Logitech 2006 Annual Report Download - page 89

and make provisions for costs related to future waste. These costs are expected to be based on the Company’s
estimated market share of the total cost, which will depend on a number of factors, including administration,
recycling and treatment costs as well as the commercial cost of recycling.
Similar environmental legislation may be enacted in other geographies, the cumulative impact of which
could be significant. If such legislation is enacted in other countries, Logitech intends to develop compliance
programs as necessary. However, until that time, Logitech is not able to estimate any possible impact.
The effects on Logitech’s business of complying with other government regulations are limited to the cost
of allocation of the appropriate resources for agency fees and testing as well as the time it takes to obtain agency
approvals. The costs and schedule requirements are industry requirements and, therefore, do not represent an
undue burden relative to Logitech’s competitive position. As regulations change, the Company will modify its
products or processes to address these changes.
Seasonality
Sales of Logitech’s retail products are seasonal. Sales are typically highest during the third fiscal quarter,
due primarily to the increased demand for Logitech’s products during the year-end holiday buying season, and to
a lesser extent in the fourth fiscal quarter. Logitech sales in the first and second quarters can vary significantly as
a result of new product introductions and other factors. Accordingly, year-over-year comparisons are more
indicative of variability in the Company’s results of operations than quarter-over-quarter comparisons.
Materials
Logitech purchases some of its products and key components used in the Company’s products from a
limited number of sources. Refer to the discussion in Item 3D Risk Factors – “We purchase key components and
products from a limited number of sources, and our business and operating results could be harmed if supply
were delayed or constrained or if there were shortages of required components.”
C. Organizational Structure
The following lists the Company’s significant subsidiaries:
Name
Country of
Incorporation
Ownership
Interest
Logitech Inc. ......................................... U.S. 100%
Logitech Hong Kong, Ltd. .............................. HongKong 100%
Logitech Far East Ltd. .................................. Taiwan 100%
Logitech Technology (Suzhou) Co. Ltd. ................... China 100%
Logitech Europe S.A. .................................. Switzerland 100%
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 50,000 square feet and will include sales and marketing
management, technical support, administration and certain Logitech group activities, including finance, legal and
human resources. 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.
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