Logitech 2011 Annual Report Download - page 246

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Note 4 — Treasury Shares:
During fiscal years 2010 and 2011, repurchases of and issuances from the Holding Company’s treasury shares
were as follows (total cost in thousands):
Number of
shares Total cost (in thousands)
Held by the Holding Company at March 31, 2009 ......................... 12,124,078 CHF 389,648
Additions ...................................................... 7,425,125 134,771
Disposals ...................................................... (3,113,675)(104,649)
Held by the Holding Company at March 31, 2010.......................... 16,435,528 419,770
Additions ...................................................... — —
Disposals ...................................................... (4,001,914)(138,205)
Held by the Holding Company at March 31, 2011.......................... 12,433,614 CHF 281,565
In June 2007, the Board of Directors authorized the repurchase of up to USD 250,000,000 of the Holding
Company’s registered shares. The Holding Company completed the program in March 2010. Under this program,
the Holding Company repurchased 11,978,125 registered shares for approximately USD 250,000,000.
In September 2008, the Board of Directors approved a share buyback program which authorizes the Holding
Company to invest up to USD 250,000,000 to purchase its own shares. As of March 31, 2011, the Company has not
started repurchases under the September 2008 program.
Treasury shares are recorded as a long-term asset at the lower of cost or market value, however in accordance
with article 669 of the Swiss Code of Obligations, management has opted to record the treasury shares at a value
below the lower of cost or market value. The disposal of treasury shares during the period was to the Holding
Company’s directors and employees under the Holding Company’s share option and share purchase plans. The gain
or loss on the disposal of repurchased treasury shares is recorded in the statement of income.
As of March 31, 2010 the net value of treasury shares contained a reserve of CHF 44,152,294. As of March 31,
2011 CHF 31,700,188.48 of this reserve has been released.
Note 5 — Authorized and Conditional Share Capital Increases:
Conditional capital
In September 2008, the Company’s shareholders approved an amendment to the Company’s Articles of
Incorporation which decreased the conditional capital reserved for potential issuance on the exercise of rights
granted under the Company’s employee equity incentive plans from 60,661,860 shares approved previously to
25,000,000 shares. The Board of Directors determined that the reduced amount of conditional capital, together with
a portion of its shares held in treasury, was adequate to cover employee equity incentives without impacting the
ability of the Company to maintain employee equity incentive plans.
In September 2008, the shareholders also approved the creation of conditional capital representing the issuance
of up to 25,000,000 shares to cover any conversion rights under a future convertible bond issuance. This conditional
capital was created in order to provide financing flexibility for future expansion, investments or acquisitions.
LOGITECH INTERNATIONAL S.A., APPLES
NOTES TO SWISS STATUTORY FINANCIAL STATEMENTS (continued)