Logitech 2012 Annual Report Download - page 192

Income Taxes Payable
At March 31, 2012, we had $137.3 million in non-current income taxes payable, including interest and
penalties, related to our income tax liability for recognized uncertain tax positions, compared with $132.0 million
in non-current taxes payable as of March 31, 2011. As specific payment dates for these obligations are unknown, the
related balances have not been reflected in the ‘‘Payments Due by Period’’ section of the table.
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 1999. The U.S. Internal Revenue Service has completed its field
examinations of tax returns for the Company’s U.S. subsidiary for fiscal years 2006 and 2007, and has issued
NOPAs (notices of proposed adjustment) related to international tax issues for those years. The Company disagrees
with the NOPAs and is contesting through the administrative process for the U.S. Internal Revenue Service claims
regarding 2006 and 2007. The Company believes the outcome of this examination will not have a material adverse
effect on our consolidated operating results.
In addition, the U.S. Internal Revenue Service is in the process of examining the Company’s U.S. subsidiary
for fiscal years 2008 and 2009. The Company is also 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 income tax expense. If the examinations are resolved unfavorably, there is a possibility they may have
a material negative impact on our results of operations.
Although the Company believes it 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.
Although the timing of the resolution or closure on audits is highly uncertain, the Company does not believe it is
reasonably possible that the unrecognized tax benefits would materially change in the next twelve months.
Obligation for Management Deferred Compensation
At March 31, 2012, we had $14.4 million in liabilities related to a deferred compensation plan offered by one
of the Company’s subsidiaries. As specific payment dates for these obligations are unknown, the related balances
have not been reflected in the ‘‘Payments Due by Period’’ section of the table. See Note 4—Employee Benefit Plans
for more information.
Pension and Post-Employment Obligations
At March 31, 2012, we had $43.5 million in liabilities related to our defined benefit pension plans and
non-retirement post-employment benefit obligations, of which $4.1 million is payable in the next 12 months. As
specific payment dates for these obligations are unknown beyond a 12-month period, the related balances have
not been reflected in the ‘‘Payments Due by Period’’ section of the table. See Note 4—Employee Benefit Plans for
more information.
Off-Balance Sheet Arrangements
The Company has not entered into any transactions with unconsolidated entities whereby we have financial
guarantees, subordinated retained interests, derivative instruments or other contingent arrangements that expose
us 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
Logitech International S.A., the parent holding company, has guaranteed payment of the purchase obligations
of various subsidiaries from certain component suppliers. These guarantees generally have an unlimited term.
The maximum potential future payment under the guarantee arrangements is limited to $36.0 million. At
March 31, 2012, there were no purchase obligations outstanding for which the parent holding company was required
to guarantee payment.
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