Logitech 2005 Annual Report Download - page 70

D. Property, plant and equipment
Logitech’s Europe headquarters are in Romanel-sur-Morges, Switzerland. This Company-owned facility
comprises 33,300 square feet and includes research and development, product marketing, technical support,
administration and certain Logitech group activities including finance. The Company leases an additional 8,400
square feet in Morges, Switzerland to supplement the space of the owned facility; sales and marketing, including
sales management, are located in this facility. This lease expires in May 2009, with the option for Logitech to
terminate the lease in May 2007. In addition, the Company has signed a lease on a new facility to be built, also
located in Morges, Switzerland. It is anticipated that this new facility will be available for occupation in Spring
2007. The facility will comprise approximately 38,000 square feet, with the option to extend the space to 50,000
square feet, and will include sales and marketing management, technical support, administration and certain
Logitech group activities, including finance. The lease is expected to begin in January 2007 and will continue for
10 years, with the option for Logitech to terminate the lease after 5 years.
Logitech’s U.S. subsidiary has headquarters in Fremont, California in three leased buildings comprised of
approximately 148,000 square feet. These facilities are occupied by Logitech’s Americas headquarters, including
research and development, product marketing, sales management, technical support and administration. The
Company’s Fremont lease expires in March 2013. The audio business unit is located in 25,000 square feet of
leased office space in Vancouver, Washington. The Company also leases an 80,000 square foot warehouse
facility in Vancouver, Washington. Both of these leases have terms through April 2006. The warehouse facility is
no longer being used because the Company has moved all of its North American distribution to a third-party
facility in Memphis, Tennessee.
Logitech’s subsidiary, 3Dconnexion, has leased a 4,600 square foot office in Los Gatos, California through
the year 2006. In Seefeld, Germany, 3Dconnexion has leased 15,000 square feet through the year 2010 for its
European headquarters, research and development, and manufacturing. In addition, 3Dconnexion leases sales
offices in Michigan, Texas, France and Poland with various expiration dates through 2006.
Logitech also has sales offices in more than 40 locations in 23 countries. These offices are leased with
various expiration dates from 2005 to 2015.
Logitech’s worldwide operations headquarters are in a Company-owned 112,000 square foot facility in
Hsinchu, Taiwan, and includes mechanical engineering, new product launches, process engineering, commodities
management, logistics, quality assurance, and administration. Personnel in Hsinchu manage distribution of product
throughout Asia through the use of externally administered warehouses in Taiwan, China and Singapore. Logitech’s
high-volume manufacturing is located in Suzhou, China, in a Company-owned 253,700 square foot building and a
leased 91,500 square foot building. The lease on the building expires in July 2008. The Company is currently
expanding its Suzhou operations with the construction of a new factory to provide for additional production capacity
to meet future demand. The completed new site will include approximately 600,000 square feet of factory space and
include dormitory space to house the Company’s workforce. The facility will initially have 30% greater capacity
than the Company’s existing Suzhou factory as well as the potential to double beyond that. The Company expects
construction of the new site to be completed and operations to commence in the summer of 2005.
In addition to its distribution centers in Asia, Logitech has major distribution centers in Memphis,
Tennessee and in the Netherlands. The Memphis facility is contracted with a warehouse management company
that leases and manages the distribution center for Logitech. The Memphis warehouse facility is 474,400 square
feet, and the arrangement with the management company is through April 2006. The Company has two
distribution centers in the Netherlands; the Company’s main European distribution location is located in Venray,
Netherlands and a smaller facility is located in Venlo, Netherlands. Both facilities are contracted with warehouse
management companies that lease and manage the distribution centers for Logitech. The Venray warehouse is
approximately 263,000 square feet and the arrangement with the management company is through December
2006. The Venlo facility is approximately 129,000 square feet, and the arrangement with the management
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