Cover Page
Cover Page - shares | 3 Months Ended | |
Jun. 30, 2023 | Jul. 13, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-29174 | |
Entity Registrant Name | LOGITECH INTERNATIONAL S.A. | |
Entity Incorporation, State or Country Code | V8 | |
Entity Address, Address Line One | 1015 Lausanne | |
Entity Address, Country | CH | |
Entity Address, Address Line Two | c/o Logitech Inc. | |
Entity Address, Address Line Three | 3930 North First Street | |
Entity Address, City or Town | San Jose | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95134 | |
City Area Code | 510) | |
Local Phone Number | 795-8500 | |
Title of 12(b) Security | Registered Shares | |
Trading Symbol | LOGI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 158,146,980 | |
Entity Central Index Key | 0001032975 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 974,499 | $ 1,159,865 |
Cost of goods sold | 595,712 | 697,220 |
Amortization of intangible assets | 3,145 | 3,042 |
Gross profit | 375,642 | 459,603 |
Operating expenses: | ||
Marketing and selling | 179,185 | 229,378 |
Research and development | 70,559 | 75,517 |
General and administrative | 41,297 | 35,860 |
Amortization of intangible assets and acquisition-related costs | 2,685 | 3,369 |
Restructuring charges, net | 3,511 | 0 |
Total operating expenses | 297,237 | 344,124 |
Operating income | 78,405 | 115,479 |
Interest income | 9,826 | 1,449 |
Other income (expense), net | (12,972) | 5,624 |
Income before income taxes | 75,259 | 122,552 |
Provision for income taxes | 12,532 | 21,716 |
Net income | $ 62,727 | $ 100,836 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.39 | $ 0.61 |
Diluted (in dollars per share) | $ 0.39 | $ 0.61 |
Weighted average shares used to compute net income per share: | ||
Basic (in shares) | 158,859 | 164,679 |
Diluted (in shares) | 160,155 | 166,406 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 62,727 | $ 100,836 |
Currency translation loss: | ||
Currency translation loss, net of taxes | (1,529) | (21,220) |
Defined benefit plans: | ||
Net gain and prior service costs, net of taxes | 0 | 84 |
Reclassification of amortization included in other income (expense), net | (4) | (113) |
Hedging gain (loss): | ||
Deferred hedging gain (loss), net of taxes | (704) | 6,629 |
Reclassification of hedging gain (loss) included in cost of goods sold | 2,986 | (2,091) |
Total other comprehensive income (loss) | 749 | (16,711) |
Total comprehensive income | $ 63,476 | $ 84,125 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 1,251,086 | $ 1,149,023 |
Accounts receivable, net | 562,602 | 630,382 |
Inventories | 572,344 | 682,893 |
Other current assets | 111,572 | 142,876 |
Total current assets | 2,497,604 | 2,605,174 |
Non-current assets: | ||
Property, plant and equipment, net | 126,965 | 121,503 |
Goodwill | 453,922 | 454,610 |
Other intangible assets, net | 57,230 | 63,173 |
Other assets | 304,160 | 316,293 |
Total assets | 3,439,881 | 3,560,753 |
Current liabilities: | ||
Accounts payable | 386,599 | 406,968 |
Accrued and other current liabilities | 570,544 | 643,139 |
Total current liabilities | 957,143 | 1,050,107 |
Non-current liabilities: | ||
Income taxes payable | 107,925 | 106,391 |
Other non-current liabilities | 148,738 | 146,695 |
Total liabilities | 1,213,806 | 1,303,193 |
Commitments and contingencies (Note 10) | ||
Shareholders’ equity: | ||
Registered shares, CHF 0.25 par value: Issued shares - 173,106 at September 30, 2022 and March 31, 2022 Additional shares that may be be issued out of conditional capitals - 50,000 at September 30,2022 and March 31, 2022 Additional shares that may be issued out of authorized capital - 17,311 at September 30, 2022 and March 31, 2022 | 30,148 | 30,148 |
Additional paid-in capital | 49,734 | 127,380 |
Shares in treasury, at cost — 14,484 at June 30, 2023 and 13,763 at March 31, 2023 | (994,581) | (977,266) |
Retained earnings | 3,240,302 | 3,177,575 |
Accumulated other comprehensive loss | (99,528) | (100,277) |
Total shareholders’ equity | 2,226,075 | 2,257,560 |
Total liabilities and shareholders’ equity | $ 3,439,881 | $ 3,560,753 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - SFr / shares shares in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Shares, par value (in CHF per share) | SFr 0.25 | SFr 0.25 |
Shares issued (in shares) | 173,106 | 173,106 |
Shares that may be issued out of conditional capital (in shares) | 50,000 | 50,000 |
Shares that may be issued out of the authorized capital (in shares) | 17,311 | 17,311 |
Treasury, at cost, shares (in shares) | 14,484 | 13,763 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 62,727 | $ 100,836 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation | 17,498 | 18,626 |
Amortization of intangible assets | 5,827 | 6,229 |
Loss (gain) on investments | 11,823 | (11,357) |
Share-based compensation expense | 21,511 | 23,690 |
Deferred income taxes | 2,962 | 265 |
Other | 24 | (124) |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable, net | 65,390 | (44,572) |
Inventories | 110,440 | (324) |
Other assets | 34,342 | 4,932 |
Accounts payable | (18,420) | (70,034) |
Accrued and other liabilities | (74,329) | (63,835) |
Net cash provided by (used in) operating activities | 239,795 | (35,668) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (16,238) | (19,563) |
Investment in privately held companies | (34) | (2,088) |
Acquisitions, net of cash acquired | 0 | (5,839) |
Purchases of deferred compensation investments | (1,069) | (922) |
Proceeds from sales of deferred compensation investments | 1,071 | 943 |
Other investing activities | (1,260) | 0 |
Net cash used in investing activities | (17,530) | (27,469) |
Cash flows from financing activities: | ||
Purchases of registered shares | (95,076) | (120,619) |
Proceeds from exercises of stock options and purchase rights | 2,113 | 0 |
Tax withholdings related to net share settlements of restricted stock units | (24,196) | (24,144) |
Net cash used in financing activities | (117,159) | (144,763) |
Effect of exchange rate changes on cash and cash equivalents | (3,043) | (14,159) |
Net increase (decrease) in cash and cash equivalents | 102,063 | (222,059) |
Cash and cash equivalents, beginning of the period | 1,149,023 | 1,328,716 |
Cash and cash equivalents, end of the period | 1,251,086 | 1,106,657 |
Non-cash investing and financing activities: | ||
Property, plant and equipment purchased during the period and included in period end liability accounts | 15,375 | 14,069 |
Non-cash contingent consideration for acquisition | 0 | 1,151 |
Right-of-use assets obtained in exchange for operating lease liabilities | 1,399 | 0 |
Supplemental cash flow information: | ||
Income taxes paid, net | $ 10,019 | $ 32,901 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Registered Shares | Additional Paid-in Capital | Treasury Shares | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning of the period at Mar. 31, 2022 | $ 2,398,738 | $ 30,148 | $ 129,925 | $ (632,893) | $ 2,975,681 | $ (104,123) |
Beginning of the period (in shares) at Mar. 31, 2022 | 173,106 | |||||
Beginning of the period (in shares) at Mar. 31, 2022 | 7,855 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Total comprehensive income | 84,125 | 100,836 | (16,711) | |||
Purchases of registered shares | (120,619) | $ (120,619) | ||||
Purchases of registered shares (in shares) | 1,980 | |||||
Issuance of shares upon vesting of restricted stock units | (24,144) | (55,383) | $ 31,239 | |||
Issuance of shares upon vesting of restricted stock units (in shares) | (784) | |||||
Share-based compensation | 24,258 | 24,258 | ||||
End of the period at Jun. 30, 2022 | 2,362,358 | $ 30,148 | 98,800 | $ (722,273) | 3,076,517 | (120,834) |
End of the period (in shares) at Jun. 30, 2022 | 173,106 | |||||
End of the period (in shares) at Jun. 30, 2022 | 9,051 | |||||
Beginning of the period at Mar. 31, 2023 | $ 2,257,560 | $ 30,148 | 127,380 | $ (977,266) | 3,177,575 | (100,277) |
Beginning of the period (in shares) at Mar. 31, 2023 | 173,106 | |||||
Beginning of the period (in shares) at Mar. 31, 2023 | 13,763 | 13,763 | ||||
Increase (Decrease) in Shareholders' Equity | ||||||
Total comprehensive income | $ 63,476 | 62,727 | 749 | |||
Purchases of registered shares | (95,076) | $ (95,076) | ||||
Purchases of registered shares (in shares) | 1,607 | |||||
Sales of shares upon exercise of stock options and purchase rights | 2,113 | (1,867) | $ 3,980 | |||
Sales of shares upon exercise of stock options and purchase rights (in shares) | (48) | |||||
Issuance of shares upon vesting of restricted stock units | (24,196) | (97,977) | $ 73,781 | |||
Issuance of shares upon vesting of restricted stock units (in shares) | (838) | |||||
Share-based compensation | 22,198 | 22,198 | ||||
End of the period at Jun. 30, 2023 | $ 2,226,075 | $ 30,148 | $ 49,734 | $ (994,581) | $ 3,240,302 | $ (99,528) |
End of the period (in shares) at Jun. 30, 2023 | 173,106 | |||||
End of the period (in shares) at Jun. 30, 2023 | 14,484 | 14,484 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies and Estimates | 3 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
The Company and Summary of Significant Accounting Policies and Estimates | The Company and Summary of Significant Accounting Policies and Estimates The Company Logitech International S.A, together with its consolidated subsidiaries ("Logitech" or the "Company"), designs, manufactures and sells products that help businesses thrive and bring people together when working, creating, gaming and streaming. The Company sells its products to a broad network of international customers, including direct sales to retailers, e-tailers and end consumers through the Company's e-commerce platform, and indirect sales to end customers through distributors. Logitech was founded in Switzerland in 1981 and Logitech International S.A. has been the parent holding company of Logitech since 1988. Logitech International S.A. is a Swiss holding company with its registered office in Hautemorges, Switzerland, and headquarters in Lausanne, Switzerland, which conducts its business through subsidiaries in the Americas, Europe, Middle East and Africa ("EMEA") and Asia Pacific. Shares of Logitech International S.A. are listed on both the SIX Swiss Exchange under the trading symbol LOGN and the Nasdaq Global Select Market under the trading symbol LOGI. Basis of Presentation The condensed consolidated financial statements include the accounts of Logitech and its subsidiaries. All intercompany balances and transactions have been eliminated. The condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information and therefore do not include all the information required by U.S. GAAP for complete financial statements. The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year ended March 31, 2023, included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on May 17, 2023. 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 months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2024, or any future periods. Change in Presentation of Sales by Product Category During the first quarter of fiscal year 2024, the Company changed its presentation of Sales by Product Category, included in Note 12, to provide a simpler and clearer view of the Company's business. The change in presentation did not have an impact on previously reported total sales. These changes included reclassifications of sales between certain product categories resulting in the following: • The Webcams category (previously PC Webcams) now includes PC webcams and VC webcams; • Headsets is a new category which includes PC headsets and VC headsets; • The Mobile Speakers category is no longer a separate category as sales have been reclassified into the Other category; • The Audio & Wearables category is no longer a separate category as sales have been reclassified into other categories as discussed below. As a result of these changes, certain prior-period amounts for the three months ended June 30, 2022 have been reclassified to conform to the current period presentation as follows (in thousands): As previously reported Reclassifications As adjusted Gaming $ 282,806 $ 15,115 (1) $ 297,921 Keyboards & Combos 227,720 — 227,720 Pointing Devices 183,283 — 183,283 Video Collaboration 246,242 (64,610) (2) (3) 181,632 Webcams (3) 59,386 49,876 (3) 109,262 Tablet Accessories 66,585 — 66,585 Headsets — 45,943 (2) 45,943 Other 2,087 45,432 (4) (5) 47,519 Mobile Speakers 22,310 (22,310) (4) — Audio & Wearables 69,446 (69,446) (1) (2) (5) — Total Sales $ 1,159,865 $ — $ 1,159,865 (1) Reclassification of Blue Microphones from "Audio & Wearables" to the Gaming category. (2) Reclassification of VC headsets and PC headsets to the new Headsets category from "Video Collaboration" and "Audio & Wearables," respectively. (3) The Webcams category includes amounts previously reported as "PC Webcams" as well as amounts from VC webcams reclassified from "Video Collaboration." (4) Reclassification of all amounts previously reported in "Mobile Speakers" to the Other category. (5) Reclassification of PC speakers previously reported in "Audio & Wearables" to the Other category. Changes in Significant Accounting Policies There have bee n no material changes in the Company’s significant accounting policies during the three months ended June 30, 2023 compared with the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended March 31, 2023. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Significant estimates and assumptions made by management involve the fair value of goodwill and intangible assets acquired from business acquisitions, contingent consideration for a business acquisition and periodic reassessment of its fair value, valuation of investment in privately held companies classified under Level 3 fair value hierarchy, pension obligations, accruals for customer incentives, cooperative marketing, and pricing programs and related breakage when appropriate, inventory valuation, share-based compensation expense, uncertain tax positions, and valuation allowances for deferred tax assets. Although these estimates are based on management’s best knowledge of current events and actions that may impact the Company in the future, actual results could differ materially from those estimates. Risks and Uncertainties Impacts of Macroeconomic and Geopolitical Conditions on the Company's Business The Company's business has been impacted by adverse macroeconomic and geopolitical conditions. These conditions include inflation, interest rate and foreign currency fluctuations, slowdown of economic activity around the world, and lower consumer and enterprise spending. In addition, the war in Ukraine resulted in global supply chain, logistics, and inflationary challenges. The Company has had no revenue in Russia and Ukraine since fiscal year 2023 as it has indefinitely ceased all sales and shipments to Russia and sales in Ukraine have also been halted due to the ongoing military operations on the Ukrainian territory. The global and regional economic and political conditions adversely affect demand for the Company's products. These conditions also had an impact on the Company's suppliers, contract manufacturers, logistics providers, and distributors, causing volatility in cost of materials and shipping and transportation rates, and as a result impacting the pricing of the Company's products. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The following table summarizes the computations of basic and diluted net income per share for the three months ended June 30, 2023 and 2022 (in thousands, except per share amounts): Three months ended June 30, 2023 2022 Net income $ 62,727 $ 100,836 Shares used in net income per share computation: Weighted average shares outstanding - basic 158,859 164,679 Effect of potentially dilutive equivalent shares 1,296 1,727 Weighted average shares outstanding - diluted 160,155 166,406 Net income per share: Basic $ 0.39 $ 0.61 Diluted $ 0.39 $ 0.61 Share equivalents attributable to outstanding stock options, restricted stock units and employee share purchase plans totalin g 2.0 million and 3.4 million for the three months ended June 30, 2023 and 2022, respectively, were excluded from the calculation of diluted net income per share because their effect would have been anti-dilutive. A small number of performance-based restricted stock units were not included in the dilutive net income per share calculation because all necessary conditions had not been satisfied by the end of the respective period, and those shares were not issuable if the end of the reporting period were the end of the performance contingency period. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Employee Share Purchase Plans and Stock Incentive Plans As of June 30, 2023, the Company offers the 2006 Employee Share Purchase Plan (Non-U.S.), as amended and restated ("2006 ESPP"), the 1996 Employee Share Purchase Plan (U.S.), as amended and restated ("1996 ESPP"), and the 2006 Stock Incentive Plan ("2006 Plan") as amended and restated. Shares issued to employees as a result of purchases or exercises under these plans are generally issued from shares held in treasury stock. The following table summarizes the share-based compensation expense and total income tax benefit recognized for share-based awards for the three months ended June 30, 2023 and 2022 (in thousands): Three months ended June 30, 2023 2022 Cost of goods sold $ 1,415 $ 1,461 Marketing and selling 10,483 9,797 Research and development 4,453 5,532 General and administrative 5,160 6,900 Total share-based compensation expense 21,511 23,690 Income tax benefit (5,318) (4,322) Total share-based compensation expense, net of income tax benefit $ 16,193 $ 19,368 The income tax benefit in the respective periods primarily consisted of tax benefits related to the share-based compensation expense for the period and direct tax benefit realized, including net excess tax benefits recognized from share-based awards vested or exercised during the period. Share-based compensation costs capitalized as part of inventory were $1.9 million and $1.8 million for the three months ended June 30, 2023 and 2022, respectively. Defined Benefit Plans Certain of the Company’s subsidiaries sponsor defined benefit pension plans or non-retirement post-employment benefits covering substantially all of their employees. Benefits are provided based on employees’ years of service and earnings, or in accordance with applicable employee benefit regulations. The Company’s practice is to fund amounts sufficient to meet the requirements set forth in the applicable employee benefit and tax regulations. The costs of $1.9 million and $2.8 million for the three months ended June 30, 2023 and 2022, respectively, were primarily related to service costs. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is incorporated in Switzerland but operates in various countries with differing tax laws and rates. Further, a portion of the Company’s income before taxes and the provision for (benefit from) income taxes are generated outside of Switzerland. The income tax provision for the three months ended June 30, 2023 was $12.5 million based on an effective income tax rate of 16.7% of pre-tax income, compared to an income tax provision of $21.7 million based on an effective income tax rate of 17.7% of pre-tax income for the three months ended June 30, 2022. The change in the effective income tax rate for the three months ended June 30, 2023, compared with the same period ended June 30, 2022 was primarily due to the mix of income and losses in the various tax jurisdictions in which the Company operates and the tax impact from share-based compensation for the three months ended June 30, 2023. Although the Company has adequately provided for uncertain tax positions, the provisions related to these positions may change as revised estimates are made or the underlying matters are settled or otherwise resolved. During fiscal year 2024, the Company continues to review its tax positions and provide for or reverse unrecognized tax benefits as they arise. During the next twelve months, it is reasonably possible that the amount of unrecognized tax benefits could increase or decrease significantly due to changes in tax law in various jurisdictions, new tax audits and changes in the U.S. dollar as compared to other currencies. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Jun. 30, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components The following table presents the components of certain balance sheet asset amounts (in thousands): June 30, 2023 March 31, 2023 Accounts receivable, net: Accounts receivable $ 784,489 $ 851,576 Allowance for doubtful accounts (48) (86) Allowance for sales returns (10,522) (10,146) Allowance for cooperative marketing arrangements (39,249) (40,495) Allowance for customer incentive programs (71,033) (71,645) Allowance for pricing programs (101,035) (98,822) $ 562,602 $ 630,382 Inventories: Raw materials $ 136,921 $ 171,790 Finished goods 435,423 511,103 $ 572,344 $ 682,893 Other current assets: Value-added tax ("VAT") receivables $ 41,932 $ 60,343 Prepaid expenses and other assets 69,640 82,533 $ 111,572 $ 142,876 Property, plant and equipment, net: Property, plant and equipment $ 511,130 $ 518,358 Less: accumulated depreciation and amortization (384,165) (396,855) $ 126,965 $ 121,503 Other assets: Deferred tax assets $ 172,925 $ 171,989 Right-of-use assets 64,304 67,330 Investments in privately held companies 31,272 33,323 Investments for deferred compensation plan 29,884 28,213 Other assets 5,775 15,438 $ 304,160 $ 316,293 The following table presents the components of certain balance sheet liability amounts (in thousands): June 30, 2023 March 31, 2023 Accrued and other current liabilities: Accrued customer marketing, pricing and incentive programs $ 184,503 $ 206,546 Accrued personnel expenses 92,109 103,592 Accrued loss for inventory purchase commitments 39,547 46,608 Accrued sales return liability 37,661 49,462 Warranty liabilities 28,076 28,861 VAT payable 19,066 33,328 Income taxes payable 18,901 18,788 Operating lease liabilities 12,900 12,655 Contingent consideration 6,500 6,629 Other current liabilities 131,281 136,670 $ 570,544 $ 643,139 Other non-current liabilities: Operating lease liabilities $ 60,074 $ 58,361 Employee benefit plan obligations 31,974 32,421 Obligation for deferred compensation plan 29,884 28,213 Warranty liabilities 11,809 12,025 Deferred tax liabilities 2,533 2,803 Other non-current liabilities 12,464 12,872 $ 148,738 $ 146,695 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair Value Measurements The Company considers fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Company utilizes the following three-level fair value hierarchy to establish the priorities of the inputs used to measure fair value: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted market prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The following table presents the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis, excluding assets related to the Company’s defined benefit pension plans, classified by the level within the fair value hierarchy (in thousands): June 30, 2023 March 31, 2023 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Cash equivalents $ 745,255 $ — $ — $ 661,884 $ — $ — Investments for deferred compensation plan included in other assets: Cash $ 68 $ — $ — $ 41 $ — $ — Common stock 1,193 — — 988 — — Money market funds 10,592 — — 9,606 — — Mutual funds 18,031 — — 17,578 — — Total investments for deferred compensation plan $ 29,884 $ — $ — $ 28,213 $ — $ — Currency derivative assets $ — $ 141 $ — $ — $ 107 $ — Liabilities: Contingent consideration included in accrued and other current liabilities $ — $ — $ 6,500 $ — $ — $ 6,629 Currency derivative liabilities $ — $ 893 $ — $ — $ 2,187 $ — Contingent Consideration for Business Acquisitions The following table summarizes the change in the Company's contingent consideration balance during the three months ended June 30, 2023 and 2022 (in thousands): Three months ended June 30, 2023 2022 Beginning of the period $ 6,629 $ 12,259 Fair value of contingent consideration upon acquisition — 1,142 Effect of foreign currency exchange rate changes (129) — End of the period $ 6,500 $ 13,401 The contingent consideration arising from the technology acquisition on May 19, 2021, represents the future potential earn-out payments of up to $10.0 million payable in cash upon the achievement of three technical development milestones to be completed as of December 31, 2021, June 30, 2022, a nd June 30, 2023. The fair value of the contingent consideration was $10.0 million at the acquisition date, which was determined using a probability-weighted expected payment model and discounted at the estimated cost of debt. During fiscal year 2022, the Company paid $0.9 million for the contingent consideration related to the first technical development milestone. During fiscal year 2023, the Company paid $4.0 million for the contingent consideration related to the second technical development milestone. The Company expects to pay the contingent consideration for the third technical development milestone within the next twelve months. The contingent consideration arising from the technology acquisition on January 4, 2021, represents the future potential earn-out payments of up to $3.0 million payable in cash upon the achievement of two technical development milestones to be completed as of December 31, 2021 and March 31, 2022. The fair value of the contingent consideration was determined using a probability-weighted expected payment model and discounted at the estimated cost of debt. During fiscal year 2023, the Company paid $2.0 million for the contingent consideration related to the first technical development milestone. The Company expects to pay the remaining $1.0 million for the second technical development milestone within the next twelve months. Although the estimate of contingent consideration is based on management’s best knowledge of current events, the estimate could change significantly from period to period. Actual results that differ from the assumptions used and any changes to the significant assumptions and unobservable inputs used could have an impact on future results of operations. Investments for Deferred Compensation Plan The marketable securities for the Company's deferred compensation plan were recorded at a fair value of $29.9 million and $28.2 million, as of June 30, 2023 and March 31, 2023, respectively, based on quoted market prices. Quoted market prices are observable inputs that are classified as Level 1 within the fair value hierarchy. Unrealized gains (losses) related to marketable securities for the three months ended June 30, 2023 and 2022 were not material and were included in other income (expense), net in the Company's condensed consolidated statements of operations. Equity Method Investments The Company has certain non-marketable investments included in other assets that are accounted for as equity method investments, with a carrying value of $18.4 million and $20.5 million as of June 30, 2023 and March 31, 2023, respectively. Gains (losses) related to equity method investments for the three months ended June 30, 2023 and 2022 were not material and are included in other income (expense), net in the Company's condensed consolidated statements of operations. There was no impairment of equity method investments during the three months ended June 30, 2023 and 2022. Assets Measured at Fair Value on a Nonrecurring Basis Financial Assets The Company has certain equity investments without readily determinable fair values due to the absence of quoted market prices, the inherent lack of liquidity, and the fact that inputs used to measure fair value are unobservable and require management's judgment. When certain events or circumstances indicate that impairment may exist, the Company revalues the investments using various assumptions, including the financial metrics and ratios of comparable public companies. The carrying value is also adjusted for observable price changes with the same or similar security from the same issuer. The amount of these equity investments without readily determinable fair values included in other assets was $12.6 million as of June 30, 2023 and March 31, 2023. During the three months ended June 30, 2022, the Company recorded an unrealized gain, before tax, of $6.9 million for its investment in a private company as a result of observable price changes for similar securities issued by this company (level 2 fair value measurement). There was no impairment of these financial assets during the three months ended June 30, 2023 and 2022. During the three months ended June 30, 2023, the Company recorded an impairment loss, before tax, of $9.6 million as a result of the write-off of a note receivable which has been deemed no longer recoverable. This note receivable was previously obtained in conjunction with an exchange transaction related to the Company's investment in a privately held company. The impairment loss is included in other income (expense), net in the Company's condensed consolidated statement of operations for the three months ended June 30, 2023. Non-Financial Assets |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Under certain agreements with the respective counterparties to the Company’s derivative contracts, subject to applicable requirements, the Company is allowed to net settle transactions of the same type with a single net amount payable by one party to the other. However, the Company presents its derivative assets and derivative liabilities on a gross basis in other current assets and accrued and other current liabilities, respectively, on the condensed consolidated balance sheets as of June 30, 2023 and March 31, 2023. See Note 6 for the fair values of the Company’s derivative instruments as of June 30, 2023 and March 31, 2023. Cash Flow Hedges The Company enters into cash flow hedge contracts to protect against exchange rate exposure of forecasted inventory purchases. These hedging contracts mature within approximately four months. Gains and losses in the fair value of the effective portion of the hedges are deferred as a component of accumulated other comprehensive loss until the hedged inventory purchases are sold, at which time the gains or losses are reclassified to cost of goods sold. Cash flows from such hedges are classified as operating activities in the condensed consolidated statements of cash flows. Hedging relationships are discontinued when the hedging contract is no longer eligible for hedge accounting, or is sold, terminated or exercised, or when the Company removes hedge designation for the contract. Gains and losses in the fair value of the effective portion of the discontinued hedges continue to be reported in accumulated other comprehensive loss until the hedged inventory purchases are sold, unless it is probable that the forecasted inventory purchases will not occur by the end of the originally specified time period or within an additional two-month period of time thereafter. The notional amounts of foreign currency exchange forward contracts outstanding related to forecasted inventory purchases were $84.2 million and $72.6 million as of June 30, 2023 and March 31, 2023, respectively. The Company had $1.7 million of net losses related to its cash flow hedges included in accumulated other comprehensive loss as of June 30, 2023, which will be reclassified into earnings within the next twelve months. The following table presents the amounts of gain (loss) on the Company’s derivative instruments designated as hedging instruments for the three months ended June 30, 2023 and 2022 and their locations on its condensed consolidated statements of operations and condensed consolidated statements of comprehensive income (in thousands): Three months ended June 30, Amount of Gain (Loss) Amount of Gain (Loss) 2023 2022 2023 2022 Cash flow hedges $ (704) $ 6,629 $ 2,986 $ (2,091) The Company presents the earnings impact from forward points in the same line item that is used to present the earnings impact of the hedged item, i.e. cost of goods sold, for hedging forecasted inventory purchases and such amount is not material for all periods presented. Other Derivatives The Company also enters into foreign currency exchange forward and swap contracts to reduce the short-term effects of currency exchange rate fluctuations on certain receivables or payables denominated in currencies other than the functional currencies of its subsidiaries. These contracts generally mature within approximately 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 not material and included i n other income (expense), net in the condensed consolidated statements of operations based on the changes in fair value. The notional amounts of these contracts outstanding as of June 30, 2023 and March 31, 2023 were $98.3 million and $111.2 million, respectively. Foreign currency exchange forward and swap contracts outstanding as of June 30, 2023 primarily consisted of contracts in Brazilian Real, Japanese Yen, and Canadian Dollar to be se ttled at future dates at predetermined exchange rates. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible AssetsThe Company conducts its impairment analysis of goodwill annually at December 31 or more frequently if changes in facts and circumstances indicate that it is more likely than not that the fair value of the Company’s reporting unit may be less than its carrying amount. There have been no triggering events identified affecting the valuation of goodwill and intangible assets during the three months ended June 30, 2023 and 2022. The following table summarizes the activities in the Company’s goodwill balance (in thousands): As of March 31, 2023 $ 454,610 Effects of foreign currency translation (688) As of June 30, 2023 $ 453,922 The Company's acquired intangible assets were as follows (in thousands): June 30, 2023 March 31, 2023 Gross Carrying Amount Accumulated Net Carrying Amount Gross Carrying Amount Accumulated Net Carrying Amount Trademarks and trade names $ 36,790 $ (27,794) $ 8,996 $ 36,790 $ (26,774) $ 10,016 Developed technology 121,730 (97,952) 23,778 121,730 (94,792) 26,938 Customer contracts/relationships 71,110 (49,349) 21,761 71,110 (47,688) 23,422 In-process R&D 3,526 — 3,526 3,526 — 3,526 Effects of foreign currency translation (1,211) 380 (831) (1,021) 292 (729) Total $ 231,945 $ (174,715) $ 57,230 $ 232,135 $ (168,962) $ 63,173 |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements The Company had several uncommitted, unsecured bank lines of credit and letters of credit aggregating $172.0 million and $181.3 million as of June 30, 2023 and March 31, 2023, respectively. There are no financial covenants under the lines of credit with which the Company must comply. There was no borrowing outstanding under the lines of credit as of June 30, 2023 or March 31, 2023. As of June 30, 2023 and March 31, 2023, the Company had outstanding bank guarantees of $9.2 million and $13.6 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Product Warranties Changes in the Company’s warranty liabilities for the three months ended June 30, 2023 and 2022 were as follows (in thousands): Three months ended June 30, 2023 2022 Beginning of the period $ 40,886 $ 46,219 Provision 9,092 6,623 Settlements (9,918) (8,281) Effects of foreign currency translation (175) (720) End of the period $ 39,885 $ 43,841 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 June 30, 2023, no material amounts have been accrued for these indemnification provisions. The Company does not believe, based on historical experience and information currently available, that it is probable that any material amounts will be required to be paid under its indemnification arrangements. The Company also indemnifies its current and former directors and certain of its current and former officers. Certain costs incurred for providing such indemnification may be recoverable under various insurance policies. The Company is unable to reasonably estimate the maximum amount that could be payable under these arrangements because these exposures are not limited, the obligations are conditional in nature and the facts and circumstances involved in any situation that might arise are variable. Legal Proceedings From time to time the Company is involved in claims and legal proceedings that arise in the ordinary course of its business. The Company is currently subject to several such claims and a small number of legal proceedings. The Company believes that these matters lack merit and intends to vigorously defend against them. Based on currently available information, the Company does not believe that resolution of pending matters will have a material adverse effect on its financial condition, cash flows and results of operations. However, litigation is subject to inherent uncertainties, and there can be no assurances that the Company's defenses will be successful or that any such lawsuit or claim would not have a material adverse impact on the Company's business, financial condition, cash flows and results of operations in a particular period. Any claims or proceedings against the Company, whether meritorious or not, can have an adverse impact because of defense costs, diversion of management and operational resources, negative publicity and other factors. Any failure to obtain a necessary license or other rights, or litigation arising out of intellectual property claims, could adversely affect the Company's business. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Share Repurchases 2020 Share Repurchase Program In May 2020, the Company's Board of Directors approved the 2020 share repurchase program, which authorized the Company to use up to $250.0 million to purchase Logitech shares. Shares may be repurchased from time to time on the open market, through block trades or otherwise. Purchases may be started or stopped at any time without prior notice depending on market conditions and other factors. In April 2021, the Company's Board of Directors approved an increase of $750.0 million of the 2020 share repurchase program, to an aggregate amount of $1.0 billion. The Swiss Takeover Board approved this increase and it became effective on May 21, 2021. In July 2022, the Company’s Board of Directors approved an increase of $500 million to the 2020 share repurchase program, to an aggregate amount of up to $1.5 billion. The Swiss Takeover Board approved this increase and it became effective on August 19, 2022. As of June 30, 2023 , $411.0 m illion was available for repurchase under the 2020 share repurchase program. The 2020 share repurchase program expired on July 27, 2023. 2023 Share Repurchase Program In June 2023, the Company's Board of Directors approved a new, three-year share repurchase program, which allows the Company to use up to $1.0 billion to repurchase its shares. The Swiss Takeover Board approved the 2023 share repurchase program in July 2023 and the program will become effective on July 28, 2023. Swiss law limits a company’s ability to hold or repurchase its own shares. Generally, the aggregate par value of all shares held by the company and its subsidiaries may not exceed 10% of the registered share capital of the company, which for Logitech corresponds to 17.3 million shares. Shares may be repurchased from time to time on the open market, through block trades or otherwise. Purchases may be started or stopped at any time without prior notice depending on market conditions and other factors. Accumulated Other Comprehensive Income (Loss) The accumulated other comprehensive income (loss) was as follows (in thousands): Cumulative Translation Adjustment Defined Benefit Plans Deferred Hedging Gains (Losses) Total March 31, 2023 $ (100,869) $ 4,525 $ (3,933) $ (100,277) Other comprehensive income (loss) (1,529) (4) 2,282 749 June 30, 2023 $ (102,398) $ 4,521 $ (1,651) $ (99,528) |
Segment Information
Segment Information | 3 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company operates in a single operating segment that encompasses the design, manufacturing and marketing of peripherals for gaming, PCs, tablets, video conferencing, and other digital platforms. Operating performance measures are provided directly to the Company's CEO, who is considered to be the Company’s Chief Operating Decision Maker. The CEO periodically reviews information such as sales and adjusted operating income (loss) to make business decisions. These operating performance measures do not include restructuring charges (credits), net, share-based compensation expense, amortization and impairment of intangible assets, acquisition-related costs, and change in fair value of contingent consideration from business acquisitions. During the first quarter of fiscal year 2024, the Company changed its presentation of Sales by Product Category to provide a simpler and clearer view of the Company's business. The change in presentation did not have an impact on previously reported total sales. As a result of these changes, certain prior-period amounts for the three months ended June 30, 2022 have been reclassified to conform to the current period presentation. See Note 1 for further information on the change in presentation. Sales by product category in the current presentation for the three months ended June 30, 2023 and 2022 were as follows (in thousands): Three months ended June 30, 2023 2022 Gaming (1) $ 266,429 $ 297,921 Keyboards & Combos 180,855 227,720 Pointing Devices 174,454 183,283 Video Collaboration 139,346 181,632 Webcams 75,200 109,262 Tablet Accessories 70,336 66,585 Headsets 36,850 45,943 Other (2) 31,029 47,519 Total Sales $ 974,499 $ 1,159,865 (1) Gaming includes streaming services revenue generated by Streamlabs. (2) Other primarily consists of mobile speakers and PC speakers. Sales by geographic region (based on the customers’ locations) for the three months ended June 30, 2023 and 2022 were as follows (in thousands): Three months ended June 30, 2023 2022 Americas $ 445,168 $ 502,307 EMEA 258,878 290,479 Asia Pacific 270,453 367,079 Total Sales $ 974,499 $ 1,159,865 Revenue from sales to customers in the United States, Germany and China each represented 10% or more of the total consolidated sales for each of the periods presented herein. No other countries represented 10% or more of the Company’s total consolidated sales for the periods presented herein. Switzerland, the Company’s country of domicile, represented 2% of the Company's total consolidated sales for each of the three months ended June 30, 2023 and 2022. Three customers of the Company each represented 10% or more of the total consolidated gross sales for each of the three months ended June 30, 2023 and 2022. Property, plant and equipment, net (excluding software) and right-of-use assets by geographic region were as follows (in thousands): June 30, 2023 March 31, 2023 Americas $ 69,509 $ 59,183 EMEA 35,583 38,890 Asia Pacific 63,207 69,939 Total $ 168,299 $ 168,012 Property, plant and equipment, net (excluding software) and right-of-use assets in the United States, China, and Ireland were $69.1 million, $43.7 million and $17.2 million, respectively, as of June 30, 2023, and $58.7 million, $48.8 million, and $17.7 million respectively, as of March 31, 2023. No other countries represented more than 10% of the Company’s total consolidated property, plant and equipment, net (excluding software) and right-of-use assets as of June 30, 2023 or March 31, 2023. |
Restructuring
Restructuring | 3 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During the second quarter of fiscal year 2023, the Company initiated a restructuring plan to realign its business group and engineering structure with its go-to-market strategy to more effectively compete within the enterprise market and to better serve end-users. During the fourth quarter of fiscal year 2023, the Company undertook further actions to remove organization layers as well as streamline its marketing organization to increase efficiency. These actions resulted in charges related to employee severance and other termination benefits as well as contract termination and other costs. The Company expects to substantially complete these restructuring activities within the next nine months. The following table summarizes restructuring-related activities during the three months ended June 30, 2023 (in thousands): Termination Contract Termination and Other Total Accrued restructuring liability at March 31, 2023 (1) $ 14,177 $ 5,357 $ 19,534 Charges, net 3,475 36 3,511 Cash payments (14,941) (205) (15,146) Accrued restructuring liability at June 30, 2023 (1) $ 2,711 $ 5,188 $ 7,899 (1) The accrual balances are included in accrued and other current liabilities on the Company’s condensed consolidated balance sheets. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||
Net income | $ 62,727 | $ 100,836 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
The Company and Summary of Si_2
The Company and Summary of Significant Accounting Policies and Estimates (Policies) | 3 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of Presentation The condensed consolidated financial statements include the accounts of Logitech and its subsidiaries. All intercompany balances and transactions have been eliminated. The condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information and therefore do not include all the information required by U.S. GAAP for complete financial statements. The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year ended March 31, 2023, included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on May 17, 2023. 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 months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2024, or any future periods. |
Changes in Significant Accounting Policies | Changes in Significant Accounting Policies There have bee n no material changes in the Company’s significant accounting policies during the three months ended June 30, 2023 compared with the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended March 31, 2023. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Significant estimates and assumptions made by management involve the fair value of goodwill and intangible assets acquired from business acquisitions, contingent consideration for a business acquisition and periodic reassessment of its fair value, valuation of investment in privately held companies classified under Level 3 fair value hierarchy, pension obligations, accruals for customer incentives, cooperative marketing, and pricing programs and related breakage when appropriate, inventory valuation, share-based compensation expense, uncertain tax positions, and valuation allowances for deferred tax assets. Although these estimates are based on management’s best knowledge of current events and actions that may impact the Company in the future, actual results could differ materially from those estimates. |
Risks and Uncertainties | Risks and Uncertainties Impacts of Macroeconomic and Geopolitical Conditions on the Company's Business The Company's business has been impacted by adverse macroeconomic and geopolitical conditions. These conditions include inflation, interest rate and foreign currency fluctuations, slowdown of economic activity around the world, and lower consumer and enterprise spending. In addition, the war in Ukraine resulted in global supply chain, logistics, and inflationary challenges. The Company has had no revenue in Russia and Ukraine since fiscal year 2023 as it has indefinitely ceased all sales and shipments to Russia and sales in Ukraine have also been halted due to the ongoing military operations on the Ukrainian territory. The global and regional economic and political conditions adversely affect demand for the Company's products. These conditions also had an impact on the Company's suppliers, contract manufacturers, logistics providers, and distributors, causing volatility in cost of materials and shipping and transportation rates, and as a result impacting the pricing of the Company's products. |
The Company and Summary of Si_3
The Company and Summary of Significant Accounting Policies and Estimates (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Reclassification Adjustments | As a result of these changes, certain prior-period amounts for the three months ended June 30, 2022 have been reclassified to conform to the current period presentation as follows (in thousands): As previously reported Reclassifications As adjusted Gaming $ 282,806 $ 15,115 (1) $ 297,921 Keyboards & Combos 227,720 — 227,720 Pointing Devices 183,283 — 183,283 Video Collaboration 246,242 (64,610) (2) (3) 181,632 Webcams (3) 59,386 49,876 (3) 109,262 Tablet Accessories 66,585 — 66,585 Headsets — 45,943 (2) 45,943 Other 2,087 45,432 (4) (5) 47,519 Mobile Speakers 22,310 (22,310) (4) — Audio & Wearables 69,446 (69,446) (1) (2) (5) — Total Sales $ 1,159,865 $ — $ 1,159,865 (1) Reclassification of Blue Microphones from "Audio & Wearables" to the Gaming category. (2) Reclassification of VC headsets and PC headsets to the new Headsets category from "Video Collaboration" and "Audio & Wearables," respectively. (3) The Webcams category includes amounts previously reported as "PC Webcams" as well as amounts from VC webcams reclassified from "Video Collaboration." (4) Reclassification of all amounts previously reported in "Mobile Speakers" to the Other category. (5) Reclassification of PC speakers previously reported in "Audio & Wearables" to the Other category. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computations of Basic and Diluted Net Income Per Share | The following table summarizes the computations of basic and diluted net income per share for the three months ended June 30, 2023 and 2022 (in thousands, except per share amounts): Three months ended June 30, 2023 2022 Net income $ 62,727 $ 100,836 Shares used in net income per share computation: Weighted average shares outstanding - basic 158,859 164,679 Effect of potentially dilutive equivalent shares 1,296 1,727 Weighted average shares outstanding - diluted 160,155 166,406 Net income per share: Basic $ 0.39 $ 0.61 Diluted $ 0.39 $ 0.61 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Expenses and Related Tax Benefits Recognized | The following table summarizes the share-based compensation expense and total income tax benefit recognized for share-based awards for the three months ended June 30, 2023 and 2022 (in thousands): Three months ended June 30, 2023 2022 Cost of goods sold $ 1,415 $ 1,461 Marketing and selling 10,483 9,797 Research and development 4,453 5,532 General and administrative 5,160 6,900 Total share-based compensation expense 21,511 23,690 Income tax benefit (5,318) (4,322) Total share-based compensation expense, net of income tax benefit $ 16,193 $ 19,368 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Components of Certain Balance Sheet Asset Amounts | The following table presents the components of certain balance sheet asset amounts (in thousands): June 30, 2023 March 31, 2023 Accounts receivable, net: Accounts receivable $ 784,489 $ 851,576 Allowance for doubtful accounts (48) (86) Allowance for sales returns (10,522) (10,146) Allowance for cooperative marketing arrangements (39,249) (40,495) Allowance for customer incentive programs (71,033) (71,645) Allowance for pricing programs (101,035) (98,822) $ 562,602 $ 630,382 Inventories: Raw materials $ 136,921 $ 171,790 Finished goods 435,423 511,103 $ 572,344 $ 682,893 Other current assets: Value-added tax ("VAT") receivables $ 41,932 $ 60,343 Prepaid expenses and other assets 69,640 82,533 $ 111,572 $ 142,876 Property, plant and equipment, net: Property, plant and equipment $ 511,130 $ 518,358 Less: accumulated depreciation and amortization (384,165) (396,855) $ 126,965 $ 121,503 Other assets: Deferred tax assets $ 172,925 $ 171,989 Right-of-use assets 64,304 67,330 Investments in privately held companies 31,272 33,323 Investments for deferred compensation plan 29,884 28,213 Other assets 5,775 15,438 $ 304,160 $ 316,293 |
Schedule of Components of Certain Balance Sheet Liability Amounts | The following table presents the components of certain balance sheet liability amounts (in thousands): June 30, 2023 March 31, 2023 Accrued and other current liabilities: Accrued customer marketing, pricing and incentive programs $ 184,503 $ 206,546 Accrued personnel expenses 92,109 103,592 Accrued loss for inventory purchase commitments 39,547 46,608 Accrued sales return liability 37,661 49,462 Warranty liabilities 28,076 28,861 VAT payable 19,066 33,328 Income taxes payable 18,901 18,788 Operating lease liabilities 12,900 12,655 Contingent consideration 6,500 6,629 Other current liabilities 131,281 136,670 $ 570,544 $ 643,139 Other non-current liabilities: Operating lease liabilities $ 60,074 $ 58,361 Employee benefit plan obligations 31,974 32,421 Obligation for deferred compensation plan 29,884 28,213 Warranty liabilities 11,809 12,025 Deferred tax liabilities 2,533 2,803 Other non-current liabilities 12,464 12,872 $ 148,738 $ 146,695 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities, Classified by Level | The following table presents the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis, excluding assets related to the Company’s defined benefit pension plans, classified by the level within the fair value hierarchy (in thousands): June 30, 2023 March 31, 2023 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Cash equivalents $ 745,255 $ — $ — $ 661,884 $ — $ — Investments for deferred compensation plan included in other assets: Cash $ 68 $ — $ — $ 41 $ — $ — Common stock 1,193 — — 988 — — Money market funds 10,592 — — 9,606 — — Mutual funds 18,031 — — 17,578 — — Total investments for deferred compensation plan $ 29,884 $ — $ — $ 28,213 $ — $ — Currency derivative assets $ — $ 141 $ — $ — $ 107 $ — Liabilities: Contingent consideration included in accrued and other current liabilities $ — $ — $ 6,500 $ — $ — $ 6,629 Currency derivative liabilities $ — $ 893 $ — $ — $ 2,187 $ — |
Schedule of Change in Fair Value of Contingent Consideration | The following table summarizes the change in the Company's contingent consideration balance during the three months ended June 30, 2023 and 2022 (in thousands): Three months ended June 30, 2023 2022 Beginning of the period $ 6,629 $ 12,259 Fair value of contingent consideration upon acquisition — 1,142 Effect of foreign currency exchange rate changes (129) — End of the period $ 6,500 $ 13,401 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Gains on Derivative Instruments | The following table presents the amounts of gain (loss) on the Company’s derivative instruments designated as hedging instruments for the three months ended June 30, 2023 and 2022 and their locations on its condensed consolidated statements of operations and condensed consolidated statements of comprehensive income (in thousands): Three months ended June 30, Amount of Gain (Loss) Amount of Gain (Loss) 2023 2022 2023 2022 Cash flow hedges $ (704) $ 6,629 $ 2,986 $ (2,091) |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Activity In Goodwill Balance | The following table summarizes the activities in the Company’s goodwill balance (in thousands): As of March 31, 2023 $ 454,610 Effects of foreign currency translation (688) As of June 30, 2023 $ 453,922 |
Schedule of Intangible Assets Subject to Amortization | The Company's acquired intangible assets were as follows (in thousands): June 30, 2023 March 31, 2023 Gross Carrying Amount Accumulated Net Carrying Amount Gross Carrying Amount Accumulated Net Carrying Amount Trademarks and trade names $ 36,790 $ (27,794) $ 8,996 $ 36,790 $ (26,774) $ 10,016 Developed technology 121,730 (97,952) 23,778 121,730 (94,792) 26,938 Customer contracts/relationships 71,110 (49,349) 21,761 71,110 (47,688) 23,422 In-process R&D 3,526 — 3,526 3,526 — 3,526 Effects of foreign currency translation (1,211) 380 (831) (1,021) 292 (729) Total $ 231,945 $ (174,715) $ 57,230 $ 232,135 $ (168,962) $ 63,173 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in Warranty Liabilities | Changes in the Company’s warranty liabilities for the three months ended June 30, 2023 and 2022 were as follows (in thousands): Three months ended June 30, 2023 2022 Beginning of the period $ 40,886 $ 46,219 Provision 9,092 6,623 Settlements (9,918) (8,281) Effects of foreign currency translation (175) (720) End of the period $ 39,885 $ 43,841 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Income (Loss) | The accumulated other comprehensive income (loss) was as follows (in thousands): Cumulative Translation Adjustment Defined Benefit Plans Deferred Hedging Gains (Losses) Total March 31, 2023 $ (100,869) $ 4,525 $ (3,933) $ (100,277) Other comprehensive income (loss) (1,529) (4) 2,282 749 June 30, 2023 $ (102,398) $ 4,521 $ (1,651) $ (99,528) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Product Categories, Excluding Intercompany Transactions | Sales by product category in the current presentation for the three months ended June 30, 2023 and 2022 were as follows (in thousands): Three months ended June 30, 2023 2022 Gaming (1) $ 266,429 $ 297,921 Keyboards & Combos 180,855 227,720 Pointing Devices 174,454 183,283 Video Collaboration 139,346 181,632 Webcams 75,200 109,262 Tablet Accessories 70,336 66,585 Headsets 36,850 45,943 Other (2) 31,029 47,519 Total Sales $ 974,499 $ 1,159,865 (1) Gaming includes streaming services revenue generated by Streamlabs. (2) Other primarily consists of mobile speakers and PC speakers. |
Schedule of Net Sales by Geographic Region | Sales by geographic region (based on the customers’ locations) for the three months ended June 30, 2023 and 2022 were as follows (in thousands): Three months ended June 30, 2023 2022 Americas $ 445,168 $ 502,307 EMEA 258,878 290,479 Asia Pacific 270,453 367,079 Total Sales $ 974,499 $ 1,159,865 |
Schedule of Long-Lived Assets by Geographic Region | Property, plant and equipment, net (excluding software) and right-of-use assets by geographic region were as follows (in thousands): June 30, 2023 March 31, 2023 Americas $ 69,509 $ 59,183 EMEA 35,583 38,890 Asia Pacific 63,207 69,939 Total $ 168,299 $ 168,012 |
Restructuring and Related Activ
Restructuring and Related Activities (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring-Related Activities | The following table summarizes restructuring-related activities during the three months ended June 30, 2023 (in thousands): Termination Contract Termination and Other Total Accrued restructuring liability at March 31, 2023 (1) $ 14,177 $ 5,357 $ 19,534 Charges, net 3,475 36 3,511 Cash payments (14,941) (205) (15,146) Accrued restructuring liability at June 30, 2023 (1) $ 2,711 $ 5,188 $ 7,899 (1) The accrual balances are included in accrued and other current liabilities on the Company’s condensed consolidated balance sheets. |
The Company and Summary of Si_4
The Company and Summary of Significant Accounting Policies and Estimates - Schedule of Change in Presentation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 974,499 | $ 1,159,865 |
As previously reported | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,159,865 | |
Reclassifications | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | |
Gaming | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 266,429 | 297,921 |
Gaming | As previously reported | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 282,806 | |
Gaming | Reclassifications | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 15,115 | |
Keyboards & Combos | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 180,855 | 227,720 |
Keyboards & Combos | As previously reported | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 227,720 | |
Keyboards & Combos | Reclassifications | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | |
Pointing Devices | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 174,454 | 183,283 |
Pointing Devices | As previously reported | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 183,283 | |
Pointing Devices | Reclassifications | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | |
Video Collaboration | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 139,346 | 181,632 |
Video Collaboration | As previously reported | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 246,242 | |
Video Collaboration | Reclassifications | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | (64,610) | |
Webcams | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 75,200 | 109,262 |
Webcams | As previously reported | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 59,386 | |
Webcams | Reclassifications | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 49,876 | |
Tablet Accessories | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 66,585 | |
Tablet Accessories | As previously reported | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 66,585 | |
Tablet Accessories | Reclassifications | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | |
Headsets | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 36,850 | 45,943 |
Headsets | As previously reported | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | |
Headsets | Reclassifications | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 45,943 | |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 31,029 | 47,519 |
Other | As previously reported | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,087 | |
Other | Reclassifications | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 45,432 | |
Mobile Speakers | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | |
Mobile Speakers | As previously reported | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 22,310 | |
Mobile Speakers | Reclassifications | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | (22,310) | |
Audio & Wearables | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | |
Audio & Wearables | As previously reported | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 69,446 | |
Audio & Wearables | Reclassifications | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ (69,446) |
Net Income Per Share - Computat
Net Income Per Share - Computations of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Net income | ||
Net income | $ 62,727 | $ 100,836 |
Net income | $ 62,727 | $ 100,836 |
Shares used in net income per share computation: | ||
Weighted average shares outstanding - basic (in shares) | 158,859 | 164,679 |
Effect of potentially dilutive equivalent shares (in shares) | 1,296 | 1,727 |
Weighted average shares outstanding - diluted (in shares) | 160,155 | 166,406 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.39 | $ 0.61 |
Diluted (in dollars per share) | $ 0.39 | $ 0.61 |
Net Income Per Share (Narrative
Net Income Per Share (Narratives) (Details) - shares shares in Millions | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive equivalents shares excluded (in shares) | 2 | 3.4 |
Employee Benefit Plans - Share-
Employee Benefit Plans - Share-based Compensation Expenses and Related Tax Benefits Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based compensation expense and related tax benefit | ||
Total share-based compensation expense | $ 21,511 | $ 23,690 |
Income tax benefit | (5,318) | (4,322) |
Total share-based compensation expense, net of income tax benefit | 16,193 | 19,368 |
Cost of goods sold | ||
Share-based compensation expense and related tax benefit | ||
Total share-based compensation expense | 1,415 | 1,461 |
Marketing and selling | ||
Share-based compensation expense and related tax benefit | ||
Total share-based compensation expense | 10,483 | 9,797 |
Research and development | ||
Share-based compensation expense and related tax benefit | ||
Total share-based compensation expense | 4,453 | 5,532 |
General and administrative | ||
Share-based compensation expense and related tax benefit | ||
Total share-based compensation expense | $ 5,160 | $ 6,900 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Share-based compensation expenses capitalized as inventory | $ 1.9 | $ 1.8 |
Net periodic benefit cost | $ 1.9 | $ 2.8 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 12,532 | $ 21,716 |
Effective income tax rates (as a percent) | 16.70% | 17.70% |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Certain Balance Sheet Asset Amounts (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Accounts receivable, net: | ||
Accounts receivable | $ 784,489 | $ 851,576 |
Accounts receivable, net | 562,602 | 630,382 |
Inventories: | ||
Raw materials | 136,921 | 171,790 |
Finished goods | 435,423 | 511,103 |
Inventory, net | 572,344 | 682,893 |
Other current assets: | ||
Value-added tax ("VAT") receivables | 41,932 | 60,343 |
Prepaid expenses and other assets | 69,640 | 82,533 |
Other current assets, total | 111,572 | 142,876 |
Property, plant and equipment, net: | ||
Property, plant and equipment | 511,130 | 518,358 |
Less: accumulated depreciation and amortization | (384,165) | (396,855) |
Property, plant and equipment, net | 126,965 | 121,503 |
Other assets: | ||
Deferred tax assets | 172,925 | 171,989 |
Right-of-use assets | 64,304 | 67,330 |
Investments in privately held companies | 31,272 | 33,323 |
Other assets | 5,775 | 15,438 |
Other assets, total | 304,160 | 316,293 |
Deferred Compensation, Excluding Share-Based Payments and Retirement Benefits | ||
Other assets: | ||
Investments for deferred compensation plan | 29,884 | 28,213 |
Allowance for doubtful accounts | ||
Accounts receivable, net: | ||
Valuation allowance for accounts receivable | (48) | (86) |
Allowance for sales returns | ||
Accounts receivable, net: | ||
Valuation allowance for accounts receivable | (10,522) | (10,146) |
Allowance for cooperative marketing arrangements | ||
Accounts receivable, net: | ||
Valuation allowance for accounts receivable | (39,249) | (40,495) |
Allowance for customer incentive programs | ||
Accounts receivable, net: | ||
Valuation allowance for accounts receivable | (71,033) | (71,645) |
Allowance for pricing programs | ||
Accounts receivable, net: | ||
Valuation allowance for accounts receivable | $ (101,035) | $ (98,822) |
Balance Sheet Components - Co_2
Balance Sheet Components - Components of Certain Balance Sheet Liability Amounts (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Accrued and other current liabilities: | ||
Accrued customer marketing, pricing and incentive programs | $ 184,503 | $ 206,546 |
Accrued personnel expenses | 92,109 | 103,592 |
Accrued loss for inventory purchase commitments | 39,547 | 46,608 |
Accrued sales return liability | 37,661 | 49,462 |
Warranty liabilities | 28,076 | 28,861 |
VAT payable | 19,066 | 33,328 |
Income taxes payable | 18,901 | 18,788 |
Operating lease liabilities | 12,900 | 12,655 |
Contingent consideration | 6,500 | 6,629 |
Other current liabilities | 131,281 | 136,670 |
Accrued and other current liabilities | 570,544 | 643,139 |
Other non-current liabilities: | ||
Operating lease liabilities | 60,074 | 58,361 |
Employee benefit plan obligations | 31,974 | 32,421 |
Obligation for deferred compensation plan | 29,884 | 28,213 |
Warranty liabilities | 11,809 | 12,025 |
Deferred tax liabilities | 2,533 | 2,803 |
Other non-current liabilities | 12,464 | 12,872 |
Non-current liabilities | $ 148,738 | $ 146,695 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities, Classified by Level (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Liabilities: | ||
Contingent consideration included in accrued and other current liabilities | $ 6,500 | $ 6,629 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Cash equivalents | 745,255 | 661,884 |
Investments for deferred compensation plan | 29,884 | 28,213 |
Currency derivative assets included in other current assets | 0 | 0 |
Liabilities: | ||
Contingent consideration included in accrued and other current liabilities | 0 | 0 |
Currency derivative liabilities included in accrued and other current liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Cash | ||
Assets: | ||
Investments for deferred compensation plan | 68 | 41 |
Fair Value, Measurements, Recurring | Level 1 | Common stock | ||
Assets: | ||
Investments for deferred compensation plan | 1,193 | 988 |
Fair Value, Measurements, Recurring | Level 1 | Money market funds | ||
Assets: | ||
Investments for deferred compensation plan | 10,592 | 9,606 |
Fair Value, Measurements, Recurring | Level 1 | Mutual funds | ||
Assets: | ||
Investments for deferred compensation plan | 18,031 | 17,578 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Investments for deferred compensation plan | 0 | 0 |
Currency derivative assets included in other current assets | 141 | 107 |
Liabilities: | ||
Contingent consideration included in accrued and other current liabilities | 0 | 0 |
Currency derivative liabilities included in accrued and other current liabilities | 893 | 2,187 |
Fair Value, Measurements, Recurring | Level 2 | Cash | ||
Assets: | ||
Investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Common stock | ||
Assets: | ||
Investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Money market funds | ||
Assets: | ||
Investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Mutual funds | ||
Assets: | ||
Investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Investments for deferred compensation plan | 0 | 0 |
Currency derivative assets included in other current assets | 0 | 0 |
Liabilities: | ||
Contingent consideration included in accrued and other current liabilities | 6,500 | 6,629 |
Currency derivative liabilities included in accrued and other current liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Cash | ||
Assets: | ||
Investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Common stock | ||
Assets: | ||
Investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Money market funds | ||
Assets: | ||
Investments for deferred compensation plan | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Mutual funds | ||
Assets: | ||
Investments for deferred compensation plan | $ 0 | $ 0 |
Fair Value Measurements - Chang
Fair Value Measurements - Change in Fair Value of Contingent Consideration (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Change in Fair Value of Contingent Consideration [Roll Forward] | ||
Beginning of the period | $ 6,629 | $ 12,259 |
Fair value of contingent consideration upon acquisition | 0 | 1,142 |
Fair Value, Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Liability, Effect Of Foreign Currency Exchange Rate Changes | (129) | 0 |
End of the period | $ 6,500 | $ 13,401 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||
May 19, 2021 USD ($) milestone | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Jan. 04, 2021 USD ($) milestone | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value of contingent consideration upon acquisition | $ 0 | $ 1,142,000 | ||||
Equity method investments | 18,400,000 | $ 20,500,000 | ||||
Impairment of non-marketable investments | 0 | 0 | ||||
Equity investments included in other assets | 12,600,000 | 12,600,000 | ||||
Unrealized gain, before tax | 6,900,000 | |||||
Impairment of long-lived assets held-for-use | 0 | 0 | ||||
Impairment Loss, Before Tax | 9,600,000 | |||||
Impairment of non-financial assets | 0 | $ 0 | ||||
Fair Value, Measurements, Recurring | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investments for deferred compensation plan | 29,884,000 | 28,213,000 | ||||
Small Technology Acquisition | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Future potential earn-out payments | $ 10,000,000 | |||||
Number of technical development milestones | milestone | 3 | |||||
Fair value of contingent consideration upon acquisition | $ 10,000,000 | |||||
Small Technology Acquisition | First Technical Development Milestone | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Payment of contingent consideration for business acquisition | $ 900,000 | |||||
Small Technology Acquisition | Second Technical Development Milestone | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Payment of contingent consideration for business acquisition | 4,000,000 | |||||
Second Small Technology Acquisition | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Future potential earn-out payments | $ 3,000,000 | |||||
Number of technical development milestones | milestone | 2 | |||||
Second Small Technology Acquisition | First Technical Development Milestone | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Payment of contingent consideration for business acquisition | $ 2,000,000 | |||||
Second Small Technology Acquisition | Second Technical Development Milestone | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Contingent consideration | $ 1,000,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2023 | Mar. 31, 2023 | |
Foreign Exchange Forward | Designated as hedging instruments | Cash flow hedges | ||
Derivative [Line Items] | ||
Derivative term of contract | 4 months | |
Derivative, notional amount | $ 84.2 | $ 72.6 |
Cash flow hedge gains to be reclassified within twelve months | 1.7 | |
Foreign Exchange Forward And Swap | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 98.3 | $ 111.2 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Gains and Losses on Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Amounts of gains and losses on the derivative instruments | ||
Amount of Gain (Loss) Deferred as a Component of Accumulated Other Comprehensive Loss | $ (704) | $ 6,629 |
Amount of Gain Reclassified from Accumulated Other Comprehensive Loss to Costs of Goods Sold | 2,986 | (2,091) |
Designated as hedging instruments | Cash flow hedges | ||
Amounts of gains and losses on the derivative instruments | ||
Amount of Gain (Loss) Deferred as a Component of Accumulated Other Comprehensive Loss | (704) | 6,629 |
Amount of Gain Reclassified from Accumulated Other Comprehensive Loss to Costs of Goods Sold | $ 2,986 | $ (2,091) |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Activity In Goodwill Balance (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2023 USD ($) | |
Goodwill | |
Balance at the beginning of the period | $ 454,610 |
Effects of foreign currency translation | (688) |
Balance at the end of the period | $ 453,922 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 231,945 | $ 232,135 |
Accumulated Amortization | (174,715) | (168,962) |
Net Carrying Amount | 57,230 | 63,173 |
Effects of foreign currency translation, Gross Carrying Amount | (1,211) | (1,021) |
Effects of foreign currency translation, Accumulated Amortization | 380 | 292 |
Effects of foreign currency translation, Net Carrying Amount | (831) | (729) |
In-process R&D | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,526 | 3,526 |
Net Carrying Amount | 3,526 | 3,526 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 36,790 | 36,790 |
Accumulated Amortization | (27,794) | (26,774) |
Net Carrying Amount | 8,996 | 10,016 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 121,730 | 121,730 |
Accumulated Amortization | (97,952) | (94,792) |
Net Carrying Amount | 23,778 | 26,938 |
Customer contracts/relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 71,110 | 71,110 |
Accumulated Amortization | (49,349) | (47,688) |
Net Carrying Amount | $ 21,761 | $ 23,422 |
Financing Arrangements (Details
Financing Arrangements (Details) - USD ($) | Jun. 30, 2023 | Mar. 31, 2023 |
Financing Arrangements | ||
Outstanding borrowings | $ 0 | $ 0 |
Line of Credit | ||
Financing Arrangements | ||
Maximum borrowing capacity | 172,000,000 | 181,300,000 |
Outstanding bank guarantees | $ 9,200,000 | $ 13,600,000 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Changes in Warranty Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Changes in the warranty liability: | ||
Beginning of the period | $ 40,886 | $ 46,219 |
Provision | 9,092 | 6,623 |
Settlements | (9,918) | (8,281) |
Effects of foreign currency translation | (175) | (720) |
End of the period | $ 39,885 | $ 43,841 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) | Jun. 30, 2023 USD ($) |
Indemnification agreement | |
Other Commitments [Line Items] | |
Amount accrued for indemnification provisions | $ 0 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) shares in Millions | 1 Months Ended | |||
Jun. 30, 2023 | Jul. 31, 2022 | Apr. 30, 2021 | May 31, 2020 | |
May 2020 | ||||
Class of Stock [Line Items] | ||||
Authorized amount in buyback program | $ 1,500,000,000 | $ 1,000,000,000 | $ 250,000,000 | |
Increase in authorized amount | $ 500,000,000 | $ 750,000,000 | ||
Amount available for repurchase | $ 411,000,000 | |||
2023 Share Repurchase Program | ||||
Class of Stock [Line Items] | ||||
Authorized amount in buyback program | $ 1,000,000,000 | |||
Period to complete share repurchase program | 3 years | |||
Maximum percentage of shares held by the company and its subsidiaries | 10% | |||
Maximum shares available for purchase | 17.3 |
Shareholders' Equity - Componen
Shareholders' Equity - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) | ||
Beginning of the period | $ 2,257,560 | $ 2,398,738 |
Other comprehensive income (loss) | 749 | (16,711) |
End of the period | 2,226,075 | 2,362,358 |
Cumulative Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning of the period | (100,869) | |
Other comprehensive income (loss) | (1,529) | |
End of the period | (102,398) | |
Defined Benefit Plans | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning of the period | 4,525 | |
Other comprehensive income (loss) | (4) | |
End of the period | 4,521 | |
Deferred Hedging Gains (Losses) | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning of the period | (3,933) | |
Other comprehensive income (loss) | 2,282 | |
End of the period | (1,651) | |
Total | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning of the period | (100,277) | (104,123) |
End of the period | $ (99,528) | $ (120,834) |
Segment Information - Net Sales
Segment Information - Net Sales by Product Categories, Excluding Intercompany Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 974,499 | $ 1,159,865 |
Gaming | ||
Segment Reporting Information [Line Items] | ||
Net sales | 266,429 | 297,921 |
Keyboards & Combos | ||
Segment Reporting Information [Line Items] | ||
Net sales | 180,855 | 227,720 |
Pointing Devices | ||
Segment Reporting Information [Line Items] | ||
Net sales | 174,454 | 183,283 |
Video Collaboration | ||
Segment Reporting Information [Line Items] | ||
Net sales | 139,346 | 181,632 |
Webcams | ||
Segment Reporting Information [Line Items] | ||
Net sales | 75,200 | 109,262 |
Tablet Accessories | ||
Segment Reporting Information [Line Items] | ||
Net sales | 70,336 | 66,585 |
Headsets | ||
Segment Reporting Information [Line Items] | ||
Net sales | 36,850 | 45,943 |
Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 31,029 | $ 47,519 |
Segment Information - Net Sal_2
Segment Information - Net Sales and Long-Lived Assets by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | |
Net sales to unaffiliated customers and long-lived assets by geographic region | |||
Total Sales | $ 974,499 | $ 1,159,865 | |
Property, plant and equipment, net | 168,299 | $ 168,012 | |
Americas | |||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||
Total Sales | 445,168 | 502,307 | |
Property, plant and equipment, net | 69,509 | 59,183 | |
EMEA | |||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||
Total Sales | 258,878 | 290,479 | |
Property, plant and equipment, net | 35,583 | 38,890 | |
Asia Pacific | |||
Net sales to unaffiliated customers and long-lived assets by geographic region | |||
Total Sales | 270,453 | $ 367,079 | |
Property, plant and equipment, net | $ 63,207 | $ 69,939 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2023 USD ($) segment customer1 | Jun. 30, 2022 customer1 | Mar. 31, 2023 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of major customers | customer1 | 3 | 3 | |
Number of operating segments (in segments) | segment | 1 | ||
Long lived assets | $ 168,299 | $ 168,012 | |
United States | |||
Segment Reporting Information [Line Items] | |||
Long lived assets | 69,100 | 58,700 | |
China | |||
Segment Reporting Information [Line Items] | |||
Long lived assets | 43,700 | 48,800 | |
IRELAND | |||
Segment Reporting Information [Line Items] | |||
Long lived assets | 17,200 | 17,700 | |
Switzerland | |||
Segment Reporting Information [Line Items] | |||
Long lived assets | $ 11,300 | $ 13,700 | |
Geographic Concentration | Consolidated net sales from continuing operations | Switzerland | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated net sales | 2% | 2% |
Restructuring and Related Act_2
Restructuring and Related Activities - Schedule of Restructuring-Related Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 19,534 | |
Charges, net | 3,511 | $ 0 |
Cash payments | (15,146) | |
Ending balance | 7,899 | |
Termination Benefits | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 14,177 | |
Charges, net | 3,475 | |
Cash payments | (14,941) | |
Ending balance | 2,711 | |
Contract Termination and Other | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 5,357 | |
Charges, net | 36 | |
Cash payments | (205) | |
Ending balance | $ 5,188 |