Logitech 2013 Annual Report Download - page 196

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LOGITECH INTERNATIONAL S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following table summarizes the activity in the Company’s goodwill balance during the year ended
March 31, 2013 and 2012 (in thousands):
March 31, 2013 March 31, 2012
Peripheral
Video
Conferencing Total Peripheral
Video
Conferencing Total
Goodwill, beginning of year . . . . . . . $220,860 $ 339,663 $ 560,523 $ 220,860 $ 326,324 $ 547,184
Additions . . . . . . . . . . . . . . . . . . . — — — — 14,415 14,415
Impairment. . . . . . . . . . . . . . . . . . — (214,500) (214,500) — — —
Foreign currency movements. . . . (1,225) (550) (1,775) — (1,076) (1,076)
Reclassified to assets held
for sale(1) . . . . . . . . . . . . . . . . . (4,116) — (4,116) — — —
Goodwill, end of year . . . . . . . . . . . . $215,519 $ 124,613 $ 340,132 $ 220,860 $ 339,663 $ 560,523
(1) Represents allocated goodwill related to the Company’s Retail—Digital Video Security product line and
Retail—Remotes product category which was classified as assets held for sale as of March 31, 2013. The
allocated goodwill related to the Digital Video Security product line was fully impaired as of March 31, 2013.
The Company’s acquisition of Mirial S.r.l. on July 18, 2011 increased its goodwill balance by $14.4 million.
Mirial’s business has been fully integrated into the Company’s video conferencing reporting unit, and discrete
financial information for Mirial is not maintained. Accordingly, the acquired goodwill related to Mirial is evaluated
for impairment at the video conferencing reporting unit level.
The Company’s acquired other intangible assets subject to amortization were as follows (in thousands):
March 31, 2013 March 31, 2012
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Trademark/trade name . . . . . . . . . . . . . $ 29,842 $ (26,558) $ 3,284 $ 32,104 $ (26,095) $ 6,009
Technolog y . . . . . . . . . . . . . . . . . . . . . . 73,249 (61,560) 11,689 91,954 (62,548) 29,406
Customer contracts . . . . . . . . . . . . . . . . 39,068 (28,017) 11,051 39,926 (21,823) 18,103
$142,159 $(116,135) $26,024 $163,984 $(110,466) $53,518
The Company had $3.7 million of intangible assets, net of accumulated amortization of $17.3 million and
impairment charges of $0.5 million, related to Digital Video Security and Remote product families classified
as held for sale as of March 31, 2013, which are not included in the table above. There were no intangible assets
classified as held for sale as of March 31, 2012.
For fiscal years 2013, 2012 and 2011, amortization expense for other intangible assets was $23.1 million,
$26.5 million and $27.8 million. The Company expects that annual amortization expense for the fiscal years ending
2014, 2015, 2016 and 2017 will be $16.5 million, $7.8 million, and $1.4 million, and $0.3 million.
Note 9 — Goodwill and Other Intangible Assets (Continued)
194