Logitech 2001 Annual Report Download - page 35

NV
LOGITECH INTERNATIONAL S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Long-term Debt
March 31
2001 2000
(In thousands)
Renewable Swiss mortgage loan due April 2004, bearing interest at 4.0%,
collateralized by properties with net book values aggregating $1.9 million at March
31, 2001..................................................................................................................... $ 2,671 $ 2,774
Capital lease obligation, with repayments of $565,000 and $151,000 in fiscal 2001
and 2002.................................................................................................................... 716 504
Labtec long-term debt assumed by Logitech................................................................. 26,822 
Total long-term debt ...................................................................................................... 30,209 3,278
Less current maturities, including $2,736,000 Labtec current maturities....................... 3,301 344
Long-term portion.......................................................................................................... $26,908 $ 2,934
Labtec long-term debt assumed by Logitech was repaid in full on April 5, 2001. Proceeds from the bridge loan were
used to repay the Labtec debt. This debt consisted of a bank note payable, a subordinated note payable, and notes
payable to former Labtec shareholders.
Note 9 — Shareholders' Equity:
In June 2000, the Company’s shareholders approved a two-for-one stock split which took effect on July 5, 2000 and
was distributed to stockholders of record as of July 4, 2000. In fiscal 2000, the authorization for 200,000 registered shares
previously authorized by the Company’s shareholders expired unused, and in June 2000, the Company’s shareholders
approved an increase of 1 million authorized registered shares for use in acquisitions, mergers and other transactions.
In June 1998, the shareholders approved an increase of 600,000 conditional registered shares, par value CHF 10, the
issuance of which is conditional upon the exercise of stock options granted under the Company's stock option plans and
the issuance of shares under the Company's employee share purchase plans.
Pursuant to Swiss corporate law, Logitech International S.A. may only pay dividends in Swiss francs. The payment of
dividends is limited to certain amounts of unappropriated retained earnings (approximately $63 million at March 31, 2001)
and is subject to shareholder approval.
Under Swiss corporate law, a minimum of 5% of the Company's annual net income must be retained in a legal
reserve until this reserve equals 20% of the Company's issued and outstanding aggregate par value share capital.
Certain other countries in which the Company operates apply similar laws. These legal reserves represent an
appropriation of retained earnings that are not available for distribution and approximated $5 million at March 31, 2001.
Note 10 — Employee Benefit Plans:
Stock Compensation Plans
Employee Share Purchase Plans
Under the 1989 and 1996 Employee Share Purchase Plans (the "Purchase Plans"), eligible employees may purchase
registered shares at the lower of 85% of the fair market value at the beginning or the end of each six-month offering
period. Subject to continued participation in the Purchase Plans, purchase agreements are automatically exercised at the
end of each offering period.
Stock Option Plans
Under the 1988 Stock Option Plan (the "1988 Option Plan"), options to purchase registered shares were granted to
employees and consultants at exercise prices ranging from zero to amounts in excess of the fair market value of the
registered shares on the date of grant. The terms and conditions with respect to options granted were determined by the
Board of Directors who administered the 1988 Option Plan. Options generally vest over four years and remain
outstanding for periods not exceeding ten years. Further grants may not be made under this plan.
Under the 1996 Stock Option Plan, (the “1996 Option Plan”) options for registered shares may be granted to