Logitech 2013 Annual Report Download - page 178

LOGITECH INTERNATIONAL S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The Company recognizes the underfunded or overfunded status of defined benefit pension plans and non-
retirement post-employment benefit obligations as an asset or liability in its consolidated balance sheets, and
recognizes changes in the funded status of defined benefit pension plans in the year in which the changes occur
through accumulated other comprehensive income (loss), which is a component of shareholders’ equity. Each plan’s
assets and benefit obligations are measured as of March 31 each year.
The net periodic benefit cost of the defined benefit pension plans and the non-retirement post-employment
benefit obligations for fiscal years 2013, 2012 and 2011 was as follows (in thousands):
Year ended March 31,
2013 2012 2011
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,261 $ 6,295 $ 4,396
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800 2,205 1,745
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,688) (1,968) (1,818)
Amortization of net transition obligation . . . . . . . . . . . . . . . . . . . 5 5 4
Amortization of net prior service cost . . . . . . . . . . . . . . . . . . . . . 712 156 161
Settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,439 — 2
Recognized net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . 846 205 482
Net periodic benefit cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,375 $ 6,898 $ 4,972
The changes in projected benefit obligations for fiscal years 2013 and 2012 were as follows (in thousands):
Year Ended March 31,
2013 2012
Projected benefit obligation, beginning of year . . . . . . . . . . . . . . . . . . . . . . . $ 94,135 $76,145
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,261 6,295
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800 2,205
Plan participant contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,814 2,878
Actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,146 9,989
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,285) (3,812)
Plan amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,456) —
Settlement and curtailment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (18,737) —
Initial adoption of Japanese plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 86
Administrative expense paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (164) (197)
Foreign currency exchange rate changes. . . . . . . . . . . . . . . . . . . . . . . . . . (4,176) 546
Projected benefit obligation, end of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 86,338 $94,135
The accumulated benefit obligation for all defined benefit pension plans as of March 31, 2013 and 2012 was
$66.8 million and $72.8 million.
Note 4 — Employee Benefit Plans (Continued)
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