Logitech 2012 Annual Report Download - page 281

LOGITECH INTERNATIONAL S.A., APPLES
NOTES TO SWISS STATUTORY FINANCIAL STATEMENTS
Note 1 — Basis of Presentation:
The Swiss statutory financial statements of Logitech International S.A. (“the Holding Company”) are prepared
in accordance with Swiss Law. The financial statements present the financial position and results of operations of
the Holding Company on a standalone basis and do not represent the consolidated financial position of the Holding
Company and its subsidiaries.
Note 2 — Contingent Liabilities:
The Holding Company issued guarantees to various banks for CHF 29,878,000 and CHF 91,205,000 at
March 31, 2012 and March 31, 2011 for lines of credit available to its subsidiaries. At March 31, 2012 the credit line
facilities were not drawn down.
The 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 CHF 32,456,277. At March 31, 2012, there were no purchase
obligations outstanding for which the Holding Company was required to guarantee payment.
Note 3 — Financing Arrangements:
In December 2011, the Holding Company entered into a Senior Revolving Credit Facility Agreement with a
group of primarily Swiss banks that provides for a revolving multicurrency unsecured credit facility in an amount
of up to $250 million. The Holding Company may, upon notice to the lenders and subject to certain requirements,
arrange with existing or new lenders to provide up to an aggregate of $150 million in additional commitments,
for a total of $400 million of unsecured revolving credit. The credit facility may be used for working capital,
general corporate purposes, and acquisitions. There were no outstanding borrowings under the credit facility at
March 31, 2012.
The credit facility matures on October 31, 2016. The Holding Company may prepay the loans under the credit
facility in whole or in part at any time without premium or penalty. Borrowings under the credit facility will accrue
interest at a per annum rate based on LIBOR (London Interbank Offered Rate), or EURIBOR (Euro Interbank
Offered Rate) in the case of loans denominated in euros, plus a variable margin determined quarterly based on the
ratio of senior debt to earnings before interest, taxes, depreciation and amortization for the preceding four-quarter
period, plus, if applicable, an additional rate per annum intended to compensate the lenders for the cost of compliance
with regulatory reserve requirements and other banking regulations. The Holding Company also pays a quarterly
commitment fee of 40% of the applicable margin on the available commitment. In connection with entering into
the credit facility, the Holding Company incurred non-recurring fees totaling $1.5 million, which are amortized on
a straight-line basis over the term of the credit facility.
The facility agreement contains representations, covenants and events of default customary in Swiss credit
markets. Affirmative covenants include covenants regarding reporting requirements, maintenance of insurance,
maintenance of properties and compliance with applicable laws and regulations, and financial covenants that
require the maintenance of net senior debt, interest cover and adjusted equity ratios determined in accordance
with the terms of the facility. Negative covenants limit the ability of the Holding Company and its subsidiaries,
among other things, to grant liens, make investments, incur debt, make restricted payments, enter into a merger or
acquisition, or sell, transfer or dispose of assets, in each case subject to certain exceptions. As of March 31, 2012,
the Holding Company was in compliance with all covenants and conditions.
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ANNUAL REPORT