LOGITECH INTERNATIONAL SA, 10-Q filed on 11/1/2017
Quarterly Report
Document and Entity Information
6 Months Ended
Sep. 30, 2017
Oct. 10, 2017
Document and Entity Information
 
 
Entity Registrant Name
LOGITECH INTERNATIONAL SA 
 
Entity Central Index Key
0001032975 
 
Document Type
10-Q 
 
Document Period End Date
Sep. 30, 2017 
 
Amendment Flag
false 
 
Current Fiscal Year End Date
--03-31 
 
Entity Current Reporting Status
Yes 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
164,272,886 
Document Fiscal Year Focus
2018 
 
Document Fiscal Period Focus
Q2 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(USD ($))
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Income Statement [Abstract]
 
 
 
 
Net sales
$ 632,470 
$ 564,304 
$ 1,162,416 
$ 1,044,168 
Cost of goods sold
402,722 
356,268 
737,496 
665,893 
Amortization of intangible assets and purchase accounting effect on inventory
2,011 
1,163 
3,515 
2,776 
Gross profit
227,737 
206,873 
421,405 
375,499 
Operating expenses:
 
 
 
 
Marketing and selling
107,386 
93,792 
209,764 
177,664 
Research and development
36,647 
32,632 
71,746 
64,583 
General and administrative
25,205 
25,290 
50,559 
50,945 
Amortization of intangible assets and acquisition-related costs
2,491 
1,748 
3,881 
3,041 
Change in fair value of contingent consideration for business acquisition
(2,930)
(4,908)
Total operating expenses
168,799 
153,462 
331,042 
296,233 
Operating income
58,938 
53,411 
90,363 
79,266 
Interest income (expense), net
1,048 
(90)
2,223 
61 
Other income (expense), net
459 
(683)
(570)
(1,691)
Income before income taxes
60,445 
52,638 
92,016 
77,636 
Provision for (benefit from) income taxes
4,087 
5,593 
(1,349)
8,650 
Net income
$ 56,358 
$ 47,045 
$ 93,365 
$ 68,986 
Net income per share:
 
 
 
 
Net income per share - basic (in dollars per share)
$ 0.34 
$ 0.29 
$ 0.57 
$ 0.43 
Net income per share - diluted (in dollars per share)
$ 0.33 
$ 0.28 
$ 0.55 
$ 0.42 
Weighted average shares used to compute net income per share:
 
 
 
 
Basic (in shares)
164,120 
162,222 
163,765 
162,176 
Diluted (in shares)
169,078 
165,549 
168,710 
164,926 
Cash dividend per share (in dollars per share)
$ 0.63 
$ 0.57 
$ 0.63 
$ 0.57 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net income
$ 56,358 
$ 47,045 
$ 93,365 
$ 68,986 
Other comprehensive income (loss):
 
 
 
 
Currency translation gain, net of taxes
2,185 
550 
3,641 
254 
Defined benefit pension plans:
 
 
 
 
Net gain and prior service costs, net of taxes
532 
17 
380 
327 
Amortization included in operating expenses
52 
432 
102 
865 
Hedging gain (loss):
 
 
 
 
Deferred hedging gain (loss), net of taxes
(2,140)
564 
(5,349)
1,529 
Reclassification of hedging loss included in cost of goods sold
2,596 
155 
3,129 
895 
Other comprehensive income:
3,225 
1,718 
1,903 
3,870 
Total comprehensive income
$ 59,583 
$ 48,763 
$ 95,268 
$ 72,856 
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Mar. 31, 2017
Current assets:
 
 
Cash and cash equivalents
$ 398,848 
$ 547,533 
Short-term investments
6,789 
Accounts receivable, net
277,839 
185,179 
Inventories
330,422 
253,401 
Other current assets
47,721 
41,732 
Total current assets
1,061,619 
1,027,845 
Non-current assets:
 
 
Property, plant and equipment, net
87,355 
85,408 
Goodwill
271,154 
249,741 
Other intangible assets, net
93,846 
47,564 
Other assets
138,144 
88,119 
Total assets
1,652,118 
1,498,677 
Current liabilities:
 
 
Accounts payable
386,963 
274,805 
Accrued and other current liabilities
229,176 
232,273 
Total current liabilities
616,139 
507,078 
Non-current liabilities:
 
 
Income taxes payable
33,241 
51,797 
Other non-current liabilities
80,903 
83,691 
Total liabilities
730,283 
642,566 
Commitments and contingencies
   
   
Shareholders’ equity:
 
 
Registered shares, CHF 0.25 par value: Issued and authorized shares - 173,106 at September 30 and March 31, 2017 Conditionally authorized shares - 50,000 at September 30 and March 31, 2017
30,148 
30,148 
Additional paid-in capital
29,940 
26,596 
Shares in treasury, at cost — 8,745 at September 30, 2017 and 10,727 at March 31, 2017
(156,589)
(174,037)
Retained earnings
1,117,139 
1,074,110 
Accumulated other comprehensive loss
(98,803)
(100,706)
Total shareholders’ equity
921,835 
856,111 
Total liabilities and shareholders’ equity
$ 1,652,118 
$ 1,498,677 
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (CHF)
Sep. 30, 2017
Mar. 31, 2017
Statement of Financial Position [Abstract]
 
 
Shares, par value (in CHF per share)
 0.25 
 0.25 
Shares, issued (in shares)
173,106,000 
173,106,000 
Shares, authorized (in shares)
173,106,000 
173,106,000 
Shares, conditionally authorized (in shares)
50,000,000 
50,000,000 
Treasury, at cost, shares (in shares)
8,745,000 
10,727,000 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash flows from operating activities:
 
 
Net income
$ 93,365 
$ 68,986 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation
19,368 
23,616 
Amortization of intangible assets
6,238 
3,867 
Gain on investments in privately held companies
(436)
(172)
Loss on disposal of property, plant and equipment
12 
Share-based compensation expense
21,683 
16,967 
Deferred income taxes
(11,933)
(385)
Change in fair value of contingent consideration for business acquisition
(4,908)
Changes in assets and liabilities, net of acquisitions:
 
 
Accounts receivable, net
(91,718)
(97,001)
Inventories
(58,078)
(28,317)
Other assets
(8,490)
(4,738)
Accounts payable
110,136 
83,676 
Accrued and other liabilities
(7,739)
25,387 
Net cash provided by operating activities
67,500 
91,886 
Cash flows from investing activities:
 
 
Purchases of property, plant and equipment
(17,188)
(14,758)
Investment in privately held companies
(520)
(480)
Acquisitions, net of cash acquired
(85,000)
(66,987)
Proceeds from return of investment in privately held companies
237 
Changes in restricted cash
715 
Purchases of short-term investments
(6,789)
Purchases of trading investments
(999)
(5,271)
Proceeds from sales of trading investments
1,057 
5,296 
Net cash used in investing activities
(109,202)
(81,485)
Cash flows from financing activities:
 
 
Payment of cash dividends
(104,248)
(93,093)
Purchases of registered shares
(10,682)
(42,894)
Proceeds from exercises of stock options and purchase rights
30,000 
14,484 
Tax withholdings related to net share settlements of restricted stock units
(23,706)
(11,047)
Net cash used in financing activities
(108,636)
(132,550)
Effect of exchange rate changes on cash and cash equivalents
1,653 
(1,845)
Net decrease in cash and cash equivalents
(148,685)
(123,994)
Cash and cash equivalents, beginning of the period
547,533 
519,195 
Cash and cash equivalents, end of the period
398,848 
395,201 
Non-cash investing activities:
 
 
Property, plant and equipment purchased during the period and included in period end liability accounts
$ 6,219 
$ 4,008 
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $)
In Thousands, unless otherwise specified
Total
Registered Shares
Additional Paid-in Capital
Treasury Shares
Retained Earnings
Accumulated Other Comprehensive Loss
Beginning of the period at Mar. 31, 2016
$ 759,948 
$ 30,148 
$ 6,616 
$ (128,407)
$ 963,576 
$ (111,985)
Beginning of the period (in shares) at Mar. 31, 2016
 
173,106 
 
10,697 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
 
 
 
Total comprehensive income
72,856 
 
 
 
68,986 
3,870 
Purchase of registered shares (in shares)
2,400 
 
 
2,441 
 
 
Purchases of registered shares
(42,894)
 
 
(42,894)
 
 
Tax effects from share-based awards
(1,138)
 
(1,138)
 
 
 
Sales of shares upon exercise of stock options and purchase rights
14,484 
 
4,556 
9,928 
 
 
Sales of shares upon exercise of options and purchase rights (in shares)
 
 
 
(1,100)
 
 
Issuance of shares upon vesting of restricted stock units
(11,047)
 
(18,101)
9,303 
(2,249)
 
Issuance of shares upon vesting of restricted stock units (in shares)
 
 
 
(1,029)
 
 
Share-based compensation expense
16,918 
 
16,918 
 
 
 
Cash dividends
(93,093)
 
 
 
(93,093)
 
End of the period at Sep. 30, 2016
716,034 
30,148 
8,851 
(152,070)
937,220 
(108,115)
End of the period (in shares) at Sep. 30, 2016
 
173,106 
 
11,009 
 
 
Beginning of the period at Mar. 31, 2017
856,111 
30,148 
26,596 
(174,037)
1,074,110 
(100,706)
Beginning of the period (in shares) at Mar. 31, 2017
 
173,106 
 
10,727 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
 
 
 
Total comprehensive income
95,268 
 
 
 
93,365 
1,903 
Purchase of registered shares (in shares)
300 
 
 
307 
 
 
Purchases of registered shares
(10,700)
 
 
(10,682)
 
 
Sales of shares upon exercise of stock options and purchase rights
30,000 
 
15,628 
14,372 
 
 
Sales of shares upon exercise of options and purchase rights (in shares)
 
 
 
(1,084)
 
 
Issuance of shares upon vesting of restricted stock units
(23,706)
 
(37,464)
13,758 
 
Issuance of shares upon vesting of restricted stock units (in shares)
 
 
 
(1,205)
 
 
Share-based compensation expense
21,887 
 
21,887 
 
 
 
Cash dividends
(104,248)
 
 
 
(104,248)
 
End of the period at Sep. 30, 2017
$ 921,835 
$ 30,148 
$ 29,940 
$ (156,589)
$ 1,117,139 
$ (98,803)
End of the period (in shares) at Sep. 30, 2017
 
173,106 
 
8,745 
 
 
The Company and Summary of Significant Accounting Policies and Estimates
The Company and Summary of Significant Accounting Policies and Estimates
The Company and Summary of Significant Accounting Policies and Estimates

The Company
 
Logitech International S.A, together with its consolidated subsidiaries, ("Logitech" or the "Company") designs, manufactures and markets products that allow people to connect through music, gaming, video, computing, and other digital platforms.
The Company sells its products to a broad network of domestic and international customers, including direct sales to retailers and indirect sales through distributors.
Logitech was founded in Switzerland in 1981 and Logitech International S.A. has been the parent holding company of Logitech since 1988. Logitech International S.A. is a Swiss holding company with its registered office in Apples, Switzerland and headquarters in Lausanne, Switzerland, which conducts its business through subsidiaries in the Americas, Europe, Middle East and Africa ("EMEA") and Asia Pacific. Shares of Logitech International S.A. are listed on both the SIX Swiss Exchange under the trading symbol LOGN and the Nasdaq Global Select Market under the trading symbol LOGI.

Business Acquisition

In August 2017, the Company acquired the ASTRO Gaming business. See "Note 2 - Business Acquisition" for more information.

Basis of Presentation
 
The condensed consolidated interim financial statements include the accounts of Logitech and its subsidiaries. All intercompany balances and transactions have been eliminated. The condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and therefore do not include all the information required by GAAP for complete financial statements. They should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year ended March 31, 2017, included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on May 26, 2017. 

In the opinion of management, these condensed consolidated financial statements include all adjustments, consisting of only normal and recurring adjustments, necessary and in all material aspects, for a fair statement of the results of operations, comprehensive income, financial position, cash flows and changes in shareholders' equity for the periods presented. Operating results for the three and six months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2018, or any future periods.

Reclassification

Certain amounts from the comparative period in the accompanying unaudited condensed consolidated financial statements have been reclassified to conform to the condensed consolidated financial statement presentation as of and for the three and six months ended September 30, 2017.

Changes in Significant Accounting Policies
 
Other than the recent accounting pronouncements adopted, discussed below, there have been no substantial changes in the Company’s significant accounting policies during the six months ended September 30, 2017 compared with the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended March 31, 2017.
 
Use of Estimates
 
The preparation of financial statements in conformity with GAAP requires management to make judgments, estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Significant estimates and assumptions made by management involve the fair value of goodwill, intangible assets acquired from business acquisitions, warranty liabilities, accruals for customer programs and related breakage when appropriate, sales return reserves, allowance for doubtful accounts, inventory valuation, contingent consideration from business acquisitions and periodical reassessment of its fair value, share-based compensation expense, uncertain tax positions, and valuation allowances for deferred tax assets. Although these estimates are based on management’s best knowledge of current events and actions that may impact the Company in the future, actual results could differ materially from those estimates.
 
Recent Accounting Pronouncements Adopted

In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-11, "Simplifying the Measurement of Inventory (Topic 330)" ("ASU 2015-11"). Topic 330, Inventory, previously required an entity to measure inventory at the lower of cost or market, with market value represented by replacement cost, net realizable value or net realizable value less a normal profit margin. ASU 2015-11 requires an entity to measure inventory at the lower of cost or net realizable value and is effective for fiscal years beginning after December 15, 2016. The Company adopted this standard effective April 1, 2017, which has not had a material impact on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"). ASU 2016-09 simplifies several aspects of the accounting for share-based payments, including immediate recognition of all excess tax benefits and deficiencies in the income statement, changing the threshold to qualify for equity classification up to the employees' maximum statutory tax rates, allowing an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur, and clarifying the classification on the statement of cash flows for the excess tax benefits and employee taxes paid when an employer withholds shares for tax withholding purposes. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016. The Company adopted this standard effective April 1, 2017. Changes to the statements of cash flows related to the classification of excess tax benefits were implemented on a retroactive basis and accordingly, to conform to the current year presentation, the Company reclassified $4.1 million of excess tax benefits previously reported under financing activities to operating activities for the six months ended September 30, 2016 on its condensed consolidated statements of cash flows. Under the new standard, the Company accounts for forfeitures as they occur. The change in accounting for forfeitures resulted in a cumulative-effect adjustment to decrease retained earnings as of March 31, 2017 by $3.3 million. The Company further recognized a cumulative-effect adjustment to increase retained earnings as of March 31, 2017 by $57.2 million upon adoption of the new guidance to account for gross excess tax benefits of $75.2 million that were previously not recognized because the related tax deduction had not reduced current income taxes, offset by a valuation allowance of $18.0 million to reduce the deferred tax assets to amounts that are more likely than not to be realized.

In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment (Topic
350)" ("ASU 2017-04"), which removes Step 2 from the goodwill impairment test. ASU 2017-04 is effective for annual or any interim goodwill impairments in annual periods beginning December 15, 2019, with early adoption permitted. The Company adopted this standard effective April 1, 2017, which has not had a material impact on its consolidated financial statements.

In May 2017, the FASB issued ASU 2017-09, "Compensation-Stock Compensation (Topic 718): Scope of
Modification Accounting" ("ASU 2017-09"), which provides guidance about which changes to the terms or conditions
of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-09 is
effective for annual periods beginning after December 15, 2017, with early adoption permitted, including adoption in any interim period for which financial statements have not yet been issued. The Company adopted this standard effective April 1, 2017, which has not had a material impact on its consolidated financial statements.

Recent Accounting Pronouncements to be Adopted

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09") which supersedes the revenue recognition requirements under ASC 605, Revenue Recognition. ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard requires reporting companies to disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard will become effective for the Company on April 1, 2018. The standard allows for either a "full retrospective" adoption, meaning the standard is applied to all of the periods presented subject to practical expedients, or a "modified retrospective" adoption, meaning the standard is applied only in the initial year, or interim period in year of initial application with a cumulative adjustment to opening retained earnings for existing contracts. The Company currently expects to utilize the modified retrospective transition method. The Company continues to evaluate the impact this new standard could have on the current contracts with customers and the accruals of various sales and marketing programs the Company offers and on the related breakage estimates. The Company has not completed its analysis of the impact to its consolidated financial statements and this information will not be available until the Company completes its full assessment. It is possible that during the fiscal year 2018, the Company may identify certain areas which may result in material impact on the Company’s consolidated financial statements, or the Company may revise its adoption method.

In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10)" ("ASU 2016-01"). ASU 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. The Company does not believe that the adoption of ASU 2016-01 will have a material impact on its consolidated financial statements and will adopt this standard effective April 1, 2018.

In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), which requires the recognition of lease assets and lease liabilities arising from operating leases in the statement of financial position. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company is evaluating the full effect that ASU 2016-02 will have on its consolidated financial statements and will adopt this standard effective April 1, 2019.

In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory"  ("ASU 2016-16"), which eliminates the deferral of income tax effects of intra-entity asset transfers until the transferred asset is sold to an unrelated party or recovered through use. However, this standard does not apply to intra-entity transfer of inventory.  ASU 2016-16 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted but only in the first interim period of an annual period.  The cumulative effect of change on equity upon adoption is to be quantified under the modified retrospective approach and recorded as of the beginning of the period of adoption.  The Company is evaluating the full effect that ASU 2016-16 will have on its consolidated financial statements and will adopt this standard effective April 1, 2018.

In December 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash" ("ASU 2016-18"), which requires that a statement of cash flows explains the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. The adoption of this standard should be applied using a retrospective transition method to each period presented. The Company does not expect the adoption of ASU 2016-18 will have a material impact on its consolidated financial statements and will adopt this standard effective April 1, 2018.

In January 2017, the FASB issued ASU 2017-01, "Business Combination  (ASC Topic 805): Clarifying the Definition of a Business" ("ASU 2017-01"), which changes the definition of a business to assist with evaluating when a set of transferred assets and activities is a business. ASU 2017-01 is effective for annual or any interim goodwill impairments in annual periods beginning after December 15, 2017, with early adoption permitted. The Company does not expect the adoption of ASU 2017-01 will have a material impact on its condensed consolidated financial statements and will adopt this standard effective April 1, 2018.

In March 2017, the FASB issued ASU 2017-07, "Compensation-Retirement Benefit (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" ("ASU 2017-07"), which requires that the Company disaggregate the service cost component from the other components of net benefit cost, and also provides guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allow only the service cost component of net benefit cost to be eligible for capitalization. ASU 2017-07 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. The Company does not expect the adoption of ASU 2017-07 will have a material impact on its consolidated financial statements and will adopt this standard effective April 1, 2018.

In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" ("ASU 2017-12"), which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and simplifies the application of the hedge accounting guidance. ASU 2017-12 is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. The Company does not expect the adoption of ASU 2017-12 will have a material impact on its consolidated financial statements and is currently assessing the timing of adoption.
Business Acquisition Business Acquisition
Business Acquisition
Business Acquisition

ASTRO Acquisition

On August 11, 2017 (the "Acquisition Date"), the Company acquired certain assets and liabilities constituting the ASTRO Gaming business ("ASTRO") from AG Acquisition Corporation for a preliminary purchase price of $85.0 million in cash (the "ASTRO Acquisition"). ASTRO is a leading console gaming brand with a history of producing award-winning headsets for professional gamers and enthusiasts. ASTRO provides a strong growth platform in the console gaming accessories market.

ASTRO meets the definition of a business, and its acquisition is accounted for using the acquisition method. The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the Acquisition Date (in thousands):
 
 
Estimated Fair Value
Inventories
 
$
10,331

Property, plant, and equipment
 
2,760

Intangible assets
 
52,520

Other assets
 
605

Total identifiable assets acquired
 
$
66,216

Accrued liabilities
 
(2,602
)
Net identifiable assets acquired
 
$
63,614

Goodwill
 
21,386

Net assets acquired
 
$
85,000



Goodwill related to the transaction is primarily attributable to opportunities and economies of scale from combining the operations and technologies of Logitech and ASTRO. Goodwill is expected to be deductible for tax purposes.

The fair value of the inventory acquired is estimated at its net realizable value, which uses the estimated selling prices, less the cost of disposal and a reasonable profit allowance for the selling efforts. The difference between the fair value of the inventories and the amount recognized by the acquiree immediately before the acquisition date is $0.8 million, which will be recognized in "amortization of intangibles assets and purchase accounting effect on inventory" in the condensed consolidated statements of operations upon the sale of the acquired inventory.

The Company included ASTRO's estimated fair value of assets acquired and liabilities assumed in its condensed consolidated balance sheets beginning the Acquisition Date. The results of operations for ASTRO for this partial quarter have been included in, but are not material to, the Company's condensed consolidated statements of operations from the Acquisition Date. Pro forma results of operations for the ASTRO Acquisition have not been presented because they are not material to the condensed consolidated statements of operations. 

The following table sets forth the components of identifiable intangible assets acquired at their estimated fair values and their estimated useful lives as of the Acquisition Date (Dollars in thousands):
 
Preliminary Fair Value
 
Estimated Useful Life (years)
Developed technology
$
12,540

 
4.0
Customer relationships
33,100

 
8.0
Trade name
6,880

 
6.0
Total intangible assets acquired
$
52,520

 
6.8


Intangible assets acquired as a result of the ASTRO Acquisition are being amortized over their estimated useful lives using the straight-line method of amortization. Amortization of acquired developed technology of $0.4 million during the three months ended September 30, 2017 is included in "amortization of intangible assets and purchase accounting effect of inventory" in the gross profit of the condensed consolidated statements of operations. Amortization of the acquired customer relationships and trade name of $0.7 million during the three months ended September 30, 2017 is included in "amortization of intangible assets and acquisition-related costs" in the operating expense of the condensed consolidated statements of operations.

Developed technology relates to existing ASTRO gaming headset products. The economic useful life was determined based on the technology cycle related to developed technology of existing products, as well as the cash flows anticipated over the forecasted periods.

Customer relationships represent the fair value of future projected revenue that will be derived from sales of products to existing customers of ASTRO. The economic useful life was determined based on historical customer turnover rates and industry benchmarks.

Trade name relates to the “ASTRO” trade name. The economic useful life was determined based on the expected life of the trade name and the cash flows anticipated over the forecasted periods.

The fair value of developed technology and trade name were estimated using the relief-from-royalty method, an income approach (Level 3), which estimates the cost savings that accrue to the owner of the intangible assets that would otherwise be payable as royalties or license fees on revenues earned through the use of the asset. A royalty rate is applied to the projected revenues associated with the intangible assets to determine the amount of savings, which is then discounted to determine the fair value. The developed technology and trade name were valued using royalty rates of 10% and 2%, respectively, and both were discounted at a rate of 13%.

The fair value of customer relationships was estimated using the excess earnings method, an income approach (Level 3), which converts projected revenues and costs into cash flows. To reflect the fact that certain other assets contributed to the cash flows generated, the returns for these contributory assets were removed to arrive at estimated cash flows solely attributable to the customer relationships, which were discounted at a rate of 13%.

The Company believes the preliminary value of purchased intangible assets recorded above represent the fair values of, and approximate the amounts a market participant would pay for, these intangible assets as of the Acquisition Date.

The Company incurred acquisition-related costs for the ASTRO Acquisition of approximately $0.7 million and $1.0 million for the three and six months ended September 30, 2017, respectively. The acquisition-related costs are included in "amortization of intangible assets and acquisition-related costs" in the operating expenses of the condensed consolidated statements of operations.

The fair value of identifiable intangible assets acquired was based on estimates and assumptions made by management at the time of the acquisition. As additional information becomes available, such as finalization of the estimated fair value of the assets acquired and liabilities assumed, and any dispute that may affect the total consideration transferred, the Company may revise its preliminary estimates of fair values during the remainder of the measurement periods (which will not exceed 12 months from the Acquisition Date). Any such revisions or changes may be material as we finalize the fair values of the tangible and intangible assets acquired and liabilities assumed.
Net Income Per Share
Net Income Per Share
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,
 
 
2017
 
2016
 
2017
 
2016
Net Income
 
$
56,358

 
$
47,045

 
$
93,365

 
$
68,986

 
 
 
 
 
 
 
 
 
Shares used in net income per share computation:
 
 

 
 

 
 

 
 

Weighted average shares outstanding - basic
 
164,120

 
162,222

 
163,765

 
162,176

Effect of potentially dilutive equivalent shares
 
4,958

 
3,327

 
4,945

 
2,750

Weighted average shares outstanding - diluted
 
169,078

 
165,549

 
168,710

 
164,926

 
 
 
 
 
 
 
 
 
Net income per share:
 
 

 
 

 
 

 
 

Basic
 
$
0.34

 
$
0.29

 
$
0.57

 
$
0.43

Diluted
 
$
0.33

 
$
0.28

 
$
0.55

 
$
0.42


 
Share equivalents attributable to outstanding stock options and restricted stock units of 0.6 million and 2.9 million for the three months ended September 30, 2017 and 2016, respectively, and 1.2 million and 3.1 million for the six months ended September 30, 2017 and 2016, respectively, were anti-dilutive and excluded from the calculation of diluted net income per share.
Employee Benefit Plans
Employee Benefit Plans
Employee Benefit Plans
 
Employee Share Purchase Plans and Stock Incentive Plans
 
As of September 30, 2017, the Company offers the 2006 ESPP (2006 Employee Share Purchase Plan (Non-U.S.)), the 1996 ESPP (1996 Employee Share Purchase Plan (U.S.)), the 2006 Plan (2006 Stock Incentive Plan) and the 2012 Plan (2012 Stock Inducement Equity Plan).

The following table summarizes the share-based compensation expense and total income tax benefit recognized for share-based awards for the three and six months ended September 30, 2017 and 2016 (in thousands):
 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
 
2017
 
2016
 
2017
 
2016
Cost of goods sold
 
$
1,091

 
$
638

 
$
1,802

 
$
1,313

Marketing and selling
 
4,343

 
3,244

 
8,724

 
6,681

Research and development
 
1,633

 
917

 
3,176

 
1,831

General and administrative
 
3,911

 
3,651

 
7,981

 
7,142

Total share-based compensation expense
 
10,978

 
8,450

 
21,683

 
16,967

Income tax benefit
 
(3,677
)
 
(1,886
)
 
(14,959
)
 
(3,701
)
Total share-based compensation expense, net of income tax
 
$
7,301

 
$
6,564

 
$
6,724

 
$
13,266



The income tax benefit in the respective period primarily consists of tax benefit related to the share-based compensation expense for the period and direct tax benefit realized, including net excess tax benefits recognized, from stock-based awards vested or exercised during the period.

As of September 30, 2017 and 2016, the Company capitalized $0.8 million and $0.4 million of stock-based compensation expense to inventory, respectively.
 
Defined Benefit Plans
 
Certain of the Company’s subsidiaries sponsor defined benefit pension plans or non-retirement post-employment benefits covering substantially all of their employees. Benefits are provided based on employees’ years of service and earnings, or in accordance with applicable employee benefit regulations. The Company’s practice is to fund amounts sufficient to meet the requirements set forth in the applicable employee benefit and tax regulations. The cost recorded of $2.3 million and $2.8 million for the three months ended September 30, 2017 and 2016, respectively, and $4.6 million and $5.6 million for the six months ended September 30, 2017 and 2016, respectively, was primarily related to service costs.
Income Taxes
Income Taxes
Income Taxes
 
The Company is incorporated in Switzerland but operates in various countries with differing tax laws and rates. Further, a portion of the Company’s income before taxes and the provision for (benefit from) income taxes are generated outside of Switzerland.
 
The income tax provision for the three months ended September 30, 2017 was $4.1 million based on an effective income tax rate of 6.8% of pre-tax income, compared to an income tax provision of $5.6 million based on an effective income tax rate of 10.6% of pre-tax income for the three months ended September 30, 2016. The income tax benefit for the six months ended September 30, 2017 was $1.3 million based on an effective income tax rate of (1.5)% of pre-tax income, compared to an income tax provision of $8.7 million based on an effective income tax rate of 11.1% for the six months ended September 30, 2016

The change in the effective income tax rate is primarily due to the recognition of excess tax benefits of $1.1 million and $11.0 million, respectively, in the three and six months ended September 30, 2017 after adoption of ASU 2016-09, compared to the same periods ended September 30, 2016. In the three and six months ended September 30, 2017, there was a discrete tax benefit of $0.7 million and $1.9 million, respectively, from the reversal of uncertain tax positions from the expiration of statutes of limitations. In the same periods ended September 30, 2016, the tax benefit from the reversal of uncertain tax positions from the expiration of statutes of limitations was $0.7 million and $1.8 million, respectively.

As of September 30 and March 31, 2017, the total amount of unrecognized tax benefits due to uncertain tax positions was $68.7 million and $63.7 million, respectively, all of which would affect the effective income tax rate if recognized.
 
The Company had $33.2 million in non-current income taxes payable and $1.9 million in current income taxes payable, including interest and penalties, related to its income tax liability for uncertain tax positions as of September 30, 2017, compared to $51.8 million in non-current income taxes payable and $1.5 million in current income taxes payable as of March 31, 2017. The Company anticipates a settlement of $1.9 million with the tax authorities in a foreign jurisdiction in the third quarter of fiscal year 2018.
 
The Company recognizes interest and penalties related to unrecognized tax positions in income tax expense. As of September 30 and March 31, 2017, the Company had $3.2 million and $3.0 million, respectively, of accrued interest and penalties related to uncertain tax positions.
 
Although the Company has adequately provided for uncertain tax positions, the provisions on these positions may change as revised estimates are made or the underlying matters are settled or otherwise resolved. During fiscal year 2018, the Company will continue to review its tax positions and provide for or reverse unrecognized tax benefits as issues arise. During the next twelve months, it is reasonably possible that the amount of unrecognized tax benefits could increase or decrease significantly due to changes in tax law in various jurisdictions, new tax audits and changes in the U.S. dollar as compared to other currencies. Excluding these factors, uncertain tax positions may decrease by as much as $7.8 million from the lapse of the statutes of limitations in various jurisdictions during the next twelve months.
Balance Sheet Components
Balance Sheet Components
Balance Sheet Components
 
The following table presents the components of certain balance sheet asset amounts as of September 30 and March 31, 2017 (in thousands): 
 
 
September 30,
2017
 
March 31,
2017
Accounts receivable, net:
 
 

 
 

Accounts receivable
 
$
529,842

 
$
395,754

Allowance for doubtful accounts
 
(229
)
 
(607
)
Allowance for sales returns
 
(21,712
)
 
(18,800
)
Allowance for cooperative marketing arrangements
 
(28,758
)
 
(28,022
)
Allowance for customer incentive programs
 
(70,413
)
 
(60,857
)
Allowance for pricing programs
 
(130,891
)
 
(102,289
)
 
 
$
277,839

 
$
185,179

Inventories:
 
 

 
 

Raw materials
 
$
46,405

 
$
30,582

Finished goods
 
284,017

 
222,819

 
 
$
330,422

 
$
253,401

Other current assets:
 
 

 
 

Value-added tax receivables
 
$
23,693

 
$
23,132

Prepaid expenses and other assets
 
24,028

 
18,600

 
 
$
47,721

 
$
41,732

Property, plant and equipment, net:
 
 

 
 

Property, plant and equipment at cost
 
$
359,333

 
$
348,760

Less: accumulated depreciation and amortization
 
(271,978
)
 
(263,352
)
 
 
$
87,355

 
$
85,408

Other assets:
 
 

 
 

Deferred tax assets
 
$
103,071

 
$
57,303

Trading investments for deferred compensation plan
 
17,583

 
15,043

Investments in privately held companies
 
11,495

 
10,776

Other assets
 
5,995

 
4,997

 
 
$
138,144

 
$
88,119






The following table presents the components of certain balance sheet liability amounts as of September 30 and March 31, 2017 (in thousands): 
 
 
September 30,
2017
 
March 31,
2017
Accrued and other current liabilities:
 
 

 
 

Accrued personnel expenses
 
$
68,645

 
$
88,346

Indirect customer incentive programs
 
41,710

 
36,409

Warranty accrual
 
14,567

 
13,424

Employee benefit plan obligation
 
1,841

 
1,266

Income taxes payable
 
6,950

 
6,232

Contingent consideration for business acquisition - current portion
 
5,000

 
2,889

Other current liabilities
 
90,463

 
83,707

 
 
$
229,176

 
$
232,273

Other non-current liabilities:
 
 

 
 

Warranty accrual
 
$
9,782

 
$
8,487

Obligation for deferred compensation plan
 
17,583

 
15,043

Employee benefit plan obligation
 
43,057

 
41,998

Deferred tax liability
 
1,789

 
1,789

Contingent consideration for business acquisition - non-current portion
 

 
7,019

Other non-current liabilities
 
8,692

 
9,355

 
 
$
80,903

 
$
83,691

Fair Value Measurements
Fair Value Measurements
Fair Value Measurements
 
Fair Value Measurements
 
The Company considers fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Company utilizes the following three-level fair value hierarchy to establish the priorities of the inputs used to measure fair value:
 
Level 1 — Quoted prices in active markets for identical assets or liabilities.
 
Level 2 — Observable inputs other than quoted market prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
 
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

The following table presents the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis, excluding assets related to the Company’s defined benefit pension plans, classified by the level within the fair value hierarchy (in thousands): 
 
 
September 30, 2017
 
March 31, 2017
 
 
Level 1
 
Level 2
 
Level 3
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 

 
 
 
 
 
 

 
 

 
 

Cash equivalents
 
$
286,074

 
$

 
$

 
$
448,742

 
$

 
$

 
 
 
 
 
 
 
 
 
 
 
 
 
Time deposits included in short-term investments
 
$

 
$
6,789

 
$

 
$

 
$

 
$

 
 
 

 
 

 
 

 
 

 
 

 
 

Trading investments for deferred compensation plan included in other assets:
 
 

 
 
 
 
 
 

 
 

 
 

Money market funds
 
$
3,110

 
$

 
$

 
$
2,813

 
$

 
$

Mutual funds
 
14,473

 

 

 
12,230

 

 

Total of trading investments for deferred compensation plan
 
$
17,583

 
$

 
$

 
$
15,043

 
$

 
$

 
 
 
 
 
 
 
 
 
 
 
 
 
Currency exchange derivative assets
included in other current assets
 
$

 
$
165

 
$

 
$

 
$
48

 
$

 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition-related contingent
consideration included in accrued and
other current liabilities and other non-current liabilities
 
$

 
$

 
$

 
$

 
$

 
$
9,908

Currency exchange derivative liabilities
included in accrued and other current liabilities
 
$

 
$
107

 
$

 
$

 
$
443

 
$


 
The following table summarizes the changes in fair value of the Company’s contingent consideration balance measured with Level 3 inputs during the three and six months ended September 30, 2017 and 2016 (in thousands):
 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
 
2017
 
2016
 
2017
 
2016
Beginning of the period
 
$
7,475

 
$
18,000

 
$
9,908

 
$

Fair value of contingent consideration upon acquisition
 

 

 

 
18,000

Change in fair value of contingent consideration
 
(2,930
)
 

 
(4,908
)
 

Expected payment
 
(4,545
)
 

 
(5,000
)
 

End of the period
 
$

 
$
18,000

 
$

 
$
18,000



Acquisition-related contingent consideration

On April 20, 2016 (the "Jaybird Acquisition Date"), the Company acquired all of the equity interest of Jaybird, LLC (“Jaybird”). The acquisition-related contingent consideration liability arising from the Jaybird acquisition represents the future potential earn-out payments of up to $45.0 million based on the achievement of certain net revenue targets over approximately a two year period. If the net revenue targets are met, the Company will pay a maximum of $25.0 million and $20.0 million in fiscal years 2018 and 2019, respectively. The fair value of the earn-out as of the Jaybird Acquisition Date was $18.0 million, which was determined by using a Monte Carlo Simulation that includes significant unobservable inputs such as a risk-adjusted discount rate of 16% and projected net sales of Jaybird over the earn-out period. The fair value is remeasured at each reporting period at the estimated fair value based on the inputs on the date of remeasurement, with the change in fair value recognized as "change in fair value of contingent consideration for business acquisition" in the operating expense section in the condensed consolidated statements of operations. Projected net sales are based on the Company's internal projections, including analysis of the target markets. In October 2017, the Company and the sellers of Jaybird entered into an agreement fully, irrevocably and unconditionally releasing the Company from the earn-out rights and payments in exchange for $5.0 million in cash, which approximates the fair value of the contingent consideration as of September 30, 2017 and the expected cash payment is included in the accrued and other current liabilities.
 
Investment Securities
 
The marketable securities for the Company's deferred compensation plan are recorded at a fair value of $17.6 million and $15.0 million, respectively, as of September 30, 2017 and March 31, 2017, based on quoted market prices. Quoted market prices are observable inputs that are classified as Level 1 within the fair value hierarchy. Unrealized trading gains / (losses) related to trading securities for the three and six months ended September 30, 2017 and 2016 were not material and are included in other income (expense), net in the Company's condensed consolidated statements of operations.

Assets Measured at Fair Value on a Nonrecurring Basis

The Company’s non-marketable cost method investments, and non-financial assets, such as goodwill, intangible assets and property, plant and equipment, are recorded at fair value only upon initial recognition or if an impairment is recognized. There were no material impairments of long-lived assets during the three and six months ended September 30, 2017 or 2016.

Non-marketable cost method investments. These investments are classified as Level 3 due to the absence of quoted market prices, the inherent lack of liquidity, and the fact that inputs used to measure fair value are unobservable and require management's judgment. When certain events or circumstances indicate that impairment may exist, the Company revalues the investments using various assumptions, including the financial metrics and ratios of comparable public companies.

The primary investment included in non-marketable investments is the Company’s investment in Series A Preferred Stock of Lifesize Inc. ("Lifesize") recorded at the fair value of $5.6 million on the date of the Lifesize divestiture.
 
The aggregate recorded amount of cost method investments included in other assets as of September 30, 2017 and March 31, 2017 was $7.1 million and $7.4 million, respectively.
Derivative Financial Instruments
Derivative Financial Instruments
Derivative Financial Instruments
 
Under certain agreements with the respective counterparties to the Company’s derivative contracts, subject to applicable requirements, the Company is allowed to net settle transactions of the same type with a single net amount payable by one party to the other. However, the Company presents its derivative assets and derivative liabilities on a gross basis on the condensed consolidated balance sheets as of September 30, 2017 and March 31, 2017.

The fair values of the Company’s derivative instruments not designated as hedging instruments were not material as of September 30, 2017 or March 31, 2017. The following table presents the fair values of the Company’s derivative instruments designated as hedging instruments on a gross basis in other current assets or accrued and other current liabilities on its condensed consolidated balance sheets as of September 30, 2017 and March 31, 2017 (in thousands):
 
 
Derivatives
 
 
Asset
 
Liability
 
 
September 30,
2017
 
March 31,
2017
 
September 30,
2017
 
March 31,
2017
Cash flow hedges
 
$
165

 
$
48

 
$
38

 
$
402


 
The amount of gain (loss) recognized on derivatives not designated as hedging instruments were not material in all periods presented herein. The following table presents the amounts of gains (losses) on the Company’s derivative instruments designated as hedging instruments and their locations on its condensed consolidated statements of operations and condensed consolidated statements of comprehensive income for the three and six months ended September 30, 2017 and 2016 (in thousands):
 
 
Three Months Ended
September 30,
 
 
Amount of Gain (Loss)
Deferred as a Component of Accumulated
Other Comprehensive Loss
 
Amount of Loss
Reclassified from Accumulated Other Comprehensive Loss to
Costs of Goods Sold
 
 
2017
 
2016
 
2017
 
2016
Cash flow hedges
 
$
(2,140
)
 
$
564

 
$
2,596

 
$
155


 
 
Six Months Ended
September 30,
 
 
Amount of Gain (Loss)
Deferred as a Component of Accumulated
Other Comprehensive Loss
 
Amount of Loss
Reclassified from Accumulated Other Comprehensive Loss to
Costs of Goods Sold
 
 
2017
 
2016
 
2017
 
2016
Cash flow hedges
 
$
(5,349
)
 
$
1,529

 
$
3,129

 
$
895




Cash Flow Hedges
 
The Company enters into cash flow hedge contracts to protect against exchange rate exposure of forecasted inventory purchases. These hedging contracts mature within four months. Gains and losses in the fair value of the effective portion of the hedges are deferred as a component of accumulated other comprehensive loss until the hedged inventory purchases are sold, at which time the gains or losses are reclassified to cost of goods sold. Cash flows from such hedges are classified as operating activities in the condensed consolidated statements of cash flows. The notional amounts of foreign currency exchange forward contracts outstanding related to forecasted inventory purchases were $149.1 million and $59.4 million as of September 30, 2017 and March 31, 2017, respectively. The Company estimates that $2.7 million of net losses related to its cash flow hedges included in accumulated other comprehensive loss as of September 30, 2017 will be reclassified into earnings within the next 12 months.
 
Other Derivatives
 
The Company also enters into foreign currency exchange forward and swap contracts to reduce the short-term effects of currency exchange rate fluctuations on certain receivables or payables denominated in currencies other than the functional currencies of its subsidiaries. These contracts generally mature within one month. The primary risk managed by using forward and swap contracts is the currency exchange rate risk. The gains or losses on these contracts are recognized in other income (expense), net in the condensed consolidated statements of operations based on the changes in fair value. The notional amounts of these contracts outstanding as of September 30, 2017 and March 31, 2017 were $95.6 million and $56.7 million, respectively. Open forward and swap contracts outstanding as of September 30, 2017 and March 31, 2017 consisted of contracts in Mexican Pesos, Japanese Yen, British Pounds, Taiwanese Dollars, Canadian Dollars, Australian Dollars and Chinese Renminbi to be settled at future dates at pre-determined exchange rates.
 
The fair value of all foreign currency exchange forward and swap contracts is determined based on observable market transactions of spot currency rates and forward rates. Cash flows from these contracts are classified as operating activities in the condensed consolidated statements of cash flows.
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets

The Company conducts its impairment analysis of the goodwill annually at December 31 and as necessary if changes in facts and circumstances indicate that it is more likely than not that the fair value of the Company’s reporting units may be less than its carrying amount. There have been no events or circumstances during the six months ended September 30, 2017 that have required the Company to perform an interim assessment of goodwill.
 
The following table summarizes the activities in the Company’s goodwill balance during the six months ended September 30, 2017 (in thousands):
As of March 31, 2017
 
$
249,741

Business acquisitions (See Note 2)
 
21,386

Currency impact
 
27

As of September 30, 2017
 
$
271,154


The Company's acquired intangible assets subject to amortization were as follows (in thousands):
 
 
September 30, 2017
 
March 31, 2017
 
 
Gross Carrying Amount
(Note 2)
 
Accumulated
Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated
Amortization
 
Net Carrying Amount
Trademark and trade names
 
$
23,380

 
$
(8,012
)
 
$
15,368

 
$
16,500

 
$
(6,933
)
 
$
9,567

Developed Technology
 
75,825

 
(46,225
)
 
29,600

 
63,285

 
(42,831
)
 
20,454

Customer contracts/relationships
 
58,280

 
(9,402
)
 
48,878

 
25,180

 
(7,637
)
 
17,543

Total
 
$
157,485

 
$
(63,639
)
 
$
93,846

 
$
104,965

 
$
(57,401
)
 
$
47,564

Financing Arrangements
Financing Arrangements
Financing Arrangements
 
The Company had several uncommitted, unsecured bank lines of credit aggregating $68.2 million as of September 30, 2017. There are no financial covenants under these lines of credit with which the Company must comply. As of September 30, 2017, the Company had outstanding bank guarantees of $39.8 million under these lines of credit. There was no borrowing outstanding under these lines of credit as of September 30, 2017 or March 31, 2017.
Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies
 
Product Warranties
 
All of the Company’s peripherals products sold are covered by warranty to be free from defects in material and workmanship. The warranty period varies by product and by region.
 
Changes in the Company’s warranty liability for the three and six months ended September 30, 2017 and 2016 were as follows (in thousands): 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
2017
 
2016
 
2017
 
2016
Beginning of the period
$
22,056

 
$
21,752

 
$
21,911

 
$
20,380

Assumed from business acquisition
1,230

 
150

 
1,230

 
1,963

Provision
5,414

 
3,163

 
9,715

 
6,340

Settlements
(4,611
)
 
(3,452
)
 
(9,179
)
 
(6,880
)
Currency translation
260

 
(1
)
 
672

 
(191
)
End of the period
$
24,349

 
$
21,612

 
$
24,349

 
$
21,612


 
Guarantees
 
Logitech Europe S.A., one of our wholly-owned subsidiaries, guaranteed payments of certain third-party contract manufacturers’ purchase obligations. As of September 30, 2017, the maximum amount of this guarantee was $3.8 million, of which $1.4 million of guaranteed purchase obligations were outstanding.

Indemnifications
 
The Company indemnifies certain of its suppliers and customers for losses arising from matters such as intellectual property disputes and product safety defects, subject to certain restrictions. The scope of these indemnities varies, but in some instances, includes indemnification for damages and expenses, including reasonable attorneys’ fees. As of September 30, 2017, no amounts have been accrued for these indemnification provisions. The Company does not believe, based on historical experience and information currently available, that it is probable that any material amounts will be required to be paid under its indemnification arrangements.
 
The Company also indemnifies its current and former directors and certain of its current and former officers. Certain costs incurred for providing such indemnification may be recoverable under various insurance policies. The Company is unable to reasonably estimate the maximum amount that could be payable under these arrangements because these exposures are not limited, the obligations are conditional in nature and the facts and circumstances involved in any situation that might arise are variable.

The stock purchase agreement entered on December 28, 2015 in connection with the investment by three venture capital firms in Lifesize contains representations, warranties and covenants of Logitech and Lifesize, Inc. to the Investors. Logitech has agreed, subject to certain limitations, to indemnify the Investors and certain persons related to the Investors for certain losses resulting from breaches of or inaccuracies in such representations, warranties and covenants as well as certain other obligations, including third-party expenses, restructuring costs and pre-closing tax obligations of Lifesize.
 
Legal Proceedings
 
From time to time the Company is involved in claims and legal proceedings that arise in the ordinary course of its business. The Company is currently subject to several such claims and a small number of legal proceedings. The Company believes that these matters lack merit and intends to vigorously defend against them. Based on currently available information, the Company does not believe that resolution of pending matters will have a material adverse effect on its financial condition, cash flows or results of operations. However, litigation is subject to inherent uncertainties, and there can be no assurances that the Company’s defenses will be successful or that any such lawsuit or claim would not have a material adverse impact on the Company’s business, financial condition, cash flows or results of operations in a particular period. Any claims or proceedings against the Company, whether meritorious or not, can have an adverse impact because of defense costs, diversion of management and operational resources, negative publicity and other factors. Any failure to obtain a necessary license or other rights, or litigation arising out of intellectual property claims, could adversely affect the Company’s business.
Shareholders' Equity
Shareholders' Equity
Shareholders’ Equity
 
Share Repurchase Program

In March 2014, the Company’s Board of Directors approved the 2014 share buyback program, which authorizes the Company to use up to $250.0 million to purchase its own shares. This share buyback program expired in April 2017.

In March 2017, the Company's Board of Directors approved the 2017 share buyback program, which authorizes the Company to use up to $250.0 million to purchase up to 17.3 million shares of its own shares following the expiration date of the 2014 buyback program. The Company's share buyback program is expected to remain in effect for a period of three years. Shares may be repurchased from time to time on the open market, through block trades or otherwise. Purchases may be started or stopped at any time without prior notice depending on market conditions and other factors.

During the six months ended September 30, 2017 and 2016, 0.3 million and 2.4 million shares, respectively, were repurchased for $10.7 million and $42.9 million, respectively.

Cash Dividend on Shares of Common

During the three and six months ended September 30, 2017, the Company declared and paid cash dividends of CHF 0.61 (USD equivalent of $0.63) per common share, totaling $104.2 million on the Company's outstanding common stock. During the three and six months ended September 30, 2016, the Company declared and paid cash dividends of CHF 0.56 (USD equivalent of $0.57) per common share, totaling $93.1 million on the Company's outstanding common stock.

Any future dividends will be subject to the approval of the Company's shareholders.

Accumulated Other Comprehensive Loss
 
The components of accumulated other comprehensive income (loss) were as follows (in thousands):
 
 
Accumulated Other Comprehensive Income (Loss)
 
 
Cumulative
Translation
Adjustment (1)
 
Defined
Benefit
Plan (1)
 
Deferred
Hedging
Losses
 
Total
March 31, 2017
 
$
(89,708
)
 
$
(10,480
)
 
$
(518
)
 
$
(100,706
)
Other comprehensive income (loss)
 
3,641

 
482

 
(2,220
)
 
1,903

September 30, 2017
 
$
(86,067
)
 
$
(9,998
)
 
$
(2,738
)
 
$
(98,803
)
 
(1)        Tax effect was not significant as of September 30 or March 31, 2017.
Segment Information
Segment Information
Segment Information
 
The Company has determined that it operates in a single operating segment that encompasses the design, manufacturing and marketing of peripherals for PCs, tablets and other digital platforms. Operating performance measures are provided directly to the Company's Chief Executive Officer (“CEO”), who is considered to be the Company’s Chief Operating Decision Maker (“CODM”). The CEO periodically reviews information such as net sales and operating income (loss) to make business decisions. These operating performance measures do not include restructuring charges (credits), net, share-based compensation expense, amortization of intangible assets, charges from the purchase accounting effect on inventory, acquisition-related costs, investigation and related expenses, or change in fair value of contingent consideration from business acquisition.

Net sales by product categories, excluding intercompany transactions, for the three and six months ended September 30, 2017 and 2016 were as follows (in thousands):
 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
 
2017
 
2016
 
2017
 
2016
Pointing Devices
 
$
123,643

 
$
123,300

 
$
245,717

 
$
240,083

Keyboards & Combos
 
119,200

 
116,516

 
235,313

 
234,535

PC Webcams
 
27,466

 
24,307

 
53,091

 
49,569

Tablet & Other Accessories
 
30,784

 
20,614

 
54,002

 
34,499

Video Collaboration
 
46,139

 
28,581

 
81,756

 
52,491

Mobile Speakers
 
90,548

 
97,172

 
153,466

 
154,468

Audio-PC & Wearables
 
62,445

 
62,254

 
112,647

 
118,833

Gaming
 
113,722

 
79,193

 
191,430

 
135,693

Smart Home
 
18,323

 
11,807

 
34,789

 
22,974

Other (1)
 
200

 
560

 
205

 
1,023

Total net sales
 
$
632,470

 
$
564,304

 
$
1,162,416

 
$
1,044,168


(1) Other category includes products that the Company currently intends to transition out of, or has already transitioned out of, because they are no longer strategic to the Company's business.
Net sales by geographic region (based on the customers’ locations) for the three and six months ended September 30, 2017 and 2016 were as follows (in thousands):
 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
 
2017
 
2016
 
2017
 
2016
Americas
 
$
261,993

 
$
239,830

 
$
507,393

 
$
462,455

EMEA
 
218,323

 
200,636

 
368,914

 
343,558

Asia Pacific
 
152,154

 
123,838

 
286,109

 
238,155

Total net sales
 
$
632,470

 
$
564,304

 
$
1,162,416

 
$
1,044,168


 
Sales are attributed to countries on the basis of the customers’ locations.

The United States and Germany each represented more than 10% of the total consolidated net sales for the periods presented herein. No other countries represented more than 10% of the Company’s total consolidated net sales for the periods presented herein.

Switzerland, the Company’s home domicile, represented 2% of the Company’s total consolidated net sales for the three and six months ended September 30, 2017, and 3% and 2% for the three and six months ended September 30, 2016, respectively.

Two customer groups of the Company each represented more than 10% of the total consolidated net sales for the periods presented herein.
 
Tangible long-lived assets by geographic region were as follows (in thousands):
 
 
September 30,
2017
 
March 31,
2017
Americas
 
$
37,725

 
$
37,242

EMEA
 
4,110

 
4,006

Asia Pacific
 
45,520

 
44,160

Total tangible long-lived assets
 
$
87,355

 
$
85,408


 
Tangible long-lived assets in the United States and China were $37.6 million and $38.1 million, respectively, as of September 30, 2017, and $37.1 million and $37.2 million, respectively, as of March 31, 2017. No other countries represented more than 10% of the Company’s total consolidated tangible long-lived assets as of September 30, 2017 or March 31, 2017. Tangible long-lived assets in Switzerland, the Company’s home domicile, were $2.0 million and $2.1 million as of September 30, 2017 and March 31, 2017, respectively.
The Company and Summary of Significant Accounting Policies and Estimates (Policies)
Basis of Presentation
 
The condensed consolidated interim financial statements include the accounts of Logitech and its subsidiaries. All intercompany balances and transactions have been eliminated. The condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and therefore do not include all the information required by GAAP for complete financial statements. They should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year ended March 31, 2017, included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on May 26, 2017. 

In the opinion of management, these condensed consolidated financial statements include all adjustments, consisting of only normal and recurring adjustments, necessary and in all material aspects, for a fair statement of the results of operations, comprehensive income, financial position, cash flows and changes in shareholders' equity for the periods presented. Operating results for the three and six months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2018, or any future periods.
Reclassification

Certain amounts from the comparative period in the accompanying unaudited condensed consolidated financial statements have been reclassified to conform to the condensed consolidated financial statement presentation as of and for the three and six months ended September 30, 2017.

Use of Estimates
 
The preparation of financial statements in conformity with GAAP requires management to make judgments, estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Significant estimates and assumptions made by management involve the fair value of goodwill, intangible assets acquired from business acquisitions, warranty liabilities, accruals for customer programs and related breakage when appropriate, sales return reserves, allowance for doubtful accounts, inventory valuation, contingent consideration from business acquisitions and periodical reassessment of its fair value, share-based compensation expense, uncertain tax positions, and valuation allowances for deferred tax assets. Although these estimates are based on management’s best knowledge of current events and actions that may impact the Company in the future, actual results could differ materially from those estimates.
Recent Accounting Pronouncements Adopted

In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-11, "Simplifying the Measurement of Inventory (Topic 330)" ("ASU 2015-11"). Topic 330, Inventory, previously required an entity to measure inventory at the lower of cost or market, with market value represented by replacement cost, net realizable value or net realizable value less a normal profit margin. ASU 2015-11 requires an entity to measure inventory at the lower of cost or net realizable value and is effective for fiscal years beginning after December 15, 2016. The Company adopted this standard effective April 1, 2017, which has not had a material impact on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"). ASU 2016-09 simplifies several aspects of the accounting for share-based payments, including immediate recognition of all excess tax benefits and deficiencies in the income statement, changing the threshold to qualify for equity classification up to the employees' maximum statutory tax rates, allowing an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur, and clarifying the classification on the statement of cash flows for the excess tax benefits and employee taxes paid when an employer withholds shares for tax withholding purposes. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016. The Company adopted this standard effective April 1, 2017. Changes to the statements of cash flows related to the classification of excess tax benefits were implemented on a retroactive basis and accordingly, to conform to the current year presentation, the Company reclassified $4.1 million of excess tax benefits previously reported under financing activities to operating activities for the six months ended September 30, 2016 on its condensed consolidated statements of cash flows. Under the new standard, the Company accounts for forfeitures as they occur. The change in accounting for forfeitures resulted in a cumulative-effect adjustment to decrease retained earnings as of March 31, 2017 by $3.3 million. The Company further recognized a cumulative-effect adjustment to increase retained earnings as of March 31, 2017 by $57.2 million upon adoption of the new guidance to account for gross excess tax benefits of $75.2 million that were previously not recognized because the related tax deduction had not reduced current income taxes, offset by a valuation allowance of $18.0 million to reduce the deferred tax assets to amounts that are more likely than not to be realized.

In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment (Topic
350)" ("ASU 2017-04"), which removes Step 2 from the goodwill impairment test. ASU 2017-04 is effective for annual or any interim goodwill impairments in annual periods beginning December 15, 2019, with early adoption permitted. The Company adopted this standard effective April 1, 2017, which has not had a material impact on its consolidated financial statements.

In May 2017, the FASB issued ASU 2017-09, "Compensation-Stock Compensation (Topic 718): Scope of
Modification Accounting" ("ASU 2017-09"), which provides guidance about which changes to the terms or conditions
of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-09 is
effective for annual periods beginning after December 15, 2017, with early adoption permitted, including adoption in any interim period for which financial statements have not yet been issued. The Company adopted this standard effective April 1, 2017, which has not had a material impact on its consolidated financial statements.

Recent Accounting Pronouncements to be Adopted

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09") which supersedes the revenue recognition requirements under ASC 605, Revenue Recognition. ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard requires reporting companies to disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard will become effective for the Company on April 1, 2018. The standard allows for either a "full retrospective" adoption, meaning the standard is applied to all of the periods presented subject to practical expedients, or a "modified retrospective" adoption, meaning the standard is applied only in the initial year, or interim period in year of initial application with a cumulative adjustment to opening retained earnings for existing contracts. The Company currently expects to utilize the modified retrospective transition method. The Company continues to evaluate the impact this new standard could have on the current contracts with customers and the accruals of various sales and marketing programs the Company offers and on the related breakage estimates. The Company has not completed its analysis of the impact to its consolidated financial statements and this information will not be available until the Company completes its full assessment. It is possible that during the fiscal year 2018, the Company may identify certain areas which may result in material impact on the Company’s consolidated financial statements, or the Company may revise its adoption method.

In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10)" ("ASU 2016-01"). ASU 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. The Company does not believe that the adoption of ASU 2016-01 will have a material impact on its consolidated financial statements and will adopt this standard effective April 1, 2018.

In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), which requires the recognition of lease assets and lease liabilities arising from operating leases in the statement of financial position. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company is evaluating the full effect that ASU 2016-02 will have on its consolidated financial statements and will adopt this standard effective April 1, 2019.

In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory"  ("ASU 2016-16"), which eliminates the deferral of income tax effects of intra-entity asset transfers until the transferred asset is sold to an unrelated party or recovered through use. However, this standard does not apply to intra-entity transfer of inventory.  ASU 2016-16 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted but only in the first interim period of an annual period.  The cumulative effect of change on equity upon adoption is to be quantified under the modified retrospective approach and recorded as of the beginning of the period of adoption.  The Company is evaluating the full effect that ASU 2016-16 will have on its consolidated financial statements and will adopt this standard effective April 1, 2018.

In December 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash" ("ASU 2016-18"), which requires that a statement of cash flows explains the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. The adoption of this standard should be applied using a retrospective transition method to each period presented. The Company does not expect the adoption of ASU 2016-18 will have a material impact on its consolidated financial statements and will adopt this standard effective April 1, 2018.

In January 2017, the FASB issued ASU 2017-01, "Business Combination  (ASC Topic 805): Clarifying the Definition of a Business" ("ASU 2017-01"), which changes the definition of a business to assist with evaluating when a set of transferred assets and activities is a business. ASU 2017-01 is effective for annual or any interim goodwill impairments in annual periods beginning after December 15, 2017, with early adoption permitted. The Company does not expect the adoption of ASU 2017-01 will have a material impact on its condensed consolidated financial statements and will adopt this standard effective April 1, 2018.

In March 2017, the FASB issued ASU 2017-07, "Compensation-Retirement Benefit (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" ("ASU 2017-07"), which requires that the Company disaggregate the service cost component from the other components of net benefit cost, and also provides guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allow only the service cost component of net benefit cost to be eligible for capitalization. ASU 2017-07 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. The Company does not expect the adoption of ASU 2017-07 will have a material impact on its consolidated financial statements and will adopt this standard effective April 1, 2018.

In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" ("ASU 2017-12"), which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and simplifies the application of the hedge accounting guidance. ASU 2017-12 is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. The Company does not expect the adoption of ASU 2017-12 will have a material impact on its consolidated financial statements and is currently assessing the timing of adoption.
Business Acquisition Business Acquisition (Tables)
The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the Acquisition Date (in thousands):
 
 
Estimated Fair Value
Inventories
 
$
10,331

Property, plant, and equipment
 
2,760

Intangible assets
 
52,520

Other assets
 
605

Total identifiable assets acquired
 
$
66,216

Accrued liabilities
 
(2,602
)
Net identifiable assets acquired
 
$
63,614

Goodwill
 
21,386

Net assets acquired
 
$
85,000

The following table sets forth the components of identifiable intangible assets acquired at their estimated fair values and their estimated useful lives as of the Acquisition Date (Dollars in thousands):
 
Preliminary Fair Value
 
Estimated Useful Life (years)
Developed technology
$
12,540

 
4.0
Customer relationships
33,100

 
8.0
Trade name
6,880

 
6.0
Total intangible assets acquired
$
52,520

 
6.8
Net Income Per Share (Tables)
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,
 
 
2017
 
2016
 
2017
 
2016
Net Income
 
$
56,358

 
$
47,045

 
$
93,365

 
$
68,986

 
 
 
 
 
 
 
 
 
Shares used in net income per share computation:
 
 

 
 

 
 

 
 

Weighted average shares outstanding - basic
 
164,120

 
162,222

 
163,765

 
162,176

Effect of potentially dilutive equivalent shares
 
4,958

 
3,327

 
4,945

 
2,750

Weighted average shares outstanding - diluted
 
169,078

 
165,549

 
168,710

 
164,926

 
 
 
 
 
 
 
 
 
Net income per share:
 
 

 
 

 
 

 
 

Basic
 
$
0.34

 
$
0.29

 
$
0.57

 
$
0.43

Diluted
 
$
0.33

 
$
0.28

 
$
0.55

 
$
0.42

Employee Benefit Plans (Tables)
Summary of share-based compensation expense and related tax benefit recognized
The following table summarizes the share-based compensation expense and total income tax benefit recognized for share-based awards for the three and six months ended September 30, 2017 and 2016 (in thousands):
 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
 
2017
 
2016
 
2017
 
2016
Cost of goods sold
 
$
1,091

 
$
638

 
$
1,802

 
$
1,313

Marketing and selling
 
4,343

 
3,244

 
8,724

 
6,681

Research and development
 
1,633

 
917

 
3,176

 
1,831

General and administrative
 
3,911

 
3,651

 
7,981

 
7,142

Total share-based compensation expense
 
10,978

 
8,450

 
21,683

 
16,967

Income tax benefit
 
(3,677
)
 
(1,886
)
 
(14,959
)
 
(3,701
)
Total share-based compensation expense, net of income tax
 
$
7,301

 
$
6,564

 
$
6,724

 
$
13,266

Balance Sheet Compnents (Tables)
The following table presents the components of certain balance sheet asset amounts as of September 30 and March 31, 2017 (in thousands): 
 
 
September 30,
2017
 
March 31,
2017
Accounts receivable, net:
 
 

 
 

Accounts receivable
 
$
529,842

 
$
395,754

Allowance for doubtful accounts
 
(229
)
 
(607
)
Allowance for sales returns
 
(21,712
)
 
(18,800
)
Allowance for cooperative marketing arrangements
 
(28,758
)
 
(28,022
)
Allowance for customer incentive programs
 
(70,413
)
 
(60,857
)
Allowance for pricing programs
 
(130,891
)
 
(102,289
)
 
 
$
277,839

 
$
185,179

Inventories:
 
 

 
 

Raw materials
 
$
46,405

 
$
30,582

Finished goods
 
284,017

 
222,819

 
 
$
330,422

 
$
253,401

Other current assets:
 
 

 
 

Value-added tax receivables
 
$
23,693

 
$
23,132

Prepaid expenses and other assets
 
24,028

 
18,600

 
 
$
47,721

 
$
41,732

Property, plant and equipment, net:
 
 

 
 

Property, plant and equipment at cost
 
$
359,333

 
$
348,760

Less: accumulated depreciation and amortization
 
(271,978
)
 
(263,352
)
 
 
$
87,355

 
$
85,408

Other assets:
 
 

 
 

Deferred tax assets
 
$
103,071

 
$
57,303

Trading investments for deferred compensation plan
 
17,583

 
15,043

Investments in privately held companies
 
11,495

 
10,776

Other assets
 
5,995

 
4,997

 
 
$
138,144

 
$
88,119



The following table presents the components of certain balance sheet liability amounts as of September 30 and March 31, 2017 (in thousands): 
 
 
September 30,
2017
 
March 31,
2017
Accrued and other current liabilities:
 
 

 
 

Accrued personnel expenses
 
$
68,645

 
$
88,346

Indirect customer incentive programs
 
41,710

 
36,409

Warranty accrual
 
14,567

 
13,424

Employee benefit plan obligation
 
1,841

 
1,266

Income taxes payable
 
6,950

 
6,232

Contingent consideration for business acquisition - current portion
 
5,000

 
2,889

Other current liabilities
 
90,463

 
83,707

 
 
$
229,176

 
$
232,273

Other non-current liabilities:
 
 

 
 

Warranty accrual
 
$
9,782

 
$
8,487

Obligation for deferred compensation plan
 
17,583

 
15,043

Employee benefit plan obligation
 
43,057

 
41,998

Deferred tax liability
 
1,789

 
1,789

Contingent consideration for business acquisition - non-current portion
 

 
7,019

Other non-current liabilities
 
8,692

 
9,355

 
 
$
80,903

 
$
83,691

Fair Value Measurements (Tables)
The following table presents the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis, excluding assets related to the Company’s defined benefit pension plans, classified by the level within the fair value hierarchy (in thousands): 
 
 
September 30, 2017
 
March 31, 2017
 
 
Level 1
 
Level 2
 
Level 3
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 

 
 
 
 
 
 

 
 

 
 

Cash equivalents
 
$
286,074

 
$

 
$

 
$
448,742

 
$

 
$

 
 
 
 
 
 
 
 
 
 
 
 
 
Time deposits included in short-term investments
 
$

 
$
6,789

 
$

 
$

 
$

 
$

 
 
 

 
 

 
 

 
 

 
 

 
 

Trading investments for deferred compensation plan included in other assets:
 
 

 
 
 
 
 
 

 
 

 
 

Money market funds
 
$
3,110

 
$

 
$

 
$
2,813

 
$

 
$

Mutual funds
 
14,473

 

 

 
12,230

 

 

Total of trading investments for deferred compensation plan
 
$
17,583

 
$

 
$

 
$
15,043

 
$

 
$

 
 
 
 
 
 
 
 
 
 
 
 
 
Currency exchange derivative assets
included in other current assets
 
$

 
$
165

 
$

 
$

 
$
48

 
$

 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition-related contingent
consideration included in accrued and
other current liabilities and other non-current liabilities
 
$

 
$

 
$

 
$

 
$

 
$
9,908

Currency exchange derivative liabilities
included in accrued and other current liabilities
 
$

 
$
107

 
$

 
$

 
$
443

 
$

The following table summarizes the changes in fair value of the Company’s contingent consideration balance measured with Level 3 inputs during the three and six months ended September 30, 2017 and 2016 (in thousands):
 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
 
2017
 
2016
 
2017
 
2016
Beginning of the period
 
$
7,475

 
$
18,000

 
$
9,908

 
$

Fair value of contingent consideration upon acquisition
 

 

 

 
18,000

Change in fair value of contingent consideration
 
(2,930
)
 

 
(4,908
)
 

Expected payment
 
(4,545
)
 

 
(5,000
)
 

End of the period
 
$

 
$
18,000

 
$

 
$
18,000



Derivative Dinancial Instruments (Tables)
The following table presents the fair values of the Company’s derivative instruments designated as hedging instruments on a gross basis in other current assets or accrued and other current liabilities on its condensed consolidated balance sheets as of September 30, 2017 and March 31, 2017 (in thousands):
 
 
Derivatives
 
 
Asset
 
Liability
 
 
September 30,
2017
 
March 31,
2017
 
September 30,
2017
 
March 31,
2017
Cash flow hedges
 
$
165

 
$
48

 
$
38

 
$
402

The following table presents the amounts of gains (losses) on the Company’s derivative instruments designated as hedging instruments and their locations on its condensed consolidated statements of operations and condensed consolidated statements of comprehensive income for the three and six months ended September 30, 2017 and 2016 (in thousands):
 
 
Three Months Ended
September 30,
 
 
Amount of Gain (Loss)
Deferred as a Component of Accumulated
Other Comprehensive Loss
 
Amount of Loss
Reclassified from Accumulated Other Comprehensive Loss to
Costs of Goods Sold
 
 
2017
 
2016
 
2017
 
2016
Cash flow hedges
 
$
(2,140
)
 
$
564

 
$
2,596

 
$
155


 
 
Six Months Ended
September 30,
 
 
Amount of Gain (Loss)
Deferred as a Component of Accumulated
Other Comprehensive Loss
 
Amount of Loss
Reclassified from Accumulated Other Comprehensive Loss to
Costs of Goods Sold
 
 
2017
 
2016
 
2017
 
2016
Cash flow hedges
 
$
(5,349
)
 
$
1,529

 
$
3,129

 
$
895

Goodwill and Other Intangible Assets (Tables)
The following table summarizes the activities in the Company’s goodwill balance during the six months ended September 30, 2017 (in thousands):
As of March 31, 2017
 
$
249,741

Business acquisitions (See Note 2)
 
21,386

Currency impact
 
27

As of September 30, 2017
 
$
271,154

The Company's acquired intangible assets subject to amortization were as follows (in thousands):
 
 
September 30, 2017
 
March 31, 2017
 
 
Gross Carrying Amount
(Note 2)
 
Accumulated
Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated
Amortization
 
Net Carrying Amount
Trademark and trade names
 
$
23,380

 
$
(8,012
)
 
$
15,368

 
$
16,500

 
$
(6,933
)
 
$
9,567

Developed Technology
 
75,825

 
(46,225
)
 
29,600

 
63,285

 
(42,831
)
 
20,454

Customer contracts/relationships
 
58,280

 
(9,402
)
 
48,878

 
25,180

 
(7,637
)
 
17,543

Total
 
$
157,485

 
$
(63,639
)
 
$
93,846

 
$
104,965

 
$
(57,401
)
 
$
47,564

Commitments and Contingencies (Tables)
Schedule of warranty liability
Changes in the Company’s warranty liability for the three and six months ended September 30, 2017 and 2016 were as follows (in thousands): 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
2017
 
2016
 
2017
 
2016
Beginning of the period
$
22,056

 
$
21,752

 
$
21,911

 
$
20,380

Assumed from business acquisition
1,230

 
150

 
1,230

 
1,963

Provision
5,414

 
3,163

 
9,715

 
6,340

Settlements
(4,611
)
 
(3,452
)
 
(9,179
)
 
(6,880
)
Currency translation
260

 
(1
)
 
672

 
(191
)
End of the period
$
24,349

 
$
21,612

 
$
24,349

 
$
21,612


Shareholders' Equity (Tables)
Schedule of components of accumulated other comprehensive income (loss)
The components of accumulated other comprehensive income (loss) were as follows (in thousands):
 
 
Accumulated Other Comprehensive Income (Loss)
 
 
Cumulative
Translation
Adjustment (1)
 
Defined
Benefit
Plan (1)
 
Deferred
Hedging
Losses
 
Total
March 31, 2017
 
$
(89,708
)
 
$
(10,480
)
 
$
(518
)
 
$
(100,706
)
Other comprehensive income (loss)
 
3,641

 
482

 
(2,220
)
 
1,903

September 30, 2017
 
$
(86,067
)
 
$
(9,998
)
 
$
(2,738
)
 
$
(98,803
)
 
(1)        Tax effect was not significant as of September 30 or March 31, 2017.
Segment Information (Tables)
Net sales by product categories, excluding intercompany transactions, for the three and six months ended September 30, 2017 and 2016 were as follows (in thousands):
 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
 
2017
 
2016
 
2017
 
2016
Pointing Devices
 
$
123,643

 
$
123,300

 
$
245,717

 
$
240,083

Keyboards & Combos
 
119,200

 
116,516

 
235,313

 
234,535

PC Webcams
 
27,466

 
24,307

 
53,091

 
49,569

Tablet & Other Accessories
 
30,784

 
20,614

 
54,002

 
34,499

Video Collaboration
 
46,139

 
28,581

 
81,756

 
52,491

Mobile Speakers
 
90,548

 
97,172

 
153,466

 
154,468

Audio-PC & Wearables
 
62,445

 
62,254

 
112,647

 
118,833

Gaming
 
113,722

 
79,193

 
191,430

 
135,693

Smart Home
 
18,323

 
11,807

 
34,789

 
22,974

Other (1)
 
200

 
560

 
205

 
1,023

Total net sales
 
$
632,470

 
$
564,304

 
$
1,162,416

 
$
1,044,168


(1) Other category includes products that the Company currently intends to transition out of, or has already transitioned out of, because they are no longer strategic to the Company's business.
Net sales by geographic region (based on the customers’ locations) for the three and six months ended September 30, 2017 and 2016 were as follows (in thousands):
 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
 
2017
 
2016
 
2017
 
2016
Americas
 
$
261,993

 
$
239,830

 
$
507,393

 
$
462,455

EMEA
 
218,323

 
200,636

 
368,914

 
343,558

Asia Pacific
 
152,154

 
123,838

 
286,109

 
238,155

Total net sales
 
$
632,470

 
$
564,304

 
$
1,162,416

 
$
1,044,168

Tangible long-lived assets by geographic region were as follows (in thousands):
 
 
September 30,
2017
 
March 31,
2017
Americas
 
$
37,725

 
$
37,242

EMEA
 
4,110

 
4,006

Asia Pacific
 
45,520

 
44,160

Total tangible long-lived assets
 
$
87,355

 
$
85,408

The Company and Summary of Significant Accounting Policies and Estimates - Narrative (Details) (USD $)
6 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Mar. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Cash flows from operating activities
$ 67,500,000 
$ 91,886,000 
 
Cash flow from financing activities
108,636,000 
132,550,000 
 
Cumulative-effect adjustment to retained earnings
 
 
57,205,000 
Retained Earnings
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Cumulative-effect adjustment to retained earnings
 
 
53,912,000 
Accounting Standards Update 2016-09, Excess Tax Benefit Component Increase to Operating Cash FLows
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Cash flows from operating activities
4,100,000 
 
 
Gross excess tax benefits
 
 
75,200,000 
Tax benefit valuation allowance
 
 
18,000,000 
Accounting Standards Update 2016-09, Excess Tax Benefit Component Increase to Operating Cash FLows |
Retained Earnings
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Cumulative-effect adjustment to retained earnings
 
 
57,200,000 
Accounting Standards Update 2016-09, Excess Tax Benefit Component Decrease to Financing Cash Flows
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Cash flow from financing activities
4,100,000 
 
 
Accounting Standards Update 2016-09, Forfeiture Rate Component |
Retained Earnings
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
New Accounting Pronouncement, Cumulative Effect of Change on Retained Earning
 
 
$ 3,300,000 
Business Acquisition - Narrative (Details) (USD $)
6 Months Ended 0 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 0 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Aug. 11, 2017
Astro Gaming
Sep. 30, 2017
Astro Gaming
Sep. 30, 2017
Astro Gaming
Aug. 11, 2017
Astro Gaming
Sep. 30, 2017
Developed technology
Astro Gaming
Sep. 30, 2017
Customer relationships and trade name
Astro Gaming
Aug. 11, 2017
Level 3
Developed technology
Astro Gaming
Aug. 11, 2017
Level 3
Customer relationships
Astro Gaming
Aug. 11, 2017
Level 3
Trade name
Astro Gaming
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Payments to acquire business, gross
 
 
$ 85,000,000 
 
 
 
 
 
 
 
 
Inventory adjustment due to purchase accounting
 
 
 
 
 
800,000 
 
 
 
 
 
Amortization of intangible assets
6,238,000 
3,867,000 
 
 
 
 
400,000 
700,000 
 
 
 
Royalty rate for fair value measurement
 
 
 
 
 
 
 
 
10.00% 
 
2.00% 
Discount rate for value measurement
 
 
 
 
 
 
 
 
13.00% 
13.00% 
13.00% 
Business acquisition related costs
 
 
 
$ 700,000 
$ 1,000,000 
 
 
 
 
 
 
Business Acquisition - Schedule of Assets Acquired and Liabilities Assumed (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Mar. 31, 2017
Aug. 11, 2017
Astro Gaming
Business Acquisition [Line Items]
 
 
 
Inventories
 
 
$ 10,331 
Property, plant, and equipment
 
 
2,760 
Intangible assets
 
 
52,520 
Other assets
 
 
605 
Total identifiable assets acquired
 
 
66,216 
Accrued liabilities
 
 
(2,602)
Net identifiable assets acquired
 
 
63,614 
Goodwill
271,154 
249,741 
21,386 
Net assets acquired
 
 
$ 85,000 
Business Acquisition - Schedule of Finite-lived Assets Assumed (Details) (Astro Gaming, USD $)
In Thousands, unless otherwise specified
0 Months Ended
Aug. 11, 2017
Aug. 11, 2017
Business Acquisition [Line Items]
 
 
Finite-lived intangible assets acquired, fair value
 
$ 52,520 
Finite-lived intangible asset, estimated useful life (years)
6 years 9 months 17 days 
 
Developed technology
 
 
Business Acquisition [Line Items]
 
 
Finite-lived intangible assets acquired, fair value
 
12,540 
Finite-lived intangible asset, estimated useful life (years)
4 years 
 
Customer relationships
 
 
Business Acquisition [Line Items]
 
 
Finite-lived intangible assets acquired, fair value
 
33,100 
Finite-lived intangible asset, estimated useful life (years)
8 years 
 
Trade name
 
 
Business Acquisition [Line Items]
 
 
Finite-lived intangible assets acquired, fair value
 
$ 6,880 
Finite-lived intangible asset, estimated useful life (years)
6 years 
 
Net Income Per Share - Computation of Basic and Diluted Net Income per Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Earnings Per Share [Abstract]
 
 
 
 
Net income
$ 56,358 
$ 47,045 
$ 93,365 
$ 68,986 
Shares used in net income per share computation:
 
 
 
 
Weighted average shares outstanding - basic (in shares)
164,120,000 
162,222,000 
163,765,000 
162,176,000 
Effect of potentially dilutive equivalent shares (in shares)
4,958,000 
3,327,000 
4,945,000 
2,750,000 
Weighted average shares outstanding - diluted (in shares)
169,078,000 
165,549,000 
168,710,000 
164,926,000 
Net income per share:
 
 
 
 
Net income per share - basic (in dollars per share)
$ 0.34 
$ 0.29 
$ 0.57 
$ 0.43 
Net income per share - diluted (in dollars per share)
$ 0.33 
$ 0.28 
$ 0.55 
$ 0.42 
Anti-dilutive equivalents shares excluded (in shares)
600,000 
2,900,000 
1,200,000 
3,100,000 
Employee Benefit Plans - Narrative (Details) (USD $)
In Millions, unless otherwise specified
0 Months Ended 3 Months Ended 6 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Share-based Compensation
 
 
 
 
 
 
Share-based compensation expenses capitalized as inventory
$ 0.8 
$ 0.4 
 
 
 
 
Defined benefit plans
 
 
 
 
 
 
Net periodic benefit cost
 
 
$ 2.3 
$ 2.8 
$ 4.6 
$ 5.6 
Income Taxes - Narrative (Details) (USD $)
3 Months Ended 6 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Mar. 31, 2017
Sep. 30, 2017
Non-current income tax payable
Mar. 31, 2017
Non-current income tax payable
Sep. 30, 2017
Current income tax payable
Mar. 31, 2017
Current income tax payable
Dec. 31, 2017
Scenario, Forecast
Settlement with Taxing Authority
Income Tax Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
Provision for (benefit from) income taxes
$ 4,087,000 
$ 5,593,000 
$ (1,349,000)
$ 8,650,000 
 
 
 
 
 
 
Effective income tax rates
6.80% 
10.60% 
(1.50%)
11.10% 
 
 
 
 
 
 
Excess tax benefits
1,100,000 
 
11,000,000 
 
 
 
 
 
 
 
Lapse of statute of limitations
700,000 
700,000 
1,900,000 
1,800,000 
 
 
 
 
 
 
Unrecognized tax benefits
68,700,000 
 
68,700,000 
 
63,700,000 
33,200,000 
51,800,000 
1,900,000 
1,500,000 
 
Tax settlement, foreign jurisdiction
 
 
 
 
 
 
 
 
 
1,900,000 
Accrued interest and penalties related to uncertain tax positions
3,200,000 
 
3,200,000 
 
3,000,000 
 
 
 
 
 
Expected decrease in uncertain tax positions
$ 7,800,000 
 
$ 7,800,000 
 
 
 
 
 
 
 
Balance Sheet Components - Components of Certain Balance Sheet Asset Amounts (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Mar. 31, 2017
Accounts receivable, net:
 
 
Accounts receivable
$ 529,842 
$ 395,754 
Accounts receivable, net
277,839 
185,179 
Inventories:
 
 
Raw materials
46,405 
30,582 
Finished goods
284,017 
222,819 
Inventory, net
330,422 
253,401 
Other current assets:
 
 
Value-added tax receivables
23,693 
23,132 
Prepaid expenses and other assets
24,028 
18,600 
Other current assets, total
47,721 
41,732 
Property, plant and equipment, net:
 
 
Property, plant and equipment at cost
359,333 
348,760 
Less: accumulated depreciation and amortization
(271,978)
(263,352)
Property, plant and equipment, net
87,355 
85,408 
Other assets:
 
 
Deferred tax assets
103,071 
57,303 
Trading investments for deferred compensation plan
17,583 
15,043 
Investments in privately held companies
11,495 
10,776 
Other assets
5,995 
4,997 
Other assets, total
138,144 
88,119 
Allowance for doubtful accounts
 
 
Accounts receivable, net:
 
 
Valuation allowance for accounts receivable
(229)
(607)
Allowance for sales returns
 
 
Accounts receivable, net:
 
 
Valuation allowance for accounts receivable
(21,712)
(18,800)
Allowance for cooperative marketing arrangements
 
 
Accounts receivable, net:
 
 
Valuation allowance for accounts receivable
(28,758)
(28,022)
Allowance for customer incentive programs
 
 
Accounts receivable, net:
 
 
Valuation allowance for accounts receivable
(70,413)
(60,857)
Allowance for pricing programs
 
 
Accounts receivable, net:
 
 
Valuation allowance for accounts receivable
$ (130,891)
$ (102,289)
Balance Sheet Components - Components of Certain Balance Sheet Liability Amounts (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Mar. 31, 2017
Accrued and other current liabilities:
 
 
Accrued personnel expenses
$ 68,645 
$ 88,346 
Indirect customer incentive programs
41,710 
36,409 
Warranty accrual
14,567 
13,424 
Employee benefit plan obligation
1,841 
1,266 
Income taxes payable
6,950 
6,232 
Contingent consideration for business acquisition - current portion
5,000 
2,889 
Other current liabilities
90,463 
83,707 
Accrued and other current liabilities
229,176 
232,273 
Other non-current liabilities:
 
 
Warranty accrual
9,782 
8,487 
Obligation for deferred compensation plan
17,583 
15,043 
Employee benefit plan obligation
43,057 
41,998 
Deferred tax liability
1,789 
1,789 
Contingent consideration for business acquisition - non-current portion
7,019 
Other non-current liabilities
8,692 
9,355 
Non-current liabilities
$ 80,903 
$ 83,691 
Fair Value Measurements - Financial Assets and Liabilities, Classified by Level (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Mar. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading investments for deferred compensation plan
$ 17,583 
$ 15,043 
Fair Value, Measurements, Recurring |
Level 1
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
286,074 
448,742 
Time Deposits
Trading investments for deferred compensation plan
17,583 
15,043 
Acquisition-related contingent consideration included in accrued and other current liabilities and other non-current liabilities
Fair Value, Measurements, Recurring |
Level 1 |
Foreign exchange contracts
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Currency exchange derivative assets included in other current assets
Currency exchange derivative liabilities included in accrued and other current liabilities
Fair Value, Measurements, Recurring |
Level 1 |
Money market funds
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading investments for deferred compensation plan
3,110 
2,813 
Fair Value, Measurements, Recurring |
Level 1 |
Mutual funds
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading investments for deferred compensation plan
14,473 
12,230 
Fair Value, Measurements, Recurring |
Level 2
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
Time Deposits
6,789 
Trading investments for deferred compensation plan
Acquisition-related contingent consideration included in accrued and other current liabilities and other non-current liabilities
Fair Value, Measurements, Recurring |
Level 2 |
Foreign exchange contracts
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Currency exchange derivative assets included in other current assets
165 
48 
Currency exchange derivative liabilities included in accrued and other current liabilities
107 
443 
Fair Value, Measurements, Recurring |
Level 2 |
Money market funds
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading investments for deferred compensation plan
Fair Value, Measurements, Recurring |
Level 2 |
Mutual funds
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading investments for deferred compensation plan
Fair Value, Measurements, Recurring |
Level 3
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash equivalents
Time Deposits
Trading investments for deferred compensation plan
Acquisition-related contingent consideration included in accrued and other current liabilities and other non-current liabilities
9,908 
Fair Value, Measurements, Recurring |
Level 3 |
Foreign exchange contracts
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Currency exchange derivative assets included in other current assets
Currency exchange derivative liabilities included in accrued and other current liabilities
Fair Value, Measurements, Recurring |
Level 3 |
Money market funds
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading investments for deferred compensation plan
Fair Value, Measurements, Recurring |
Level 3 |
Mutual funds
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading investments for deferred compensation plan
$ 0 
$ 0 
Fair Value Measurements - Change in Fair Value of Contingent Consideration (Details) (Contingent Consideration, USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Contingent Consideration
 
 
 
 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
 
 
Beginning of the period
$ 7,475 
$ 18,000 
$ 9,908 
$ 0 
Fair value of contingent consideration upon acquisition
18,000 
Change in fair value of contingent consideration
(2,930)
(4,908)
Expected payment
(4,545)
(5,000)
End of the period
$ 0 
$ 18,000 
$ 0 
$ 18,000 
Fair Value Measurements - Narrative (Details) (USD $)
0 Months Ended 0 Months Ended 12 Months Ended 1 Months Ended
Sep. 30, 2017
Mar. 31, 2017
Dec. 28, 2015
Lifesize
Preferred Stock
Apr. 20, 2016
Jaybird
Revenue Growth
Apr. 20, 2016
Jaybird
Revenue Growth
Apr. 20, 2016
Jaybird
Revenue Growth
Level 3
Sep. 30, 2017
Fair Value, Measurements, Recurring
Level 1
Mar. 31, 2017
Fair Value, Measurements, Recurring
Level 1
Sep. 30, 2017
Fair Value, Measurements, Recurring
Level 3
Mar. 31, 2017
Fair Value, Measurements, Recurring
Level 3
Apr. 20, 2016
Fair Value, Measurements, Recurring
Jaybird
Revenue Growth
Mar. 31, 2019
Scenario, Forecast
Jaybird
Revenue Growth
Mar. 31, 2018
Scenario, Forecast
Jaybird
Revenue Growth
Oct. 31, 2017
Contingent Consideration
Scenario, Forecast
Earn Out Payment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum earn-out
 
 
 
 
$ 45,000,000 
 
 
 
 
 
 
 
 
 
Earn-out payments net revenue target period
 
 
 
2 years 
 
 
 
 
 
 
 
 
 
 
Earn-out payments (up to)
 
 
 
 
 
 
 
 
 
 
 
20,000,000 
25,000,000 
 
Acquisition-related contingent consideration included in accrued and other current liabilities and other non-current liabilities
 
 
 
 
 
 
9,908,000 
18,000,000 
 
 
 
Discount rate for value measurement
 
 
 
 
 
16.00% 
 
 
 
 
 
 
 
 
Payments for release of contingent consideration
 
 
 
 
 
 
 
 
 
 
 
 
 
5,000,000 
Trading investments for deferred compensation plan
17,583,000 
15,043,000 
 
 
 
 
17,583,000 
15,043,000 
 
 
 
 
Fair value of cost method investment
 
 
5,600,000 
 
 
 
 
 
 
 
 
 
 
 
Cost method investments at cost
$ 7,100,000 
$ 7,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Financial Instruments - Fair Values of Company Derivative Instruments (Details) (Designated as hedging instruments, Cash Flow Hedges, USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Mar. 31, 2017
Other Current Assets
 
 
Derivative Financial Instruments
 
 
Asset
$ 165 
$ 48 
Accrued Liabilities Current
 
 
Derivative Financial Instruments
 
 
Liability
$ 38 
$ 402 
Derivative Financial Instruments - Gains and Losses on Derivative Instruments (Details) (Designated as hedging instruments, Cash Flow Hedges, USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Other Comprehensive Loss
 
 
 
 
Amounts of gains and losses on the derivative instruments
 
 
 
 
Amount of Gain (Loss) Deferred as a Component of Accumulated Other Comprehensive Loss
$ (2,140)
$ 564 
$ (5,349)
$ 1,529 
Cost of goods sold
 
 
 
 
Amounts of gains and losses on the derivative instruments
 
 
 
 
Amount of Loss Reclassified from Accumulated Other Comprehensive Loss to Costs of Goods Sold
$ 2,596 
$ 155 
$ 3,129 
$ 895 
Derivative Financial Instruments - Narrative (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Sep. 30, 2017
Mar. 31, 2017
Not Designated as Hedging Instrument |
Foreign Exchange Forward And Swap
 
 
Derivative [Line Items]
 
 
Derivative term of contract
1 month 
 
Foreign Exchange Forward |
Designated as hedging instruments |
Cash Flow Hedges
 
 
Derivative [Line Items]
 
 
Derivative term of contract
4 months 
 
Notional amount of derivatives
$ 149.1 
$ 59.4 
Cash flow hedge gain (loss) to be reclassified within twelve months
(2.7)
 
Foreign Exchange Forward |
Not Designated as Hedging Instrument
 
 
Derivative [Line Items]
 
 
Notional amount of derivatives
$ 95.6 
$ 56.7 
Goodwill and Other Intangibe Assets - Summary of Activity In Goodwill Balance (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Sep. 30, 2017
Goodwill
 
Balance at the beginning of the period
$ 249,741 
Business acquisitions
21,386 
Currency impact
27 
Balance at the end of the period
$ 271,154 
Goodwill and Other Intangibe Assets - Schedule of Intangible Assets Subject to Amortization (Details) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2017
Mar. 31, 2017
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount (Note 2)
$ 157,485 
$ 104,965 
Accumulated Amortization
(63,639)
(57,401)
Net Carrying Amount
93,846 
47,564 
Trademark and trade names
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount (Note 2)
23,380 
16,500 
Accumulated Amortization
(8,012)
(6,933)
Net Carrying Amount
15,368 
9,567 
Developed Technology
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount (Note 2)
75,825 
63,285 
Accumulated Amortization
(46,225)
(42,831)
Net Carrying Amount
29,600 
20,454 
Customer contracts/relationships
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount (Note 2)
58,280 
25,180 
Accumulated Amortization
(9,402)
(7,637)
Net Carrying Amount
$ 48,878 
$ 17,543 
Financing Arrangements - Narrative (Details) (USD $)
Sep. 30, 2017
Mar. 31, 2017
Financing Arrangements
 
 
Outstanding borrowings
$ 0 
$ 0 
Line of Credit
 
 
Financing Arrangements
 
 
Maximum borrowing capacity
68,200,000 
 
Outstanding bank guarantees
$ 39,800,000 
 
Commitments and Contingencies - Narrative (Details) (USD $)
Dec. 28, 2015
firm
Sep. 30, 2017
Parent guarantee for purchase obligation of third party contract manufacturer
Sep. 30, 2017
Indemnification agreement
Other Commitments [Line Items]
 
 
 
Maximum amount of the guarantees
 
$ 3,800,000 
 
Guarantees outstanding
 
1,400,000 
 
Amount accrued for indemnification provisions
 
 
$ 0 
Number of venture firms invested in Lifesize
 
 
Commitments and Contingencies - Changes in Warranty Liability (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Changes in the warranty liability:
 
 
 
 
Beginning of the period
$ 22,056 
$ 21,752 
$ 21,911 
$ 20,380 
Assumed from business acquisition
1,230 
150 
1,230 
1,963 
Provision
5,414 
3,163 
9,715 
6,340 
Settlements
(4,611)
(3,452)
(9,179)
(6,880)
Currency translation
260 
(1)
672 
(191)
End of the period
$ 24,349 
$ 21,612 
$ 24,349 
$ 21,612 
Shareholders' Equity - Narrative (Details)
Share data in Millions, except Per Share data, unless otherwise specified
1 Months Ended 3 Months Ended 6 Months Ended
Mar. 31, 2017
USD ($)
Sep. 30, 2017
USD ($)
Sep. 30, 2017
CHF
Sep. 30, 2016
USD ($)
Sep. 30, 2016
CHF
Sep. 30, 2017
USD ($)
Sep. 30, 2017
CHF
Sep. 30, 2016
USD ($)
Sep. 30, 2016
CHF
Mar. 31, 2014
USD ($)
Stockholders' Equity Note [Abstract]
 
 
 
 
 
 
 
 
 
 
Authorized amount in buyback program
$ 250,000,000 
 
 
 
 
 
 
 
 
$ 250,000,000 
Shares authorized to be repurchased (in shares)
17.3 
 
 
 
 
 
 
 
 
 
Period to complete share repurchase program
3 years 
 
 
 
 
 
 
 
 
 
Repurchase of shares (in shares)
 
 
 
 
 
0.3 
0.3 
2.4 
2.4 
 
Purchases of registered shares
 
 
 
 
 
10,700,000 
 
42,894,000 
 
 
Cash dividend paid per share (in dollars per share)
 
$ 0.63 
 0.61 
$ 0.57 
 0.56 
$ 0.63 
 0.61 
$ 0.57 
 0.56 
 
Cash dividend declared per share (in dollars per share)
 
$ 0.63 
 0.61 
$ 0.57 
 0.56 
$ 0.63 
 0.61 
$ 0.57 
 0.56 
 
Dividends paid
 
$ (104,200,000)
 
$ (93,100,000)
 
$ (104,200,000)
 
$ (93,100,000)
 
 
Shareholders' Equity - Components of Accumulated Other Comprehensive Income (Loss) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Cumulative Translation Adjustment
Sep. 30, 2017
Defined Benefit Plan
Sep. 30, 2017
Deferred Hedging Losses
Sep. 30, 2017
Total
Sep. 30, 2016
Total
Mar. 31, 2016
Total
Accumulated Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
Beginning of the period
 
 
$ 856,111 
$ 759,948 
$ (89,708)
$ (10,480)
$ (518)
$ (100,706)
$ (108,115)
$ (111,985)
Other comprehensive income (loss)
3,225 
1,718 
1,903 
3,870 
3,641 
482 
(2,220)
1,903 
 
 
End of the period
$ 921,835 
$ 716,034 
$ 921,835 
$ 716,034 
$ (86,067)
$ (9,998)
$ (2,738)
$ (98,803)
$ (108,115)
$ (111,985)
Segment Information - Net Sales by Product Family- Excluding Intercompany Transactions (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
$ 632,470 
$ 564,304 
$ 1,162,416 
$ 1,044,168 
Pointing Devices
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
123,643 
123,300 
245,717 
240,083 
Keyboards & Combos
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
119,200 
116,516 
235,313 
234,535 
PC Webcams
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
27,466 
24,307 
53,091 
49,569 
Tablet & Other Accessories
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
30,784 
20,614 
54,002 
34,499 
Video Collaboration
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
46,139 
28,581 
81,756 
52,491 
Mobile Speakers
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
90,548 
97,172 
153,466 
154,468 
Audio-PC & Wearables
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
62,445 
62,254 
112,647 
118,833 
Gaming
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
113,722 
79,193 
191,430 
135,693 
Smart Home
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
18,323 
11,807 
34,789 
22,974 
Other
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
$ 200 
$ 560 
$ 205 
$ 1,023 
Segment Information - Net Sales and Long-Lived Assets by Geographic Region (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Mar. 31, 2017
Net sales to unaffiliated customers and long-lived assets by geographic region
 
 
 
 
 
Net sales
$ 632,470 
$ 564,304 
$ 1,162,416 
$ 1,044,168 
 
Long lived assets
87,355 
 
87,355 
 
85,408 
Americas |
Operating Segments
 
 
 
 
 
Net sales to unaffiliated customers and long-lived assets by geographic region
 
 
 
 
 
Net sales
261,993 
239,830 
507,393 
462,455 
 
Long lived assets
37,725 
 
37,725 
 
37,242 
EMEA |
Operating Segments
 
 
 
 
 
Net sales to unaffiliated customers and long-lived assets by geographic region
 
 
 
 
 
Net sales
218,323 
200,636 
368,914 
343,558 
 
Long lived assets
4,110 
 
4,110 
 
4,006 
Asia Pacific |
Operating Segments
 
 
 
 
 
Net sales to unaffiliated customers and long-lived assets by geographic region
 
 
 
 
 
Net sales
152,154 
123,838 
286,109 
238,155 
 
Long lived assets
$ 45,520 
 
$ 45,520 
 
$ 44,160 
Segment Information - Narrative (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Sep. 30, 2017
Mar. 31, 2017
Sep. 30, 2017
United States
Mar. 31, 2017
United States
Sep. 30, 2017
Switzerland
Mar. 31, 2017
Switzerland
Sep. 30, 2017
China
Mar. 31, 2017
China
Sep. 30, 2017
Geographic Concentration
Consolidated net sales from continuing operations
Switzerland
Sep. 30, 2016
Geographic Concentration
Consolidated net sales from continuing operations
Switzerland
Sep. 30, 2017
Geographic Concentration
Consolidated net sales from continuing operations
Switzerland
Sep. 30, 2016
Geographic Concentration
Consolidated net sales from continuing operations
Switzerland
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of consolidated net sales
 
 
 
 
 
 
 
 
2.00% 
3.00% 
2.00% 
2.00% 
Long lived assets
$ 87,355 
$ 85,408 
$ 37,600 
$ 37,100 
$ 2,000 
$ 2,100 
$ 38,100 
$ 37,200