Logitech 2007 Annual Report Download - page 110

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Withholding Tax
Under Swiss law, any dividends paid in respect of shares will be subject to the Swiss Anticipatory Tax at the
rate of 35%, and the Company will be required to withhold tax at this rate from any dividends paid to a holder of
registered shares. Such dividend payments may qualify for refund of the Swiss Anticipatory Tax by reason of the
provisions of a double tax treaty between Switzerland and the country of residence or incorporation of a holder,
and in such cases such holder will be entitled to claim a refund of all or a portion of such tax in accordance with
such treaty.
The Swiss-U.S. tax treaty provides for a mechanism whereby a United States resident or United States
corporations can generally seek a refund of the Swiss Anticipatory Tax paid on dividends in respect of registered
shares, to the extent such withholding exceeds 15%.
F. Dividends and Paying Agents
Not applicable.
G. Statement by Experts
Not applicable.
H. Documents on Display
Whenever a reference is made in this Form 20-F to any contract, agreement or other document, the reference
may not be complete and you should refer to the copy of that contract, agreement or other document filed as an
exhibit to one of our previous SEC filings. We file annual and special reports and other information with the
SEC. You may read and copy all or any portion of this Form 20-F and any other document we file with the SEC
at the SEC’s public reference room at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at
1-800-SEC-0330 for further information about the public reference room. Such material may also be obtained at
the Internet site the SEC maintains at www.sec.gov.
I. Subsidiary Information
Not applicable.
ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market Risk
Market risk represents the potential for loss due to adverse changes in the fair value of financial instruments.
As a global concern, the Company faces exposure to adverse movements in foreign currency exchange rates and
interest rates. These exposures may change over time as business practices evolve and could have a material
adverse impact on the Company’s financial results.
Foreign Currency Exchange Rates
The Company is exposed to foreign currency exchange rate risk as it transacts business in multiple foreign
currencies, including exposure related to anticipated sales, anticipated purchases and assets and liabilities
denominated in currencies other than the U.S. dollar. Logitech transacts business in over 30 currencies
worldwide, of which the most significant to operations are the Euro, Chinese yuan renminbi (“CNY”), British
pound sterling, Taiwanese dollar, Mexican peso, Japanese yen and Canadian dollar. With the exception of its
operating subsidiaries in China, which use the U.S. dollar as their functional currency, Logitech’s international
operations generally use the local currency of the country as their functional currency. Accordingly, unrealized
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