Logitech 2010 Annual Report Download - page 203

ANNUAl REPORT
191
Note 12 — Restructuring
In January 2009, Logitech initiated a restructuring plan (“2009 Restructuring Plan”) in order to reduce operating
expenses and improve financial results in response to deteriorating global economic conditions. We completed a
majority of the restructuring activity during the three months ended March 31, 2009. As part of this restructuring
plan, the Company reduced its salaried workforce by approximately 500 employees. All charges related to the 2009
Restructuring Plan are presented as restructuring charges in our consolidated statements of income.
The following table summarizes restructuring related activities during fiscal years 2010 and 2009 (in
thousands):
Total
Termination
Benefits Asset Impairments
Contract
Termination
Costs Other
Balance at March 31, 2008 ............. $ — $ — $ — $ — $ —
Charges.......................... 20,547 16,427 556 200 3,364
Cash payments .................... (12,764)(12,579) — (185) —
Charges against assets . . . . . . . . . . . . . . (556) — (556) — —
Other............................ (3,485)(121) — — (3,364)
Foreign exchange .................. 52 52 — — —
Balance at March 31, 2009 ............. $3,794 $3,779 $ — $ 15 $ —
Charges.......................... 1,784 1,318 —419 47
Cash payments .................... (5,194)(5,098) — (96) —
Other............................ (86)53 —(4)(135)
Foreign exchange .................. 101 106 — — (5)
Balance at March 31, 2010.............. $399 $158 $ — $ 334 $(93)
Termination benefits incurred pursuant to the 2009 Restructuring Plan were calculated based on regional
benefit practices and local statutory requirements. Asset impairments were recorded to write down fixed assets that
were not placed in service due to the abandonment of the related projects. Contract termination costs related to exit
costs associated with the closure of existing facilities. Other charges primarily consisted of pension curtailment and
settlement costs of $3.4 million which are reflected in other charges in the preceding table, as the corresponding
balance sheet amounts were reflected as a reduction of pension assets. We completed the 2009 Restructuring Plan
in fiscal 2010.
Note 13 — Employee Benefit Plans
Employee Share Purchase Plans and Stock Incentive Plans
As of March 31, 2010, the Company offers the 2006 Employee Share Purchase Plan (Non-U.S.) (“2006 ESPP”),
the 1996 Employee Share Purchase Plan (U.S.) (“1996 ESPP”), the 2006 Stock Incentive Plan, and the LifeSize
Communications, Inc. 2003 Stock Option Plan. Share-based awards granted to employees and directors include
stock options, RSUs granted under the 2006 Stock Incentive Plan and share purchase rights granted under the
2006 ESPP and 1996 ESPP. Shares issued to employees as a result of purchases or exercises under these plans are
generally issued from shares held in treasury. As part of the LifeSize acquisition, Logitech assumed all outstanding
unvested LifeSize stock options and unvested restricted stock held by continuing LifeSize employees at December
11, 2009. The stock options and restricted stock continue to have the same terms and conditions as under LifeSize’s
option plan.