x |
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the quarter ended September 30, 2009
|
|
or
|
|
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the Transition Period
from to
|
Canton
of Vaud, Switzerland
(State
or other jurisdiction
of
incorporation or organization)
|
None
(I.R.S.
Employer
Identification
No.)
|
Logitech
International S.A.
Apples,
Switzerland
c/o
Logitech Inc.
6505
Kaiser Drive
Fremont,
California 94555
(Address
of principal executive offices and zip code)
|
(510)
795-8500
(Registrant’s
telephone number, including area
code)
|
Large accelerated
filer x
|
Accelerated
filer ¨
|
Non-accelerated
filer (Do not check if a smaller reporting company)
¨
|
Smaller
reporting company ¨
|
|
||
Part I
|
FINANCIAL INFORMATION
|
|
Item
1.
|
Consolidated
Financial Statements (Unaudited)
|
3 |
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
25 |
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
42 |
|
||
Item
4.
|
Controls
and Procedures
|
44 |
Part II
|
OTHER INFORMATION
|
|
Item
1.
|
Legal
Proceedings
|
45 |
|
||
Item
1A.
|
Risk
Factors
|
45 |
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
53 |
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
53 |
Item 6.
|
Exhibit
Index
|
55 |
Signatures
|
56 | |
Exhibits
|
Financial Statement
Description
|
Page
|
|
•
|
Consolidated
Statements of Operations for the three and six months ended September 30,
2009 and 2008
|
3 |
•
|
Consolidated
Balance Sheets as of September 30, 2009 and March 31, 2009
|
4 |
•
|
Consolidated
Statements of Cash Flows for the six months ended September 30, 2009 and
2008
|
5 |
|
||
•
|
Consolidated
Statements of Changes in Shareholders’ Equity for the six months ended
September 30, 2009 and 2008
|
6 |
•
|
Notes
to Consolidated Financial Statements
|
7 |
|
Three
months ended
|
Six
months ended
|
|||||||||||
September
30,
|
September
30,
|
|||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||
(Unaudited)
|
||||||||||||
Net
sales
|
$ | 498,093 | $ | 664,707 | $ | 824,203 | $ | 1,173,418 | ||||
Cost
of goods sold
|
346,305 | 436,633 | 594,593 | 771,772 | ||||||||
Gross
profit
|
151,788 | 228,074 | 229,610 | 401,646 | ||||||||
Operating
expenses:
|
||||||||||||
Marketing
and selling
|
68,835 | 84,740 | 127,773 | 162,020 | ||||||||
Research
and development
|
31,825 | 33,351 | 63,185 | 66,610 | ||||||||
General
and administrative
|
23,739 | 29,620 | 44,920 | 62,929 | ||||||||
Restructuring
charges
|
45 | - | 1,494 | - | ||||||||
Total
operating expenses
|
124,444 | 147,711 | 237,372 | 291,559 | ||||||||
Operating
income (loss)
|
27,344 | 80,363 | (7,762 | ) | 110,087 | |||||||
Interest
income, net
|
639 | 2,775 | 1,231 | 5,327 | ||||||||
Other
expense, net
|
(1,438 | ) | (853 | ) | (636 | ) | (292 | ) | ||||
Income
(loss) before income taxes
|
26,545 | 82,285 | (7,167 | ) | 115,122 | |||||||
Provision
for income taxes
|
5,802 | 9,974 | 9,455 | 13,505 | ||||||||
Net
income (loss)
|
$ | 20,743 | $ | 72,311 | $ | (16,622 | ) | $ | 101,617 | |||
Net
income (loss) per share:
|
||||||||||||
Basic
|
$ | 0.12 | $ | 0.41 | $ | (0.09 | ) | $ | 0.57 | |||
Diluted
|
$ | 0.11 | $ | 0.39 | $ | (0.09 | ) | $ | 0.55 | |||
Shares
used to compute net income (loss) per share:
|
||||||||||||
Basic
|
178,395 | 178,630 | 179,058 | 178,835 | ||||||||
Diluted
|
180,989 | 183,509 | 179,058 | 184,154 |
September
30,
|
March
31,
|
|||||||
2009
|
2009
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 524,844 | $ | 492,759 | ||||
Short-term
investments
|
- | 1,637 | ||||||
Accounts
receivable
|
259,776 | 213,929 | ||||||
Inventories
|
239,904 | 233,467 | ||||||
Other
current assets
|
60,104 | 56,884 | ||||||
Total
current assets
|
1,084,628 | 998,676 | ||||||
Property,
plant and equipment
|
97,664 | 104,132 | ||||||
Goodwill
|
243,108 | 242,909 | ||||||
Other
intangible assets
|
27,505 | 32,109 | ||||||
Other
assets
|
49,092 | 43,704 | ||||||
Total
assets
|
$ | 1,501,997 | $ | 1,421,530 | ||||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$ | 291,661 | $ | 157,798 | ||||
Accrued
liabilities
|
154,529 | 131,496 | ||||||
Total
current liabilities
|
446,190 | 289,294 | ||||||
Other
liabilities
|
142,370 | 134,528 | ||||||
Total
liabilities
|
588,560 | 423,822 | ||||||
Commitments
and contingencies
|
||||||||
Shareholders'
equity:
|
||||||||
Shares,
par value CHF 0.25 - 191,606,620 issued and authorized
|
||||||||
and
50,000,000 conditionally authorized at September 30, 2009
and
|
||||||||
March
31, 2009
|
33,370 | 33,370 | ||||||
Additional
paid-in capital
|
24,091 | 45,012 | ||||||
Less
shares in treasury, at cost, 16,281,115 at September 30,
2009
|
||||||||
and
12,124,078 at March 31, 2009
|
(395,995 | ) | (341,454 | ) | ||||
Retained
earnings
|
1,325,039 | 1,341,661 | ||||||
Accumulated
other comprehensive loss
|
(73,068 | ) | (80,881 | ) | ||||
Total
shareholders' equity
|
913,437 | 997,708 | ||||||
Total
liabilities and shareholders' equity
|
$ | 1,501,997 | $ | 1,421,530 |
Six
months ended
|
||||||||
September
30,
|
||||||||
2009
|
2008
|
|||||||
(Unaudited)
|
||||||||
Cash
flows from operating activities:
|
||||||||
Net
income (loss)
|
$ | (16,622 | ) | $ | 101,617 | |||
Non-cash
items included in net income (loss):
|
||||||||
Depreciation
|
26,057 | 22,501 | ||||||
Amortization
of other intangible assets
|
4,603 | 3,470 | ||||||
Share-based
compensation expense related to options, RSUs and
|
||||||||
purchase
rights
|
11,166 | 11,710 | ||||||
Write-down
of investments
|
- | 979 | ||||||
Excess
tax benefits from share-based compensation
|
(1,346 | ) | (6,032 | ) | ||||
Loss
(gain) on cash surrender value of life insurance policies
|
(402 | ) | 363 | |||||
Deferred
income taxes and other
|
(274 | ) | 3,434 | |||||
Changes
in assets and liabilities:
|
||||||||
Accounts
receivable
|
(39,896 | ) | (99,553 | ) | ||||
Inventories
|
(1,011 | ) | (83,760 | ) | ||||
Other
assets
|
(8,585 | ) | (13,611 | ) | ||||
Accounts
payable
|
130,803 | 118,930 | ||||||
Accrued
liabilities
|
28,407 | 23,359 | ||||||
Net
cash provided by operating activities
|
132,900 | 83,407 | ||||||
Cash
flows from investing activities:
|
||||||||
Purchases
of property, plant and equipment
|
(18,144 | ) | (25,047 | ) | ||||
Proceeds
from cash surrender of life insurance policies
|
813 | - | ||||||
Acquisitions
and investments, net of cash acquired
|
(200 | ) | (31,832 | ) | ||||
Premiums
paid on cash surrender value life insurance policies
|
- | (427 | ) | |||||
Net
cash used in investing activities
|
(17,531 | ) | (57,306 | ) | ||||
Cash
flows from financing activities:
|
||||||||
Purchases
of treasury shares
|
(101,267 | ) | (76,017 | ) | ||||
Proceeds
from sale of shares upon exercise of options and purchase
rights
|
12,972 | 22,355 | ||||||
Excess
tax benefits from share-based compensation
|
1,346 | 6,032 | ||||||
Net
cash used in financing activities
|
(86,949 | ) | (47,630 | ) | ||||
Effect
of exchange rate changes on cash and cash equivalents
|
3,665 | (5,592 | ) | |||||
Net
increase (decrease) in cash and cash equivalents
|
32,085 | (27,121 | ) | |||||
Cash
and cash equivalents at beginning of period
|
492,759 | 482,352 | ||||||
Cash and cash equivalents at end of period | $ | 524,844 | $ | 455,231 |
Accumulated
|
||||||||||||||||||||||||||||||||
Additional
|
other
|
|||||||||||||||||||||||||||||||
Registered
shares
|
paid-in
|
Treasury
shares
|
Retained
|
comprehensive
|
||||||||||||||||||||||||||||
Shares
|
Amount
|
capital
|
Shares
|
Amount
|
earnings
|
loss
|
Total
|
|||||||||||||||||||||||||
March
31, 2008
|
191,606 | $ | 33,370 | $ | 49,821 | 12,431 | $ | (338,293 | ) | $ | 1,234,629 | $ | (19,483 | ) | $ | 960,044 | ||||||||||||||||
Net
income
|
- | - | - | - | - | 101,617 | - | 101,617 | ||||||||||||||||||||||||
Cumulative
translation
|
||||||||||||||||||||||||||||||||
adjustment
|
- | - | - | - | - | - | (13,772 | ) | (13,772 | ) | ||||||||||||||||||||||
Minimum
pension liability adjustment
|
- | - | - | - | - | - | 148 | 148 | ||||||||||||||||||||||||
Unrealized
gain on investment
|
- | - | - | - | - | - | 457 | 457 | ||||||||||||||||||||||||
Total
comprehensive income
|
88,450 | |||||||||||||||||||||||||||||||
Tax
benefit from exercise of
|
||||||||||||||||||||||||||||||||
stock
options
|
- | - | 6,527 | - | - | - | - | 6,527 | ||||||||||||||||||||||||
Purchase
of treasury shares
|
- | - | - | 2,603 | (76,017 | ) | - | - | (76,017 | ) | ||||||||||||||||||||||
Sale
of shares upon exercise of
|
||||||||||||||||||||||||||||||||
options
and purchase rights
|
- | - | (18,375 | ) | (1,876 | ) | 40,730 | - | - | 22,355 | ||||||||||||||||||||||
Share-based
compensation expense
|
||||||||||||||||||||||||||||||||
related
to employee stock options
|
||||||||||||||||||||||||||||||||
and
stock purchase rights
|
- | - | 11,824 | - | - | - | - | 11,824 | ||||||||||||||||||||||||
September
30, 2008
|
191,606 | $ | 33,370 | $ | 49,797 | 13,158 | $ | (373,580 | ) | $ | 1,336,246 | $ | (32,650 | ) | $ | 1,013,183 | ||||||||||||||||
March
31, 2009
|
191,606 | $ | 33,370 | $ | 45,012 | 12,124 | $ | (341,454 | ) | $ | 1,341,661 | $ | (80,881 | ) | $ | 997,708 | ||||||||||||||||
Net
loss
|
- | - | - | - | - | (16,622 | ) | (16,622 | ) | |||||||||||||||||||||||
Cumulative
translation
|
||||||||||||||||||||||||||||||||
adjustment
|
- | - | - | - | - | - | 12,046 | 12,046 | ||||||||||||||||||||||||
Minimum
pension liability adjustment
|
- | - | - | - | - | - | 30 | 30 | ||||||||||||||||||||||||
Net
deferred hedging loss
|
- | - | - | - | - | - | (4,263 | ) | (4,263 | ) | ||||||||||||||||||||||
Total
comprehensive loss
|
(8,809 | ) | ||||||||||||||||||||||||||||||
Purchase
of treasury shares
|
- | - | - | 5,838 | (101,267 | ) | - | - | (101,267 | ) | ||||||||||||||||||||||
Tax
benefit from exercise of
|
||||||||||||||||||||||||||||||||
stock
options
|
- | - | 1,811 | - | - | - | - | 1,811 | ||||||||||||||||||||||||
Sale
of shares upon exercise of
|
||||||||||||||||||||||||||||||||
options
and purchase rights
|
- | - | (33,754 | ) | (1,681 | ) | 46,726 | - | - | 12,972 | ||||||||||||||||||||||
Share-based
compensation expense
|
||||||||||||||||||||||||||||||||
related
to employee stock options,
|
||||||||||||||||||||||||||||||||
RSUs
and stock purchase rights
|
- | - | 11,022 | - | - | - | - | 11,022 | ||||||||||||||||||||||||
September
30, 2009
|
191,606 | $ | 33,370 | $ | 24,091 | 16,281 | $ | (395,995 | ) | $ | 1,325,039 | $ | (73,068 | ) | $ | 913,437 |
Three
months ended
|
Six
months ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net
income (loss)
|
$ | 20,743 | $ | 72,311 | $ | (16,622 | ) | $ | 101,617 | |||||||
. | ||||||||||||||||
Weighted
average shares - basic
|
178,395 | 178,630 | 179,058 | 178,835 | ||||||||||||
Effect
of potentially dilutive stock options
|
||||||||||||||||
and
stock purchase rights
|
2,594 | 4,879 | - | 5,319 | ||||||||||||
Weighted
average shares - diluted
|
180,989 | 183,509 | 179,058 | 184,154 | ||||||||||||
Net
income (loss) per share - basic
|
$ | 0.12 | $ | 0.41 | $ | (0.09 | ) | $ | 0.57 | |||||||
Net
income (loss) per share - diluted
|
$ | 0.11 | $ | 0.39 | $ | (0.09 | ) | $ | 0.55 |
·
|
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.
|
Level
1
|
Level
2
|
Level
3
|
||||||||||
Cash
and cash equivalents
|
$ | 524,844 | $ | - | $ | - | ||||||
Investment
securities
|
- | - | 1,637 | |||||||||
Foreign
exchange derivative assets
|
954 | - | - | |||||||||
Total
assets at fair value
|
$ | 525,798 | $ | - | $ | 1,637 | ||||||
Foreign
exchange derivative liabilities
|
$ | 2,162 | $ | - | $ | - | ||||||
Total
liabilities at fair value
|
$ | 2,162 | $ | - | $ | - |
Level
1
|
Level
2
|
Level
3
|
||||||||||
Cash
and cash equivalents
|
$ | 492,759 | $ | - | $ | - | ||||||
Investment
securities
|
- | - | 1,637 | |||||||||
Foreign
exchange derivative assets
|
208 | - | - | |||||||||
Total
assets at fair value
|
$ | 492,967 | $ | - | $ | 1,637 | ||||||
Foreign
exchange derivative liabilities
|
$ | 1,849 | $ | - | $ | - | ||||||
Total
liabilities at fair value
|
$ | 1,849 | $ | - | $ | - |
Balance
as of March 31, 2009
|
$ | 1,637 | ||
Unrealized
loss
|
- | |||
Balance
as of June 30, 2009
|
1,637 | |||
Unrealized
loss
|
- | |||
Balance
as of September 30, 2009
|
$ | 1,637 |
September
30,
|
March
31,
|
|||||||
2009
|
2009
|
|||||||
Accounts
receivable:
|
||||||||
Accounts
receivable
|
$ | 383,611 | $ | 339,903 | ||||
Allowance
for doubtful accounts
|
(6,398 | ) | (6,705 | ) | ||||
Allowance
for returns
|
(14,216 | ) | (25,470 | ) | ||||
Cooperative
marketing arrangements
|
(50,267 | ) | (41,082 | ) | ||||
Customer
incentive programs
|
(43,457 | ) | (40,369 | ) | ||||
Price
protection
|
(9,497 | ) | (12,348 | ) | ||||
$ | 259,776 | $ | 213,929 | |||||
Inventories:
|
||||||||
Raw
materials
|
$ | 36,747 | $ | 30,959 | ||||
Work-in-process
|
3 | 19 | ||||||
Finished
goods
|
203,154 | 202,489 | ||||||
$ | 239,904 | $ | 233,467 | |||||
Other
current assets:
|
||||||||
Tax
and VAT refund receivables
|
$ | 21,956 | $ | 17,275 | ||||
Deferred
taxes
|
22,855 | 25,546 | ||||||
Prepaid
expenses and other
|
15,293 | 14,063 | ||||||
$ | 60,104 | $ | 56,884 | |||||
Property,
plant and equipment:
|
||||||||
Plant
and buildings
|
$ | 59,009 | $ | 56,211 | ||||
Equipment
|
113,305 | 108,779 | ||||||
Computer
equipment
|
55,138 | 49,532 | ||||||
Computer
software
|
64,055 | 60,259 | ||||||
291,507 | 274,781 | |||||||
Less:
accumulated depreciation
|
(210,027 | ) | (188,371 | ) | ||||
81,480 | 86,410 | |||||||
Construction-in-progress
|
13,058 | 14,708 | ||||||
Land
|
3,126 | 3,014 | ||||||
$ | 97,664 | $ | 104,132 | |||||
Other
assets:
|
||||||||
Deferred
taxes
|
$ | 31,251 | $ | 27,718 | ||||
Cash
surrender value of life insurance contracts
|
10,275 | 10,685 | ||||||
Investment
securities
|
1,637 | - | ||||||
Deposits
and other
|
5,929 | 5,301 | ||||||
$ | 49,092 | $ | 43,704 | |||||
Accrued
liabilities:
|
||||||||
Accrued
marketing expenses
|
$ | 25,940 | $ | 21,984 | ||||
Accrued
personnel expenses
|
52,452 | 34,373 | ||||||
Income
taxes payable - current
|
5,950 | 6,828 | ||||||
Accrued
freight and duty
|
13,050 | 9,048 | ||||||
Accrued
restructuring
|
423 | 3,794 | ||||||
Other
accrued liabilities
|
56,714 | 55,469 | ||||||
$ | 154,529 | $ | 131,496 | |||||
Long-term
liabilities:
|
||||||||
Income
taxes payable - non-current
|
$ | 109,386 | $ | 101,463 | ||||
Obligation
for management deferred compensation
|
9,788 | 10,499 | ||||||
Defined
benefit pension plan liability
|
20,477 | 19,822 | ||||||
Other
long-term liabilities
|
2,719 | 2,744 | ||||||
$ | 142,370 | $ | 134,528 |
September
30,
|
||||||||
2009
|
2008
|
|||||||
Balance
as of March 31, 2009
|
$ | 6,705 | $ | 2,497 | ||||
Bad
debt expense
|
(1,194 | ) | 821 | |||||
Write-offs
net of recoveries
|
446 | (161 | ) | |||||
Balance
as of June 30, 2009
|
$ | 5,957 | $ | 3,157 | ||||
Bad
debt expense
|
599 | 20 | ||||||
Write-offs
net of recoveries
|
(158 | ) | (369 | ) | ||||
Balance
as of September 30, 2009
|
$ | 6,398 | $ | 2,808 |
Balance
as of March 31, 2009
|
$ | 242,909 | ||
Additions
|
199 | |||
Balance
as of September 30, 2009
|
$ | 243,108 |
September
30, 2009
|
March
31, 2009
|
|||||||||||||||||||||||
Gross
Carrying
|
Accumulated
|
Net
Carrying
|
Gross
Carrying
|
Accumulated
|
Net
Carrying
|
|||||||||||||||||||
Amount
|
Amortization
|
Amount
|
Amount
|
Amortization
|
Amount
|
|||||||||||||||||||
Trademark/tradename
|
$ | 24,472 | $ | (19,333 | ) | $ | 5,139 | $ | 24,398 | $ | (18,559 | ) | $ | 5,839 | ||||||||||
Technology
|
49,267 | (30,009 | ) | 19,258 | 49,268 | (26,598 | ) | 22,670 | ||||||||||||||||
Customer
contracts
|
7,018 | (3,910 | ) | 3,108 | 7,018 | (3,418 | ) | 3,600 | ||||||||||||||||
$ | 80,757 | $ | (53,252 | ) | $ | 27,505 | $ | 80,684 | $ | (48,575 | ) | $ | 32,109 |
Date
of Announcement
|
Approved
Buyback Amount
|
Expiration
Date
|
Completion
Date
|
Amount
Remaining
|
|||||||||
June
2007
|
$ | 250,000 |
June
2010
|
- | $ | 24,985 |
Three
months ended September 30, (1)
|
Six
months ended September 30, (1)
|
|||||||||||||||||||||||||||||||
Date
of
|
2009
|
2008
|
2009
|
2008
|
||||||||||||||||||||||||||||
Announcement
|
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
||||||||||||||||||||||||
June
2007
|
5,838 | $ | 101,267 | 1,051 | $ | 27,000 | 5,838 | $ | 101,267 | 2,603 | $ | 76,017 |
|
(1) Represents
the amount in U.S. dollars, calculated based on exchange rates on the
repurchase dates.
|
September
30,
|
March
31,
|
|||||||
2009
|
2009
|
|||||||
Cumulative
translation adjustment
|
$ | (54,353 | ) | $ | (66,399 | ) | ||
Pension
liability adjustments, net of tax of $990 and $990
|
(15,092 | ) | (15,122 | ) | ||||
Unrealized
gain on investment
|
424 | 424 | ||||||
Net
deferred hedging gains (losses)
|
(4,047 | ) | 216 | |||||
$ | (73,068 | ) | $ | (80,881 | ) |
Total
|
Termination
Benefits
|
Contract
Termination Costs
|
Other
|
|||||||||||||
Balance
at March 31, 2009
|
$ | 3,794 | $ | 3,779 | $ | 15 | $ | - | ||||||||
Charges
|
1,449 | 1,366 | 83 | - | ||||||||||||
Cash
payments
|
(4,245 | ) | (4,220 | ) | (25 | ) | - | |||||||||
Other
|
(8 | ) | (4 | ) | (4 | ) | - | |||||||||
Foreign
exchange
|
91 | 91 | - | - | ||||||||||||
Balance
at June 30, 2009
|
$ | 1,081 | $ | 1,012 | $ | 69 | $ | - | ||||||||
Charges
|
45 | (22 | ) | 9 | 58 | |||||||||||
Cash
payments
|
(718 | ) | (698 | ) | (20 | ) | - | |||||||||
Other
|
(4 | ) | 63 | - | (67 | ) | ||||||||||
Foreign
exchange
|
19 | 19 | - | - | ||||||||||||
Balance
at September 30, 2009
|
$ | 423 | $ | 374 | $ | 58 | $ | (9 | ) |
Three
months ended
|
Six
months ended
|
||||||||||||||
September
30,
|
September
30,
|
||||||||||||||
2009
|
2008
|
2009
|
2008
|
||||||||||||
Cost
of goods sold
|
$ | 628 | $ | 669 | $ | 1,426 | $ | 1,400 | |||||||
Share-based
compensation expense included in gross profit
|
628 | 669 | 1,426 | 1,400 | |||||||||||
Operating
expenses:
|
|||||||||||||||
Marketing
and selling
|
2,154 | 1,989 | 3,913 | 3,838 | |||||||||||
Research
and development
|
1,068 | 1,147 | 1,909 | 2,109 | |||||||||||
General
and administrative
|
1,908 | 2,018 | 3,918 | 4,363 | |||||||||||
Share-based
compensation expense included in operating
expenses
|
5,130 | 5,154 | 9,740 | 10,310 | |||||||||||
Total
share-based compensation expense related to employee
|
|||||||||||||||
stock
options, RSUs and employee stock purchases
|
5,758 | 5,823 | 11,166 | 11,710 | |||||||||||
Tax
benefit
|
449 | 1,241 | 833 | 2,198 | |||||||||||
Share-based
compensation expense related to employee stock
|
|||||||||||||||
options,
RSUs and employee stock purchases, net of tax
|
$ | 5,309 | $ | 4,582 | $ | 10,333 | $ | 9,512 |
Three
Months Ended September 30,
|
Six
Months Ended September 30,
|
|||||||||||||||||||||||||||||||
Purchase
Plans
|
Stock
Option Plans
|
Purchase
Plans
|
Stock
Option Plans
|
|||||||||||||||||||||||||||||
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||||||||||||||
Dividend
yield
|
0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||||||||||
Expected
life
|
6
months
|
6
months
|
3.9
years
|
3.7
years
|
6
months
|
6
months
|
3.9
years
|
3.7
years
|
||||||||||||||||||||||||
Expected
volatility
|
71 | % | 41 | % | 48 | % | 35 | % | 71 | % | 45 | % | 48 | % | 34 | % | ||||||||||||||||
Risk-free
interest rate
|
0.21 | % | 1.96 | % | 2.18 | % | 2.97 | % | 0.21 | % | 2.38 | % | 2.13 | % | 2.31 | % |
Three
Months Ended September 30,
|
Six
Months Ended September 30,
|
|||||||||||||||||||||||||||||||
Purchase
Plans
|
Stock
Option Plans
|
Purchase
Plans
|
Stock
Option Plans
|
|||||||||||||||||||||||||||||
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||||||||||||||
Expected
forfeitures
|
0 | % | 0 | % | 10 | % | 7 | % | 0 | % | 0 | % | 10 | % | 7 | % | ||||||||||||||||
Weighted
average grant-date
|
||||||||||||||||||||||||||||||||
fair
value of options granted
|
$ | 4.20 | $ | 7.01 | $ | 14.10 | $ | 7.39 | $ | 4.20 | $ | 7.94 | $ | 13.87 | $ | 7.87 |
Three
Months ended September 30,
|
Six
Months ended September 30,
|
|||||||||||||||||||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||||||||||||||||||
Number
|
Exercise
Price
|
Number
|
Exercise
Price
|
Number
|
Exercise
Price
|
Number
|
Exercise
Price
|
|||||||||||||||||||||||||
Outstanding,
beginning of period
|
17,751 | $ | 18 | 17,033 | $ | 18 | 18,897 | $ | 18 | 17,952 | $ | 17 | ||||||||||||||||||||
Granted
|
2,200 | $ | 14 | 146 | $ | 25 | 2,389 | $ | 14 | 452 | $ | 28 | ||||||||||||||||||||
Exercised
|
(365 | ) | $ | 9 | (492 | ) | $ | 9 | (1,034 | ) | $ | 7 | (1,544 | ) | $ | 10 | ||||||||||||||||
Cancelled
or expired
|
(456 | ) | $ | 22 | (101 | ) | $ | 26 | (1,122 | ) | $ | 23 | (276 | ) | $ | 24 | ||||||||||||||||
Outstanding,
end of period
|
19,130 | $ | 18 | 16,586 | $ | 18 | 19,130 | $ | 18 | 16,584 | $ | 18 | ||||||||||||||||||||
Exercisable,
end of period
|
10,029 | $ | 15 | 10,357 | $ | 12 | 10,029 | $ | 15 | 10,357 | $ | 12 |
FY
2009 Grants
|
FY
2010 Grants
|
|||||||
Dividend
yield
|
0 | % | 0 | % | ||||
Expected
life
|
2
years
|
2
years
|
||||||
Expected
volatility
|
41 | % | 58 | % | ||||
Risk-free
interest rate
|
1.82 | % | 1.11 | % |
Three
months ended
|
Six
months ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Service
cost
|
$ | 874 | $ | 614 | $ | 1,712 | $ | 1,248 | ||||||||
Interest
cost
|
352 | 373 | 674 | 758 | ||||||||||||
Expected
return on plan assets
|
(320 | ) | (383 | ) | (586 | ) | (779 | ) | ||||||||
Amortization
of net transition obligation
|
1 | 1 | 2 | 2 | ||||||||||||
Amortization
of net prior service cost
|
34 | - | 68 | - | ||||||||||||
Recognized
net actuarial loss
|
189 | 112 | 414 | 227 | ||||||||||||
Net
periodic benefit cost
|
$ | 1,130 | $ | 717 | $ | 2,284 | $ | 1,456 |
Asset
Derivatives
|
Liability
Derivatives
|
|||||||||
Location
|
Fair
Value
|
Location
|
Fair
Value
|
|||||||
Derivatives
designated as hedging
|
||||||||||
instruments:
|
||||||||||
Cash
Flow Hedges
|
Other
assets
|
$ | - |
Other
liabilities
|
$ | 1,424 | ||||
- | 1,424 | |||||||||
Derivatives
not designated as hedging
|
||||||||||
instruments:
|
||||||||||
Foreign
Exchange Forward Contracts
|
Other
assets
|
715 |