Logitech 2015 Annual Report Download - page 216

LOGITECH INTERNATIONAL S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The aggregate changes in gross unrecognized tax benefits in fiscal years 2015, 2014 and 2013 were
as follows (in thousands):
March 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $136,888
Lapse of statute of limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,490)
Settlements with tax authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (42,770)
Decreases in balances related to tax positions taken during prior years . . . . . . . . . . . . . (1,500)
Increases in balances related to tax positions taken during the year . . . . . . . . . . . . . . . . 9,570
March 31, 2013. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 95,698
Lapse of statute of limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,514)
Settlements with tax authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (100)
Decreases in balances related to tax positions taken during prior years . . . . . . . . . . . . . (778)
Increases in balances related to tax positions taken during the year . . . . . . . . . . . . . . . . 8,740
March 31, 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 91,046
Lapse of statute of limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,071)
Settlements with tax authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,160)
Decreases in balances related to tax positions taken during prior years . . . . . . . . . . . . . (3,544)
Increases in balances related to tax positions taken during the year . . . . . . . . . . . . . . . . 7,752
March 31, 2015. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 79,023
The Company recognizes interest and penalties related to unrecognized tax positions in income tax
expense. The Company recognized $0.8 million, $1.1 million and $1.0 million in interest and penalties in
income tax expense during fiscal years 2015, 2014 and 2013, respectively. As of March 31, 2015, 2014
and 2013, the Company had $4.9 million, $5.6 million and $6.6 million of accrued interest and penalties
related to uncertain tax positions, respectively.
The Company files Swiss and foreign tax returns. The Company received final tax assessments
in Switzerland through fiscal year 2012. For other foreign jurisdictions such as the United States, the
Company is generally not subject to tax examinations for years prior to fiscal year 2011. The Company is
under examination and has received assessment notices in foreign tax jurisdictions. If the examinations
are resolved unfavorably, there is a possibility they may have a material negative impact on its results
of operations.
Although the Company has adequately provided for uncertain tax positions, the provisions on these
positions may change as revised estimates are made or the underlying matters are settled or otherwise
resolved. During fiscal year 2016, the Company will continue to review its tax positions and provide for or
reverse unrecognized tax benefits as issues arise. During the next 12 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 $17.0 million
primarily from the lapse of the statutes of limitations in various jurisdictions during the next 12 months.
Note 6—Income Taxes (Continued)
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Annual Report Fiscal Year 2015