|
|
|
|
|
|
|
|
|
• | Evidence of an arrangement exists; |
• | Delivery has occurred and title and risk of loss has transferred to a customer; |
• | Price of a product is fixed or determinable; and |
• | Collectability is reasonably assured. |
|
Purchase price | $ | 54,242 | ||
Fair value of contingent consideration (earn-out) | 18,000 | |||
Fair value of total consideration transferred | $ | 72,242 |
Estimated Fair Value | ||||
Cash and cash equivalents | $ | 255 | ||
Accounts receivable | 272 | |||
Inventories | 10,214 | |||
Other current assets | 611 | |||
Property, plant, and equipment | 1,165 | |||
Intangible assets | 50,280 | |||
Other assets | 27 | |||
Total identifiable assets acquired | 62,824 | |||
Accounts payable | (10,513 | ) | ||
Accrued liabilities | (1,227 | ) | ||
Other current liabilities | (5,226 | ) | ||
Other long-term liabilities | (283 | ) | ||
Net identifiable assets acquired | $ | 45,575 | ||
Goodwill | 26,667 | |||
Net assets acquired | $ | 72,242 |
Fair Value | Estimated Useful Life (years) | |||
Developed technology | $ | 18,450 | 4.0 | |
Customer relationships | 19,900 | 8.0 | ||
Trade name | 9,380 | 6.0 | ||
Intangible assets with finite lives acquired | 47,730 | 6.1 | ||
In-process research & development ("IPR&D") | 2,550 | Not Applicable | ||
Total intangible assets acquired | $ | 50,280 |
|
Years Ended March 31, | ||||||||
2016 | 2015 | |||||||
Net sales | $ | 65,554 | $ | 109,039 | ||||
Cost of goods sold | 24,951 | 40,299 | ||||||
Gross profit | 40,603 | 68,740 | ||||||
Operating expenses: | ||||||||
Marketing and selling | 32,260 | 56,856 | ||||||
Research and development | 16,526 | 22,706 | ||||||
General and administrative | 5,254 | 5,439 | ||||||
Impairment of goodwill (1) | — | 122,734 | ||||||
Restructuring charges (credits), net | 7,900 | (111 | ) | |||||
Operating expenses | 61,940 | 207,624 | ||||||
Operating loss from discontinued operations | (21,337 | ) | (138,884 | ) | ||||
Interest and other expense, net | 205 | 426 | ||||||
Gain on disposal of discontinued operations | 13,684 | — | ||||||
Loss from discontinued operations before income taxes | (7,858 | ) | (139,310 | ) | ||||
Provision for (benefit from) income taxes | 1,187 | (164 | ) | |||||
Net loss from discontinued operations | $ | (9,045 | ) | $ | (139,146 | ) |
Year Ended | ||||
March 31, 2016 | ||||
Proceeds received from disposition of discontinued operations | $ | 2,500 | ||
Fair value of retained cost method investment as a result of divestiture of discontinued operations | 5,591 | |||
Net liabilities of discontinued operations disposed | 9,981 | |||
Currency translation loss released due to disposition of discontinued operations (1) | (3,913 | ) | ||
Transaction related costs | (475 | ) | ||
Gain on disposal of discontinued operations (2) | $ | 13,684 |
|
Years Ended March 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Cost of goods sold | $ | 2,663 | $ | 2,340 | $ | 2,474 | ||||||
Marketing and selling | 14,723 | 9,273 | 8,570 | |||||||||
Research and development | 4,200 | 3,046 | 2,381 | |||||||||
General and administrative | 14,304 | 12,353 | 10,766 | |||||||||
Restructuring | — | 7 | — | |||||||||
Total share-based compensation expense | 35,890 | 27,019 | 24,191 | |||||||||
Income tax benefit | (8,536 | ) | (6,297 | ) | (4,814 | ) | ||||||
Total share-based compensation expense, net of income tax | $ | 27,354 | $ | 20,722 | $ | 19,377 |
March 31, 2017 | ||||||
Unamortized Expense | Remaining Months | |||||
ESPP | $ | 1,191 | 4 | |||
Time-based RSUs | 36,172 | 21 | ||||
Market-based and performance-based RSUs | 9,241 | 17 | ||||
$ | 46,604 |
Employee Stock Purchase Plans | Years Ended March 31, | |||||||||||
2017 | 2016 | 2015 | ||||||||||
Dividend yield | 2.50 | % | 3.47 | % | 1.97 | % | ||||||
Risk-free interest rate | 0.51 | % | 0.29 | % | 0.14 | % | ||||||
Expected volatility | 35 | % | 26 | % | 30 | % | ||||||
Expected life (years) | 0.5 | 0.5 | 0.6 | |||||||||
Weighted average fair value | $ | 5.73 | $ | 3.29 | $ | 3.18 |
Market-based RSUs | Years Ended March 31, | ||||||||
2017 | 2016 | 2015 | |||||||
Dividend yield | 3.29 | % | 3.78 | % | 1.86 | % | |||
Risk-free interest rate | 0.86 | % | 0.84 | % | 0.83 | % | |||
Expected volatility | 34 | % | 38 | % | 46 | % | |||
Expected life (years) | 3.0 | 3.0 | 3.0 |
Number of Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||
(In thousands) | (Years) | (In thousands) | |||||||||||
Outstanding, March 31, 2014 | 9,816 | ||||||||||||
Granted | — | ||||||||||||
Exercised | (390 | ) | $ | 1,505 | |||||||||
Cancelled or expired | (1,550 | ) | |||||||||||
Outstanding, March 31, 2015 | 7,876 | ||||||||||||
Granted | — | ||||||||||||
Exercised | (746 | ) | $ | 4,026 | |||||||||
Cancelled or expired | (1,796 | ) | |||||||||||
Outstanding, March 31, 2016 | 5,334 | $ | 18 | ||||||||||
Granted | — | $ | — | ||||||||||
Exercised | (1,784 | ) | $ | 16 | $ | 14,627 | |||||||
Cancelled or expired | (500 | ) | $ | 23 | |||||||||
Outstanding, March 31, 2017 | 3,050 | $ | 18 | 3.6 | $ | 41,853 | |||||||
Vested and expected to vest, March 31, 2017 | 3,050 | $ | 18 | 3.6 | $ | 41,853 | |||||||
Vested and exercisable, March 31, 2017 | 3,050 | $ | 18 | 3.6 | $ | 41,853 |
Number of Shares | Weighted-Average Grant Date Fair Value | Weighted-Average Remaining Vesting Period | Aggregate Fair Value | ||||||||||
(In thousands) | (Years) | (In thousands) | |||||||||||
Outstanding, March 31, 2014 | 6,088 | $ | 10 | ||||||||||
Granted—time-based | 1,332 | $ | 13 | ||||||||||
Granted—market-based | 523 | $ | 13 | ||||||||||
Granted - performance-based | 55 | $ | 12 | ||||||||||
Vested | (1,949 | ) | $ | 10 | $ | 27,844 | |||||||
Cancelled or expired | (1,110 | ) | $ | 11 | |||||||||
Outstanding, March 31, 2015 | 4,939 | $ | 11 | ||||||||||
Granted—time-based | 2,247 | $ | 13 | ||||||||||
Granted—market-based | 356 | $ | 14 | ||||||||||
Granted - performance-based | 356 | $ | 13 | ||||||||||
Vested | (1,557 | ) | $ | 10 | $ | 22,823 | |||||||
Cancelled or expired | (820 | ) | $ | 12 | |||||||||
Outstanding, March 31, 2016 | 5,521 | $ | 11 | ||||||||||
Granted—time-based | 2,390 | $ | 16 | ||||||||||
Granted—market-based | 160 | $ | 15 | ||||||||||
Granted - performance-based | 604 | $ | 15 | ||||||||||
Vested | (2,126 | ) | $ | 11 | $ | 48,644 | |||||||
Cancelled or expired | (368 | ) | $ | 14 | |||||||||
Outstanding, March 31, 2017 | 6,181 | $ | 14 | 1.2 | $ | 196,983 | |||||||
Expected to vest, March 31, 2017 | 4,859 | $ | 14 | 1.2 | $ | 154,846 |
Years Ended March 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Service costs | $ | 10,385 | $ | 10,117 | $ | 7,646 | ||||||
Interest costs | 800 | 1,147 | 1,970 | |||||||||
Expected return on plan assets | (1,724 | ) | (1,657 | ) | (2,084 | ) | ||||||
Amortization: | ||||||||||||
Net transition obligation | 4 | 4 | 4 | |||||||||
Net prior service costs (credit) recognized | (117 | ) | (124 | ) | (45 | ) | ||||||
Net actuarial loss recognized | 1,032 | 1,854 | 301 | |||||||||
Settlement and curtailment | — | — | (13 | ) | ||||||||
$ | 10,380 | $ | 11,341 | $ | 7,779 |
Years Ended March 31, | ||||||||
2017 | 2016 | |||||||
Projected benefit obligations, beginning of the year | $ | 120,473 | $ | 113,323 | ||||
Service costs | 10,385 | 10,117 | ||||||
Interest costs | 800 | 1,147 | ||||||
Plan participant contributions | 3,020 | 2,990 | ||||||
Actuarial (gains) losses | (11,081 | ) | (2,496 | ) | ||||
Benefits paid | (5,214 | ) | (5,277 | ) | ||||
Plan amendment related to statutory change | 65 | — | ||||||
Administrative expense paid | (132 | ) | — | |||||
Currency exchange rate changes | (3,676 | ) | 669 | |||||
Projected benefit obligations, end of the year | $ | 114,640 | $ | 120,473 |
Years Ended March 31, | ||||||||
2017 | 2016 | |||||||
Fair value of plan assets, beginning of the year | $ | 65,279 | $ | 60,910 | ||||
Actual return on plan assets | 4,733 | (1,160 | ) | |||||
Employer contributions | 5,865 | 7,171 | ||||||
Plan participant contributions | 3,020 | 2,990 | ||||||
Benefits paid | (5,214 | ) | (5,277 | ) | ||||
Administrative expenses paid | (132 | ) | — | |||||
Currency exchange rate changes | (2,175 | ) | 645 | |||||
Fair value of plan assets, end of the year | $ | 71,376 | $ | 65,279 |
March 31, | ||||||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | |||||||||||||||||||
Cash and cash equivalents | $ | 11,864 | $ | 46 | $ | 11,910 | $ | 9,268 | $ | 47 | $ | 9,315 | ||||||||||||
Equity securities | 20,985 | — | 20,985 | 18,640 | — | 18,640 | ||||||||||||||||||
Debt securities | 22,373 | — | 22,373 | 21,781 | — | 21,781 | ||||||||||||||||||
Swiss real estate funds | 9,699 | — | 9,699 | 9,622 | — | 9,622 | ||||||||||||||||||
Hedge funds | — | 3,507 | 3,507 | — | 3,492 | 3,492 | ||||||||||||||||||
Insurance contracts | — | 61 | 61 | — | 94 | 94 | ||||||||||||||||||
Other | 2,654 | 187 | 2,841 | 2,195 | 140 | 2,335 | ||||||||||||||||||
$ | 67,575 | $ | 3,801 | $ | 71,376 | $ | 61,506 | $ | 3,773 | $ | 65,279 |
Years Ended March 31, | ||||||||
2017 | 2016 | |||||||
Fair value of plan assets | $ | 71,376 | $ | 65,279 | ||||
Less: projected benefit obligations | 114,640 | 120,473 | ||||||
Under funded status | $ | (43,264 | ) | $ | (55,194 | ) |
March 31, | ||||||||
2017 | 2016 | |||||||
Current liabilities | $ | (1,266 | ) | $ | (1,285 | ) | ||
Non-current liabilities | (41,998 | ) | (53,909 | ) | ||||
Net liabilities | $ | (43,264 | ) | $ | (55,194 | ) |
March 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Net prior service credits | $ | 1,274 | $ | 1,613 | $ | 1,672 | ||||||
Net actuarial loss | (11,407 | ) | (27,612 | ) | (28,751 | ) | ||||||
Net transition obligation | — | (4 | ) | (8 | ) | |||||||
Accumulated other comprehensive loss | (10,133 | ) | (26,003 | ) | (27,087 | ) | ||||||
Deferred tax benefit | (347 | ) | (168 | ) | 123 | |||||||
Accumulated other comprehensive loss, net of tax | $ | (10,480 | ) | $ | (26,171 | ) | $ | (26,964 | ) |
Year Ending March 31, 2018 | ||||
Amortization of net prior service credits | $ | (107 | ) | |
Amortization of net actuarial loss | 306 | |||
$ | 199 |
Years Ended March 31, | ||||
2017 | 2016 | |||
Benefit Obligations: | ||||
Discount rate | 0.75%-7.00% | 0.5%-8.00% | ||
Estimated rate of compensation increase | 2.5%-10.00% | 2.50%-10.00% | ||
Periodic Costs: | ||||
Discount rate | 0.5%-8.00% | 0.75%-7.75% | ||
Estimated rate of compensation increase | 2.5%-10.00% | 0.0%-8.00% | ||
Expected average rate of return on plan assets | 1.0%-2.75% | 1.00%-2.75% |
Years Ending March 31, | ||||
2018 | $ | 5,006 | ||
2019 | 5,408 | |||
2020 | 5,720 | |||
2021 | 5,291 | |||
2022 | 5,595 | |||
2023-2027 | 30,614 | |||
$ | 57,634 |
|
Years Ended March 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Investment income (loss) related to a deferred compensation plan | $ | 1,343 | $ | (364 | ) | $ | 1,055 | |||||
Impairment of investment | — | — | (2,298 | ) | ||||||||
Currency exchange gain (loss), net | 169 | 2,110 | (1,175 | ) | ||||||||
Other | 165 | (122 | ) | 120 | ||||||||
Other income (expense), net | $ | 1,677 | $ | 1,624 | $ | (2,298 | ) |
|
Years Ended March 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Swiss | $ | 161,544 | $ | 80,572 | $ | 119,460 | ||||||
Non-Swiss | 53,445 | 50,900 | 33,623 | |||||||||
Income before taxes | $ | 214,989 | $ | 131,472 | $ | 153,083 |
Years Ended March 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Current: | ||||||||||||
Swiss | $ | 1,934 | $ | 1,668 | $ | 1,152 | ||||||
Non-Swiss | 9,774 | (2,582 | ) | 579 | ||||||||
Deferred: | ||||||||||||
Non-Swiss | (2,595 | ) | 4,024 | 2,923 | ||||||||
Provision for income taxes | $ | 9,113 | $ | 3,110 | $ | 4,654 |
Years Ended March 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Expected tax provision at statutory income tax rates | $ | 18,274 | $ | 11,175 | $ | 13,012 | ||||||
Income taxes at different rates | (5,247 | ) | (2,713 | ) | (4,299 | ) | ||||||
Research and development tax credits | (2,309 | ) | (1,619 | ) | (1,120 | ) | ||||||
Executive compensation | 654 | 864 | 1,557 | |||||||||
Stock-based compensation | 1,794 | 1,446 | 2,261 | |||||||||
Valuation allowance | 1,024 | 947 | 764 | |||||||||
Restructuring charges / (credits) | 2 | 1,514 | (415 | ) | ||||||||
Tax reserves (releases), net | (5,570 | ) | (8,761 | ) | (6,912 | ) | ||||||
Audit settlement | — | — | (837 | ) | ||||||||
Other, net | 491 | 257 | 643 | |||||||||
Provision for income taxes | $ | 9,113 | $ | 3,110 | $ | 4,654 |
March 31, | ||||||||
2017 | 2016 | |||||||
Deferred tax assets: | ||||||||
Net operating loss carryforwards | $ | 4,306 | $ | 7,136 | ||||
Tax credit carryforwards | 5,825 | 2,981 | ||||||
Accruals | 41,570 | 36,365 | ||||||
Depreciation and amortization | 2,860 | 4,059 | ||||||
Share-based compensation | 11,846 | 12,890 | ||||||
Gross deferred tax assets | 66,407 | 63,431 | ||||||
Valuation allowance | (6,626 | ) | (5,338 | ) | ||||
Gross deferred tax assets after valuation allowance | 59,781 | 58,093 | ||||||
Deferred tax liabilities: | ||||||||
Acquired intangible assets and other | (4,267 | ) | (3,550 | ) | ||||
Gross deferred tax liabilities | (4,267 | ) | (3,550 | ) | ||||
Deferred tax assets, net | $ | 55,514 | $ | 54,543 |
March 31, 2014 | $ | 91,046 | ||
Lapse of statute of limitations | (14,071 | ) | ||
Settlements with tax authorities | (2,160 | ) | ||
Decreases in balances related to tax positions taken during prior years | (3,544 | ) | ||
Increases in balances related to tax positions taken during the year | 7,752 | |||
March 31, 2015 | $ | 79,023 | ||
Lapse of statute of limitations | (15,518 | ) | ||
Settlements with tax authorities | — | |||
Decreases in balances related to tax positions taken during prior years | (1,502 | ) | ||
Increases in balances related to tax positions taken during the year | 7,876 | |||
March 31, 2016 | $ | 69,879 | ||
Lapse of statute of limitations | (14,161 | ) | ||
Settlements with tax authorities | — | |||
Decreases in balances related to tax positions taken during prior years | (1,610 | ) | ||
Increases in balances related to tax positions taken during the year | 9,559 | |||
March 31, 2017 | $ | 63,667 |
|
March 31, | ||||||||
2017 | 2016 | |||||||
Accounts receivable: | ||||||||
Accounts receivable | $ | 395,754 | $ | 332,553 | ||||
Allowance for doubtful accounts | (607 | ) | (667 | ) | ||||
Allowance for sales returns | (18,800 | ) | (18,526 | ) | ||||
Allowance for cooperative marketing arrangements | (28,022 | ) | (28,157 | ) | ||||
Allowance for customer incentive programs | (60,857 | ) | (60,872 | ) | ||||
Allowance for pricing programs | (102,289 | ) | (81,553 | ) | ||||
$ | 185,179 | $ | 142,778 | |||||
Inventories: | ||||||||
Raw materials | $ | 30,582 | $ | 48,489 | ||||
Finished goods | 222,819 | 180,297 | ||||||
$ | 253,401 | $ | 228,786 | |||||
Other current assets: | ||||||||
Value-added tax receivables | $ | 23,132 | $ | 22,572 | ||||
Prepaid expenses and other assets | 18,600 | 12,916 | ||||||
$ | 41,732 | $ | 35,488 | |||||
Property, plant and equipment, net: | ||||||||
Plant, buildings and improvements | $ | 58,881 | $ | 62,150 | ||||
Equipment | 176,291 | 166,371 | ||||||
Computer equipment | 27,812 | 36,018 | ||||||
Software | 72,441 | 97,201 | ||||||
335,425 | 361,740 | |||||||
Less accumulated depreciation and amortization | (263,352 | ) | (278,352 | ) | ||||
72,073 | 83,388 | |||||||
Construction-in-process | 10,537 | 6,771 | ||||||
Land | 2,798 | 2,701 | ||||||
$ | 85,408 | $ | 92,860 | |||||
Other assets: | ||||||||
Deferred tax assets | $ | 57,303 | $ | 56,208 | ||||
Trading investments for deferred compensation plan | 15,043 | 14,836 | ||||||
Investment in privately held companies | 10,776 | 9,247 | ||||||
Other assets | 4,997 | 6,525 | ||||||
$ | 88,119 | $ | 86,816 |
March 31, | ||||||||
2017 | 2016 | |||||||
Accrued and other current liabilities: | ||||||||
Accrued personnel expenses | $ | 88,346 | $ | 46,025 | ||||
Indirect customer incentive programs | 36,409 | 28,721 | ||||||
Warranty accrual | 13,424 | 11,880 | ||||||
Employee benefit plan obligation | 1,266 | 1,285 | ||||||
Income taxes payable | 6,232 | 1,553 | ||||||
Contingent consideration for business acquisition - current portion | 2,889 | — | ||||||
Other current liabilities | 83,707 | 84,300 | ||||||
$ | 232,273 | $ | 173,764 | |||||
Other non-current liabilities: | ||||||||
Warranty accrual | $ | 8,487 | $ | 8,500 | ||||
Obligation for deferred compensation plan | 15,043 | 14,836 | ||||||
Employee benefit plan obligation | 41,998 | 53,909 | ||||||
Deferred tax liability | 1,789 | 1,665 | ||||||
Contingent consideration for business acquisition - non-current portion | 7,019 | — | ||||||
Other non-current liabilities | 9,355 | 10,625 | ||||||
$ | 83,691 | $ | 89,535 |
|
• | 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. |
March 31, 2017 | March 31, 2016 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash equivalents | $ | 448,742 | $ | — | $ | — | $ | 10,000 | $ | — | $ | — | ||||||||||||
Trading investments for deferred compensation plan included in other assets: | ||||||||||||||||||||||||
Money market funds | $ | 2,813 | $ | — | $ | — | $ | 3,467 | $ | — | $ | — | ||||||||||||
Mutual funds | 12,230 | — | — | 11,369 | — | — | ||||||||||||||||||
Total of trading investments for deferred compensation plan | $ | 15,043 | $ | — | $ | — | $ | 14,836 | $ | — | $ | — | ||||||||||||
Currency exchange derivative assets included in other current assets | $ | — | $ | 48 | $ | — | $ | — | $ | 10 | $ | — | ||||||||||||
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 | $ | — | $ | 443 | $ | — | $ | — | $ | 1,132 | $ | — |
Year Ended March 31, | ||||
2017 | ||||
Acquisition-related contingent consideration, beginning of the year | $ | — | ||
Fair value of contingent consideration upon acquisition | 18,000 | |||
Change in fair value of contingent consideration | (8,092 | ) | ||
Acquisition-related contingent consideration, end of the year | $ | 9,908 |
|
Derivatives | ||||||||||||||||
Asset | Liability | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Designated as hedging instruments: | ||||||||||||||||
Cash flow hedges | $ | 48 | $ | 10 | $ | 402 | $ | 1,038 |
Amount of Gain (Loss) Deferred as a Component of Accumulated Other Comprehensive Loss | Amount of Loss (Gain) Reclassified from Accumulated Other Comprehensive Loss to Costs of Goods Sold | ||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||
Designated as hedging instruments: | |||||||||||||||||||||||
Cash flow hedges | $ | 2,928 | $ | (2,432 | ) | $ | 8,971 | $ | (1,670 | ) | $ | (3,296 | ) | $ | (4,505 | ) |
|
Years Ended March 31, | ||||||||
2017 | 2016 | |||||||
Beginning of the period | $ | 218,224 | $ | 218,213 | ||||
Acquisitions | 31,553 | — | ||||||
Currency exchange rate impact and other | (36 | ) | 11 | |||||
End of the period | $ | 249,741 | $ | 218,224 |
March 31, | ||||||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||
Trademark and tradenames | $ | 16,500 | $ | (6,933 | ) | $ | 9,567 | $ | 5,300 | $ | (5,300 | ) | $ | — | ||||||||||
Technology | 63,285 | (42,831 | ) | 20,454 | 36,810 | (36,810 | ) | — | ||||||||||||||||
Customer contracts/relationships | 25,180 | (7,637 | ) | 17,543 | 5,900 | (5,900 | ) | — | ||||||||||||||||
$ | 104,965 | $ | (57,401 | ) | $ | 47,564 | $ | 48,010 | $ | (48,010 | ) | $ | — |
|
|
Years Ending March 31, | ||||
2018 | $ | 10,294 | ||
2019 | 8,759 | |||
2020 | 7,036 | |||
2021 | 4,907 | |||
2022 | 4,084 | |||
Thereafter | 4,283 | |||
$ | 39,363 |
Years Ended March 31, | ||||||||
2017 | 2016 | |||||||
Beginning of the period | $ | 20,380 | $ | 21,710 | ||||
Assumed from business acquisition | 1,963 | — | ||||||
Provision | 15,341 | 9,772 | ||||||
Settlements | (15,270 | ) | (11,339 | ) | ||||
Currency translation | (503 | ) | 237 | |||||
End of the period | $ | 21,911 | $ | 20,380 |
|
Years Ended March 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Mobile Speakers | $ | 301,021 | $ | 229,718 | $ | 178,038 | ||||||
Audio-PC & Wearables | 246,390 | 196,013 | 213,496 | |||||||||
Gaming | 314,362 | 245,101 | 211,911 | |||||||||
Video Collaboration | 127,009 | 89,322 | 62,215 | |||||||||
Home Control | 65,510 | 59,075 | 68,060 | |||||||||
Pointing Devices | 501,562 | 492,543 | 487,210 | |||||||||
Keyboards & Combos | 480,312 | 430,190 | 426,117 | |||||||||
Tablet & Other Accessories | 76,879 | 103,886 | 140,994 | |||||||||
PC Webcams | 107,087 | 98,641 | 96,680 | |||||||||
Other (1) | 1,295 | 2,570 | 2,725 | |||||||||
Total net retail sales | 2,221,427 | 1,947,059 | 1,887,446 | |||||||||
OEM | — | 71,041 | 117,462 | |||||||||
Total net sales | $ | 2,221,427 | $ | 2,018,100 | $ | 2,004,908 |
(1) | Other category includes products that the Company currently intends to transition out of, or have already transitioned out of, because they are no longer strategic to the Company's business. |
Years Ended March 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Americas | $ | 963,674 | $ | 881,379 | $ | 864,761 | ||||||
EMEA | 746,898 | 645,694 | 670,890 | |||||||||
Asia Pacific | 510,855 | 491,027 | 469,257 | |||||||||
$ | 2,221,427 | $ | 2,018,100 | $ | 2,004,908 |
March 31, | ||||||||
2017 | 2016 | |||||||
Americas | $ | 37,242 | $ | 40,221 | ||||
EMEA | 4,006 | 3,194 | ||||||
Asia Pacific | 44,160 | 49,445 | ||||||
$ | 85,408 | $ | 92,860 |
|
Restructuring - Continuing Operations | ||||||||||||||||
Termination Benefits | Lease Exit Costs | Other | Total | |||||||||||||
Accrual balance at March 31, 2015 | — | 954 | $ | — | $ | 954 | ||||||||||
Charges, net | 17,280 | 337 | 185 | 17,802 | ||||||||||||
Cash payments | (11,373 | ) | (1,166 | ) | (185 | ) | (12,724 | ) | ||||||||
Accrual balance at March 31, 2016 | 5,907 | 125 | — | 6,032 | ||||||||||||
Charges, net | 23 | — | — | 23 | ||||||||||||
Cash payments | (5,195 | ) | (125 | ) | — | (5,320 | ) | |||||||||
Accrual balance at March 31, 2017 | $ | 735 | $ | — | $ | — | $ | 735 |
|
Balance at Beginning of Year | Charged (Credited) to Statement of Operations (1) | Claims and Adjustments Applied Against Allowances (1) | Balance at End of Year | |||||||||||||
Allowance for doubtful accounts: | ||||||||||||||||
2017 | $ | 667 | $ | 47 | $ | (107 | ) | $ | 607 | |||||||
2016 | $ | 707 | $ | 71 | $ | (111 | ) | $ | 667 | |||||||
2015 | $ | 1,297 | $ | (334 | ) | $ | (256 | ) | $ | 707 | ||||||
Allowance for sales returns: | ||||||||||||||||
2017 | $ | 18,526 | $ | 78,242 | $ | (77,968 | ) | $ | 18,800 | |||||||
2016 | $ | 17,236 | $ | 66,935 | $ | (65,645 | ) | $ | 18,526 | |||||||
2015 | $ | 18,503 | $ | 66,785 | $ | (68,052 | ) | $ | 17,236 | |||||||
Allowances for cooperative marketing arrangements: | ||||||||||||||||
2017 | $ | 28,157 | $ | 144,656 | $ | (144,791 | ) | $ | 28,022 | |||||||
2016 | $ | 24,919 | $ | 131,410 | $ | (128,172 | ) | $ | 28,157 | |||||||
2015 | $ | 23,255 | $ | 113,610 | $ | (111,946 | ) | $ | 24,919 | |||||||
Allowances for customer incentive programs: | ||||||||||||||||
2017 | $ | 60,872 | $ | 196,363 | $ | (196,378 | ) | $ | 60,857 | |||||||
2016 | $ | 47,364 | $ | 164,307 | $ | (150,799 | ) | $ | 60,872 | |||||||
2015 | $ | 40,205 | $ | 142,413 | $ | (135,254 | ) | $ | 47,364 | |||||||
Allowances for pricing programs: | ||||||||||||||||
2017 | $ | 81,553 | $ | 322,118 | $ | (301,382 | ) | $ | 102,289 | |||||||
2016 | $ | 70,951 | $ | 260,698 | $ | (250,096 | ) | $ | 81,553 | |||||||
2015 | $ | 68,798 | $ | 246,780 | $ | (244,627 | ) | $ | 70,951 | |||||||
Tax valuation allowances: | ||||||||||||||||
2017 | $ | 5,338 | $ | 1,299 | $ | (11 | ) | $ | 6,626 | |||||||
2016 | $ | 5,590 | $ | 1,255 | $ | (1,507 | ) | $ | 5,338 | |||||||
2015 | $ | 4,872 | $ | 995 | $ | (277 | ) | $ | 5,590 |
|
• | Evidence of an arrangement exists; |
• | Delivery has occurred and title and risk of loss has transferred to a customer; |
• | Price of a product is fixed or determinable; and |
• | Collectability is reasonably assured. |
|
Purchase price | $ | 54,242 | ||
Fair value of contingent consideration (earn-out) | 18,000 | |||
Fair value of total consideration transferred | $ | 72,242 |
Estimated Fair Value | ||||
Cash and cash equivalents | $ | 255 | ||
Accounts receivable | 272 | |||
Inventories | 10,214 | |||
Other current assets | 611 | |||
Property, plant, and equipment | 1,165 | |||
Intangible assets | 50,280 | |||
Other assets | 27 | |||
Total identifiable assets acquired | 62,824 | |||
Accounts payable | (10,513 | ) | ||
Accrued liabilities | (1,227 | ) | ||
Other current liabilities | (5,226 | ) | ||
Other long-term liabilities | (283 | ) | ||
Net identifiable assets acquired | $ | 45,575 | ||
Goodwill | 26,667 | |||
Net assets acquired | $ | 72,242 |
Fair Value | Estimated Useful Life (years) | |||
Developed technology | $ | 18,450 | 4.0 | |
Customer relationships | 19,900 | 8.0 | ||
Trade name | 9,380 | 6.0 | ||
Intangible assets with finite lives acquired | 47,730 | 6.1 | ||
In-process research & development ("IPR&D") | 2,550 | Not Applicable | ||
Total intangible assets acquired | $ | 50,280 |
|
Year Ended | ||||
March 31, 2016 | ||||
Proceeds received from disposition of discontinued operations | $ | 2,500 | ||
Fair value of retained cost method investment as a result of divestiture of discontinued operations | 5,591 | |||
Net liabilities of discontinued operations disposed | 9,981 | |||
Currency translation loss released due to disposition of discontinued operations (1) | (3,913 | ) | ||
Transaction related costs | (475 | ) | ||
Gain on disposal of discontinued operations (2) | $ | 13,684 |
Years Ended March 31, | ||||||||
2016 | 2015 | |||||||
Net sales | $ | 65,554 | $ | 109,039 | ||||
Cost of goods sold | 24,951 | 40,299 | ||||||
Gross profit | 40,603 | 68,740 | ||||||
Operating expenses: | ||||||||
Marketing and selling | 32,260 | 56,856 | ||||||
Research and development | 16,526 | 22,706 | ||||||
General and administrative | 5,254 | 5,439 | ||||||
Impairment of goodwill (1) | — | 122,734 | ||||||
Restructuring charges (credits), net | 7,900 | (111 | ) | |||||
Operating expenses | 61,940 | 207,624 | ||||||
Operating loss from discontinued operations | (21,337 | ) | (138,884 | ) | ||||
Interest and other expense, net | 205 | 426 | ||||||
Gain on disposal of discontinued operations | 13,684 | — | ||||||
Loss from discontinued operations before income taxes | (7,858 | ) | (139,310 | ) | ||||
Provision for (benefit from) income taxes | 1,187 | (164 | ) | |||||
Net loss from discontinued operations | $ | (9,045 | ) | $ | (139,146 | ) |
|
Years Ended March 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Cost of goods sold | $ | 2,663 | $ | 2,340 | $ | 2,474 | ||||||
Marketing and selling | 14,723 | 9,273 | 8,570 | |||||||||
Research and development | 4,200 | 3,046 | 2,381 | |||||||||
General and administrative | 14,304 | 12,353 | 10,766 | |||||||||
Restructuring | — | 7 | — | |||||||||
Total share-based compensation expense | 35,890 | 27,019 | 24,191 | |||||||||
Income tax benefit | (8,536 | ) | (6,297 | ) | (4,814 | ) | ||||||
Total share-based compensation expense, net of income tax | $ | 27,354 | $ | 20,722 | $ | 19,377 |
March 31, 2017 | ||||||
Unamortized Expense | Remaining Months | |||||
ESPP | $ | 1,191 | 4 | |||
Time-based RSUs | 36,172 | 21 | ||||
Market-based and performance-based RSUs | 9,241 | 17 | ||||
$ | 46,604 |
Employee Stock Purchase Plans | Years Ended March 31, | |||||||||||
2017 | 2016 | 2015 | ||||||||||
Dividend yield | 2.50 | % | 3.47 | % | 1.97 | % | ||||||
Risk-free interest rate | 0.51 | % | 0.29 | % | 0.14 | % | ||||||
Expected volatility | 35 | % | 26 | % | 30 | % | ||||||
Expected life (years) | 0.5 | 0.5 | 0.6 | |||||||||
Weighted average fair value | $ | 5.73 | $ | 3.29 | $ | 3.18 |
Market-based RSUs | Years Ended March 31, | ||||||||
2017 | 2016 | 2015 | |||||||
Dividend yield | 3.29 | % | 3.78 | % | 1.86 | % | |||
Risk-free interest rate | 0.86 | % | 0.84 | % | 0.83 | % | |||
Expected volatility | 34 | % | 38 | % | 46 | % | |||
Expected life (years) | 3.0 | 3.0 | 3.0 |
Number of Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||
(In thousands) | (Years) | (In thousands) | |||||||||||
Outstanding, March 31, 2014 | 9,816 | ||||||||||||
Granted | — | ||||||||||||
Exercised | (390 | ) | $ | 1,505 | |||||||||
Cancelled or expired | (1,550 | ) | |||||||||||
Outstanding, March 31, 2015 | 7,876 | ||||||||||||
Granted | — | ||||||||||||
Exercised | (746 | ) | $ | 4,026 | |||||||||
Cancelled or expired | (1,796 | ) | |||||||||||
Outstanding, March 31, 2016 | 5,334 | $ | 18 | ||||||||||
Granted | — | $ | — | ||||||||||
Exercised | (1,784 | ) | $ | 16 | $ | 14,627 | |||||||
Cancelled or expired | (500 | ) | $ | 23 | |||||||||
Outstanding, March 31, 2017 | 3,050 | $ | 18 | 3.6 | $ | 41,853 | |||||||
Vested and expected to vest, March 31, 2017 | 3,050 | $ | 18 | 3.6 | $ | 41,853 | |||||||
Vested and exercisable, March 31, 2017 | 3,050 | $ | 18 | 3.6 | $ | 41,853 |
Number of Shares | Weighted-Average Grant Date Fair Value | Weighted-Average Remaining Vesting Period | Aggregate Fair Value | ||||||||||
(In thousands) | (Years) | (In thousands) | |||||||||||
Outstanding, March 31, 2014 | 6,088 | $ | 10 | ||||||||||
Granted—time-based | 1,332 | $ | 13 | ||||||||||
Granted—market-based | 523 | $ | 13 | ||||||||||
Granted - performance-based | 55 | $ | 12 | ||||||||||
Vested | (1,949 | ) | $ | 10 | $ | 27,844 | |||||||
Cancelled or expired | (1,110 | ) | $ | 11 | |||||||||
Outstanding, March 31, 2015 | 4,939 | $ | 11 | ||||||||||
Granted—time-based | 2,247 | $ | 13 | ||||||||||
Granted—market-based | 356 | $ | 14 | ||||||||||
Granted - performance-based | 356 | $ | 13 | ||||||||||
Vested | (1,557 | ) | $ | 10 | $ | 22,823 | |||||||
Cancelled or expired | (820 | ) | $ | 12 | |||||||||
Outstanding, March 31, 2016 | 5,521 | $ | 11 | ||||||||||
Granted—time-based | 2,390 | $ | 16 | ||||||||||
Granted—market-based | 160 | $ | 15 | ||||||||||
Granted - performance-based | 604 | $ | 15 | ||||||||||
Vested | (2,126 | ) | $ | 11 | $ | 48,644 | |||||||
Cancelled or expired | (368 | ) | $ | 14 | |||||||||
Outstanding, March 31, 2017 | 6,181 | $ | 14 | 1.2 | $ | 196,983 | |||||||
Expected to vest, March 31, 2017 | 4,859 | $ | 14 | 1.2 | $ | 154,846 |
Years Ended March 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Service costs | $ | 10,385 | $ | 10,117 | $ | 7,646 | ||||||
Interest costs | 800 | 1,147 | 1,970 | |||||||||
Expected return on plan assets | (1,724 | ) | (1,657 | ) | (2,084 | ) | ||||||
Amortization: | ||||||||||||
Net transition obligation | 4 | 4 | 4 | |||||||||
Net prior service costs (credit) recognized | (117 | ) | (124 | ) | (45 | ) | ||||||
Net actuarial loss recognized | 1,032 | 1,854 | 301 | |||||||||
Settlement and curtailment | — | — | (13 | ) | ||||||||
$ | 10,380 | $ | 11,341 | $ | 7,779 |
Years Ended March 31, | ||||||||
2017 | 2016 | |||||||
Projected benefit obligations, beginning of the year | $ | 120,473 | $ | 113,323 | ||||
Service costs | 10,385 | 10,117 | ||||||
Interest costs | 800 | 1,147 | ||||||
Plan participant contributions | 3,020 | 2,990 | ||||||
Actuarial (gains) losses | (11,081 | ) | (2,496 | ) | ||||
Benefits paid | (5,214 | ) | (5,277 | ) | ||||
Plan amendment related to statutory change | 65 | — | ||||||
Administrative expense paid | (132 | ) | — | |||||
Currency exchange rate changes | (3,676 | ) | 669 | |||||
Projected benefit obligations, end of the year | $ | 114,640 | $ | 120,473 |
Years Ended March 31, | ||||||||
2017 | 2016 | |||||||
Fair value of plan assets, beginning of the year | $ | 65,279 | $ | 60,910 | ||||
Actual return on plan assets | 4,733 | (1,160 | ) | |||||
Employer contributions | 5,865 | 7,171 | ||||||
Plan participant contributions | 3,020 | 2,990 | ||||||
Benefits paid | (5,214 | ) | (5,277 | ) | ||||
Administrative expenses paid | (132 | ) | — | |||||
Currency exchange rate changes | (2,175 | ) | 645 | |||||
Fair value of plan assets, end of the year | $ | 71,376 | $ | 65,279 |
March 31, | ||||||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | |||||||||||||||||||
Cash and cash equivalents | $ | 11,864 | $ | 46 | $ | 11,910 | $ | 9,268 | $ | 47 | $ | 9,315 | ||||||||||||
Equity securities | 20,985 | — | 20,985 | 18,640 | — | 18,640 | ||||||||||||||||||
Debt securities | 22,373 | — | 22,373 | 21,781 | — | 21,781 | ||||||||||||||||||
Swiss real estate funds | 9,699 | — | 9,699 | 9,622 | — | 9,622 | ||||||||||||||||||
Hedge funds | — | 3,507 | 3,507 | — | 3,492 | 3,492 | ||||||||||||||||||
Insurance contracts | — | 61 | 61 | — | 94 | 94 | ||||||||||||||||||
Other | 2,654 | 187 | 2,841 | 2,195 | 140 | 2,335 | ||||||||||||||||||
$ | 67,575 | $ | 3,801 | $ | 71,376 | $ | 61,506 | $ | 3,773 | $ | 65,279 |
Years Ended March 31, | ||||||||
2017 | 2016 | |||||||
Fair value of plan assets | $ | 71,376 | $ | 65,279 | ||||
Less: projected benefit obligations | 114,640 | 120,473 | ||||||
Under funded status | $ | (43,264 | ) | $ | (55,194 | ) |
March 31, | ||||||||
2017 | 2016 | |||||||
Current liabilities | $ | (1,266 | ) | $ | (1,285 | ) | ||
Non-current liabilities | (41,998 | ) | (53,909 | ) | ||||
Net liabilities | $ | (43,264 | ) | $ | (55,194 | ) |
March 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Net prior service credits | $ | 1,274 | $ | 1,613 | $ | 1,672 | ||||||
Net actuarial loss | (11,407 | ) | (27,612 | ) | (28,751 | ) | ||||||
Net transition obligation | — | (4 | ) | (8 | ) | |||||||
Accumulated other comprehensive loss | (10,133 | ) | (26,003 | ) | (27,087 | ) | ||||||
Deferred tax benefit | (347 | ) | (168 | ) | 123 | |||||||
Accumulated other comprehensive loss, net of tax | $ | (10,480 | ) | $ | (26,171 | ) | $ | (26,964 | ) |
Year Ending March 31, 2018 | ||||
Amortization of net prior service credits | $ | (107 | ) | |
Amortization of net actuarial loss | 306 | |||
$ | 199 |
Years Ended March 31, | ||||
2017 | 2016 | |||
Benefit Obligations: | ||||
Discount rate | 0.75%-7.00% | 0.5%-8.00% | ||
Estimated rate of compensation increase | 2.5%-10.00% | 2.50%-10.00% | ||
Periodic Costs: | ||||
Discount rate | 0.5%-8.00% | 0.75%-7.75% | ||
Estimated rate of compensation increase | 2.5%-10.00% | 0.0%-8.00% | ||
Expected average rate of return on plan assets | 1.0%-2.75% | 1.00%-2.75% |
Years Ending March 31, | ||||
2018 | $ | 5,006 | ||
2019 | 5,408 | |||
2020 | 5,720 | |||
2021 | 5,291 | |||
2022 | 5,595 | |||
2023-2027 | 30,614 | |||
$ | 57,634 |
|
Years Ended March 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Investment income (loss) related to a deferred compensation plan | $ | 1,343 | $ | (364 | ) | $ | 1,055 | |||||
Impairment of investment | — | — | (2,298 | ) | ||||||||
Currency exchange gain (loss), net | 169 | 2,110 | (1,175 | ) | ||||||||
Other | 165 | (122 | ) | 120 | ||||||||
Other income (expense), net | $ | 1,677 | $ | 1,624 | $ | (2,298 | ) |
|
Years Ended March 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Swiss | $ | 161,544 | $ | 80,572 | $ | 119,460 | ||||||
Non-Swiss | 53,445 | 50,900 | 33,623 | |||||||||
Income before taxes | $ | 214,989 | $ | 131,472 | $ | 153,083 |
Years Ended March 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Current: | ||||||||||||
Swiss | $ | 1,934 | $ | 1,668 | $ | 1,152 | ||||||
Non-Swiss | 9,774 | (2,582 | ) | 579 | ||||||||
Deferred: | ||||||||||||
Non-Swiss | (2,595 | ) | 4,024 | 2,923 | ||||||||
Provision for income taxes | $ | 9,113 | $ | 3,110 | $ | 4,654 |
Years Ended March 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Expected tax provision at statutory income tax rates | $ | 18,274 | $ | 11,175 | $ | 13,012 | ||||||
Income taxes at different rates | (5,247 | ) | (2,713 | ) | (4,299 | ) | ||||||
Research and development tax credits | (2,309 | ) | (1,619 | ) | (1,120 | ) | ||||||
Executive compensation | 654 | 864 | 1,557 | |||||||||
Stock-based compensation | 1,794 | 1,446 | 2,261 | |||||||||
Valuation allowance | 1,024 | 947 | 764 | |||||||||
Restructuring charges / (credits) | 2 | 1,514 | (415 | ) | ||||||||
Tax reserves (releases), net | (5,570 | ) | (8,761 | ) | (6,912 | ) | ||||||
Audit settlement | — | — | (837 | ) | ||||||||
Other, net | 491 | 257 | 643 | |||||||||
Provision for income taxes | $ | 9,113 | $ | 3,110 | $ | 4,654 |
March 31, | ||||||||
2017 | 2016 | |||||||
Deferred tax assets: | ||||||||
Net operating loss carryforwards | $ | 4,306 | $ | 7,136 | ||||
Tax credit carryforwards | 5,825 | 2,981 | ||||||
Accruals | 41,570 | 36,365 | ||||||
Depreciation and amortization | 2,860 | 4,059 | ||||||
Share-based compensation | 11,846 | 12,890 | ||||||
Gross deferred tax assets | 66,407 | 63,431 | ||||||
Valuation allowance | (6,626 | ) | (5,338 | ) | ||||
Gross deferred tax assets after valuation allowance | 59,781 | 58,093 | ||||||
Deferred tax liabilities: | ||||||||
Acquired intangible assets and other | (4,267 | ) | (3,550 | ) | ||||
Gross deferred tax liabilities | (4,267 | ) | (3,550 | ) | ||||
Deferred tax assets, net | $ | 55,514 | $ | 54,543 |
March 31, 2014 | $ | 91,046 | ||
Lapse of statute of limitations | (14,071 | ) | ||
Settlements with tax authorities | (2,160 | ) | ||
Decreases in balances related to tax positions taken during prior years | (3,544 | ) | ||
Increases in balances related to tax positions taken during the year | 7,752 | |||
March 31, 2015 | $ | 79,023 | ||
Lapse of statute of limitations | (15,518 | ) | ||
Settlements with tax authorities | — | |||
Decreases in balances related to tax positions taken during prior years | (1,502 | ) | ||
Increases in balances related to tax positions taken during the year | 7,876 | |||
March 31, 2016 | $ | 69,879 | ||
Lapse of statute of limitations | (14,161 | ) | ||
Settlements with tax authorities | — | |||
Decreases in balances related to tax positions taken during prior years | (1,610 | ) | ||
Increases in balances related to tax positions taken during the year | 9,559 | |||
March 31, 2017 | $ | 63,667 |
|
March 31, | ||||||||
2017 | 2016 | |||||||
Accounts receivable: | ||||||||
Accounts receivable | $ | 395,754 | $ | 332,553 | ||||
Allowance for doubtful accounts | (607 | ) | (667 | ) | ||||
Allowance for sales returns | (18,800 | ) | (18,526 | ) | ||||
Allowance for cooperative marketing arrangements | (28,022 | ) | (28,157 | ) | ||||
Allowance for customer incentive programs | (60,857 | ) | (60,872 | ) | ||||
Allowance for pricing programs | (102,289 | ) | (81,553 | ) | ||||
$ | 185,179 | $ | 142,778 | |||||
Inventories: | ||||||||
Raw materials | $ | 30,582 | $ | 48,489 | ||||
Finished goods | 222,819 | 180,297 | ||||||
$ | 253,401 | $ | 228,786 | |||||
Other current assets: | ||||||||
Value-added tax receivables | $ | 23,132 | $ | 22,572 | ||||
Prepaid expenses and other assets | 18,600 | 12,916 | ||||||
$ | 41,732 | $ | 35,488 | |||||
Property, plant and equipment, net: | ||||||||
Plant, buildings and improvements | $ | 58,881 | $ | 62,150 | ||||
Equipment | 176,291 | 166,371 | ||||||
Computer equipment | 27,812 | 36,018 | ||||||
Software | 72,441 | 97,201 | ||||||
335,425 | 361,740 | |||||||
Less accumulated depreciation and amortization | (263,352 | ) | (278,352 | ) | ||||
72,073 | 83,388 | |||||||
Construction-in-process | 10,537 | 6,771 | ||||||
Land | 2,798 | 2,701 | ||||||
$ | 85,408 | $ | 92,860 | |||||
Other assets: | ||||||||
Deferred tax assets | $ | 57,303 | $ | 56,208 | ||||
Trading investments for deferred compensation plan | 15,043 | 14,836 | ||||||
Investment in privately held companies | 10,776 | 9,247 | ||||||
Other assets | 4,997 | 6,525 | ||||||
$ | 88,119 | $ | 86,816 |
March 31, | ||||||||
2017 | 2016 | |||||||
Accrued and other current liabilities: | ||||||||
Accrued personnel expenses | $ | 88,346 | $ | 46,025 | ||||
Indirect customer incentive programs | 36,409 | 28,721 | ||||||
Warranty accrual | 13,424 | 11,880 | ||||||
Employee benefit plan obligation | 1,266 | 1,285 | ||||||
Income taxes payable | 6,232 | 1,553 | ||||||
Contingent consideration for business acquisition - current portion | 2,889 | — | ||||||
Other current liabilities | 83,707 | 84,300 | ||||||
$ | 232,273 | $ | 173,764 | |||||
Other non-current liabilities: | ||||||||
Warranty accrual | $ | 8,487 | $ | 8,500 | ||||
Obligation for deferred compensation plan | 15,043 | 14,836 | ||||||
Employee benefit plan obligation | 41,998 | 53,909 | ||||||
Deferred tax liability | 1,789 | 1,665 | ||||||
Contingent consideration for business acquisition - non-current portion | 7,019 | — | ||||||
Other non-current liabilities | 9,355 | 10,625 | ||||||
$ | 83,691 | $ | 89,535 |
|
March 31, 2017 | March 31, 2016 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash equivalents | $ | 448,742 | $ | — | $ | — | $ | 10,000 | $ | — | $ | — | ||||||||||||
Trading investments for deferred compensation plan included in other assets: | ||||||||||||||||||||||||
Money market funds | $ | 2,813 | $ | — | $ | — | $ | 3,467 | $ | — | $ | — | ||||||||||||
Mutual funds | 12,230 | — | — | 11,369 | — | — | ||||||||||||||||||
Total of trading investments for deferred compensation plan | $ | 15,043 | $ | — | $ | — | $ | 14,836 | $ | — | $ | — | ||||||||||||
Currency exchange derivative assets included in other current assets | $ | — | $ | 48 | $ | — | $ | — | $ | 10 | $ | — | ||||||||||||
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 | $ | — | $ | 443 | $ | — | $ | — | $ | 1,132 | $ | — |
Year Ended March 31, | ||||
2017 | ||||
Acquisition-related contingent consideration, beginning of the year | $ | — | ||
Fair value of contingent consideration upon acquisition | 18,000 | |||
Change in fair value of contingent consideration | (8,092 | ) | ||
Acquisition-related contingent consideration, end of the year | $ | 9,908 |
|
Derivatives | ||||||||||||||||
Asset | Liability | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Designated as hedging instruments: | ||||||||||||||||
Cash flow hedges | $ | 48 | $ | 10 | $ | 402 | $ | 1,038 |
Amount of Gain (Loss) Deferred as a Component of Accumulated Other Comprehensive Loss | Amount of Loss (Gain) Reclassified from Accumulated Other Comprehensive Loss to Costs of Goods Sold | ||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||
Designated as hedging instruments: | |||||||||||||||||||||||
Cash flow hedges | $ | 2,928 | $ | (2,432 | ) | $ | 8,971 | $ | (1,670 | ) | $ | (3,296 | ) | $ | (4,505 | ) |
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Years Ended March 31, | ||||||||
2017 | 2016 | |||||||
Beginning of the period | $ | 218,224 | $ | 218,213 | ||||
Acquisitions | 31,553 | — | ||||||
Currency exchange rate impact and other | (36 | ) | 11 | |||||
End of the period | $ | 249,741 | $ | 218,224 |
March 31, | ||||||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||
Trademark and tradenames | $ | 16,500 | $ | (6,933 | ) | $ | 9,567 | $ | 5,300 | $ | (5,300 | ) | $ | — | ||||||||||
Technology | 63,285 | (42,831 | ) | 20,454 | 36,810 | (36,810 | ) | — | ||||||||||||||||
Customer contracts/relationships | 25,180 | (7,637 | ) | 17,543 | 5,900 | (5,900 | ) | — | ||||||||||||||||
$ | 104,965 | $ | (57,401 | ) | $ | 47,564 | $ | 48,010 | $ | (48,010 | ) | $ | — |
|
Years Ending March 31, | ||||
2018 | $ | 10,294 | ||
2019 | 8,759 | |||
2020 | 7,036 | |||
2021 | 4,907 | |||
2022 | 4,084 | |||
Thereafter | 4,283 | |||
$ | 39,363 |
Years Ended March 31, | ||||||||
2017 | 2016 | |||||||
Beginning of the period | $ | 20,380 | $ | 21,710 | ||||
Assumed from business acquisition | 1,963 | — | ||||||
Provision | 15,341 | 9,772 | ||||||
Settlements | (15,270 | ) | (11,339 | ) | ||||
Currency translation | (503 | ) | 237 | |||||
End of the period | $ | 21,911 | $ | 20,380 |
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Years Ended March 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Mobile Speakers | $ | 301,021 | $ | 229,718 | $ | 178,038 | ||||||
Audio-PC & Wearables | 246,390 | 196,013 | 213,496 | |||||||||
Gaming | 314,362 | 245,101 | 211,911 | |||||||||
Video Collaboration | 127,009 | 89,322 | 62,215 | |||||||||
Home Control | 65,510 | 59,075 | 68,060 | |||||||||
Pointing Devices | 501,562 | 492,543 | 487,210 | |||||||||
Keyboards & Combos | 480,312 | 430,190 | 426,117 | |||||||||
Tablet & Other Accessories | 76,879 | 103,886 | 140,994 | |||||||||
PC Webcams | 107,087 | 98,641 | 96,680 | |||||||||
Other (1) | 1,295 | 2,570 | 2,725 | |||||||||
Total net retail sales | 2,221,427 | 1,947,059 | 1,887,446 | |||||||||
OEM | — | 71,041 | 117,462 | |||||||||
Total net sales | $ | 2,221,427 | $ | 2,018,100 | $ | 2,004,908 |
(1) | Other category includes products that the Company currently intends to transition out of, or have already transitioned out of, because they are no longer strategic to the Company's business. |
Years Ended March 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Americas | $ | 963,674 | $ | 881,379 | $ | 864,761 | ||||||
EMEA | 746,898 | 645,694 | 670,890 | |||||||||
Asia Pacific | 510,855 | 491,027 | 469,257 | |||||||||
$ | 2,221,427 | $ | 2,018,100 | $ | 2,004,908 |
March 31, | ||||||||
2017 | 2016 | |||||||
Americas | $ | 37,242 | $ | 40,221 | ||||
EMEA | 4,006 | 3,194 | ||||||
Asia Pacific | 44,160 | 49,445 | ||||||
$ | 85,408 | $ | 92,860 |
|
Restructuring - Continuing Operations | ||||||||||||||||
Termination Benefits | Lease Exit Costs | Other | Total | |||||||||||||
Accrual balance at March 31, 2015 | — | 954 | $ | — | $ | 954 | ||||||||||
Charges, net | 17,280 | 337 | 185 | 17,802 | ||||||||||||
Cash payments | (11,373 | ) | (1,166 | ) | (185 | ) | (12,724 | ) | ||||||||
Accrual balance at March 31, 2016 | 5,907 | 125 | — | 6,032 | ||||||||||||
Charges, net | 23 | — | — | 23 | ||||||||||||
Cash payments | (5,195 | ) | (125 | ) | — | (5,320 | ) | |||||||||
Accrual balance at March 31, 2017 | $ | 735 | $ | — | $ | — | $ | 735 |
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