Logitech 2011 Annual Report Download - page 217

ANNUAl REPORT
205
Additions to goodwill during fiscal year 2011 related to our acquisition of Paradial. Additions to goodwill
during fiscal year 2010 primarily related to our acquisitions of LifeSize and TV Compass. The divestiture relates to
goodwill associated with the 3Dconnexion entities which were sold on March 31, 2011. The adjustment to goodwill
in fiscal year 2010 represents an adjustment of the deferred tax asset recognized in connection with the acquisitions
of SightSpeed, Inc. and the Ultimate Ears companies.
Logitech maintains discrete financial information for LifeSize and accordingly, the acquired goodwill related
to the LifeSize acquisition is separately evaluated for impairment at the entity level. The Company has fully
integrated the Paradial business into LifeSize, and discrete financial information for Paradial is not maintained.
Accordingly, the acquired goodwill related to Paradial is evaluated for impairment at the LifeSize entity level.
The Company has fully integrated the TV Compass business into the Company’s other operations, and
discrete financial information for TV Compass is not maintained. Accordingly, the acquired goodwill related to
TV Compass is evaluated for impairment at the total enterprise level.
The Company performs its annual goodwill impairment analyses of our operating segments during its fourth
fiscal quarter or more frequently if events or circumstances indicate that an impairment may have occurred. Based
on the impairment analyses performed, the fair value of each of our operating segments exceeded the carrying
value of the segment by more than 50% of the carrying value.
The Company’s acquired other intangible assets subject to amortization were as follows (in thousands):
March 31, 2011 March 31, 2010
Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount
Trademark/tradename. . . . . . $ 31,907 $(23,290) $ 8,617 $ 32,051 $(20,421) $11,630
Technology . . . . . . . . . . . . . . 88,068 (45,686) 42,382 87,968 (36,033) 51,935
Customer contracts ........ 38,537 (14,920) 23,617 38,517 (6,686) 31,831
$158,512 $(83,896) $74,616 $158,536 $(63,140) $95,396
During fiscal year 2011, changes in the gross carrying value of other intangible assets related primarily to
our acquisition of Paradial. During fiscal year 2010, changes in the gross carrying value of other intangible assets
related primarily to our acquisitions of LifeSize and TV Compass.
For fiscal years 2011, 2010 and 2009, amortization expense for other intangible assets was $27.8 million, $14.5
million and $8.2 million. The Company expects that annual amortization expense for the fiscal years ending 2012,
2013, 2014, and 2015 will be $26.0 million, $23.1 million, $16.9 million, $8.2 million, and $0.4 million thereafter.
Note 9 — Financing Arrangements
The Company had several uncommitted, unsecured bank lines of credit aggregating $117.1 million at
March 31, 2011. There are no financial covenants under these lines of credit with which the Company must comply.
At March 31, 2011, the Company had no outstanding borrowings under these lines of credit.
Note 10 — Shareholders’ Equity
Share Capital
The Company’s nominal share capital is CHF 47,901,655, consisting of 191,606,620 shares with a par value of
CHF 0.25 each, all of which were issued and 12,433,614 of which were held in treasury as of March 31, 2011.