Logitech 2006 Annual Report Download - page 141

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LOGITECH INTERNATIONAL S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
A summary of activity under the stock option plans is as follows (exercise prices are weighted averages):
Year ended March 31,
2006 2005 2004
Number
Exercise
Price Number
Exercise
Price Number
Exercise
Price
Outstanding, beginning of
year ..................... 12,948,662 $16 14,328,196 $13 15,474,272 $11
Granted .................... 1,725,735 $38 2,593,460 $24 2,499,760 $17
Exercised .................. (3,238,116) $13 (3,657,356) $11 (3,155,288) $ 8
Cancelled or expired .......... (632,309) $20 (315,638) $18 (490,548) $17
Outstanding, end of year ....... 10,803,972 $19 12,948,662 $16 14,328,196 $13
Exercisable, end of year ....... 5,254,909 $14 5,561,180 $13 6,583,468 $10
The following table summarizes information regarding stock options outstanding at March 31, 2006
(exercise prices and contractual lives are weighted averages):
Options Outstanding Options Exercisable
Range of Exercise Price Number
Exercise
Price
Contractual
Life (years) Number
Exercise
Price
$ 2–$10.99 ................... 1,325,958 $ 5 3.6 1,210,958 $ 5
$11–$14.99 ................... 1,777,584 $14 6.0 1,264,821 $ 14
$15–$17.99 ................... 2,974,024 $16 6.6 1,609,786 $ 16
$18–$22.99 ................... 2,397,821 $22 7.5 947,460 $ 21
$23–$35.99 ................... 972,050 $26 8.3 221,884 $ 25
$36–$47.99 ................... 1,356,535 $40 9.5 — $ —
$ 2–$47.99 ................... 10,803,972 $20 6.9 5,254,909 $ 14
Defined Contribution Plans
Certain of the Company’s subsidiaries have defined contribution employee benefit plans covering all or a
portion of their employees. Contributions to these plans are discretionary for certain plans and are based on
specified or statutory requirements for others. The charges to expense for these plans for the years ended
March 31, 2006, 2005 and 2004, were $5.9 million, $4.7 million and $5.1 million.
Defined Benefit Plan
One of the Company’s subsidiaries sponsors a noncontributory defined benefit pension plan covering
substantially all of its employees. Retirement benefits are provided based on employees’ years of service and
earnings. The Company’s practice is to fund amounts sufficient to meet the requirements set forth in the
applicable employee benefit and tax regulations. Net pension costs for the years ended March 31, 2006, 2005 and
2004 were $.8 million, $1.2 million and $.9 million. The plan’s net pension liability at March 31, 2006 and 2005
was $3.2 million and $2.5 million.
Deferred Compensation Plan
One of the Company’s subsidiaries offers a management deferred compensation plan which permits eligible
employees to make 100%-vested salary and incentive compensation deferrals within established limits, which are
invested in Company-owned life insurance contracts held in a Rabbi Trust. The Company does not make
F-18