Logitech 2010 Annual Report Download - page 150

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guarantees are limited to purchases of specified components from the named suppliers. We do not believe, based
on historical experience and information available as of the date of this report, that it is probable that any amounts
will be required to be paid under these guarantee arrangements.
Logitech International S.A., the parent holding company, has guaranteed certain contingent liabilities of
various subsidiaries related to specific transactions occurring in the normal course of business. The maximum
amount of the guarantees was $8.2 million as of March 31, 2010. As of March 31, 2010, $7.6 million was outstanding
under these guarantees. The parent holding company has also guaranteed the purchases of one of its subsidiaries
under two guarantee arrangements. These guarantees do not specify a maximum amount. As of March 31, 2010,
$8.7 million was outstanding under these guarantees.
Indemnifications
The Company indemnifies certain of its suppliers and customers for losses arising from matters such as
intellectual property rights and safety defects, subject to certain restrictions. The scope of these indemnities varies
and may include indemnification for damages and expenses, including reasonable attorneys’ fees. In addition, we have
entered into indemnification agreements with our officers and directors, and the bylaws of our subsidiaries contain
similar indemnification obligations to our agents. No amounts have been accrued for indemnification provisions as
of March 31, 2010. We do not believe, based on historical experience and information available as of the date of this
report, that it is probable that any amounts will be required to be paid under these indemnification arrangements.
Letters of Credit
We provide various third parties with irrevocable letters of credit in the normal course of business to secure
our obligations to pay or perform pursuant to the requirements of an underlying agreement or the provision of goods
and services. These standby letters of credit are cancelable only at the option of the beneficiary who is authorized to
draw drafts on the issuing bank up to the face amount of the standby letter of credit in accordance with its terms. At
March 31, 2010, we had $3.4 million of letters of credit in place, of which $0.3 million was outstanding. These letters
of credit relate primarily to equipment purchases by a subsidiary in China, and expire between April and June 2010.
ADDITIONAL FINANCIAL DISCLOSURES
MARKETING, SALES AND DISTRIBUTION
Principal Markets
Net sales to unaffiliated customers by geographic region were as follows (in thousands):
Year ended March 31,
2010 2009 2008
EMEA .................................................. $882,635 $1,001,337 $1,117,060
Americas ................................................ 729,473 785,862 888,529
Asia Pacific .............................................. 354,640 421,633 364,907
Total net sales.......................................... $1,966,748 $2,208,832 $2,370,496
Revenues from sales to customers in Switzerland, our home domicile, represented a small portion of our total
consolidated net sales in fiscal years 2010, 2009 and 2008. The United States and Germany each represented more
than 10% of our total consolidated net sales for fiscal year 2010. In fiscal years 2009 and 2008, no single country
other than the United States represented more than 10% of our total consolidated net sales.