Logitech 2006 Annual Report Download - page 105

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Cash Flow from Financing Activities
The following tables present information on the Company’s cash flows from financing activities, including
information on its share repurchases during fiscal years 2006, 2005 and 2004 (in thousands except per share
amounts):
2006 2005 2004
Borrowings (repayments) of short-term debt ....... $ 5,235 $ (4,073) $ —
Repayments of long-term debt .................. (43) (475) (1,331)
Purchases of treasury shares .................... (241,352) (134,525) (79,162)
Proceeds from sale of shares upon exercise of
optionsandrights .......................... 49,206 45,985 31,404
Net cash used in financing activities ......... $(186,954) $ (93,088) $(49,089)
2006 2005 2004
Number of shares repurchased .................. 6,138 5,550 4,398
Value of shares repurchased .................... $241,352 $ 134,525 $ 79,162
Average price per share ....................... $ 39.32 $ 24.24 $ 18.00
Cash used in financing activities during fiscal year 2006 included treasury stock repurchases of 6,138,000
shares, totaling $241.4 million pursuant to the Company’s buyback programs. The buyback program announced
in April 2004 authorized the purchase of up to CHF 250 million (approximately $200 million based on exchange
rates at the date of announcement). The buyback program announced in June 2005 authorized the purchase of up
to CHF 300.0 million (approximately $235.0 million based on exchange rates at the date of announcement).
Proceeds included $49.2 million from the sale of 3,533,000 shares under the Company’s employee option and
share purchase plans and $5.2 million from short-term borrowing in Japanese yen, to benefit from low interest
rates and to offset exposures in yen-denominated assets. During fiscal year 2006, all of the Company’s
convertible bonds were converted into a total of 5,448,693 Logitech registered shares through delivery of
treasury shares which had no cash impact on financing activities.
Cash used in financing activities during fiscal year 2005 included treasury stock repurchases of 5,550,000
shares, totaling $134.5 million pursuant to the Company’s buyback program announced in April 2004. Debt
repayments totaling $4.5 million primarily related to the Company’s Swiss mortgage loan that matured in April
2004. Proceeds totaling $46.0 million were realized from the sales of shares pursuant to the Company’s
employee option and share purchase plans.
Cash used in financing activities during fiscal year 2004 included treasury stock repurchases totaling $79.2
million and repayment of debt obligations of $1.3 million. The Company completed purchases under its buyback
program announced in February 2003, purchasing 3,068,472 shares for $47.1 million. Also, pursuant to a new
program announced in October 2003, authorizing the purchase of up to CHF 40 million (approximately $32
million based on exchange rates at the date of announcement) of Logitech shares, the Company completed the
purchase of 1,330,000 shares for $32.1 million. The Company realized cash proceeds of $31.4 million from the
sale of shares pursuant to the Company’s employee option and share purchase plans in fiscal year 2004.
Cash Outlook
The Company’s working capital requirements and capital expenditures could increase to support future
expansion of Logitech operations. Future acquisitions or expansion of the Company’s operations may be
significant and may require the use of cash.
In June 2005, the Company announced the approval by its board of directors of a new buyback program of
up to CHF 300.0 million (approximately $235.0 million based on exchange rates at the date of announcement).
47
CG
LISA