Logitech 2008 Annual Report Download - page 43

Download and view the complete annual report

Please find page 43 of the 2008 Logitech annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 124

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124

21
Contractual Obligations and Commitments
As of March 31, 2008, the Company’s outstanding contractual obligations and commitments included:
(i) equipment financed under capital leases, (ii) facilities leased under operating lease commitments, (iii)
purchase commitments and obligations and (iv) long-term liabilities for income taxes payable. The following
summarizes our contractual obligations and commitments at March 31, 2008 (in thousands):
Payments Due by Period(1)
Total
Less than
1 year 1-3 years 3-5 years
More than
5 years
Operating leases .............................. $ 57,543 $ 13,013 $18,628 $ 14,206 $ 11,696
Purchase commitments - inventory ............... 144,064 144,064 — — —
Purchase obligations - capital expenditures ......... 13,560 13,560 — — —
Purchase obligations - operating expenses. . . . . . . . . . 33,588 33,588 — — —
Other long-term liabilities(2) ..................... 123,382 — — — —
Total contractual obligations and commitments ..... $372,137 $ 204,225 $18,628 $ 14,206 $ 11,696
(1) The table above does not include the performance based payments that we may have to make as part
of our acquisition agreements described above.
(2) Other long-term liabilities at March 31, 2008 included $14.8 million for deferred compensation, $95.0
million related to our FIN 48 income tax liability, $12.3 million in pension liability related to our
defined benefit pension plans and $1.2 million related to various other obligations. As the specific
payment dates for these obligations are unknown, the related balances have not been reflected in the
“Payments Due by Period” section of the table.
Operating Leases
The remaining terms on our non-cancelable operating leases expire in various years through 2023.
Our asset retirement obligations on these leases as of March 31, 2008 were not material.
Purchase Commitments
We expect to continue making capital expenditures in the future to support product development
activities and ongoing and expanded operations. At March 31, 2008, fixed purchase commitments for
capital expenditures amounted to $13.6 million, and primarily related to commitments for manufacturing
equipment, tooling, computer software and computer hardware. We also have commitments for inventory
purchases made in the normal course of business to original design manufacturers, contract manufacturers
and other suppliers. At March 31, 2008, fixed purchase commitments for inventory amounted to $144.1
million, which are expected to be fulfilled by December 31, 2008. We also had other commitments of $33.6
million for consulting, marketing arrangements, advertising and other services. Although open purchase
commitments are considered enforceable and legally binding, the terms generally allow us the option to
reschedule and adjust our requirements based on business needs prior to the delivery of the purchases.
Income Taxes Payable
At March 31, 2008, we had $95.0 million in non-current income taxes payable, including interest and
penalties, related to our FIN 48 income tax liability. At this time, we cannot make a reasonably reliable
estimate of the period in which a cash settlement will be made with the tax authorities.