Logitech 2006 Annual Report Download - page 157

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LOGITECH INTERNATIONAL S.A., APPLES
NOTES TO SWISS STATUTORY FINANCIAL STATEMENTS
Note 1 — Basis of Presentation:
The Swiss statutory financial statements of Logitech International S.A. (“the Holding Company”) are
prepared in accordance with Swiss Law. The financial statements present the financial position and results of
operations of the Holding Company on a standalone basis and do not represent the consolidated financial position
of the Holding Company and its subsidiaries.
Note 2 — Contingent Liabilities:
Logitech International S.A. issued guarantees to various banks for CHF 34,220,900 for lines of credit
available to its subsidiaries. At March 31, 2006 the aforementioned credit line facilities were not drawn down.
Logitech International S.A. purchases foreign exchange contracts for and on behalf of an operating
subsidiary. The notional amount of foreign exchange contracts outstanding at March 31, 2006 was
CHF 17’753’440. The notional amount represents the future cash flows under contracts to purchase foreign
currencies. Net unrecognized gains totaled CHF 273,000 at March 31, 2006. Such contracts were purchased for
and on behalf of an operating subsidiary and any gain or loss will be effectively transferred to the subsidiary on
maturity.
Note 3 — Investments:
Principal operating subsidiaries include the following: Logitech Europe S.A., Logitech Hong Kong, Ltd.,
Logitech Inc., Suzhou Logitech Electronic Co. Ltd, and Logitech Technology Suzhou Co. Ltd. All subsidiaries
are directly or indirectly 100% owned by the Holding Company.
Note 4 — Treasury Shares:
During fiscal years 2005 and 2006, repurchases of and issuances from the Company’s treasury shares were
as follows (total cost in thousands):
Number of
shares Total cost
Held by the holding company at March 31, 2004 ............................ 5,804,256 CHF 136,590
Additions ....................................................... 5,550,000 167,670
Disposals ....................................................... (4,033,162) (86,387)
Held by the holding company at March 31, 2005 ............................ 7,321,094 CHF 217,873
Additions ....................................................... 6,137,757 307,223
Disposals ....................................................... (8,981,238) (286,389)
Over/ (under) valuation ............................................ (5,423)
Held by the holding company at March 31, 2006 ............................ 4,477,613 CHF 233,284
All references to the number of shares have been adjusted to reflect the effect of the share split undertaken
by the Holding Company in June 2005.
In April 2004, the Company announced a new buyback program of up to CHF 250,000,000 of the Holding
Company’s registered shares. The program expires at the Company’s 2006 Annual General Meeting. In June
2004, the Company’s shareholders approved a proposal authorizing the number of share repurchases to exceed
10% of the Company’s share capital. At March 31, 2006, the Company had repurchased 7,487,257 registered
shares, under this program, for approximately CHF 250,000,000.
LISA-5
CG
20-F