Logitech 2013 Annual Report Download - page 124

marketing arrangements, advertising, outsourced customer services, information technology maintenance and
support services, and other services. Fixed purchase commitments for capital expenditures amounted to $16.5 million
at March 31, 2013, and primarily relate to commitments for computer hardware and leasehold improvements. We
expect to continue making capital expenditures in the future to support product development activities and ongoing
and expanded operations. Although open purchase commitments are considered enforceable and legally binding,
the terms generally allow us the option to reschedule and adjust our requirements based on business needs prior to
delivery of goods or performance of services.
Income Taxes Payable
At March 31, 2013, we had $98.8 million in non-current income taxes payable, including interest and penalties,
related to our income tax liability for uncertain tax positions, compared with $137.3 million in non-current taxes
payable as of March 31, 2012. The decline in income tax liability associated with uncertain tax positions in the
amount of $38.5 million is primarily due to $38.9 million from the effective settlement of income tax examinations
in the U.S.
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.
Obligation for Management Deferred Compensation
At March 31, 2013, we had $15.6 million in liabilities related to a deferred compensation plan offered by one
of our subsidiaries. See Note 4, Employee Benefit Plans, for more information.
Pension and Post-Employment Obligations
At March 31, 2013, we had $40.3 million in liabilities related to our defined benefit pension plans and
non-retirement post-employment benefit obligations, of which $4.4 million is payable in the next 12 months. See
Note 4, Employee Benefit Plans, for more information.
Off-Balance Sheet Arrangements
We have 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 us.
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 $30.0 million. At March 31,
2013, there were no purchase obligations outstanding for which the parent holding company was required to
guarantee payment.
Logitech Europe S.A., a subsidiary of the parent holding company, has guaranteed the purchase obligations of
another Logitech subsidiary under two guarantee agreements. One of these guarantees does not specify a maximum
amount. The remaining guarantee has a total limit of $7.0 million. As of March 31, 2013, $0.1 million of guaranteed
purchase obligations were outstanding under these guarantees. Logitech Europe S.A. has also guaranteed payment
of the purchase obligations of a third-party contract manufacturer under two guarantee agreements. The maximum
amount of these guarantees was $3.8 million as of March 31, 2013. As of March 31, 2013, $2.0 million of guaranteed
purchase obligations were outstanding under these agreements.
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