Logitech 2013 Annual Report Download - page 174

LOGITECH INTERNATIONAL S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
at the end of the performance period upon meeting certain share price performance criteria measured against
market conditions. The performance period is four years for performance-based options granted in fiscal year 2013.
The performance period is three years for performance-based RSU grants made in fiscal years 2013, 2012 and 2011.
An aggregate of 24,800,000 shares was reserved for issuance under the 2006 Plan. As of March 31, 2013, a total of
10,156,268 shares were available for issuance under this plan.
Under the 2012 Stock Inducement Equity Plan, stock options and RSUs may be granted to eligible employees
to serve as inducement material to enter into employment with the Company. Awards under the 2012 Stock
Inducement Equity Plan may be conditioned on continued employment, the passage of time or the satisfaction of
performance vesting criteria, based on individual written employment offer letter and subject to change. The 2012
Stock Inducement Equity Plan has an expiration date of March 28, 2022. An aggregate of 1,800,000 shares was
reserved for issuance under the 2012 Stock Inducement Equity Plan. As of March 31, 2013, no shares were available
for issuance under this plan.
A summary of the Company’s stock option activity for fiscal years 2013, 2012 and 2011 is as follows (in
thousands, except per share data; exercise prices are weighted averages):
Year ended March 31,
2013 2012 2011
Number
Exercise
Price Number
Exercise
Price Number
Exercise
Price
Outstanding, beginning of year. . . . . . . . . . . . 13,034 $ 19 16,312 $ 19 20,037 $18
Granted. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,718 $ 8 — $ — 294 $16
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . (389) $ 6 (316) $ 8 (2,747) $10
Cancelled or expired . . . . . . . . . . . . . . . . . (2,679) $ 20 (2,962) $ 22 (1,272) $21
Outstanding, end of year . . . . . . . . . . . . . . . . . 13,684 $ 16 13,034 $ 19 16,312 $19
Exercisable, end of year. . . . . . . . . . . . . . . . . . 9,355 $ 19 10,867 $ 20 11,205 $20
The total pretax intrinsic value of stock options exercised during the fiscal years ended March 31, 2013, 2012
and 2011 was $1.1 million, $0.8 million and $23.9 million and the tax benefit realized for the tax deduction from
options exercised during those periods was $0.3 million, $0.2 million and $7.4 million. The total fair value of
options vested as of March 31, 2013, 2012 and 2011 was $60.5 million, $76.0 million and $74.3 million.
The fair value of employee stock options granted and shares purchased under the Company’s employee
purchase plans was estimated using the Black-Scholes-Merton option-pricing valuation model applying the
following assumptions and values.
Year ended March 31,
2013 2012 2011 2013 2012 2011 2013 2012 2011 2013 2012 2011
Purchase
Plans
Stock Option
Plans
Premium-Priced
Options
Performance
Stock Option
Plan
Dividend yield . . . . . . . . 0% 0% 0% 0% n/a 0% 0% n/a n/a 0% n/a n/a
Expected life . . . . . . . . . 6 months 6 months 6 months 6 years n/a 4 years 7 years n/a n/a 6 years n/a n/a
Expected volatility . . . . 47% 52% 35% 46% n/a 48% 46% n/a n/a 44% n/a n/a
Risk-free interest rate . . 0.09% 0.13% 0.16% 1.20% n/a 1.57% 2.00% n/a n/a 1.93% n/a n/a
Note 4 — Employee Benefit Plans (Continued)
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