Logitech 2014 Annual Report Download - page 274

LOGITECH INTERNATIONAL S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The aggregate changes in gross unrecognized tax benefits in fiscal years 2014, 2013 and 2012 were as follows
(in thousands):
March 31, 2011 (As Restated) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $130,498
Lapse of statute of limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,760)
Decreases in balances related to tax positions taken during prior years . . . . . . . . . . . . . . . . . . . . . (1,200)
Increases in balances related to tax positions taken during the year . . . . . . . . . . . . . . . . . . . . . . . . 14,350
March 31, 2012 (As Restated) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $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 (As Revised) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 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
The Company recognizes interest and penalties related to unrecognized tax positions in income tax expense.
The Company recognized $1.1 million, $1.0 million and $1.2 million in interest and penalties in income tax expense
during fiscal years 2014, 2013 and 2012, respectively. As of March 31, 2014, 2013 and 2012, the Company had
$5.6 million, $6.6 million and $7.5 million of accrued interest and penalties related to uncertain tax positions,
respectively.
The Company files Swiss and foreign tax returns. For all these tax returns, the Company is generally not
subject to tax examinations for years prior to fiscal year 2001. The Company is under examination and has received
assessment notices in other tax jurisdictions. At this time, the Company is not able to estimate the potential impact
that these examinations may have on its income tax expense. 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 2015, 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 foreign currencies. Excluding these factors, uncertain tax positions
may decrease by as much as $16.0 million to $18.3 million primarily from the lapse of the statutes of limitations in
various jurisdictions during the next 12 months.
Note 7 — Income Taxes (Continued)
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