Logitech 2003 Annual Report Download - page 50

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37
F. Dividends and Paying Agents
Not applicable.
G. Statement by Experts
Not applicable.
H. Documents on Display
Whenever a reference is made in this Form 20-F to any contract, agreement or other document, the reference may
not be complete and you should refer to the copy of that contract, agreement or other document filed as an exhibit to
one of our previous SEC filings. We file annual and special reports and other information with the SEC. You may
read and copy all or any portion of this Form 20-F and any other document we file with the SEC at the SEC's public
reference room at 450 Fifth Street, N.W., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for
further information about the public reference room. Such material may also be obtained at the internet site the SEC
maintains at www.sec.gov.
I. Subsidiary Information
Not applicable.
ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
Market Risk
Market risk represents the potential for loss due to adverse changes in the fair value of financial instruments. As a
global concern, the Company faces exposure to adverse movements in foreign currency exchange rates and interest
rates. These exposures may change over time as business practices evolve and could have a material adverse impact
on our financial results.
Foreign Currency Exchange Rates
Currently, the Company's primary exposures relate to non-U.S. dollar denominated sales in Europe and Asia and
non-U.S. dollar denominated operating expenses, inventory costs and long term debt in Europe and Asia. The
principal currencies creating foreign exchange rate risk for Logitech are the Euro, Taiwan Dollar, Swiss Franc and
Japanese Yen.
For the year ended March 31, 2003, approximately 49% of the Company's sales were denominated in non-U.S.
currencies. With the exception of our subsidiaries in China, which use the U.S. dollar as their functional currency, we
primarily use the local currencies of our foreign subsidiaries as the functional currency. Accordingly, unrealized
foreign currency gains or losses resulting from the translation of net assets denominated in foreign currencies to the
U.S. dollar are accumulated in the cumulative translation adjustment component of other comprehensive income in
shareholders' equity.
The table below provides information about our underlying transactions that are sensitive to foreign exchange
rate changes, primarily nonfunctional currency-denominated assets and liabilities. The table below represents the
U.S. dollar impact on our earnings of a 10% appreciation and a 10% depreciation of the functional currency as
compared to the transaction currency.