Logitech 2012 Annual Report Download - page 231

LOGITECH INTERNATIONAL S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 — The Company
Logitech is a world leader in products that connect people to the digital experiences they care about. Spanning
multiple computing, communications and entertainment platforms, we develop and market innovative hardware
and software products that enable or enhance digital navigation, music and video entertainment, gaming, social
networking, audio and video communication over the Internet, video security and home-entertainment control. Our
products for home and business PCs (personal computers) include mice, trackballs, keyboards, interactive gaming
controllers, multimedia speakers, headsets, webcams, and lapdesks. Our tablet accessories include keyboards,
keyboard cases and covers, headsets, wireless speakers, and stands. Our Internet communications products
include webcams, headsets, video communication services, and digital video security systems. Our digital music
products include speakers, earphones, custom in-ear monitors, and Squeezebox Wi-Fi music players. For home
entertainment systems, we offer the Harmony line of advanced remote controls. For gaming consoles, we offer a
range of gaming controllers and microphones, as well as other accessories. Our video conferencing segment offers
scalable HD (high-definition) video communications endpoints, HD video conferencing systems with integrated
monitors, video bridges and other infrastructure software and hardware to support large-scale video deployments,
and services to support these products.
We sell our peripheral products to a network of distributors, retailers and OEMs (original equipment
manufacturers). We sell our video conferencing products and services to distributors, value-added resellers, OEMs,
and, occasionally, direct enterprise customers. The large majority of our revenues have historically been derived
from sales of our peripheral products for use by consumers.
Logitech was founded in Switzerland in 1981, and Logitech International S.A. has been the parent holding
company of Logitech since 1988. Logitech International S.A. is a Swiss holding company with its registered office
in Apples, Switzerland, which conducts its business through subsidiaries in the Americas, EMEA (Europe, Middle
East, Africa) and Asia Pacific. Shares of Logitech International S.A. are listed on both the Nasdaq Global Select
Market, under the trading symbol LOGI, and the SIX Swiss Exchange, under the trading symbol LOGN.
Note 2 — Summary of Significant Accounting Policies
Basis of Presentation
The consolidated financial statements include the accounts of Logitech and its subsidiaries. All intercompany
balances and transactions have been eliminated. The consolidated financial statements are presented in accordance
with U.S. GAAP (accounting principles generally accepted in the United States of America).
Certain prior year financial statement amounts have been reclassified to conform to the current year
presentation with no impact on previously reported net income.
Fiscal Year
The Company’s fiscal year ends on March 31. Interim quarters are thirteen-week periods, each ending on a
Friday. For purposes of presentation, the Company has indicated its quarterly periods as ending on the month end.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make
judgments, estimates and assumptions that affect reported amounts of assets, liabilities, net sales and expenses,
and the disclosure of contingent assets and liabilities. Although these estimates are based on management’s best
knowledge of current events and actions that may impact the Company in the future, actual results could differ
from those estimates.
ANNUAL REPORT
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