Logitech 2014 Annual Report Download - page 181

The $0.6 million and $3.6 million investment impairment charges in fiscal years 2014 and 2013, respectively,
resulted from the write-down of an investment in a privately-held company.
During fiscal year 2013, we sold the remaining two of our available-for-sale securities with a total carrying
value of $0.4 million and a total par value of $15.2 million for $0.9 million. This sale resulted in $0.8 million gain
recognized in other income (expense), $0.3 million of which resulted from the recognition of a temporary increase
in fair value previously recorded in accumulated other comprehensive loss.
During fiscal year 2012, we sold two of our available-for-sale securities, with a total carrying value of
$0.5 million and a total par value of $10.0 million, for $6.6 million, resulting in a gain of $6.1 million.
Foreign currency exchange gains or losses relate to balances denominated in currencies other than the
functional currency in one of our subsidiaries, as well as to the sale of currencies, and to gains or losses recognized
on foreign exchange forward contracts. We do not speculate in currency positions, but we are alert to opportunities
to maximize foreign exchange gains.
Provision for (Benefit from) Income Taxes
The provision for (benefit from) income taxes and effective income tax rate for fiscal years 2014, 2013 and
2012 were as follows (in thousands):
Years Ended March 31,
2014 2013 2012
As Revised As Restated
Provision for (benefit from) income taxes . . . . . . . . . . . . . . . . . . . . . . . . . $3,278 $(25,810) $20,090
Effective income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2% 10.2% 16.2%
The provision for income taxes consists of income and withholding taxes. We operate in multiple jurisdictions
and our profits are taxed pursuant to the tax laws of these jurisdictions. Our effective income tax rate may be
affected by changes in or interpretations of tax laws and tax agreements in any given jurisdiction, utilization of net
operating loss and tax credit carryforwards, changes in geographical mix of income and expense, and changes in
management’s assessment of matters such as the ability to realize deferred tax assets.
The change in the effective income tax rate between fiscal year 2014 and 2013 was primarily due to the mix
of income and losses in the various tax jurisdictions in which we operate and a tax benefit of $14.3 million during
fiscal year 2014, related to the reversal of uncertain tax positions resulting from the expiration of the statutes of
limitations. In fiscal year 2013, there was a tax benefit of $35.6 million related to the reversal of uncertain tax
positions resulting from the closure of federal income tax examinations in the United States.
The change in the effective income tax rate between fiscal year 2013 and 2012 was primarily due to the mix
of income and losses in the various tax jurisdictions in which we operate and a tax benefit of $35.6 million during
fiscal year 2013, related to the reversal of uncertain tax positions resulting from the closure of federal income tax
examinations in the United States.
The federal research tax credit in the United States has expired as of December 31, 2013. The income tax
expense for the fiscal year ended March 31, 2014 reflected a $0.8 million tax benefit for research tax credits.
As of March 31, 2014 and March 31, 2013, the total amount of unrecognized tax benefits due to uncertain tax
positions was $91.0 million and $95.4 million, respectively, of which $86.1 million and $90.3 million would affect
the effective income tax rate if recognized, respectively.
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