13,383 | 75 | — | ||||||||||
Charges | 2,334 | 2,004 | 330 | — | ||||||||||
Cash payments | (8,422 | ) | (8,422 | ) | — | — | ||||||||
Foreign exchange | (170 | ) | (170 | ) | — | — | ||||||||
Balance at June 30, 2013 | 7,200 | 6,795 | 405 | — | ||||||||||
Charges | 5,465 | 4,562 | -1 | 903 | -1 | — | ||||||||
Cash payments | (7,099 | ) | (6,535 | ) | (564 | ) | — | |||||||
Foreign exchange | — | — | — | — | ||||||||||
Balance at September 30, 2013 | $ | 5,566 | $ | 4,822 | $ | 744 | $ | — | ||||||
(1) During the three months ended September 30, 2013, the Company incurred $4.6 million in termination benefits, $5.4 million charge related to the restructuring plan initiated during the second quarter of fiscal year 2014 offset by a $0.8 million credit related to the restructuring plan initiated during the fourth quarter of fiscal year 2013. During the same period, the Company also incurred $0.9 million in lease exit costs, $0.6 million related to the restructuring plan initiated during the second quarter of fiscal year 2014 and $0.3 million related to the restructuring plan initiated during the fourth quarter of fiscal year 2013. |
The_Company_Details
The Company (Details) | 6 Months Ended |
Sep. 30, 2013 | |
segment | |
The Company | ' |
Number of Operating Segments | 2 |
Revision_of_PreviouslyIssued_F2
Revision of Previously-Issued Financial Statements (Details) (USD $) | 3 Months Ended | 6 Months Ended | 39 Months Ended | 3 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | |
Amortization of intangibles | Adjustment for product warranty liability and amortization expense | ||||||
Product warranty liability and amortization expense of intangible assets | ' | ' | ' | ' | ' | ' | $19,100,000 |
Intangible assets | 17,747,000 | ' | 17,747,000 | ' | 26,024,000 | 4,200,000 | ' |
Amortization of intangible assets | $5,254,000 | $6,191,000 | $10,518,000 | $12,589,000 | ' | $2,000,000 | ' |
Revision_of_PreviouslyIssued_F3
Revision of Previously-Issued Financial Statements (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 |
Consolidated Statements of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $531,972 | ' | ' | ' | $547,693 | ' | $1,009,896 | $1,016,297 | ' |
Cost of goods sold | 348,559 | ' | ' | ' | 351,919 | ' | 658,128 | 675,177 | ' |
Gross profit | 183,413 | ' | ' | ' | 195,774 | ' | 351,768 | 341,120 | ' |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Marketing and selling | 93,710 | ' | ' | ' | 110,522 | ' | 194,345 | 211,419 | ' |
Research and development | 37,633 | ' | ' | ' | 38,114 | ' | 73,824 | 77,137 | ' |
General and administrative | 29,395 | ' | ' | ' | 25,980 | ' | 58,543 | 58,460 | ' |
Restructuring charges (credits) | 5,465 | 2,334 | 15,507 | -358 | -2,671 | 31,227 | 7,799 | 28,556 | 43,700 |
Total operating expenses | 166,203 | ' | ' | ' | 171,945 | ' | 334,511 | 375,572 | ' |
Operating income (loss) | 17,210 | ' | ' | ' | 23,829 | ' | 17,257 | -34,452 | ' |
Interest income, net | 183 | ' | ' | ' | 153 | ' | 160 | 537 | ' |
Other expense, net | 62 | ' | ' | ' | -509 | ' | 279 | -668 | ' |
Income (loss) before income taxes | 17,455 | ' | ' | ' | 23,473 | ' | 17,696 | -34,583 | ' |
Benefit from income taxes | 3,057 | ' | ' | ' | -31,076 | ' | 2,255 | -37,986 | ' |
Net income | 14,398 | ' | ' | ' | 54,549 | ' | 15,441 | 3,403 | ' |
Net income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $0.09 | ' | ' | ' | $0.35 | ' | $0.10 | $0.02 | ' |
Diluted (in dollars per share) | $0.09 | ' | ' | ' | $0.35 | ' | $0.10 | $0.02 | ' |
Shares used to compute net income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in shares) | 159,969 | ' | ' | ' | 156,736 | ' | 159,637 | 158,723 | ' |
Diluted (in shares) | 161,183 | ' | ' | ' | 157,932 | ' | 160,875 | 159,853 | ' |
As Reported | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated Statements of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | 547,693 | ' | ' | 1,016,297 | ' |
Cost of goods sold | ' | ' | ' | ' | 351,698 | ' | ' | 676,050 | ' |
Gross profit | ' | ' | ' | ' | 195,995 | ' | ' | 340,247 | ' |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Marketing and selling | ' | ' | ' | ' | 110,522 | ' | ' | 211,419 | ' |
Research and development | ' | ' | ' | ' | 38,019 | ' | ' | 76,947 | ' |
General and administrative | ' | ' | ' | ' | 25,980 | ' | ' | 58,460 | ' |
Restructuring charges (credits) | ' | ' | ' | ' | -2,671 | ' | ' | 28,556 | ' |
Total operating expenses | ' | ' | ' | ' | 171,850 | ' | ' | 375,382 | ' |
Operating income (loss) | ' | ' | ' | ' | 24,145 | ' | ' | -35,135 | ' |
Interest income, net | ' | ' | ' | ' | 153 | ' | ' | 537 | ' |
Other expense, net | ' | ' | ' | ' | -509 | ' | ' | -668 | ' |
Income (loss) before income taxes | ' | ' | ' | ' | 23,789 | ' | ' | -35,266 | ' |
Benefit from income taxes | ' | ' | ' | ' | -31,076 | ' | ' | -37,986 | ' |
Net income | ' | ' | ' | ' | 54,865 | ' | ' | 2,720 | ' |
Net income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | ' | ' | ' | ' | $0.35 | ' | ' | $0.02 | ' |
Diluted (in dollars per share) | ' | ' | ' | ' | $0.35 | ' | ' | $0.02 | ' |
Shares used to compute net income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in shares) | ' | ' | ' | ' | 156,736 | ' | ' | 158,723 | ' |
Diluted (in shares) | ' | ' | ' | ' | 157,932 | ' | ' | 159,853 | ' |
Adjustments | Amounts not properly stated | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated Statements of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross profit | ' | ' | ' | ' | -221 | ' | ' | 873 | ' |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total operating expenses | ' | ' | ' | ' | 95 | ' | ' | 190 | ' |
Operating income (loss) | ' | ' | ' | ' | -316 | ' | ' | 683 | ' |
Income (loss) before income taxes | ' | ' | ' | ' | -316 | ' | ' | 683 | ' |
Net income | ' | ' | ' | ' | -316 | ' | ' | 683 | ' |
Adjustments | Amounts not properly stated for warranty accrual | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated Statements of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of goods sold | ' | ' | ' | ' | 150 | ' | ' | -1,015 | ' |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | -150 | ' | ' | 1,015 | ' |
Adjustments | Amortization of intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated Statements of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of goods sold | ' | ' | ' | ' | 71 | ' | ' | 142 | ' |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research and development | ' | ' | ' | ' | 95 | ' | ' | 190 | ' |
Net income | ' | ' | ' | ' | ($166) | ' | ' | ($332) | ' |
Revision_of_PreviouslyIssued_F4
Revision of Previously-Issued Financial Statements (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Consolidated Statements of Comprehensive Income | ' | ' | ' | ' |
Net Income | $14,398 | $54,549 | $15,441 | $3,403 |
Other comprehensive income: | ' | ' | ' | ' |
Foreign currency translation gain (loss) | 2,728 | 2,441 | 2,829 | -4,420 |
Change in net loss, and prior service cost related to defined benefit pension plans: | ' | ' | ' | ' |
Net loss and prior service cost | -804 | 6,457 | -1,000 | 7,920 |
Less amortization included in operating expenses | 309 | 301 | 615 | 756 |
Net change in hedging gain (loss): | ' | ' | ' | ' |
Unrealized hedging loss | -1,373 | -5,466 | -2,286 | -4,261 |
Less reclassification adjustment for gain included in cost of goods sold | -94 | 1,683 | 184 | 1,577 |
Net change in unrealized investment loss: | ' | ' | ' | ' |
Reclassification adjustment for gain included in other income (expense) | ' | ' | ' | -343 |
Other comprehensive income | 766 | 5,416 | 342 | 1,229 |
Total comprehensive income | 15,164 | 59,965 | 15,783 | 4,632 |
As Reported | ' | ' | ' | ' |
Consolidated Statements of Comprehensive Income | ' | ' | ' | ' |
Net Income | ' | 54,865 | ' | 2,720 |
Other comprehensive income: | ' | ' | ' | ' |
Foreign currency translation gain (loss) | ' | 4,970 | ' | -1,295 |
Change in net loss, and prior service cost related to defined benefit pension plans: | ' | ' | ' | ' |
Net loss and prior service cost | ' | 6,457 | ' | 7,920 |
Less amortization included in operating expenses | ' | 301 | ' | 756 |
Net change in hedging gain (loss): | ' | ' | ' | ' |
Unrealized hedging loss | ' | -5,466 | ' | -4,261 |
Less reclassification adjustment for gain included in cost of goods sold | ' | 1,683 | ' | 1,577 |
Net change in unrealized investment loss: | ' | ' | ' | ' |
Reclassification adjustment for gain included in other income (expense) | ' | ' | ' | -343 |
Other comprehensive income | ' | 7,945 | ' | 4,354 |
Total comprehensive income | ' | 62,810 | ' | 7,074 |
Adjustments | Amounts not properly stated | ' | ' | ' | ' |
Consolidated Statements of Comprehensive Income | ' | ' | ' | ' |
Net Income | ' | -316 | ' | 683 |
Net change in unrealized investment loss: | ' | ' | ' | ' |
Other comprehensive income | ' | -2,529 | ' | -3,125 |
Total comprehensive income | ' | -2,845 | ' | -2,442 |
Adjustments | Amounts not properly stated for warranty accrual | ' | ' | ' | ' |
Consolidated Statements of Comprehensive Income | ' | ' | ' | ' |
Net Income | ' | -150 | ' | 1,015 |
Adjustments | Amortization of intangibles | ' | ' | ' | ' |
Consolidated Statements of Comprehensive Income | ' | ' | ' | ' |
Net Income | ' | -166 | ' | -332 |
Adjustments | Amounts not properly stated for other adjustments | ' | ' | ' | ' |
Other comprehensive income: | ' | ' | ' | ' |
Foreign currency translation gain (loss) | ' | ($2,529) | ' | ($3,125) |
Revision_of_PreviouslyIssued_F5
Revision of Previously-Issued Financial Statements (Details 4) (USD $) | 3 Months Ended | 6 Months Ended | 39 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 |
Amortization of intangibles | As Reported | As Reported | Adjustments | Adjustments | Adjustments | Adjustments | Adjustments | Adjustments | Adjustments | Adjustments | |||||
Amounts not properly stated | Amounts not properly stated | Amounts not properly stated for warranty accrual | Amounts not properly stated for warranty accrual | Amortization of intangibles | Amortization of intangibles | Amounts not properly stated for other adjustments | |||||||||
Cash flows from operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $14,398 | $54,549 | $15,441 | $3,403 | ' | $54,865 | $2,720 | ' | ($316) | $683 | ($150) | $1,015 | ($166) | ($332) | ' |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation | ' | ' | 19,283 | 22,307 | ' | ' | 22,307 | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of other intangible assets | 5,254 | 6,191 | 10,518 | 12,589 | 2,000 | ' | 12,257 | 332 | ' | ' | ' | ' | ' | 332 | ' |
Share-based compensation expense | ' | ' | 8,499 | 13,437 | ' | ' | 13,437 | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of available-for-sale securities | ' | ' | ' | -831 | ' | ' | -831 | ' | ' | ' | ' | ' | ' | ' | ' |
Excess tax benefits from share-based compensation | ' | ' | ' | -22 | ' | ' | -22 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred income taxes and other | ' | ' | -3,902 | -3,806 | ' | ' | -3,806 | ' | ' | ' | ' | ' | ' | ' | ' |
Changes in assets and liabilities, net of acquisitions: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable | ' | ' | -77,042 | -58,533 | ' | ' | -58,272 | ' | ' | ' | ' | ' | ' | ' | -261 |
Inventories | ' | ' | -21,350 | -31,825 | ' | ' | -30,733 | ' | ' | ' | ' | ' | ' | ' | -1,092 |
Other assets | ' | ' | -5,893 | -7,570 | ' | ' | -7,339 | ' | ' | ' | ' | ' | ' | ' | -231 |
Accounts payable | ' | ' | 39,555 | 71,095 | ' | ' | 68,875 | ' | ' | ' | ' | ' | ' | ' | 2,220 |
Accrued and other liabilities | ' | ' | 26,091 | -10,997 | ' | ' | -9,498 | ' | ' | ' | ' | -1,015 | ' | ' | -484 |
Net cash provided by operating activities | ' | ' | 14,186 | 9,247 | ' | ' | 9,095 | 152 | ' | ' | ' | ' | ' | ' | ' |
Cash flows from investing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchases of property, plant and equipment | ' | ' | -23,063 | -32,817 | ' | ' | -30,522 | ' | ' | ' | ' | ' | ' | ' | -2,295 |
Investment in privately-held company | ' | ' | ' | -3,970 | ' | ' | -3,970 | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sales of available-for-sale securities | ' | ' | ' | 917 | ' | ' | 917 | ' | ' | ' | ' | ' | ' | ' | ' |
Purchases of trading investments for deferred compensation plan | ' | ' | -6,146 | -1,648 | ' | ' | -1,648 | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sales of trading investments for deferred compensation plan | ' | ' | 6,602 | 1,638 | ' | ' | 1,638 | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash used in investing activities | ' | ' | -23,257 | -35,880 | ' | ' | -33,585 | -2,295 | ' | ' | ' | ' | ' | ' | ' |
Cash flows from financing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of cash dividends | ' | ' | -36,123 | -133,462 | ' | ' | -133,462 | ' | ' | ' | ' | ' | ' | ' | ' |
Purchases of treasury shares | ' | ' | ' | -87,812 | ' | ' | -89,955 | ' | ' | ' | ' | ' | ' | ' | 2,143 |
Proceeds from sales of shares upon exercise of options and purchase rights | ' | ' | 6,135 | 9,008 | ' | ' | 9,008 | ' | ' | ' | ' | ' | ' | ' | ' |
Tax withholdings related to net share settlements of restricted stock units | ' | ' | -453 | -635 | ' | ' | -635 | ' | ' | ' | ' | ' | ' | ' | ' |
Excess tax benefits from share-based compensation | ' | ' | ' | 22 | ' | ' | 22 | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash used in financing activities | ' | ' | -30,441 | -212,879 | ' | ' | -215,022 | 2,143 | ' | ' | ' | ' | ' | ' | ' |
Effect of exchange rate changes on cash and cash equivalents | ' | ' | 484 | -1,825 | ' | ' | -1,825 | ' | ' | ' | ' | ' | ' | ' | ' |
Net decrease in cash and cash equivalents | ' | ' | -39,028 | -241,337 | ' | ' | -241,337 | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents at beginning of period | ' | ' | 333,824 | 478,370 | ' | ' | 478,370 | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents at end of period | $294,796 | $237,033 | $294,796 | $237,033 | ' | $237,033 | $237,033 | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) | 6 Months Ended |
Sep. 30, 2013 | |
Fiscal Years | ' |
Number of weeks in each interim quarter | '91 days |
Net_Income_per_Share_Details
Net Income per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net Income per Share | ' | ' | ' | ' |
Net income | $14,398 | $54,549 | $15,441 | $3,403 |
Weighted average shares - basic | 159,969,000 | 156,736,000 | 159,637,000 | 158,723,000 |
Effect of potentially dilutive share equivalents | 1,214,000 | 1,196,000 | 1,238,000 | 1,130,000 |
Weighted average shares - diluted | 161,183,000 | 157,932,000 | 160,875,000 | 159,853,000 |
Net income per share - basic (in dollars per share) | $0.09 | $0.35 | $0.10 | $0.02 |
Net income per share - diluted (in dollars per share) | $0.09 | $0.35 | $0.10 | $0.02 |
Anti-dilutive share equivalents excluded from the computation of diluted net income per share | 15,408,542 | 14,929,137 | 16,829,424 | 15,127,253 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Share data in Millions, unless otherwise specified | Sep. 04, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 |
Share-based compensation expense and related tax benefit | ' | ' | ' | ' | ' | ' |
Number of additional shares to be issued | 8 | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | $4,109,000 | $7,266,000 | $8,499,000 | $13,437,000 | ' |
Tax benefit | ' | -1,300,000 | -1,671,000 | -2,175,000 | -3,047,000 | ' |
Share-based compensation expense, net of income tax | ' | 2,809,000 | 5,595,000 | 6,324,000 | 10,390,000 | ' |
Share-based compensation cost capitalized in inventory | ' | ' | ' | 400,000 | ' | 400,000 |
Cost of goods sold | ' | ' | ' | ' | ' | ' |
Share-based compensation expense and related tax benefit | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | 594,000 | 608,000 | 1,171,000 | 1,397,000 | ' |
Share-based compensation expense included in gross profit | ' | ' | ' | ' | ' | ' |
Share-based compensation expense and related tax benefit | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | 594,000 | 608,000 | 1,171,000 | 1,397,000 | ' |
Marketing and selling | ' | ' | ' | ' | ' | ' |
Share-based compensation expense and related tax benefit | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | 1,017,000 | 2,644,000 | 2,923,000 | 4,424,000 | ' |
Research and development | ' | ' | ' | ' | ' | ' |
Share-based compensation expense and related tax benefit | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | 840,000 | 1,763,000 | 1,934,000 | 3,588,000 | ' |
General and administrative | ' | ' | ' | ' | ' | ' |
Share-based compensation expense and related tax benefit | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | 1,658,000 | 2,251,000 | 2,471,000 | 4,028,000 | ' |
Share-based compensation expense included in operating expenses | ' | ' | ' | ' | ' | ' |
Share-based compensation expense and related tax benefit | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | $3,515,000 | $6,658,000 | $7,328,000 | $12,040,000 | ' |
Employee_Benefit_Plans_Details1
Employee Benefit Plans (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Defined Contribution Plans | ' | ' | ' | ' |
Expense for defined contribution plans | $1,600,000 | $1,800,000 | $3,300,000 | $4,600,000 |
Unrecognized losses realized upon re-measurement of Swiss defined benefit pension plan | 309,000 | 301,000 | 615,000 | 756,000 |
Net periodic benefit cost | ' | ' | ' | ' |
Service cost | 1,972,000 | 1,726,000 | 3,929,000 | 3,601,000 |
Interest cost | 430,000 | 418,000 | 857,000 | 912,000 |
Expected return on plan assets | -490,000 | -525,000 | -990,000 | -618,000 |
Amortization of net transition obligation | 1,000 | 1,000 | 2,000 | 2,000 |
Amortization of net prior service cost | 52,000 | 38,000 | 104,000 | 76,000 |
Recognized net actuarial loss | 256,000 | 262,000 | 508,000 | 678,000 |
Settlement cost | ' | 2,254,000 | ' | 2,254,000 |
Net periodic benefit cost | 2,221,000 | 4,174,000 | 4,410,000 | 6,905,000 |
Swiss defined benefit pension plan | ' | ' | ' | ' |
Defined Contribution Plans | ' | ' | ' | ' |
Unrecognized losses realized upon re-measurement of Swiss defined benefit pension plan | ' | 2,200,000 | ' | ' |
Net periodic benefit cost | ' | ' | ' | ' |
Recognized net actuarial loss | ' | ($2,200,000) | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | |
Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for (benefit from) income taxes | $3,057,000 | ' | ' | ' | ($31,076,000) | ' | $2,255,000 | ($37,986,000) | ' |
Effective income tax rates (as a percent) | 17.50% | ' | ' | ' | -132.40% | ' | 12.70% | 109.80% | ' |
Discrete tax benefits | ' | ' | ' | ' | 32,100,000 | ' | ' | ' | ' |
Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | 5,465,000 | 2,334,000 | 15,507,000 | -358,000 | -2,671,000 | 31,227,000 | 7,799,000 | 28,556,000 | 43,700,000 |
Unrecognized tax benefits and related accrued interest and penalties | 103,500,000 | ' | 102,000,000 | ' | ' | ' | 103,500,000 | ' | 102,000,000 |
Unrecognized tax benefits that would impact effective tax rate | 90,800,000 | ' | 90,300,000 | ' | ' | ' | 90,800,000 | ' | 90,300,000 |
Accrued interest and penalties related to uncertain tax positions | $6,900,000 | ' | $6,600,000 | ' | ' | ' | $6,900,000 | ' | $6,600,000 |
Balance_Sheet_Components_Detai
Balance Sheet Components (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 |
In Thousands, unless otherwise specified | ||||||
Accounts receivable: | ' | ' | ' | ' | ' | ' |
Accounts receivable | $413,696 | ' | $325,870 | ' | ' | ' |
Allowance for doubtful accounts | -1,071 | -2,189 | -2,153 | -2,239 | -2,321 | -2,472 |
Allowance for returns | -19,230 | ' | -21,883 | ' | ' | ' |
Allowance for cooperative marketing arrangements | -26,010 | ' | -24,160 | ' | ' | ' |
Allowance for customer incentive programs | -44,788 | ' | -42,857 | ' | ' | ' |
Allowance for pricing programs | -63,739 | ' | -55,252 | ' | ' | ' |
Accounts receivable, net | 258,858 | ' | 179,565 | ' | ' | ' |
Inventories: | ' | ' | ' | ' | ' | ' |
Raw materials | 34,020 | ' | 37,504 | ' | ' | ' |
Work-in-process | 75 | ' | 41 | ' | ' | ' |
Finished goods | 258,682 | ' | 223,538 | ' | ' | ' |
Inventory, net | 292,777 | ' | 261,083 | ' | ' | ' |
Other current assets: | ' | ' | ' | ' | ' | ' |
Income tax and value-added tax refund receivables | 25,113 | ' | 17,403 | ' | ' | ' |
Deferred taxes | 29,109 | ' | 25,400 | ' | ' | ' |
Prepaid expenses and other | 11,586 | ' | 15,300 | ' | ' | ' |
Other current assets, total | 65,808 | ' | 58,103 | ' | ' | ' |
Property, plant and equipment: | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 313,242 | ' | 323,244 | ' | ' | ' |
Less: accumulated depreciation | -236,845 | ' | -247,469 | ' | ' | ' |
Property, plant and equipment before non-depreciable items | 76,397 | ' | 75,775 | ' | ' | ' |
Property, plant and equipment, net | 87,133 | ' | 87,649 | ' | ' | ' |
Other assets: | ' | ' | ' | ' | ' | ' |
Deferred taxes | 51,121 | ' | 53,035 | ' | ' | ' |
Trading investments | 15,435 | ' | 15,599 | ' | ' | ' |
Other | 5,261 | ' | 6,464 | ' | ' | ' |
Other assets, total | 71,817 | ' | 75,098 | ' | ' | ' |
Plant, buildings and improvements | ' | ' | ' | ' | ' | ' |
Balance sheet components | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 68,642 | ' | 70,009 | ' | ' | ' |
Equipment | ' | ' | ' | ' | ' | ' |
Balance sheet components | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 131,913 | ' | 129,868 | ' | ' | ' |
Computer equipment | ' | ' | ' | ' | ' | ' |
Balance sheet components | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 32,551 | ' | 42,437 | ' | ' | ' |
Computer software | ' | ' | ' | ' | ' | ' |
Balance sheet components | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 80,136 | ' | 80,930 | ' | ' | ' |
Construction-in-progress | ' | ' | ' | ' | ' | ' |
Balance sheet components | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 7,890 | ' | 9,047 | ' | ' | ' |
Land | ' | ' | ' | ' | ' | ' |
Balance sheet components | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | $2,846 | ' | $2,827 | ' | ' | ' |
Balance_Sheet_Components_Detai1
Balance Sheet Components (Details 2) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued and other current liabilities: | ' | ' |
Accrued personnel expenses | $56,906 | $40,502 |
Accrued marketing expenses | 13,039 | 11,005 |
Indirect customer incentive programs | 32,539 | 29,464 |
Accrued restructuring | 5,566 | 13,458 |
Deferred revenue | 21,562 | 22,698 |
Accrued freight and duty | 8,596 | 5,882 |
Value-added tax payable | 8,477 | 8,544 |
Accrued royalties | 4,012 | 3,358 |
Warranty accrual | 12,634 | 11,878 |
Employment benefit plan obligations | 1,571 | 4,351 |
Income taxes payable | 5,392 | 2,463 |
Other accrued liabilities | 49,352 | 39,171 |
Accrued liabilities | 219,646 | 192,774 |
Non-current liabilities: | ' | ' |
Income taxes payable | 100,310 | 98,827 |
Warranty accrual | 9,451 | 8,660 |
Obligation for deferred compensation | 15,435 | 15,631 |
Employment benefit plan obligations | 40,728 | 35,963 |
Deferred rent | 23,690 | 24,136 |
Deferred taxes | 1,872 | 1,989 |
Other liabilities | 11,070 | 10,676 |
Long-term liabilities, total | $202,556 | $195,882 |
Balance_Sheet_Components_Detai2
Balance Sheet Components (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Allowance for Doubtful Accounts | ' | ' | ' | ' |
Beginning balance | ($2,189) | ($2,321) | ($2,153) | ($2,472) |
Bad debt expense reversal, net | 428 | 103 | 359 | 189 |
Write-offs, net of recoveries | 690 | -21 | 723 | 44 |
Ending balance | ($1,071) | ($2,239) | ($1,071) | ($2,239) |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
Statement | ' | ' |
Trading investments for deferred compensation plan: | $15,435,000 | $15,599,000 |
Cash | 195,300,000 | 214,700,000 |
Level 1 | ' | ' |
Statement | ' | ' |
Cash equivalents | 99,510,000 | 119,073,000 |
Total assets at fair value | 114,945,000 | 134,672,000 |
Level 1 | Money market funds | ' | ' |
Statement | ' | ' |
Trading investments for deferred compensation plan: | 3,311,000 | 4,220,000 |
Level 1 | Mutual funds | ' | ' |
Statement | ' | ' |
Trading investments for deferred compensation plan: | 12,124,000 | 11,379,000 |
Level 2 | ' | ' |
Statement | ' | ' |
Foreign exchange derivative assets | 126,000 | 1,197,000 |
Total assets at fair value | 126,000 | 1,197,000 |
Foreign exchange derivative liabilities | 1,546,000 | 707,000 |
Total liabilities at fair value | $1,546,000 | $707,000 |
Financial_Instruments_Details_
Financial Instruments (Details 2) (Available-for-sale securities, USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2012 |
Available-for-sale securities | ' |
Changes in the Level 3 available-for-sale securities | ' |
Beginning balance | $429 |
Proceeds from sales of securities | -917 |
Reversal of unrealized gains previously recognized in accumulated other comprehensive loss | 831 |
Reversal of unrealized losses previously recognized | ($343) |
Financial_Instruments_Details_1
Financial Instruments (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | |
Financial Instruments | ' | ' | ' | ' | ' |
Trading Securities, Fair Value Disclosure | $15,435,000 | ' | $15,435,000 | ' | $15,599,000 |
Trading Securities, Change in Unrealized Holding Gain (Loss) | 400,000 | 500,000 | -200,000 | 200,000 | ' |
Derivative Financial Instruments | ' | ' | ' | ' | ' |
Asset Derivatives, Fair Value | 126,000 | ' | 126,000 | ' | 1,197,000 |
Liability Derivatives, Fair Value | 1,546,000 | ' | 1,546,000 | ' | 707,000 |
Derivatives designated as hedging instruments | ' | ' | ' | ' | ' |
Derivative Financial Instruments | ' | ' | ' | ' | ' |
Asset Derivatives, Fair Value | 8,000 | ' | 8,000 | ' | 1,165,000 |
Liability Derivatives, Fair Value | 754,000 | ' | 754,000 | ' | ' |
Derivatives designated as hedging instruments | Cash Flow Hedges | ' | ' | ' | ' | ' |
Derivative Financial Instruments | ' | ' | ' | ' | ' |
Asset Derivatives, Fair Value | 8,000 | ' | 8,000 | ' | 1,165,000 |
Liability Derivatives, Fair Value | 754,000 | ' | 754,000 | ' | ' |
Derivatives not designated as hedging instruments | ' | ' | ' | ' | ' |
Derivative Financial Instruments | ' | ' | ' | ' | ' |
Asset Derivatives, Fair Value | 118,000 | ' | 118,000 | ' | 32,000 |
Liability Derivatives, Fair Value | 792,000 | ' | 792,000 | ' | 707,000 |
Derivatives not designated as hedging instruments | Foreign Exchange Forward Contracts | ' | ' | ' | ' | ' |
Derivative Financial Instruments | ' | ' | ' | ' | ' |
Asset Derivatives, Fair Value | 118,000 | ' | 118,000 | ' | ' |
Liability Derivatives, Fair Value | 240,000 | ' | 240,000 | ' | 270,000 |
Derivatives not designated as hedging instruments | Foreign Exchange Swap Contracts | ' | ' | ' | ' | ' |
Derivative Financial Instruments | ' | ' | ' | ' | ' |
Asset Derivatives, Fair Value | ' | ' | ' | ' | 32,000 |
Liability Derivatives, Fair Value | $552,000 | ' | $552,000 | ' | $437,000 |
Financial_Instruments_Details_2
Financial Instruments (Details 4) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
USD ($) | USD ($) | USD ($) | USD ($) | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | |
USD ($) | USD ($) | USD ($) | USD ($) | Cash Flow Hedges | Cash Flow Hedges | Cash Flow Hedges | Cash Flow Hedges | Cash Flow Hedges | Cash Flow Hedges | Cash Flow Hedges | Cash Flow Hedges | Cash Flow Hedges | Cash Flow Hedges | Cash Flow Hedges | Cash Flow Hedges | Cash Flow Hedges | Cash Flow Hedges | Cash Flow Hedges | Cash Flow Hedges | USD ($) | USD ($) | USD ($) | USD ($) | Foreign Exchange Forward Contracts | Foreign Exchange Forward Contracts | Foreign Exchange Swap Contracts | Foreign Exchange Swap Contracts | Other income/ expense | Other income/ expense | Other income/ expense | Other income/ expense | Other income/ expense | Other income/ expense | Other income/ expense | Other income/ expense | |||||
USD ($) | USD ($) | USD ($) | USD ($) | Foreign Exchange Forward Contracts | Foreign Exchange Forward Contracts | Foreign Exchange Forward Contracts | Foreign Exchange Forward Contracts | Cost of goods sold | Cost of goods sold | Cost of goods sold | Cost of goods sold | Other income/ expense | Other income/ expense | Other income/ expense | Other income/ expense | USD ($) | USD ($) | USD ($) | USD ($) | Foreign Exchange Forward Contracts | Foreign Exchange Forward Contracts | Foreign Exchange Forward Contracts | Foreign Exchange Forward Contracts | Foreign Exchange Swap Contracts | Foreign Exchange Swap Contracts | Foreign Exchange Swap Contracts | Foreign Exchange Swap Contracts | |||||||||||||
USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||||||
item | item | |||||||||||||||||||||||||||||||||||||||
Amounts of gains and losses on the derivative instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Amount of Gain/(Loss) Deferred as a Component of Accumulated Other Comprehensive Loss | ($1,467,000) | ($3,783,000) | ($2,102,000) | ($2,684,000) | ($1,467,000) | ($3,783,000) | ($2,102,000) | ($2,684,000) | ($1,467,000) | ($3,783,000) | ($2,102,000) | ($2,684,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | -94,000 | -1,683,000 | 184,000 | -1,577,000 | -94,000 | -1,683,000 | 184,000 | -1,577,000 | ' | ' | ' | ' | ' | ' | ' | ' | -94,000 | -1,683,000 | 184,000 | -1,577,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of Gain/(Loss) Recognized in Income Immediately | -461,000 | -362,000 | 954,000 | -230,000 | 16,000 | 120,000 | 46,000 | 172,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,000 | 120,000 | 46,000 | 172,000 | -477,000 | -482,000 | 908,000 | -402,000 | ' | ' | ' | ' | -482,000 | -92,000 | 165,000 | -837,000 | 5,000 | -390,000 | 743,000 | 435,000 |
Number of entity with euro functional currency that purchases in U.S. dollars | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average maturity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 months | '4 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amounts of foreign exchange forward contracts outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56,700,000 | 41,900,000 | 38,500,000 | 30,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amounts of foreign exchange swap contracts, other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $16,400,000 | $14,200,000 | $31,700,000 | $19,600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | |
Goodwill and Other Intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | $5,465,000 | $2,334,000 | $15,507,000 | ($358,000) | ($2,671,000) | $31,227,000 | $7,799,000 | $28,556,000 | $43,700,000 |
Intangibles | 17,747,000 | ' | 26,024,000 | ' | ' | ' | 17,747,000 | ' | 26,024,000 |
Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | 341,357,000 | ' | ' | ' | ' | 341,357,000 | ' | ' |
Additions | ' | ' | ' | ' | ' | ' | 202,000 | ' | ' |
Foreign currency movements | ' | ' | ' | ' | ' | ' | 731,000 | ' | ' |
Reclassified from assets held for sale | ' | ' | ' | ' | ' | ' | 2,469,000 | ' | ' |
Balance at the end of the period | 344,759,000 | ' | 341,357,000 | ' | ' | ' | 344,759,000 | ' | 341,357,000 |
Termination Benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill and Other Intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | 4,562,000 | 2,004,000 | 16,437,000 | -188,000 | -3,816,000 | 28,655,000 | ' | ' | ' |
Lease Exit Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill and Other Intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | 903,000 | 330,000 | -30,000 | -182,000 | 48,000 | 1,472,000 | ' | ' | ' |
Q2'2014 Restructuring | Termination Benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill and Other Intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | 5,400,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Q2'2014 Restructuring | Lease Exit Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill and Other Intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Retail - Remotes | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill and Other Intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangibles | ' | 1,600,000 | ' | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' |
Peripherals | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | 216,744,000 | ' | ' | ' | ' | 216,744,000 | ' | ' |
Additions | ' | ' | ' | ' | ' | ' | 202,000 | ' | ' |
Reclassified from assets held for sale | ' | ' | ' | ' | ' | ' | 2,469,000 | ' | ' |
Balance at the end of the period | 219,415,000 | ' | ' | ' | ' | ' | 219,415,000 | ' | ' |
Video conferencing | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill and Other Intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of carrying value by which the fair value of each reporting unit exceeded the carrying value | 23.00% | ' | ' | ' | ' | ' | 23.00% | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | 124,613,000 | ' | ' | ' | ' | 124,613,000 | ' | ' |
Foreign currency movements | ' | ' | ' | ' | ' | ' | 731,000 | ' | ' |
Balance at the end of the period | 125,344,000 | ' | ' | ' | ' | ' | 125,344,000 | ' | ' |
Video conferencing | Q2'2014 Restructuring | Cost of goods sold | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill and Other Intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Write-off of discontinued products | 5,200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Video conferencing | Q2'2014 Restructuring | Termination Benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill and Other Intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | 5,400,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Video conferencing | Q2'2014 Restructuring | Lease Exit Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill and Other Intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | $600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Video conferencing | Income approach analysis | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill and Other Intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CAGR assumption (as a percent) | ' | ' | ' | ' | ' | ' | 7.00% | ' | ' |
Growth rate in fiscal year 2021 | ' | ' | ' | ' | ' | ' | 4.00% | ' | ' |
Hypothetical decrease in CAGR rate (as a percent) | ' | ' | ' | ' | ' | ' | 2.10% | ' | ' |
Discount rate assumption (as a percent) | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' |
Hypothetical increase in discount rate (as a percent) | ' | ' | ' | ' | ' | ' | 18.70% | ' | ' |
Terminal growth rate assumption (as a percent) | ' | ' | ' | ' | ' | ' | 4.00% | ' | ' |
Hypothetical decrease in terminal value (as a percent) | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | |
Other intangible assets | ' | ' | ' | ' | ' |
Gross Carrying Amount | $164,437,000 | ' | $164,437,000 | ' | $142,159,000 |
Accumulated Amortization | -146,690,000 | ' | -146,690,000 | ' | -116,135,000 |
Net Carrying Amount | 17,747,000 | ' | 17,747,000 | ' | 26,024,000 |
Amortization of intangible assets | 5,254,000 | 6,191,000 | 10,518,000 | 12,589,000 | ' |
Expected amortization expense | ' | ' | ' | ' | ' |
Future amortization expense for remaining six months of fiscal year, 2014 | 7,300,000 | ' | 7,300,000 | ' | ' |
Future amortization expense for fiscal year, 2015 | 8,400,000 | ' | 8,400,000 | ' | ' |
Future amortization expense for fiscal year, 2016 | 1,800,000 | ' | 1,800,000 | ' | ' |
Future amortization expense for fiscal year, 2017 | 100,000 | ' | 100,000 | ' | ' |
Trademark/ trade name | ' | ' | ' | ' | ' |
Other intangible assets | ' | ' | ' | ' | ' |
Gross Carrying Amount | 32,085,000 | ' | 32,085,000 | ' | 29,842,000 |
Accumulated Amortization | -30,127,000 | ' | -30,127,000 | ' | -26,558,000 |
Net Carrying Amount | 1,958,000 | ' | 1,958,000 | ' | 3,284,000 |
Technology | ' | ' | ' | ' | ' |
Other intangible assets | ' | ' | ' | ' | ' |
Gross Carrying Amount | 92,007,000 | ' | 92,007,000 | ' | 73,249,000 |
Accumulated Amortization | -84,144,000 | ' | -84,144,000 | ' | -61,560,000 |
Net Carrying Amount | 7,863,000 | ' | 7,863,000 | ' | 11,689,000 |
Customer contracts | ' | ' | ' | ' | ' |
Other intangible assets | ' | ' | ' | ' | ' |
Gross Carrying Amount | 40,345,000 | ' | 40,345,000 | ' | 39,068,000 |
Accumulated Amortization | -32,419,000 | ' | -32,419,000 | ' | -28,017,000 |
Net Carrying Amount | $7,926,000 | ' | $7,926,000 | ' | $11,051,000 |
Financing_Arrangements_Details
Financing Arrangements (Details) (USD $) | 1 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2011 | Sep. 30, 2013 |
Senior Revolving Credit Facility Agreement | ' | ' |
Financing Arrangements | ' | ' |
Maximum borrowing capacity | $250 | ' |
Optional expansion, maximum borrowing capacity | 150 | ' |
Increased maximum borrowing capacity | 400 | ' |
Outstanding borrowings | ' | 0 |
Period of measurement | '4 years | ' |
Commitment fee as percentage of the variable margin | 40.00% | ' |
Non-recurring commitment and legal fees | 1.5 | ' |
Senior Revolving Credit Facility Agreement | Minimum | ' | ' |
Financing Arrangements | ' | ' |
Aggregate portion of lender commitments of total commitment which may be terminated upon a change of control of the entity (as a percent) | 67.00% | ' |
Unsecured bank lines of credit | ' | ' |
Financing Arrangements | ' | ' |
Maximum borrowing capacity | ' | 62 |
Outstanding borrowings | ' | 0 |
Credit lines related to corporate credit cards | ' | ' |
Financing Arrangements | ' | ' |
Maximum borrowing capacity | ' | $17.40 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Future minimum annual rentals under non-cancelable operating leases | ' |
Future minimum annual rentals under non-cancelable operating leases | $84.70 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Changes to the asset retirement obligation liability | ' | ' | ' | ' |
Beginning balance | $1,532,000 | $2,001,000 | $1,750,000 | $1,918,000 |
Liabilities settled | -375,000 | ' | -596,000 | ' |
Accretion expense | 9,000 | 4,000 | 11,000 | 16,000 |
Foreign currency translation | 12,000 | -135,000 | 13,000 | -64,000 |
Ending balance | 1,178,000 | 1,870,000 | 1,178,000 | 1,870,000 |
Changes in the warranty liability: | ' | ' | ' | ' |
Beginning balance | 22,655,000 | 23,966,000 | 20,538,000 | 25,494,000 |
Provision during the period | 3,356,000 | 3,444,000 | 6,645,000 | 5,981,000 |
Settlements made during the year, net of adjustments | -3,926,000 | -3,873,000 | -7,425,000 | -7,938,000 |
Amount classified as liabilities held for sale | ' | ' | 2,327,000 | ' |
Ending balance | 22,085,000 | 23,537,000 | 22,085,000 | 23,537,000 |
Change in deferred services revenue | ' | ' | ' | ' |
Beginning balance | 29,080,000 | 26,340,000 | 29,328,000 | 24,568,000 |
Additions for extended warranties issued during the period | 7,914,000 | 8,112,000 | 15,830,000 | 16,394,000 |
Amortization of deferred revenue for the period | -7,926,000 | -7,333,000 | -16,090,000 | -13,843,000 |
Ending balance | 29,068,000 | 27,119,000 | 29,068,000 | 27,119,000 |
Cost of providing services | $2,100,000 | $2,300,000 | $4,200,000 | $4,300,000 |
Minimum | ' | ' | ' | ' |
Product Warranties | ' | ' | ' | ' |
Warranty period | ' | ' | '1 year | ' |
Maximum | ' | ' | ' | ' |
Product Warranties | ' | ' | ' | ' |
Warranty period | ' | ' | '5 years | ' |
Commitments_and_Contingencies_3
Commitments and Contingencies (Details 3) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Purchase Commitments | ' |
Purchase commitments | $214,580 |
Inventory purchases | ' |
Purchase Commitments | ' |
Purchase commitments | 132,782 |
Operating expenses | ' |
Purchase Commitments | ' |
Purchase commitments | 63,426 |
Capital expenditures | ' |
Purchase Commitments | ' |
Purchase commitments | $18,372 |
Commitments_and_Contingencies_4
Commitments and Contingencies (Details 4) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Parent Guarantee Of Purchase Obligations Of Various Subsidiaries | ' |
Guarantees | ' |
Maximum amount of the guarantees | $30 |
Liabilities subject to guarantees | 0 |
Parent Guarantee Of A Subsidiary Purchases Under Two Gaurantees | ' |
Guarantees | ' |
Maximum amount of the guarantees | 7 |
Number of guarantees | 2 |
Number of guarantees without a specified maximum exposure | 1 |
Parent Guarantee for purchases obligation of third-party contract manufacturer | ' |
Guarantees | ' |
Maximum amount of the guarantees | 35 |
Number of guarantees | 1 |
Guarantees outstanding | 2.8 |
Parent Guarantee Of Contingent Liabilities of Subsidiaries | ' |
Guarantees | ' |
Maximum amount of the guarantees | 35 |
Guarantees outstanding | 5.6 |
Indemnification provisions accrued | ' |
Guarantees | ' |
Amount accrued for indemnification provisions | $0 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 3 Months Ended | 3 Months Ended | 6 Months Ended | 61 Months Ended | 3 Months Ended | 6 Months Ended | 61 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2008 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
September 2008 - amended | September 2008 - amended | September 2008 - amended | September 2008 - amended | September 2008 - amended | Sep-08 | Sep-08 | Sep-08 | Sep-08 | Sep-08 | |||
Share Repurchases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approved Share Buyback Number | ' | 250,000,000 | 28,465,000 | 28,465,000 | 28,465,000 | 28,465,000 | 28,465,000 | 8,344,000 | 8,344,000 | 8,344,000 | 8,344,000 | 8,344,000 |
Shares cancelled | 18,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approved Buyback Amount | ' | ' | $177,030 | $177,030 | $177,030 | $177,030 | ' | $250,000 | $250,000 | $250,000 | $250,000 | ' |
Share Repurchases, Shares | ' | ' | 0 | 0 | 0 | 18,500,000 | 18,500,000 | ' | ' | ' | ' | 7,609,000 |
Share Repurchases, Amount | ' | ' | ' | ' | ' | ' | $170,714 | ' | ' | ' | ' | $73,134 |
Shareholders_Equity_Details_2
Shareholders' Equity (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 |
Accumulated Other Comprehensive Loss | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | ($92,993) | ' | ' |
Net change in other comprehensive loss | 766 | 5,416 | 342 | 1,229 | ' |
Balance at the end of the period | -92,651 | ' | -92,651 | ' | ' |
Defined Benefit Plan, tax amount | 315 | ' | 315 | ' | 315 |
Cumulative Translation Adjustment | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Loss | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | -73,187 | ' | ' |
Net change in other comprehensive loss | ' | ' | 2,829 | ' | ' |
Balance at the end of the period | -70,358 | ' | -70,358 | ' | ' |
Defined Benefit Plan | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Loss | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | -20,316 | ' | ' |
Net change in other comprehensive loss | ' | ' | -385 | ' | ' |
Balance at the end of the period | -20,701 | ' | -20,701 | ' | ' |
Deferred Hedging Gains (Losses) | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Loss | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 510 | ' | ' |
Net change in other comprehensive loss | ' | ' | -2,102 | ' | ' |
Balance at the end of the period | ($1,592) | ' | ($1,592) | ' | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
segment | ||||
Segment Information | ' | ' | ' | ' |
Number of reporting segments | ' | ' | 2 | ' |
Net sales by product family, excluding intercompany transactions | ' | ' | ' | ' |
Total net sales | $531,972 | $547,693 | $1,009,896 | $1,016,297 |
Operating income (loss) before other charges | 26,573 | 37,286 | 36,274 | -8,426 |
Other charges: | ' | ' | ' | ' |
Share-based compensation | -4,109 | -7,266 | -8,499 | -13,437 |
Amortization | -5,254 | -6,191 | -10,518 | -12,589 |
Total operating Income (loss) | 17,210 | 23,829 | 17,257 | -34,452 |
Adjustments | ' | ' | ' | ' |
Other charges: | ' | ' | ' | ' |
Amortization | ' | ' | ' | -332 |
Peripherals | ' | ' | ' | ' |
Net sales by product family, excluding intercompany transactions | ' | ' | ' | ' |
Total net sales | 502,379 | 513,197 | 950,128 | 944,973 |
Operating income (loss) before other charges | 39,281 | 39,097 | 52,151 | -5,505 |
Peripherals | Adjustments | ' | ' | ' | ' |
Net sales by product family, excluding intercompany transactions | ' | ' | ' | ' |
Operating income (loss) before other charges | ' | ' | ' | 1,200 |
Video conferencing | ' | ' | ' | ' |
Net sales by product family, excluding intercompany transactions | ' | ' | ' | ' |
Total net sales | 29,593 | 34,496 | 59,768 | 71,324 |
Operating income (loss) before other charges | -12,708 | -1,811 | -15,877 | -2,921 |
Video conferencing | Adjustments | Maximum | ' | ' | ' | ' |
Net sales by product family, excluding intercompany transactions | ' | ' | ' | ' |
Operating income (loss) before other charges | ' | -100 | ' | -200 |
Retail - Pointing Devices | ' | ' | ' | ' |
Net sales by product family, excluding intercompany transactions | ' | ' | ' | ' |
Total net sales | 130,656 | 122,524 | 245,307 | 238,353 |
Retail - PC Keyboards & Desktops | ' | ' | ' | ' |
Net sales by product family, excluding intercompany transactions | ' | ' | ' | ' |
Total net sales | 105,236 | 97,069 | 203,186 | 191,628 |
Retail - Tablet Accessories | ' | ' | ' | ' |
Net sales by product family, excluding intercompany transactions | ' | ' | ' | ' |
Total net sales | 34,711 | 33,737 | 73,270 | 49,623 |
Retail - Audio PC | ' | ' | ' | ' |
Net sales by product family, excluding intercompany transactions | ' | ' | ' | ' |
Total net sales | 67,199 | 77,267 | 119,164 | 138,792 |
Retail - Audio - Wearables & Wireless | ' | ' | ' | ' |
Net sales by product family, excluding intercompany transactions | ' | ' | ' | ' |
Total net sales | 25,648 | 19,108 | 44,723 | 33,707 |
Retail - Video | ' | ' | ' | ' |
Net sales by product family, excluding intercompany transactions | ' | ' | ' | ' |
Total net sales | 41,061 | 49,453 | 76,319 | 86,612 |
Retail - PC Gaming | ' | ' | ' | ' |
Net sales by product family, excluding intercompany transactions | ' | ' | ' | ' |
Total net sales | 41,493 | 46,673 | 81,110 | 73,456 |
Retail - Remotes | ' | ' | ' | ' |
Net sales by product family, excluding intercompany transactions | ' | ' | ' | ' |
Total net sales | 13,327 | 16,434 | 27,901 | 30,166 |
Retail - Other | ' | ' | ' | ' |
Net sales by product family, excluding intercompany transactions | ' | ' | ' | ' |
Total net sales | 5,522 | 14,214 | 7,109 | 29,243 |
OEM | ' | ' | ' | ' |
Net sales by product family, excluding intercompany transactions | ' | ' | ' | ' |
Total net sales | $37,526 | $36,718 | $72,039 | $73,393 |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 |
Net sales to unaffiliated customers and long-lived assets by geographic region | ' | ' | ' | ' | ' |
Total net sales | $531,972 | $547,693 | $1,009,896 | $1,016,297 | ' |
Total long-lived assets | 91,657 | ' | 91,657 | ' | 92,624 |
Peripherals | ' | ' | ' | ' | ' |
Net sales to unaffiliated customers and long-lived assets by geographic region | ' | ' | ' | ' | ' |
Total net sales | 502,379 | 513,197 | 950,128 | 944,973 | ' |
As Reported | ' | ' | ' | ' | ' |
Net sales to unaffiliated customers and long-lived assets by geographic region | ' | ' | ' | ' | ' |
Total net sales | ' | 547,693 | ' | 1,016,297 | ' |
Consolidated net sales | Customer Concentration | Single customer group | Peripherals | ' | ' | ' | ' | ' |
Concentration risk | ' | ' | ' | ' | ' |
Number of major customer | 1 | 1 | 1 | 1 | ' |
Percentage of benchmark derived from specified source | 14.00% | 13.00% | 14.00% | 12.00% | ' |
Americas | ' | ' | ' | ' | ' |
Net sales to unaffiliated customers and long-lived assets by geographic region | ' | ' | ' | ' | ' |
Total net sales | 202,381 | 199,517 | 402,834 | 384,084 | ' |
Total long-lived assets | 43,386 | ' | 43,386 | ' | 43,357 |
Americas | As Reported | ' | ' | ' | ' | ' |
Net sales to unaffiliated customers and long-lived assets by geographic region | ' | ' | ' | ' | ' |
Total net sales | ' | 216,596 | ' | 420,522 | ' |
Americas | Adjustments | ' | ' | ' | ' | ' |
Net sales to unaffiliated customers and long-lived assets by geographic region | ' | ' | ' | ' | ' |
Total net sales | ' | -17,079 | ' | -36,438 | ' |
EMEA | ' | ' | ' | ' | ' |
Net sales to unaffiliated customers and long-lived assets by geographic region | ' | ' | ' | ' | ' |
Total net sales | 203,353 | 222,989 | 358,576 | 386,362 | ' |
Total long-lived assets | 5,875 | ' | 5,875 | ' | 8,315 |
EMEA | As Reported | ' | ' | ' | ' | ' |
Net sales to unaffiliated customers and long-lived assets by geographic region | ' | ' | ' | ' | ' |
Total net sales | ' | 212,050 | ' | 362,056 | ' |
EMEA | Adjustments | ' | ' | ' | ' | ' |
Net sales to unaffiliated customers and long-lived assets by geographic region | ' | ' | ' | ' | ' |
Total net sales | ' | 10,939 | ' | 24,306 | ' |
Asia Pacific | ' | ' | ' | ' | ' |
Net sales to unaffiliated customers and long-lived assets by geographic region | ' | ' | ' | ' | ' |
Total net sales | 126,238 | 125,187 | 248,486 | 245,851 | ' |
Total long-lived assets | 42,396 | ' | 42,396 | ' | 40,952 |
Asia Pacific | As Reported | ' | ' | ' | ' | ' |
Net sales to unaffiliated customers and long-lived assets by geographic region | ' | ' | ' | ' | ' |
Total net sales | ' | 119,047 | ' | 233,719 | ' |
Asia Pacific | Adjustments | ' | ' | ' | ' | ' |
Net sales to unaffiliated customers and long-lived assets by geographic region | ' | ' | ' | ' | ' |
Total net sales | ' | 6,140 | ' | 12,132 | ' |
United States | ' | ' | ' | ' | ' |
Net sales to unaffiliated customers and long-lived assets by geographic region | ' | ' | ' | ' | ' |
Total long-lived assets | 43,386 | ' | 43,386 | ' | 43,357 |
United States | Consolidated net sales | Geographic Concentration | ' | ' | ' | ' | ' |
Concentration risk | ' | ' | ' | ' | ' |
Percentage of benchmark derived from specified source | 34.00% | 32.00% | 35.00% | 33.00% | ' |
United States | Consolidated net sales | Geographic Concentration | Minimum [Member] | ' | ' | ' | ' | ' |
Concentration risk | ' | ' | ' | ' | ' |
Percentage of benchmark derived from specified source | ' | ' | 10.00% | 10.00% | ' |
Switzerland | ' | ' | ' | ' | ' |
Net sales to unaffiliated customers and long-lived assets by geographic region | ' | ' | ' | ' | ' |
Total long-lived assets | 1,900 | ' | 1,900 | ' | 4,200 |
Switzerland | Consolidated net sales | Geographic Concentration | ' | ' | ' | ' | ' |
Concentration risk | ' | ' | ' | ' | ' |
Percentage of benchmark derived from specified source | 2.00% | 2.00% | 1.00% | 2.00% | ' |
China | ' | ' | ' | ' | ' |
Net sales to unaffiliated customers and long-lived assets by geographic region | ' | ' | ' | ' | ' |
Total long-lived assets | $35,000 | ' | $35,000 | ' | $33,100 |
Restructuring_Details
Restructuring (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | |
Restructuring reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | $7,200,000 | $13,458,000 | $917,000 | $5,786,000 | $26,095,000 | ' | $13,458,000 | ' | ' |
Charges | 5,465,000 | 2,334,000 | 15,507,000 | -358,000 | -2,671,000 | 31,227,000 | 7,799,000 | 28,556,000 | 43,700,000 |
Benefit pension plan re-measurement cost due to restructuring | -256,000 | ' | ' | ' | -262,000 | ' | -508,000 | -678,000 | ' |
Cash payments | -7,099,000 | -8,422,000 | -2,966,000 | -4,511,000 | -17,652,000 | -5,195,000 | ' | ' | ' |
Foreign exchange | ' | -170,000 | ' | ' | 14,000 | 63,000 | ' | ' | ' |
Balance at the end of the period | 5,566,000 | 7,200,000 | 13,458,000 | 917,000 | 5,786,000 | 26,095,000 | 5,566,000 | 5,786,000 | 13,458,000 |
Swiss Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Benefit pension plan re-measurement cost due to restructuring | ' | ' | ' | ' | 2,200,000 | ' | ' | ' | ' |
Termination Benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | 6,795,000 | 13,383,000 | 673,000 | 3,494,000 | 23,952,000 | ' | 13,383,000 | ' | ' |
Charges | 4,562,000 | 2,004,000 | 16,437,000 | -188,000 | -3,816,000 | 28,655,000 | ' | ' | ' |
Cash payments | -6,535,000 | -8,422,000 | -3,727,000 | -2,633,000 | -16,642,000 | -4,766,000 | ' | ' | ' |
Foreign exchange | ' | -170,000 | ' | ' | ' | 63,000 | ' | ' | ' |
Balance at the end of the period | 4,822,000 | 6,795,000 | 13,383,000 | 673,000 | 3,494,000 | 23,952,000 | 4,822,000 | 3,494,000 | 13,383,000 |
Lease Exit Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | 405,000 | 75,000 | 182,000 | 1,468,000 | 1,472,000 | ' | 75,000 | ' | ' |
Charges | 903,000 | 330,000 | -30,000 | -182,000 | 48,000 | 1,472,000 | ' | ' | ' |
Cash payments | -564,000 | ' | -77,000 | -1,104,000 | -52,000 | ' | ' | ' | ' |
Balance at the end of the period | 744,000 | 405,000 | 75,000 | 182,000 | 1,468,000 | 1,472,000 | 744,000 | 1,468,000 | 75,000 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 62,000 | 824,000 | 671,000 | ' | ' | ' | ' |
Charges | ' | ' | -900,000 | 12,000 | 1,097,000 | 1,100,000 | ' | ' | ' |
Cash payments | ' | ' | 838,000 | -774,000 | -958,000 | -429,000 | ' | ' | ' |
Foreign exchange | ' | ' | ' | ' | 14,000 | ' | ' | ' | ' |
Balance at the end of the period | ' | ' | ' | 62,000 | 824,000 | 671,000 | ' | 824,000 | ' |
Q1'2013 Restructuring | Cost of Goods Sold | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charges related to discontinuance of certain product development | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' |
Q1'2013 Restructuring | Termination Benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charges | ' | ' | ' | ' | -3,800,000 | ' | ' | 24,800,000 | ' |
Legal, consulting and other costs | ' | ' | ' | ' | 1,100,000 | ' | ' | 2,200,000 | ' |
Q1'2013 Restructuring | Lease Exit Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charges | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' |
Q4'2013 Restructuring | Termination Benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charges | -800,000 | ' | ' | ' | ' | ' | 1,200,000 | ' | ' |
Q4'2013 Restructuring | Lease Exit Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charges | 300,000 | ' | ' | ' | ' | ' | 600,000 | ' | ' |
Q2'2014 Restructuring | Termination Benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charges | 5,400,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Q2'2014 Restructuring | Lease Exit Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charges | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Q2'2014 Restructuring | Video conferencing | Cost of Goods Sold | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charges related to discontinuance of certain product development | 5,200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Q2'2014 Restructuring | Video conferencing | Termination Benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charges | 5,400,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Q2'2014 Restructuring | Video conferencing | Lease Exit Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charges | $600,000 | ' | ' | ' | ' | ' | ' | ' | ' |