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F-7
LOGITECH INTERNATIONAL S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 — The Company
Logitech International S.A. is a world leader in peripherals for personal computers and other digital
platforms, developing and marketing innovative products in PC navigation, Internet communications,
digital music, home-entertainment control, interactive gaming and wireless devices. For the PC, the
Company’s products include mice, trackballs, keyboards, video security, gaming controllers, multimedia
speakers, headsets, webcams and 3D control devices. For digital music devices, the Company’s products
include speakers and headphones. For gaming consoles, the Company offers a range of controllers and other
accessories. In addition, Logitech offers wireless music solutions for the home, advanced remote controls
for home entertainment systems and a PC-based video security solution for a home or small business. The
Company generates revenues from sales of its products to a worldwide network of retail distributors and
resellers and to original equipment manufacturers (“OEMs”). The Company’s sales to its retail channels
comprise the large majority of its revenues.
Logitech was founded in Switzerland in 1981, and Logitech International S.A. has been the parent
holding company of Logitech since 1988. Logitech International S.A. is a Swiss holding company with
its registered office in Apples, Switzerland, which conducts its business through subsidiaries in North
America, Europe and Asia Pacific. Shares of Logitech International S.A. trade on both the Nasdaq Global
Select Market, under the trading symbol LOGI, and the SWX Swiss Exchange, under the trading symbol
LOGN.
Note 2 — Summary of Significant Accounting Policies
Basis of Presentation
The consolidated financial statements include the accounts of Logitech and its subsidiaries. All
intercompany balances and transactions have been eliminated. The consolidated financial statements are
presented in accordance with accounting principles generally accepted in the United States of America
(“U.S. GAAP”) and comply with Swiss law. In the opinion of management, these financial statements
include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the
results for the periods presented. Certain prior year financial statement amounts have been reclassified to
conform to the current year presentation with no impact on previously reported net income.
Fiscal Year
The Company’s fiscal year ends on March 31. Interim quarters are thirteen-week periods, each ending
on a Friday. For purposes of presentation, the Company has indicated its quarterly periods as ending on the
month end.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to
make judgments, estimates and assumptions that affect reported amounts of assets, liabilities, net sales
and expenses, and the disclosure of contingent assets and liabilities. Although these estimates are based on
management’s best knowledge of current events and actions that may impact the Company in the future,
actual results could differ from those estimates.