Logitech 2004 Annual Report Download - page 82

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infrared codes, technology and brand name. Also, the agreement provides for possible performance-based
payments to the former shareholders of Intrigue tied to the achievement of certain future remote control revenue
targets. The amount of such payments, if any, will not be known until the end of the revenue measurement
period, which may be as late as fiscal year 2008.
The Company believes that its cash and cash equivalents, cash flow generated from operations, and
available borrowings under its bank lines of credit will be sufficient to fund capital expenditures and working
capital needs for the foreseeable future.
Contractual Obligations and Commitments
The following summarizes Logitech’s contractual obligations and commitments at March 31, 2004, and the
effect such obligations have on liquidity and cash flow in future periods. The Company’s outstanding debt
obligations included: (i) borrowings outstanding on its convertible bonds, (ii) amounts owed on its Swiss
mortgage loan, (iii) amounts drawn on its credit lines and (iv) equipment financed under capital leases (in
thousands).
Total
Year ending March 31,
2005 2006-2007 2008-2009 Thereafter
Convertible bonds ............................. $137,008 $ — $137,008 $ — $ —
Swissmortgageloan ........................... 3,621 3,621 — —
Lines of credit ................................ 10,112 10,112 — — —
Capital leases ................................. 399 399 — — —
Operating leases ............................... 34,400 5,697 9,482 7,897 11,324
Fixedpurchasecommitments–inventory........... 104,643 104,643 — — —
Fixed purchase commitments – capital and other ..... 5,444 4,426 1,018 — —
Other long-term liabilities ....................... 931 — 387 — 544
Total contractual obligations and commitments ...... $296,558 $128,898 $147,895 $7,897 $11,868
For additional information on the Company’s outstanding debt obligations, see Note 7. “Financing
Arrangements” of the Notes to Consolidated Financial Statements.
Lease Commitments
As of March 31, 2004, the Company had total outstanding commitments on non-cancelable operating leases
totaling $34.4 million. Remaining terms on the Company’s operating leases expire in various years through 2015.
Purchase Commitments
The Company has fixed purchase commitments primarily for inventory and capital expenditures. The
inventory purchase commitments are made in the normal course of business and are to original design
manufacturers, contract manufacturers and other suppliers. Commitments for capital expenditures are primarily
for computer hardware and software, warehouse facilities and tooling.
Off-Balance Sheet Arrangements
The Company has not entered into any transactions with unconsolidated entities whereby the Company has
financial guarantees, subordinated retained interests, derivative instruments or other contingent arrangements that
expose it to material continuing risks, contingent liabilities, or any other obligation under a variable interest in an
unconsolidated entity that provides financing, liquidity, market risk or credit risk support to the Company.
Guarantees
The Company has guaranteed the purchase obligations of some of its contract manufacturers and original
design manufacturers to certain component suppliers. These guarantees have a term of one year and are
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