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LOGITECH INTERNATIONAL S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
the assessment forecast period based on greater evidence of the overall enterprise video conferencing
industry experiencing a slowdown, combined with lower demand related to new product launches,
increased competition during fiscal year 2013, and other market data. These factors had an adverse
effect on the Company’s video conferencing operating results and future outlook. During fiscal year
2013, the Company recorded goodwill impairment and other charges of $214.5 million related to its video
conferencing reporting unit.
Determining the fair value of a reporting unit is judgmental in nature and requires the use of significant
estimates and assumptions, including revenue growth rates, operating margins, discount rates and future
market conditions, among others. A goodwill impairment charge would have the effect of decreasing the
Company’s earnings or increasing its losses in such period. If the Company is required to take further
substantial impairment charges in future periods, its operating results would be materially and adversely
affected in such period.
The following table summarizes the activity in the Company’s goodwill balance during fiscal years
2015 and 2014 (in thousands):
Years Ended March 31,
2015 2014
Peripherals
Video
Conferencing Total Peripherals
Video
Conferencing Total
Beginning of the period . . . . . . . . . $219,415 $ 125,595 $ 345,010 $216,744 $124,613 $341,357
Acquisitions. . . . . . . . . . . . . . . . 988 — 988 202 — 202
Impairment . . . . . . . . . . . . . . . . — (122,734) (122,734) — — —
Currency exchange rate
impact and other . . . . . . . . . (2,190) (2,861) (5,051) — 982 982
Reclassified from assets
held for sale(1) . . . . . . . . . . . . — — — 2,469 — 2,469
End of the period . . . . . . . . . . . . . . $218,213 $ — $ 218,213 $219,415 $125,595 $345,010
(1) Represents allocated goodwill related to the Company’s Retail—Home Control product category
which was classified as assets held for sale as of March 31, 2013. The allocated goodwill related to
the Home Control product category was reclassified from assets held for sale as of March 31, 2014,
as the Company updated its strategic plan and decided to retain its Home Control product category.
The Company’s acquired other intangible assets subject to amortization were as follows
(in thousands):
March 31,
2015 2014
Gross
Accumulated
Amortization Net Gross
Accumulated
Amortization Net
Trademark and tradenames . . . . . . . $ 13,049 $ (13,038) $ 11 $ 13,091 $ (11,949) $ 1,142
Technology . . . . . . . . . . . . . . . . . . . . 81,441 (79,716) 1,725 83,080 (78,257) 4,823
Customer contracts/relationships . . . 38,538 (38,408) 130 38,851 (34,287) 4,564
$133,028 $(131,162) $1,866 $135,022 $(124,493) $10,529
Note 9—Goodwill and Other Intangible Assets (Continued)
108
Annual Report Fiscal Year 2015