Logitech 2004 Annual Report Download - page 112

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LOGITECH INTERNATIONAL S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Note 6 — Goodwill and Other Intangible Assets:
The Company’s acquired other intangible assets subject to amortization were as follows (in thousands):
March 31, 2004 March 31, 2003
Gross
Carrying
Amounts
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amounts
Accumulated
Amortization
Net
Carrying
Amount
Trademark/tradename ................. $15,985 $ (9,208) $ 6,777 $15,671 $ (7,040) $ 8,631
Existing and core technology ........... 17,323 (11,557) 5,766 17,323 (8,431) 8,892
$33,308 $(20,765) $12,543 $32,994 $(15,471) $17,523
For the years ended March 31, 2004, 2003, and 2002 amortization expense for other intangible assets was
$5.2 million, $5.0 million and $3.7 million. Estimated future annual amortization expense for other intangible
assets will be $5.1 million, $3.4 million, $2.6 million, $1.1 million, and $.3 million for fiscal years ending 2005,
2006, 2007, 2008 and 2009.
The Company performs its annual goodwill impairment test during its fiscal fourth quarter. While the
Company has fully integrated all of its acquired companies, the Company continues to maintain discrete financial
information for 3Dconnexion and, accordingly, determines impairment of the goodwill acquired with the
3Dconnexion acquisition at the entity level. All other acquired goodwill is evaluated for impairment at the total
enterprise level. Based on impairment tests performed, there has been no impairment of the Company’s goodwill
to date.
Note 7 — Financing Arrangements:
Short-term Credit Facilities
The Company had several uncommitted, unsecured bank lines of credit aggregating $71.7 million at
March 31, 2004. Borrowings outstanding were $10.1 million and $8.9 million at March 31, 2004 and 2003. The
borrowings under these agreements were denominated in Japanese yen at a weighted average annual interest rate
of 1.3% and 1.4% at March 31, 2004 and 2003, and were due on demand.
Long-term Debt
Long-term debt comprised of the following (in thousands):
March 31,
2004 2003
Convertible bonds ................................................. $137,008 $127,722
Renewable Swiss mortgage loan due April 2004, bearing interest at 4%,
collateralized by properties with net book values aggregating $2.2 million at
March 31, 2004 ................................................. 3,621 3,409
Capital lease obligation, with repayments of $.4 million in fiscal year 2005 .... 399 1,730
Total long-term debt ............................................... 141,028 132,861
Less current maturities ............................................. 4,020 1,246
Long-term portion ................................................. $137,008 $131,615
F-15