Logitech 2010 Annual Report Download - page 112

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(2) The amounts in this column reflect actual payouts with respect to each applicable performance period under
the fiscal year 2010 bonus programs under the Bonus Plan. The actual payout amounts are reflected in the
Non-Equity Incentive Plan Compensation column of the Summary Compensation Table for fiscal year 2010.
(3) Represents performance-based restricted stock units. All shares subject to the PRSUs are unvested. The
actual amount, if any, of shares that will vest under the PRSUs will not be known until the end of the two-year
performance period on June 29, 2011.
(4) Represents time-based restricted stock units that vest at a rate of 25% per year over four years, on each yearly
anniversary of the grant date.
(5) Represents stock options with an exercise price equal to the fair market value of Logitech shares on the grant
date. These options vest and become exercisable at a rate of 25% per year over four years, on each yearly
anniversary of the grant date.
(6) Amounts in this column represent the grant date fair value of stock options, performance-based restricted
stock units and time-based restricted stock units calculated in accordance with FASB ASC Topic 718 but
does not include a reduction for forfeitures. For option awards, that number is calculated by multiplying the
Black-Scholes value by the number of options awarded. For performance-based restricted stock units, that
number is calculated by multiplying the value determined using the Monte Carlo method by the target number
of units awarded. For time-based restricted stock units, that number is equal to the closing price of Logitech
shares on the grant date multiplied by the number of units awarded. The key assumptions for the valuation
of the options and performance restricted stock units are presented in Note 13 to the Consolidated Financial
Statements included in Logitech’s Annual Report to Shareholders and Annual Report on Form 10-K for fiscal
year 2010 filed with the SEC on May 27, 2010.
NARRATIVE DISCLOSURE TO SUMMARY COMPENSATION TABLE AND GRANTS OF PLAN-
BASED AWARDS TABLE
Employment Agreements and Offer Letters
We have entered into employment agreements or offer letters with each of our named executive officers other
than Tom Fergoda. The employment agreements and offer letters generally provide that the compensation of the
named executive officer is subject to the sole discretion of the Compensation Committee or the Board of Directors.
The compensation earned by the named executive officers in fiscal year 2010 was not the result of any terms of their
employment agreements or offer letters, except that Werner Heid received an additional option grant for 17,500
options for Logitech shares on September 1, 2009 as a negotiated term of his offer letter when he joined Logitech.
Performance-Based Vesting Conditions
Please refer to “Compensation Disclosure and Analysis—Elements of Compensation / Executive Compensation
Practices—Short-term cash incentive awards” for a discussion of the performance measures applicable to the
Bonus Plan during fiscal year 2010. In addition, please refer to “Compensation Disclosure and Analysis—Elements
of Compensation / Executive Compensation Practices—Long-term equity incentive awards—Structure of the
PRSUs” for a discussion of performance measures under the performance-based restricted stock units granted to
named executive officers during fiscal year 2010.
OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END
The following table sets forth certain information regarding outstanding equity awards for each of our named
executive officers as of March 31, 2010. This table includes unexercised and unvested stock options and unvested
performance-based restricted stock units.