Logitech 2012 Annual Report Download - page 275

LOGITECH INTERNATIONAL S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(1) Each option provides the right to purchase one share at the exercise price. For executive officers, the options
become exercisable over four years in equal annual installments from the date of grant. For non-executive
Directors, the options become exercisable over three years in equal annual installments from the date of
grant. PRSUs granted to executive officers are performance-based restricted stock units that may vest at the
end of two or three years from the grant date upon meeting certain minimum share price performance criteria
measured against market conditions. RSUs granted to executive officers are time-based restricted stock units
that vest in four equal annual installments from the date of grant. RSUs granted to non-executive Directors
vest in one installment on the grant date anniversary.
(2) The number of shares held includes (a) 53,000 shares held by a charitable foundation, of which Mr. Borel and
other members of his family are board members and (b) 6,500 shares held by Mr. Borel’s spouse. Mr. Borel
has not entered into any written shareholders’ agreements.
(3) One of the option grants to Mr. Chua has an exercise price of CHF 13.00, and the other has a U.S. dollar
exercise price of $19.43. For the grant denominated in Swiss francs, the U.S. dollar exercise price is based on
the Swiss franc to U.S. dollar conversion rate on the trading day immediately preceding the grant date. The
U.S. dollar exercise price as of March 31, 2012 was $14.44.
(4) The exercise price of the option as granted to Ms. Davis is CHF 34.45. The U.S. dollar exercise price shown
is based on the Swiss franc to U.S. dollar conversion rate on the trading day immediately preceding the grant
date. The U.S. dollar exercise price as of March 31, 2012 was $38.26.
(5) The exercise price of the option as granted to Mr. Laube is CHF 26.18. The U.S. dollar exercise price shown
is based on the Swiss franc to U.S. dollar conversion rate on the trading day immediately preceding the grant
date. The U.S. dollar exercise price as of March 31, 2012 was $29.08.
(6) The two option grants to Ms. Ribar have exercise prices of CHF 14.68 and CHF 34.45. The U.S. dollar exercise
prices are based on the Swiss franc to U.S. dollar conversion rate on the trading day immediately preceding
the grant dates. The U.S. dollar exercise prices as of March 31, 2012 was $16.30 and $38.26.
Risk Assessment
At a company-wide level, Logitech’s internal audit function coordinates management’s risk assessment
process, which encompasses financial and operational risks, and reports to senior management and to the Audit
Committee of the Board of Directors. Material risks are assessed and discussed by the Board of Directors. Financial
risk assessment and management is integrated into the functions of the Company’s Treasury, Finance and Business
divisions operations, with oversight from the executive and treasury committees. Financial reporting risk is
addressed through the Company’s Corporate Accounting, Financial Reporting and SOX Compliance operations
and processes. Operational risk assessment and management is integrated into the functions of the Company’s
Business divisions, with support from specialized departments such as Quality, Supply Chain, Legal and Finance.
Material financial and financial reporting risks are reported to and reviewed with the Audit Committee and the
Board of Directors as appropriate, and material operational risks are reported to and reviewed with the Board of
Directors.
Note 16 — Other Disclosures Required by Swiss Law (Continued)
ANNUAL REPORT
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