Logitech 2014 Annual Report Download - page 292

LOGITECH INTERNATIONAL S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
defined benefit pension plans caused by the number of plan participants affected by this restructuring, which was
not included in the restructuring charges since it related to prior services. The Company substantially completed
this restructuring plan by the fourth quarter of fiscal year 2014.
During the first quarter of fiscal year 2013, the Company implemented a restructuring plan to simplify its
organization, better align its costs with its current business and to free up resources to pursue growth opportunities.
A majority of the restructuring activity was completed during the first quarter of fiscal year 2013. As part of
this restructuring plan, the Company reduced its worldwide non-direct labor workforce. During fiscal year 2013,
restructuring charges under this plan included $25.9 million in termination benefits, $1.3 million in legal, consulting,
and other costs as a result of the terminations, and $1.3 million in lease exit costs associated with the closure
of existing facilities. Termination benefits are calculated based on regional benefit practices and local statutory
requirements. In addition, charges of $3.0 million related to the discontinuance of certain product development
efforts were included in cost of goods sold and a $2.2 million charge from the re-measurement of its Swiss defined
benefit pension plan caused by the number of plan participants affected by this restructuring, which was not
included in the restructuring charges since it related to prior services. The Company substantially completed this
restructuring plan by the fourth quarter of fiscal year 2013.
Termination benefits were calculated based on regional benefit practices and local statutory requirements.
Lease exit costs primarily relate to costs associated with the closure of existing facilities. Other charges primarily
consist of legal, consulting and other costs related to employee terminations.
Note 16 — Subsequent events
Repurchase of ESPP Awards
The Company was not current with its periodic reports required to be filed with the SEC and was therefore
unable to issue any shares under its Registration Statements on Form S-8 after July 31, 2014. Given the proximity
of the unavailability of those registration statements and the end of the current ESPP offering period, also on
July 31, 2014, the Compensation Committee authorized the termination of the current ESPP offering period and
a one-time payment to each participant in an amount equal to the fifteen percent (15%) discount at which shares
would otherwise have been repurchased pursuant to the current period of the ESPPs. This one-time payment was
accounted for as a repurchase of equity awards that reduced additional paid-in capital, resulting in no additional
compensation cost. Given the unavailability of the Company’s Registration Statements on Form S-8, no new ESPP
offering periods were initiated since July 31, 2014.
Dividend
On November 12, 2014, the Board approved, subject to approval by the Company’s shareholders and other
Swiss statutory requirements, a dividend of CHF 0.2625 per share.
Note 17 — Other Disclosures Required by Swiss Law
Balance Sheet Items
The amounts of certain balance sheet items were as follows (in thousands):
March 31,
2014 2013
Prepayments and accrued income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,681 $ 11,613
Non-current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $518,390 $535,570
Pension liabilities, current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,100 $ 994
Fire insurance value of property, plant and equipment . . . . . . . . . . . . . . . . . $214,020 $210,627
Note 15 — Restructuring (Continued)
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