falsedesktopLOGI2020-12-31000103297521000009{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "\t\tPage\nPart I\tFINANCIAL INFORMATION\t\nItem 1.\tFinancial Statements (Unaudited)\t4\n\tCondensed Consolidated Statements of Operations for the Three and Nine Months Ended December 31 2020 and 2019\t4\n\tCondensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended December 31 2020 and 2019\t5\n\tCondensed Consolidated Balance Sheets as of December 31 2020 and March 31 2020\t6\n\tCondensed Consolidated Statements of Cash Flows for the Nine Months Ended December 31 2020 and 2019\t7\n\tCondensed Consolidated Statements of Changes in Shareholders' Equity for the Three and Nine Months Ended December 31 2020 and 2019\t8\n\tNotes to the Condensed Consolidated Financial Statements\t10\nItem 2.\tManagement's Discussion and Analysis of Financial Condition and Results of Operations\t24\nItem 3.\tQuantitative and Qualitative Disclosures About Market Risk\t38\nItem 4.\tControls and Procedures\t39\nPart II\tOTHER INFORMATION\t\nItem 1.\tLegal Proceedings\t39\nItem 1A.\tRisk Factors\t40\nItem 2.\tUnregistered Sales of Equity Securities and Use of Proceeds\t61\nItem 3.\tDefaults Upon Senior Securities\t61\nItem 4.\tMine Safety Disclosures\t61\nItem 5.\tOther Information\t61\nItem 6.\tExhibit Index\t62\nSignatures\t\t\n", "q10k_tbl_1": "\tThree Months Ended December 31\t\tNine Months Ended December 31\t\n\t2020\t2019\t2020\t2019\nNet sales\t1667302\t902687\t3716354\t2266603\nCost of goods sold\t914851\t564283\t2082088\t1410605\nAmortization of intangible assets\t3441\t3951\t9800\t10493\nGross profit\t749010\t334453\t1624466\t845505\nOperating expenses:\t\t\t\t\nMarketing and selling\t204485\t134950\t496520\t392138\nResearch and development\t53910\t43292\t157014\t127499\nGeneral and administrative\t37606\t22344\t98341\t68551\nAmortization of intangible assets and acquisition-related costs\t4946\t5084\t13886\t12898\nChange in fair value of contingent consideration for business acquisition\t0\t0\t5716\t0\nRestructuring charges (credits) net\t0\t(45)\t(54)\t69\nTotal operating expenses\t300947\t205625\t771423\t601155\nOperating income\t448063\t128828\t853043\t244350\nInterest income\t311\t2063\t1444\t7006\nOther income net\t6483\t1101\t9661\t2852\nIncome before income taxes\t454857\t131992\t864148\t254208\nProvision for income taxes\t72334\t14467\t142638\t18405\nNet income\t382523\t117525\t721510\t235803\nNet income per share:\t\t\t\t\nBasic\t2.26\t0.70\t4.28\t1.41\nDiluted\t2.22\t0.69\t4.21\t1.39\nWeighted average shares used to compute net income per share:\t\t\t\t\nBasic\t169050\t167063\t168448\t166678\nDiluted\t172587\t169685\t171378\t169173\n", "q10k_tbl_2": "\tThree Months Ended December 31\t\tNine Months Ended December 31\t\n\t2020\t2019\t2020\t2019\nNet income\t382523\t117525\t721510\t235803\nOther comprehensive income (loss):\t\t\t\t\nCurrency translation gain (loss) net of taxes\t19500\t1736\t23944\t(2639)\nReclassification of currency translation loss included in other income net\t0\t0\t(1738)\t0\nDefined benefit plans:\t\t\t\t\nNet loss and prior service costs net of taxes\t(863)\t(231)\t(319)\t(274)\nAmortization included in other income net\t178\t53\t523\t160\nHedging gain (loss):\t\t\t\t\nDeferred hedging gain (loss) net of taxes\t(6326)\t(1381)\t(9752)\t56\nReclassification of hedging loss included in cost of goods sold\t3446\t(739)\t5085\t(1097)\nTotal other comprehensive income (loss)\t15935\t(562)\t17743\t(3794)\nTotal comprehensive income\t398458\t116963\t739253\t232009\n", "q10k_tbl_3": "\tDecember 31 2020\tMarch 31 2020\nAssets\t\t\nCurrent assets:\t\t\nCash and cash equivalents\t1388743\t715566\nAccounts receivable net\t894937\t394743\nInventories\t476802\t229249\nOther current assets\t117741\t74920\nTotal current assets\t2878223\t1414478\nNon-current assets:\t\t\nProperty plant and equipment net\t96683\t76119\nGoodwill\t400993\t400917\nOther intangible assets net\t103314\t126941\nOther assets\t333733\t345019\nTotal assets\t3812946\t2363474\nLiabilities and Shareholders' Equity\t\t\nCurrent liabilities:\t\t\nAccounts payable\t811786\t259120\nAccrued and other current liabilities\t704573\t455024\nTotal current liabilities\t1516359\t714144\nNon-current liabilities:\t\t\nIncome taxes payable\t60799\t40788\nOther non-current liabilities\t134021\t119274\nTotal liabilities\t1711179\t874206\nCommitments and contingencies (Note 10)\t\t\nShareholders' equity:\t\t\nRegistered shares CHF 0.25 par value:\t30148\t30148\nIssued shares - 173106 at December 31 and March 31 2020\t\t\nAdditional shares that may be issued out of conditional capitals - 50000 at December 31 and March 31 2020\t\t\nAdditional shares that may be issued out of authorized capital - 17311 at December 31 and 34621 at March 31 2020\t\t\nAdditional paid-in capital\t108140\t75097\nShares in treasury at cost - 4243 at December 31 2020 and 6210 at March 31 2020\t(198435)\t(185896)\nRetained earnings\t2264831\t1690579\nAccumulated other comprehensive loss\t(102917)\t(120660)\nTotal shareholders' equity\t2101767\t1489268\nTotal liabilities and shareholders' equity\t3812946\t2363474\n", "q10k_tbl_4": "\tNine Months Ended December 31\t\n\t2020\t2019\nCash flows from operating activities:\t\t\nNet income\t721510\t235803\nAdjustments to reconcile net income to net cash provided by operating activities:\t\t\nDepreciation\t36010\t32154\nAmortization of intangible assets\t23627\t21958\nLoss on investments\t4692\t772\nShare-based compensation expense\t64714\t40301\nDeferred income taxes\t37683\t480\nChange in fair value of contingent consideration for business acquisition\t5716\t0\nOther\t(1670)\t(1012)\nChanges in assets and liabilities net of acquisitions:\t\t\nAccounts receivable net\t(476804)\t(147292)\nInventories\t(239378)\t(15170)\nOther assets\t(53281)\t2866\nAccounts payable\t541024\t155190\nAccrued and other liabilities\t264576\t(1896)\nNet cash provided by operating activities\t928419\t324154\nCash flows from investing activities:\t\t\nPurchases of property plant and equipment\t(46163)\t(28667)\nInvestment in privately held companies\t(3525)\t(310)\nAcquisitions net of cash acquired\t(360)\t(91569)\nProceeds from the sale of property plant and equipment\t0\t1037\nProceeds from return of strategic investments\t2934\t0\nPurchases of trading investments\t(10672)\t(3071)\nProceeds from sales of trading investments\t11332\t3139\nNet cash used in investing activities\t(46454)\t(119441)\nCash flows from financing activities:\t\t\nPayment of cash dividends\t(146705)\t(124180)\nPurchases of registered shares\t(72725)\t(15127)\nProceeds from exercises of stock options and purchase rights\t29709\t11540\nTax withholdings related to net share settlements of restricted stock units\t(29475)\t(23096)\nNet cash used in financing activities\t(219196)\t(150863)\nEffect of exchange rate changes on cash and cash equivalents\t10408\t(2320)\nNet increase in cash and cash equivalents\t673177\t51530\nCash and cash equivalents beginning of the period\t715566\t604516\nCash and cash equivalents end of the period\t1388743\t656046\nSupplementary Cash Flow Disclosures:\t\t\nNon-cash investing and financing activities:\t\t\nProperty plant and equipment purchased during the period and included in period end liability accounts\t14663\t4871\nNon-cash contingent consideration for acquisition\t28463\t0\n", "q10k_tbl_5": "\t\t\tAdditional Paid-in Capital\t\t\t\t\t\t\tAccumulated Other Comprehensive Loss\tTotal Shareholders' Equity\n\tRegistered Shares\t\t\tTreasury Shares\t\t\t\tRetained Earnings\t\n\tShares\tAmount\t\tShares\t\tAmount\t\t\t\nSeptember 30 2019\t173106\t30148\t50913\t\t6203\t\t(163728)\t\t1359134\t(108930)\t1167537\nTotal comprehensive income\t0\t0\t0\t\t0\t\t0\t\t117525\t(562)\t116963\nSales of shares upon exercise of stock options and purchase rights\t0\t0\t(1551)\t\t(213)\t\t3191\t\t0\t0\t1640\nIssuance of shares upon vesting of restricted stock units\t0\t0\t(3535)\t\t(89)\t\t1347\t\t0\t0\t(2188)\nShare-based compensation\t0\t0\t13841\t\t0\t\t0\t\t0\t0\t13841\nDecember 31 2019\t173106\t30148\t59668\t\t5901\t\t(159190)\t\t1476659\t(109492)\t1297793\n", "q10k_tbl_6": "\t\t\tAdditional Paid-in Capital\t\t\t\t\t\t\tAccumulated Other Comprehensive Loss\tTotal Shareholders' Equity\n\tRegistered Shares\t\t\tTreasury Shares\t\t\t\tRetained Earnings\t\n\tShares\tAmount\t\tShares\t\tAmount\t\t\t\nMarch 31 2019\t173106\t30148\t56655\t\t7244\t\t(169802)\t\t1365036\t(105698)\t1176339\nTotal comprehensive income\t0\t0\t0\t\t0\t\t0\t\t235803\t(3794)\t232009\nPurchases of registered shares\t0\t0\t0\t\t389\t\t(15127)\t\t0\t0\t(15127)\nSales of shares upon exercise of stock options and purchase rights\t0\t0\t2607\t\t(604)\t\t8933\t\t0\t0\t11540\nIssuance of shares upon vesting of restricted stock units\t0\t0\t(39902)\t\t(1128)\t\t16806\t\t0\t0\t(23096)\nShare-based compensation\t0\t0\t40308\t\t0\t\t0\t\t0\t0\t40308\nCash dividends ($0.74 per share)\t0\t0\t0\t\t0\t\t0\t\t(124180)\t0\t(124180)\nDecember 31 2019\t173106\t30148\t59668\t\t5901\t\t(159190)\t\t1476659\t(109492)\t1297793\n", "q10k_tbl_7": "\t\t\tAdditional Paid-in Capital\t\t\t\t\t\t\tAccumulated Other Comprehensive Loss\tTotal Shareholders' Equity\n\tRegistered Shares\t\t\tTreasury Shares\t\t\t\tRetained Earnings\t\n\tShares\tAmount\t\tShares\t\tAmount\t\t\t\nSeptember 30 2020\t173106\t30148\t78617\t\t4357\t\t(166258)\t\t1882308\t(118852)\t1705963\nTotal comprehensive income\t0\t0\t0\t\t0\t\t0\t\t382523\t15935\t398458\nPurchases of registered shares\t0\t0\t0\t\t603\t\t(50271)\t\t0\t0\t(50271)\nSales of shares upon exercise of stock options and purchase rights\t0\t0\t(2733)\t\t(250)\t\t6376\t\t0\t0\t3643\nIssuance of shares upon vesting of restricted stock units\t0\t0\t(5833)\t\t(77)\t\t2102\t\t0\t0\t(3731)\nIssuance of shares for contingent consideration\t0\t0\t18847\t\t(390)\t\t9616\t\t0\t0\t28463\nShare-based compensation\t0\t0\t19242\t\t0\t\t0\t\t0\t0\t19242\nDecember 31 2020\t173106\t30148\t108140\t\t4243\t\t(198435)\t\t2264831\t(102917)\t2101767\n", "q10k_tbl_8": "\t\t\tAdditional Paid-in Capital\t\t\t\t\t\t\tAccumulated Other Comprehensive Loss\tTotal Shareholders' Equity\n\tRegistered Shares\t\t\tTreasury Shares\t\t\t\tRetained Earnings\t\n\tShares\tAmount\t\tShares\t\tAmount\t\t\t\nMarch 31 2020\t173106\t30148\t75097\t\t6210\t\t(185896)\t\t1690579\t(120660)\t1489268\nTotal comprehensive income\t0\t0\t0\t\t0\t\t0\t\t721510\t17743\t739253\nCumulative effect of adoption of new accounting standard (Note 1)\t0\t0\t0\t\t0\t\t0\t\t(553)\t0\t(553)\nPurchases of registered shares\t0\t0\t0\t\t915\t\t(72725)\t\t0\t0\t(72725)\nSales of shares upon exercise of stock options and purchase rights\t0\t0\t(1368)\t\t(1461)\t\t31077\t\t0\t0\t29709\nIssuance of shares upon vesting of restricted stock units\t0\t0\t(48968)\t\t(1031)\t\t19493\t\t0\t0\t(29475)\nIssuance of shares for contingent consideration\t0\t0\t18847\t\t(390)\t\t9616\t\t0\t0\t28463\nShare-based compensation\t0\t0\t64532\t\t0\t\t0\t\t0\t0\t64532\nCash dividends ($0.87 per share)\t0\t0\t0\t\t0\t\t0\t\t(146705)\t0\t(146705)\nDecember 31 2020\t173106\t30148\t108140\t\t4243\t\t(198435)\t\t2264831\t(102917)\t2101767\n", "q10k_tbl_9": "\tThree Months Ended December 31\t\tNine Months Ended December 31\t\n\t2020\t2019\t2020\t2019\nNet income\t382523\t117525\t721510\t235803\nShares used in net income per share computation:\t\t\t\t\nWeighted average shares outstanding - basic\t169050\t167063\t168448\t166678\nEffect of potentially dilutive equivalent shares\t3537\t2622\t2930\t2495\nWeighted average shares outstanding - diluted\t172587\t169685\t171378\t169173\nNet income per share:\t\t\t\t\nBasic\t2.26\t0.70\t4.28\t1.41\nDiluted\t2.22\t0.69\t4.21\t1.39\n", "q10k_tbl_10": "\tThree Months Ended December 31\t\tNine Months Ended December 31\t\n\t2020\t2019\t2020\t2019\nCost of goods sold\t1747\t1210\t4919\t3552\nMarketing and selling\t8390\t6216\t27559\t20016\nResearch and development\t3482\t2242\t10348\t6644\nGeneral and administrative\t6195\t4163\t21888\t10089\nTotal share-based compensation expense\t19814\t13831\t64714\t40301\nIncome tax benefit\t(3471)\t(3135)\t(15540)\t(12658)\nTotal share-based compensation expense net of income tax benefit\t16343\t10696\t49174\t27643\n", "q10k_tbl_11": "\tDecember 31 2020\tMarch 31 2020\nAccounts receivable net:\t\t\nAccounts receivable\t1196050\t597939\nAllowance for doubtful accounts\t(1328)\t(1894)\nAllowance for sales returns\t(14665)\t(6599)\nAllowance for cooperative marketing arrangements\t(53387)\t(38794)\nAllowance for customer incentive programs\t(91863)\t(55741)\nAllowance for pricing programs\t(139870)\t(100168)\n\t894937\t394743\nInventories:\t\t\nRaw materials\t94748\t56052\nFinished goods\t382054\t173197\n\t476802\t229249\nOther current assets:\t\t\nValue-added tax receivables\t60746\t33616\nPrepaid expenses and other assets\t56995\t41304\n\t117741\t74920\nProperty plant and equipment net:\t\t\nProperty plant and equipment at cost\t392478\t346506\nAccumulated depreciation and amortization\t(295795)\t(270387)\n\t96683\t76119\nOther assets:\t\t\nDeferred tax assets\t219145\t240528\nRight-of-use assets\t31532\t25557\nTrading investments for deferred compensation plan\t24056\t20085\nInvestments in privately held companies\t44634\t45949\nOther assets\t14366\t12900\n\t333733\t345019\n", "q10k_tbl_12": "\tDecember 31 2020\tMarch 31 2020\nAccrued and other current liabilities:\t\t\nAccrued personnel expenses\t138735\t104423\nAccrued sales return liability\t33540\t30267\nAccrued customer marketing pricing and incentive programs\t163335\t130220\nOperating lease liability\t12620\t10945\nAccrued freight and duty\t43477\t13284\nWarranty accrual\t32128\t25905\nIncome taxes payable\t81547\t8823\nContingent consideration\t537\t23284\nOther current liabilities\t198654\t107873\n\t704573\t455024\nOther non-current liabilities:\t\t\nWarranty accrual\t15464\t14134\nObligation for deferred compensation plan\t24056\t20085\nEmployee benefit plan obligations\t66420\t61303\nOperating lease liability\t22537\t19536\nDeferred tax liability\t1931\t1931\nOther non-current liabilities\t3613\t2285\n\t134021\t119274\n", "q10k_tbl_13": "\tDecember 31 2020\t\t\tMarch 31 2020\t\t\n\tLevel 1\tLevel 2\tLevel 3\tLevel 1\tLevel 2\tLevel 3\nAssets:\t\t\t\t\t\t\nCash equivalents\t465838\t0\t0\t564952\t0\t0\nTrading investments for deferred compensation plan included in other assets:\t\t\t\t\t\t\nCash\t75\t0\t0\t846\t0\t0\nCommon stock\t1544\t0\t0\t0\t0\t0\nMoney market funds\t7147\t0\t0\t7147\t0\t0\nMutual funds\t15290\t0\t0\t12092\t0\t0\nTotal of trading investments for deferred compensation plan\t24056\t0\t0\t20085\t0\t0\nCurrency exchange derivative assets included in other current assets\t0\t0\t0\t0\t129\t0\nLiabilities:\t\t\t\t\t\t\nContingent consideration for business acquisition included in accrued and other current liabilities\t0\t0\t0\t0\t0\t23284\nCurrency exchange derivative liabilities included in accrued and other current liabilities\t0\t4523\t0\t0\t719\t0\n", "q10k_tbl_14": "\tNine Months Ended December 31 2020\nBeginning of the period\t23284\nChange in fair value of contingent consideration\t5716\nSettlement of contingent consideration\t(28463)\nEnd of the period (1)\t537\n", "q10k_tbl_15": "\tThree Months Ended December 31\t\t\t\n\tAmount of Gain (Loss) Deferred as a Component of Accumulated Other Comprehensive Loss\t\tAmount of Loss (Gain) Reclassified from Accumulated Other Comprehensive Loss to Costs of Goods Sold\t\t\t\t\t\t\t\n\t2020\t2019\t2020\t2019\t\t\t\t\t\t\t\t\t\t\t\t\nCash flow hedges\t(6326)\t(1381)\t3446\t(739)\t\t\t\t\t\t\t\t\t\t\t\t\n", "q10k_tbl_16": "\tNine Months Ended December 31\t\t\t\n\tAmount of Gain (Loss) Deferred as a Component of Accumulated Other Comprehensive Loss\t\tAmount of Loss (Gain) Reclassified from Accumulated Other Comprehensive Loss to Costs of Goods Sold\t\t\t\t\t\t\t\n\t2020\t2019\t2020\t2019\t\t\t\t\t\t\t\t\t\t\t\t\nCash flow hedges\t(9752)\t56\t5085\t(1097)\t\t\t\t\t\t\t\t\t\t\t\t\n", "q10k_tbl_17": "As of March 31 2020\t400917\nCurrency translation\t76\nAs of December 31 2020\t400993\n", "q10k_tbl_18": "\tDecember 31 2020\t\t\tMarch 31 2020\t\t\n\tGross Carrying Amount\tAccumulated Amortization\tNet Carrying Amount\tGross Carrying Amount\tAccumulated Amortization\tNet Carrying Amount\nTrademark and trade names\t45570\t(23615)\t21955\t45570\t(19061)\t26509\nDeveloped technology\t118807\t(86922)\t31885\t118807\t(77126)\t41681\nCustomer contracts/relationships\t90610\t(41136)\t49474\t90610\t(31859)\t58751\nTotal\t254987\t(151673)\t103314\t254987\t(128046)\t126941\n", "q10k_tbl_19": "\tThree Months Ended December 31\t\tNine Months Ended December 31\t\n\t2020\t2019\t2020\t2019\t\t\t\t\t\t\nBeginning of the period\t41782\t37222\t40039\t34229\t\t\t\t\t\t\nProvision\t13692\t9608\t28575\t26652\t\t\t\t\t\t\nSettlements\t(8371)\t(6840)\t(22073)\t(20544)\t\t\t\t\t\t\nCurrency translation\t489\t187\t1051\t(160)\t\t\t\t\t\t\nEnd of the period\t47592\t40177\t47592\t40177\t\t\t\t\t\t\n", "q10k_tbl_20": "\tAccumulated Other Comprehensive Income (Loss)\t\t\t\n\tCumulative Translation Adjustment\tDefined Benefit Plan\tDeferred Hedging Losses\tTotal\nMarch 31 2020\t(100418)\t(20016)\t(226)\t(120660)\nOther comprehensive income (loss)\t22206\t204\t(4667)\t17743\nDecember 31 2020\t(78212)\t(19812)\t(4893)\t(102917)\n", "q10k_tbl_21": "\tThree Months Ended December 31\t\tNine Months Ended December 31\t\n\t2020\t2019\t2020\t2019\nPointing Devices\t213638\t154540\t503228\t409293\nKeyboards & Combos\t218269\t156333\t565246\t424061\nPC Webcams\t131700\t32165\t295020\t89041\nTablet & Other Accessories\t138052\t31256\t267186\t103442\nGaming (1)\t436426\t245736\t916040\t541265\nVideo Collaboration\t292500\t91964\t659278\t254941\nMobile Speakers\t72566\t92969\t145156\t200617\nAudio & Wearables\t152952\t81934\t338592\t208576\nSmart Home\t10593\t15790\t25976\t35088\nOther (2)\t606\t0\t632\t279\nTotal sales\t1667302\t902687\t3716354\t2266603\n", "q10k_tbl_22": "\tThree Months Ended December 31\t\tNine Months Ended December 31\t\n\t2020\t2019\t2020\t2019\nAmericas\t704718\t380493\t1603221\t970775\nEMEA\t547044\t308907\t1147393\t719994\nAsia Pacific\t415540\t213287\t965740\t575834\nTotal sales\t1667302\t902687\t3716354\t2266603\n", "q10k_tbl_23": "\tDecember 31 2020\tMarch 31 2020\nAmericas\t21859\t26636\nEMEA\t6998\t5052\nAsia Pacific\t67826\t44431\nTotal property plant and equipment net\t96683\t76119\n", "q10k_tbl_24": "\tSales Growth Rate\t\tConstant Dollar Sales Growth Rate\t\n\tThree Months Ended December 31 2020\tNine Months Ended December 31 2020\tThree Months Ended December 31 2020\tNine Months Ended December 31 2020\nAmericas\t85%\t65%\t87%\t67%\nEMEA\t77%\t59%\t67%\t55%\nAsia Pacific\t95%\t68%\t89%\t66%\n", "q10k_tbl_25": "\tThree Months Ended December 31\t\t\tNine Months Ended December 31\t\t\n\t2020\t2019\tChange\t2020\t2019\tChange\nPointing Devices\t213638\t154540\t38%\t503228\t409293\t23%\nKeyboards & Combos\t218269\t156333\t40\t565246\t424061\t33\nPC Webcams\t131700\t32165\t309\t295020\t89041\t231\nTablet & Other Accessories\t138052\t31256\t342\t267186\t103442\t158\nGaming (1)\t436426\t245736\t78\t916040\t541265\t69\nVideo Collaboration\t292500\t91964\t218\t659278\t254941\t159\nMobile Speakers\t72566\t92969\t(22)\t145156\t200617\t(28)\nAudio & Wearables\t152952\t81934\t87\t338592\t208576\t62\nSmart Home\t10593\t15790\t(33)\t25976\t35088\t(26)\nOther (2)\t606\t0\t0\t632\t279\t127\nTotal sales\t1667302\t902687\t85%\t3716354\t2266603\t64%\n", "q10k_tbl_26": "\tThree Months Ended December 31\t\t\tNine Months Ended December 31\t\t\n\t2020\t2019\tChange\t2020\t2019\tChange\nNet sales\t1667302\t902687\t85%\t3716354\t2266603\t64%\nGross profit\t749010\t334453\t124\t1624466\t845505\t92\nGross margin\t44.9%\t37.1%\t\t43.7%\t37.3%\t\n", "q10k_tbl_27": "\tThree Months Ended December 31\t\t\tNine Months Ended December 31\t\t\n\t2020\t\t2019\t2020\t\t2019\t\t\t\t\t\t\t\t\t\nMarketing and selling\t204485\t\t134950\t496520\t\t392138\t\t\t\t\t\t\t\t\t\n% of sales\t12.3%\t\t14.9%\t13.4%\t\t17.3%\t\t\t\t\t\t\t\t\t\nResearch and development\t53910\t\t43292\t157014\t\t127499\t\t\t\t\t\t\t\t\t\n% of sales\t3.2%\t\t4.8%\t4.2%\t\t5.6%\t\t\t\t\t\t\t\t\t\nGeneral and administrative\t37606\t\t22344\t98341\t\t68551\t\t\t\t\t\t\t\t\t\n% of sales\t2.3%\t\t2.5%\t2.6%\t\t3.0%\t\t\t\t\t\t\t\t\t\nAmortization of intangible assets and acquisition-related costs\t4946\t\t5084\t13886\t\t12898\t\t\t\t\t\t\t\t\t\n% of sales\t0.3%\t\t0.6%\t0.4%\t\t0.6%\t\t\t\t\t\t\t\t\t\nChange in fair value of contingent consideration for business acquisition\t0\t\t0\t5716\t\t0\t\t\t\t\t\t\t\t\t\n% of sales\t-%\t\t-%\t0.2%\t\t-%\t\t\t\t\t\t\t\t\t\nRestructuring charges (credits) net\t0\t\t(45)\t(54)\t\t69\t\t\t\t\t\t\t\t\t\n% of sales\t-%\t(1)\t-%\t-%\t(1)\t-%\t\t\t\t\t\t\t\t\t\nTotal operating expenses\t300947\t\t205625\t771423\t\t601155\t\t\t\t\t\t\t\t\t\n% of sales\t18.0%\t\t22.8%\t20.8%\t\t26.5%\t\t\t\t\t\t\t\t\t\n", "q10k_tbl_28": "\tThree Months Ended December 31\t\tNine Months Ended December 31\t\n\t2020\t2019\t2020\t2019\nInvestment income related to a deferred compensation plan\t1049\t1045\t4384\t1836\nCurrency exchange gain net\t7344\t203\t9070\t702\nLoss on investments\t(2173)\t(709)\t(4692)\t(772)\nOther\t263\t562\t899\t1086\nTotal\t6483\t1101\t9661\t2852\n", "q10k_tbl_29": "\tThree Months Ended December 31\t\tNine Months Ended December 31\t\n\t2020\t2019\t2020\t2019\nProvision for income taxes\t72334\t14467\t142638\t18405\nEffective income tax rate\t15.9%\t11.0%\t16.5%\t7.2%\n", "q10k_tbl_30": "\tNine Months Ended December 31\t\n\t2020\t2019\nNet cash provided by operating activities\t928419\t324154\nNet cash used in investing activities\t(46454)\t(119441)\nNet cash used in financing activities\t(219196)\t(150863)\nEffect of exchange rate changes on cash and cash equivalents\t10408\t(2320)\nNet increase in cash and cash equivalents\t673177\t51530\n", "q10k_tbl_31": "\tAs of December 31\t\n\t2020\t2019\nAccounts receivable net\t894937\t531309\nAccounts payable\t811786\t439035\nInventories\t476802\t307494\n", "q10k_tbl_32": "\tThree Months Ended December 31\t\n\t2020\t2019\nDays sales in accounts receivable (\"DSO\") (Days) (1)\t48\t53\nDays accounts payable outstanding (\"DPO\") (Days) (2)\t80\t70\nInventory turnover (\"ITO\") (x)(3)\t7.7\t7.4\n", "q10k_tbl_33": "\tTotal Number of Shares Repurchased\t\tWeighted Average Price Paid Per Share\t\t\tRemaining Amount that May Yet Be Repurchased under the Program\nDuring the three months ended December 31 2020\t\tCHF (LOGN)\t\tUSD (LOGI)\t\nMonth 1\t\t\t\t\t\t\nSeptember 26 2020 to October 23 2020\t0\t\t0\t\t0\t227635\nMonth 2\t\t\t\t\t\t\nOctober 24 2020 to November 20 2020\t0\t\t0\t\t0\t227635\nMonth 3\t\t\t\t\t\t\nNovember 21 2020 to December 25 2020\t\t\t\t\t\t\nNasdaq\t110\t\t\t\t84.99\t177634\nSIX\t493\t\t75.10\t\t\t\n\t603\t\t0\t\t0\t177634\n", "q10k_tbl_34": "Exhibit No.\t\tDescription\n3.1\t\tOrganizational Regulations of Logitech International S.A. as amended as of December 2 2020\n31.1\t\tRule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer.\n31.2\t\tRule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer.\n32.1\t*\tSection 1350 Certifications of Chief Executive Officer and Chief Financial Officer.\n101.INS\t\tXBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document\n101.SCH\t\tXBRL Taxonomy Extension Schema Document\n101.CAL\t\tXBRL Taxonomy Extension Calculation Linkbase Document\n101.LAB\t\tXBRL Taxonomy Extension Label Linkbase Document\n101.PRE\t\tXBRL Taxonomy Extension Presentation Linkbase Document\n101.DEF\t\tXBRL Taxonomy Definition Linkbase Document\n104\t\tCover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)\n"}{"bs": "q10k_tbl_3", "is": "q10k_tbl_1", "cf": "q10k_tbl_4"}None
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2020
Or
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from to
Commission File Number: 0-29174
LOGITECH INTERNATIONAL S.A.
(Exact name of registrant as specified in its charter)
Canton of Vaud,
Switzerland
None
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
Logitech International S.A.
EPFL - Quartier de l'Innovation
Daniel Borel Innovation Center
1015 Lausanne, Switzerland
c/o Logitech Inc.
7700 Gateway Boulevard
Newark, California94560
(Address of principal executive offices and zip code)
510795-8500
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Registered Shares
LOGN
SIX Swiss Exchange
Registered Shares
LOGI
Nasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yesý No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data file required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yesý No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer
ý
Smaller reporting company
☐
Accelerated filer
☐
Emerging Growth Company
☐
Non-accelerated filer
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standard s provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ý
As of January 6, 2021, there were 168,921,326 shares of the Registrant’s share capital outstanding.
In this document, unless otherwise indicated, references to the “Company”, “Logitech”, "we," "our," and "us" are to Logitech International S.A. and its consolidated subsidiaries. Unless otherwise specified, all references to U.S. Dollar, Dollar or $ are to the United States Dollar, the legal currency of the United States of America. All references to CHF are to the Swiss Franc, the legal currency of Switzerland.
Logitech, the Logitech logo, and the Logitech products referred to herein are either the trademarks or the registered trademarks of Logitech. All other trademarks are the property of their respective owners.
The Company’s fiscal year ends on March 31. Interim quarters are generally thirteen-week periods, each ending on a Friday of each quarter. The third quarter of fiscal year 2021 ended on December 25, 2020. The same quarter in the prior fiscal year ended on December 27, 2019. For purposes of presentation, the Company has indicated its quarterly periods end on the last day of the calendar quarter.
The term “sales” means net sales, except as otherwise specified.
Our Internet website and the information contained, incorporated or referenced therein do not constitute a part of and are not intended to be incorporated into this Quarterly Report on Form 10-Q.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Note 1 — The Company and Summary of Significant Accounting Policies and Estimates
The Company
Logitech International S.A, together with its consolidated subsidiaries, (Logitech or the Company) designs, manufactures and markets products that have an everyday place in people's lives, connecting them to the digital experiences they care about. Almost 40 years ago, Logitech created products to improve experiences around the personal PC platform, and today it is a multi-brand, multi-category company designing products that enable better experiences consuming, sharing and creating any digital content such as computing, gaming, video and music, whether it is on a computer, mobile device or in the cloud.
The Company sells its products to a broad network of domestic and international customers, including direct sales to retailers and e-tailers and indirect sales through distributors.
Logitech was founded in Switzerland in 1981 and Logitech International S.A. has been the parent holding company of Logitech since 1988. Logitech International S.A. is a Swiss holding company with its registered office in Apples, Switzerland and headquarters in Lausanne, Switzerland, which conducts its business through subsidiaries in the Americas, Europe, Middle East and Africa (EMEA) and Asia Pacific. Shares of Logitech International S.A. are listed on both the SIX Swiss Exchange under the trading symbol LOGN and the Nasdaq Global Select Market under the trading symbol LOGI.
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 of America (GAAP) for interim financial information and therefore do not include all the information required by 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, 2020, included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on May 27, 2020.
In the opinion of management, these condensed consolidated financial statements include all adjustments, consisting of only normal and recurring adjustments, necessary and in all material aspects, for a fair statement of the results of operations, comprehensive income, financial position, cash flows and changes in shareholders' equity for the periods presented. Operating results for the three and nine months ended December 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2021, or any future periods.
Changes in Significant Accounting Policies
Other than the recent accounting pronouncements adopted and discussed below under Recent Accounting Pronouncements Adopted, there have been no material changes in the Company’s significant accounting policies during the nine months ended December 31, 2020 compared with the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended March 31, 2020.
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. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Significant estimates and assumptions made by management involve fair value of goodwill and intangible assets acquired from business acquisitions, valuation of right-of-use assets, valuation of investment in privately held companies classified under Level 3 of the fair value hierarchy, pensions obligations, warranty liabilities, accruals for customer incentives, cooperative marketing, and pricing programs (Customer Programs) and related breakage when appropriate, accrued sales return liability, 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 these estimates.
Risks and Uncertainties
We are subject to risks and uncertainties as a result of the novel coronavirus (COVID-19). Capital markets and economies worldwide have been negatively impacted by COVID-19 and it is still unclear how lasting and deep the economic impacts will be. During the three and nine months ended December 31, 2020, the COVID-19 pandemic had mixed effects on the Company’s results of operations, and it may continue to have mixed or adverse effects. While there was high demand for and consumption of certain of our products that led to increased sales and operating income during the three and nine months ended December 31, 2020, at the same time the Company experienced disruptions and higher costs in our manufacturing, supply chain and logistics operations and outsourced services. The ongoing and full extent of the impact of the COVID-19 pandemic on the Company's business and operational and financial performance and condition, including the sustainability of its effect on trends positive to the Company, is uncertain and will depend on many factors outside the Company's control, including but not limited to the timing, extent, duration and effects of the virus and any of its mutations, the availability of vaccines and their global deployment, the development of effective treatments, the imposition of effective public safety and other protective measures and the public's response to such measures, the impact of COVID-19 on the global economy and demand for the Company's products and services. Should the COVID-19 pandemic or global economic slowdown not improve or worsen, or if the Company's attempt to mitigate its impact on its operations and costs is not successful, the Company's business, results of operations, financial condition and prospects may be adversely affected.
Recent Accounting Pronouncements Adopted
In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" (ASU 2016-13), which was further updated and clarified by the FASB through issuance of additional related ASUs, replaces the incurred-loss impairment methodology and requires immediate recognition of estimated credit losses expected to occur for most financial assets, including trade receivables. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted this standard effective April 1, 2020, using a modified retrospective approach. Upon adoption, the Company updated its credit loss models to utilize a forward-looking current expected credit losses (CECL) model in place of the incurred loss methodology for financial instruments measured at amortized cost, including accounts receivable. The cumulative effect adjustment from adoption was not material to the Company's condensed consolidated financial statements.
In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements" (ASU 2018-13), which eliminates, adds and modifies certain disclosure requirements for fair value measurements, including eliminating the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and requiring the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. Some of these disclosure changes must be applied prospectively while others retrospectively depending on requirement. The Company adopted this standard effective April 1, 2020. The adoption of ASU 2018-13 did not have a material impact on the Company's condensed consolidated financial statements.
In August 2018, the FASB issued ASU 2018-14, "Compensation - Retirement Benefits - Defined Benefits Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans" (ASU 2018-14), which requires that the Company remove various disclosures that no longer are considered cost-beneficial, namely amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year. Further, ASU 2018-14 requires disclosure or clarification of the reasons for significant gains or losses related to changes in the benefit obligation for the period. The Company adopted this standard effective April 1, 2020 using a retrospective approach and the updated disclosures will be included in the Company's Form 10-K for the fiscal year ending March 31, 2021. The adoption of ASU 2018-14 did not have an impact on the Company's condensed consolidated financial statements.
Recent Accounting Pronouncements To Be Adopted
In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" (ASU 2019-12), which eliminates certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. This ASU also includes guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 is effective for annual and interim periods in fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is currently assessing the impact of ASU 2019-12 on its consolidated financial statements and plans to adopt the standard effective April 1, 2021.
Note 2 — Net Income Per Share
The following table summarizes the computations of basic and diluted net income per share for the three and nine months ended December 31, 2020 and December 31, 2019 (in thousands, except per share amounts):
Three Months Ended December 31,
Nine Months Ended December 31,
2020
2019
2020
2019
Net income
$
382,523
$
117,525
$
721,510
$
235,803
Shares used in net income per share computation:
Weighted average shares outstanding - basic
169,050
167,063
168,448
166,678
Effect of potentially dilutive equivalent shares
3,537
2,622
2,930
2,495
Weighted average shares outstanding - diluted
172,587
169,685
171,378
169,173
Net income per share:
Basic
$
2.26
$
0.70
$
4.28
$
1.41
Diluted
$
2.22
$
0.69
$
4.21
$
1.39
Share equivalents attributable to outstanding stock options, restricted stock units ("RSUs") and employee share purchase plan ("ESPP") rights totaling 0.3 million and 1.8 million for the three months ended December 31, 2020 and 2019, respectively, and 0.4 million and 1.8 million for the nine months ended December 31, 2020 and 2019, respectively, were excluded from the calculation of diluted net income per share because the combined exercise price and average unamortized grant date fair value upon exercise of these options and ESPP rights or vesting of RSUs were greater than the average market price of the Company's shares during the periods presented herein, and therefore their inclusion would have been anti-dilutive. A small number of performance-based awards were not included in the 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 Share Purchase Plans and Stock Incentive Plans
As of December 31, 2020, the Company offers the 2006 Employee Share Purchase Plan, as amended and restated (Non-U.S.) (2006 ESPP), the 1996 Employee Share Purchase Plan (U.S.), as amended and restated (1996 ESPP), the 2006 Stock Incentive Plan, as amended and restated (2006 Plan), and the 2012 Stock Inducement Equity Plan (2012 Plan).
The following table summarizes the share-based compensation expense and total income tax benefit recognized for share-based awards for the three and nine months ended December 31, 2020 and 2019 (in thousands):
Three Months Ended December 31,
Nine Months Ended December 31,
2020
2019
2020
2019
Cost of goods sold
$
1,747
$
1,210
$
4,919
$
3,552
Marketing and selling
8,390
6,216
27,559
20,016
Research and development
3,482
2,242
10,348
6,644
General and administrative
6,195
4,163
21,888
10,089
Total share-based compensation expense
19,814
13,831
64,714
40,301
Income tax benefit
(3,471)
(3,135)
(15,540)
(12,658)
Total share-based compensation expense, net of income tax benefit
$
16,343
$
10,696
$
49,174
$
27,643
The income tax benefit in the respective period primarily consists of tax benefit related to the share-based compensation expense for the period and direct tax benefit realized, including net excess tax benefits recognized from share-based awards vested or exercised during the period.
As of December 31, 2020 and 2019, the balance of capitalized share-based compensation included in inventory was $1.0 million and $0.9 million, respectively.
Defined Benefit Plans
Certain of the Company’s subsidiaries sponsor defined benefit pension plans or non-retirement post-employment benefits covering substantially all of their employees. Benefits are provided based on employees’ years of service and earnings, or in accordance with applicable employee benefit regulations. The Company’s practice is to fund amounts sufficient to meet the requirements set forth in the applicable employee benefit and tax regulations. The costs recorded of $2.9 million and $2.3 million for the three months ended December 31, 2020 and 2019, respectively, and $8.3 million and $7.1 million for the nine months ended December 31, 2020 and 2019, respectively, were primarily related to service costs.
Note 4 — 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 canton of Vaud enacted the Federal Act on Tax Reform and AHV Financing ("TRAF"), a major reform to better align the Swiss tax system with international tax standards, on March 10, 2020 that took effect as of January 1, 2020. The longstanding tax ruling from the canton of Vaud was applicable through December 31, 2019.
The income tax provision for the three months ended December 31, 2020 was $72.3 million based on an effective income tax rate of 15.9% of pre-tax income, compared to an income tax provision of $14.5 million based on an effective income tax rate of 11.0% of pre-tax income for the three months ended December 31, 2019. The income tax provision for the nine months ended December 31, 2020 was $142.6 million based on an effective income tax rate of 16.5% of pre-tax income, compared to an income tax provision of $18.4 million based on an effective income tax rate of 7.2% of pre-tax income for the nine months ended December 31, 2019.
The change in the effective income tax rate for the three and nine months ended December 31, 2020, compared to the same periods ended December 31, 2019 was primarily due to the mix of income and losses in the various tax jurisdictions in which the Company operates. The Swiss income tax provision in the three and nine months ended December 31, 2020 represents the income tax provision at the full statutory income tax rate of 13.63%. In the same periods ended December 31, 2019 when TRAF was yet to be enacted at the federal and cantonal levels, the transition income tax provision reflects the application of the longstanding tax ruling through December 31, 2019. Furthermore, there was a discrete tax benefit of $1.7 million from adjusting deferred tax assets and liabilities in Switzerland in the nine months ended December 31, 2019. There were discrete tax benefits of $7.2 million and $2.9 million from the recognition of excess tax benefits in the United States and reversal of uncertain tax positions from the expiration of statutes of limitations, respectively, in the nine-month period ended December 31, 2020, compared with $6.0 million and $2.7 million, respectively, in the nine-month period ended December 31, 2019.
As of December 31, 2020 and March 31, 2020, the total amount of unrecognized tax benefits due to uncertain tax positions was $158.8 million and $140.8 million, respectively, all of which would affect the effective income tax rate if recognized.
As of December 31, 2020 and March 31, 2020, the Company had $60.8 million and $40.8 million, respectively, in non-current income taxes payable including interest and penalties, related to the Company's income tax liability for uncertain tax positions.
The Company recognizes interest and penalties related to unrecognized tax positions in the income tax provision. As of December 31, 2020 and March 31, 2020, the Company had $4.7 million and $4.5 million, respectively, of accrued interest and penalties related to uncertain tax positions in non-current income taxes payable.
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 2021, 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. Excluding these factors, uncertain tax positions may decrease by as much as $4.4 million from the lapse of the statutes of limitations in various jurisdictions during the next twelve months.