Logitech 2010 Annual Report Download - page 147

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ANNUAl REPORT
Cash Flow from Financing Activities
The following tables present information on our cash flows from financing activities, including information
on our share repurchases during fiscal years 2010, 2009 and 2008 (in thousands except per share amounts):
Year Ended March 31,
2010 2009 2008
Purchases of treasury shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(126,301) $ (78,870) $(219,742)
Proceeds from sale of shares upon exercise of options
and purchase rights ...................................... 28,917 31,119 50,603
Repayments of debt ........................................ (13,630) — (11,739)
Excess tax benefits from share-based compensation ............... 2,814 6,592 15,231
Net cash used in financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . $(108,200) $ (41,159) $(165,647)
Year Ended March 31,
2010 2009 2008
Number of shares repurchased ................................ 7,425 2,803 7,784
Value of shares repurchased .................................. $126,301 $78,870 $219,742
Average price per share ..................................... $ 17.01 $28.14 $28.23
During fiscal year 2010 and 2009, we repurchased 7.4 million and 2.8 million shares for $126.3 million and
$78.9 million under our buyback program announced in June 2007. In fiscal year 2008, we repurchased 7.8 million
shares for $219.7 million under buyback programs announced in June 2007 and May 2006. The June 2007 buyback
program, which was completed in March 2010, and the May 2006 buyback program, which was completed in
February 2008, each authorized the purchase of up to $250.0 million in Logitech shares.
In fiscal years 2010, 2009 and 2008, we received proceeds from the sale of 3.1 million, 3.1 million and
4.7 million shares upon exercise of employee stock options and share purchases under our stock plans. In addition,
cash was provided in each of those fiscal years from tax benefits on the exercise of share-based payment awards.
In fiscal year 2010, we repaid $13.6 million of short and long-term debt assumed when we acquired LifeSize
Communications. During fiscal year 2008, we repaid in full our short-term debt borrowings of $11.7 million.
Cash Outlook
We have financed our operations and capital requirements primarily through cash flow from operations and,
to a lesser extent, capital markets and bank borrowings. Our working capital requirements and capital expenditures
may increase to support future expansion of Logitech operations. Future acquisitions or expansion of our operations
may be significant and may also require the use of cash. In addition, future deterioration of global economic
conditions could adversely affect our operations and require the use of cash.
In September 2008, our Board of Directors approved a new share buyback program, which authorizes the
Company to invest up to $250 million to purchase its own shares. The September 2008 program is subject to
the completion of our current share buyback program of $250 million, which occurred in March 2010. As of
May 27, 2010, we have not started repurchases under the September 2008 program.
In the fiscal quarter ended March 31, 2009, we initiated a restructuring plan in order to reduce operating
expenses and improve financial results in response to deteriorating global economic conditions. We incurred pre-
tax restructuring charges of $20.5 million in the three months ended March 31, 2009 and $1.8 million in the fiscal
year ended March 31, 2010 related to employee termination costs, contract termination costs, and other associated
costs. The restructuring was completed as of March 31, 2010. The cost savings realized from the restructuring are
partially offset in the operating results of fiscal year 2010 by the addition of LifeSize’s operating expenses and by
increased spending to support the return to revenue growth.