Logitech 2012 Annual Report Download

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Rapport Annuel 2012, Invitation et Document d’Information
Geschäftsbericht 2012, Einladung und Informationsmaterial
2012 Annual Report, Invitation and Proxy Statement

Table of contents

  • Page 1
    Rapport Annuel 2012, Invitation et Document d'Information Geschäftsbericht 2012, Einladung und Informationsmaterial 2012 Annual Report, Invitation and Proxy Statement

  • Page 2
    ... software enable or enhance digital navigation, music and video entertainment, gaming, social networking, audio and video communication over the Internet, video security and home-entertainment control. Founded in 1981, Logitech International is a Swiss public company listed on the SIX Swiss Exchange...

  • Page 3
    ... in operating income and a major decline in our share price. The fiscal year began with major challenges, including lower demand and sales execution issues in EMEA and much lower-than-expected demand for Logitech Revue with Google TV. While we addressed these issues by the end of the third fiscal...

  • Page 4
    ... of Bracken P. Darrell, our president, who will also become our chief executive officer beginning in January 2013. One of Bracken's first steps was to remove a layer of executive management so that he can be closer to our customers and our products. The next step was to initiate a company-wide...

  • Page 5
    .... One such opportunity is in emerging markets. Our investment in China has resulted in it becoming our third-largest country in revenue, with 58 percent sales growth in FY 2012. With a strong China team in place, I am confident that we have the right strategy to drive continued growth there. We are...

  • Page 6
    ...fruit. The new Logitech Wireless Solar Keyboard for the Mac is one example with more expected in the current fiscal year. I view the digital music category as a significant opportunity this year and beyond. Under our Logitech UE (Ultimate Ears) brand, we have begun to offer wireless speakers as well...

  • Page 7
    ...our Logitech for Business group has been steadily gaining traction with new products for productivity and unified communications in the workplace. It is building a sales and marketing foundation to address the business market in the Americas and Europe, and plans to branch out into parts of Asia. 5

  • Page 8
    ... enable his transition to the chief executive officer position. I wish to acknowledge and thank our employees, who, during these difficult times, have remained steadfast and focused on creating and delivering products that will delight consumers and business customers. I also thank 6 LOGITECH 2012

  • Page 9
    ...our shareholders, for remaining with us during this past fiscal year when our stock price declined by almost half. I am committed to reward your patience and support, as we chart a new course for a brighter future. Guerrino De Luca Chairman of the Board and Chief Executive Officer LOGITECH 2012 7

  • Page 10
    ... 63 To Our Shareholders 65 Invitation and Agenda for the Annual General Meeting 66 Questions and Answers About the Logitech 2012 Annual General Meeting 73 Agenda Proposals and Explanations 9 1 Corporate Governance and Board of Directors Matters 113 Compensation Report Annual Report 155 Management...

  • Page 11
    ... des indications concernant les points qui seront soumis au vote lors de l'Assemblée, la façon dont vous pourrez exercer vos droits de vote, la rémunération des membres du Conseil d'administration et de la direction générale de Logitech ainsi que d'autres informations utiles. Que vous puissiez...

  • Page 12
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  • Page 13
    ... statutaires de Logitech International S.A. pour l'exercice 2012 Vote consultatif sur la rémunération des membres de la Direction Affectation du bénéfice reporté et distribution des réserves d'apport de capital 3.1 3.2 4. 5. 6. 7. 8. 9. Affectation du bénéfice reporté Distribution des...

  • Page 14
    ... Document d'Information ainsi que les documents qui l'accompagnent vous sont adressés directement, si vos actions sont inscrites au Registre des Actions de Logitech International S.A. ou dans le sous-registre tenu par notre agent de transfert américain, The Bank of New York Mellon Corporation. Qui...

  • Page 15
    ...Invitation et Document d'Information ainsi que notre rapport annuel établi sur la base du formulaire 10-K pour l'exercice 2012 que nous avons déposé auprès de la U.S. Securities and Exchange Commission sont disponibles sur notre site internet à l'adresse http://ir.logitech.com. Nos actionnaires...

  • Page 16
    ...signée et datée à Logitech en utilisant l'enveloppe affranchie annexée jusqu'au 24 août 2012. Nous enverrons une carte d'accès au représentant que vous aurez désign...la carteréponse et que des points ne figurant pas à l'ordre... contacter pour poser des questions? Si vous avez des questions ou...

  • Page 17
    ... américaine ou canadienne au 13 juillet 2012 peuvent donner des instructions à l'organisation concernée sur la façon dont les droits de vote doivent être exercés. Logitech a pris des mesures pour qu'une société spécialisée dans la fourniture de services à des banques, des trustees et des...

  • Page 18
    ... name...Direction), Point 3 (affectation du bénéfice reporté et distribution de réserves d'apport de capital), Point 4 (réduction du capital-actions par l'annulation d'actions rachetées), Point 5 (modification et reformulation du Stock...2012 à 23h59 (heure avancée de l'Est - Eastern Daylight Time...

  • Page 19
    ... contacter votre ...points...téléphone ...futur, ils peuvent appeler notre groupe investor relations au +1-510-713-4220 ou écrire à investor relations, 7600 Gateway Boulevard, Newark, California 94560. Ils peuvent également envoyer un e-mail à notre groupe investor relations à logitechIR@logitech...

  • Page 20
    ... nominale d'un million de francs suisses de demander l'inscription d'un point à l'ordre du jour d'une Assemblée générale des actionnaires peut être consultée sur notre site internet à l'adresse http://ir.logitech.com. Vous pouvez aussi contacter le Secrétaire du Conseil d'administration de...

  • Page 21
    ... l'exercice se terminant le 31 mars 2012 La direction de Logitech International S.A. donnera un rapport sur les opérations de la Société pour l'exercice 2012 lors de l'Assemblée Générale ordinaire. B. POINTS DE L'ORDRE DU JOUR SOUMIS AU VOTE Point 1 Approbation du rapport annuel, du rapport...

  • Page 22
    ... du rapport de rémunération, des comptes consolidés et des comptes statutaires de Logitech International S.A. pour l'exercice 2012. Point 2 Vote consultatif sur la rémunération des membres de la Direction Proposition Le Conseil d'administration propose aux actionnaires d'approuver, sur une base...

  • Page 23
    ...ration annexé à la version anglaise de cette Invitation et Document d'Information. Le rapport de rémunération de Logitech décrit également la ... membres de la Direction de Logitech telle que publiée dans le Rapport de rémunération y compris le chapitre "Compensation Discussion and Analysis",...

  • Page 24
    Point 3 Affectation du bénéfice reporté et distribution des réserves d'apport de capital 3.1 Affectation du bénéfice reporté Proposition Le Conseil d'administration propose que CHF 460,919,135 (US $482,397,967, selon le taux de change au 30 juin 2012) du bénéfice reporté soient affectés ...

  • Page 25
    ...ée générale soit CHF 335,268,321. Le Conseil d'administration propose le report du bénéfice reporté en raison de la conviction du Conseil d'administration qu'il est dans l'intérêt de Logitech et de ses actionnaires de conserver le bénéfice de Logitech pour de futurs investissements dans le...

  • Page 26
    ... autorisé par le Conseil d'Administration en septembre 2008, tel qu'amendé en novembre 2011, soient annulées, que le capital-actions de la société soit réduit de CHF 4,625,000, passant ainsi de CHF 47,901,655 à CHF 43,276,655, et que les statuts de la société soient modifiés comme suit...

  • Page 27
    ... de l'annulation de 18.5 millions actions, de la réduction du capital action de la société de CHF 4,625,000 ainsi que de l'amendement des statuts de la société en conséquence. Point 5 Modification et reformulation du Stock Incentive Plan 2006, y compris l'augmentation du nombre d'actions qui...

  • Page 28
    ...mission et ne seront pas réintégrées au Plan pour de futurs octrois. ï,· Le Plan a été modifié pour interdire une modification du prix des options ou des droits à la plus value des actions - Stock Appreciation Rights ("SARs") ï,· Le cercle des bénéficiaires du Plan a été étendu afin de...

  • Page 29
    ... 13.8 millions d'actions seront disponibles dans le cadre du Plan (d'après les octrois au 30 juin 2012). (1) Options (2) SARs (3) Actions bloquées (4) Unités bloquées (Restricted Stock Units) Les options et les SARs auront une durée ne pouvant excéder dix ans. Le nombre d'actions octroyées...

  • Page 30
    ... 2012, le prix de clôture d'une action de la Société était de 10.22 CHF sur le SIX Swiss Exchange et de $10.67 aux Etats- Unis sur le NASDAQ Global Select Market. Exercice de l'option; Moyen de paiement. L'administrateur détermine le moment où les options sont exerçables et peut, à sa discr...

  • Page 31
    ...à moins que l'emploi d'un participant soit résilié pour juste motif, si un participant est empêché d'exercer une option dans le délai applicable à cause de questions de compliance en relation avec l'émission des actions, l'option restera exerçable pendant trente jours dès réception par le...

  • Page 32
    ... du Code, les critères de performance seront basés sur le cours des actions (en cas d'options ou ...limites annuelles du nombre d'actions qui peuvent être octroyées en relation avec l'attribution d'ISO, ou en relation...octroi non payé sera soumis à la convention d'attribution applicable, laquelle ...

  • Page 33
    ... selon la période de détention. Logitech Inc aura généralement droit à une déduction fiscale égale au montant du revenu imposable du participant à la date du règlement, sauf dans la mesure où cette déduction est limitée par les dispositions applicables du Code. Rémunération liée à la...

  • Page 34
    ... 57,100 42,100 _____ 355,300 _____ 9,975,560 Nom de la personne ou du Groupe Executive Officers Guerrino de Luca Gerald P.Quindlen Erik K.Bardman Junien Labrousse Werner Heid L. Joseph Sullivan Executive Officers en tant que Groupe (¹) Daniel Borel Matthew Bousquette Erh-Hsun Chang Kee-Lock Chua...

  • Page 35
    ... dans l'optique de les annuler lors de l'Assemblée générale ordinaire 2012 et/ou de 2013 de la Société. Depuis l'approbation de la Commission des Offres Publiques d'Acquisition et de la SIX Swiss Exchange le 11 novembre 2011, la Société a procédé à des rachats selon son programme de rachat...

  • Page 36
    ...que des voix représentées par Logitech. Recommandation Le Conseil d'administration recommande de voter en faveur de la proposition de donner décharge aux membres du Conseil d'administration et de la Direction pour leurs activités pendant l'exercice 2012. Point 8 Diminution de la durée du mandat...

  • Page 37
    ... la fonction de Senior Vice President, Worldwide Operations et General Manager pour la région de l'Asie de l'Est. M. Chang a rejoint pour la première fois Logitech en 1986 pour y établir ses opérations à Taiwan. Après avoir quitté la Société en 1988, il y est revenu en 1995 en qualit...

  • Page 38
    ... ans si le Point 8 n'est pas approuvé. Kee-Lock Chua est Président et Chief Executive Officer de Vertex Group, un groupe de venture capital ayant son siè... de 2003 à 2006, M. Chua était Managing Director de Walden International, une société de venture capital ayant son siège aux Etats-Unis. De...

  • Page 39
    ... Inc., Gemplus S.C.A., SGS-Thomson Microelectronics, I.B.H. Holding S.A., Bendix Corporation et Ford Motor. Il siège au Conseil d'administration d'International Rectifier, un fournisseur de technologie pointue de gestion d'énergie, coté à la bourse de New York (NYSE). M. Hirsch a un MS degree en...

  • Page 40
    ... honoraires que Logitech a payés à PwC S.A. et à PwC LLP, ainsi que d'autres informations concernant PwC S.A. et PwC LLP, figurent sous la rubrique "Independent Public Accountants" et "Report of the Audit Committee" de la version anglaise de cette Invitation et Document d'Information. Un membre...

  • Page 41
    ...An unsere Aklionärinnen und Aklionäre: Sie sind herzlich eingeladen, an der ordenllichen Generalversammlung 2012 der Logilech Inlernalional S.A. leilzunehmen. Die Versammlung findel am Millwoch, 5. Seplember 2012 um 14:30 Uhr im Palais de Beaulieu, Saal Rom, in Lausanne, Schweiz, slall. Beiliegend...

  • Page 42
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  • Page 43
    ... des Verwallungsrales und der Geschäflsleilung für das Geschäflsjahr 2012 Kürzung der Amlsdauer von Milgliedern des Verwallungsrales Wahlen in den Verwallungsral 9.1 9.2 9.3 Wiederwahl von Herrn Srh-Hsun Chang Wiederwahl von Herrn Kee-Lock Chua Wahl von Herrn Didier Hirsch 10. Wiederwahl von...

  • Page 44
    ...2012 DER LOGITECH INTERNATIONAL S.A. ("LOGITECH") ALLGEMEINE INFORMATION AN ALLE AKTIONÄRINNEN UND AKTIONÄRE Warum erhalte ich diese Einladung und Information... Version. Die Sinladung slehl den Aklionären ab dem 24. Juli 2012 ... von "The Bank of New York Mellon Corporalion", unserer amerikanischen...

  • Page 45
    ... Boulevard, Newark, California 94560. Logilechs Telefonnummer...Report Formular 8-K am Dienslag, 11. Seplember 2012, an die Securities and Exchange Commission der Vereiniglen Slaalen von Amerika übermilleln. Sine Kopie des Formulars 8-K wird auf unserer Websile unler http://ir.logitech... INFORMATION ...

  • Page 46
    ... Augusl 2012 im Aklienregisler eingelragen sind und sich am Versammlungsorl ausweisen können. Kann ich mich an der Versammlung durch eine andere Person vertreten ... 2012 millels beiliegenden Briefumschlags an Logilech zurück. Wir werden Ihrem Verlreler eine Zulrillskarle zukommen lassen. Wenn Name ...

  • Page 47
    ... ein Smail an [email protected]. ZUSÄTZLICHE INFORMATIONEN... des Stimmmaterials über Internet und nicht das Stimmmaterial... führl, die das Malerial sowie einen Link für Slimminslruklionen enlhäll. Ihre Anweisung, das...22. Augusl 2012 widerspiegeln. Wenn Sie nach dem 13. Juli 2012 über einen ...

  • Page 48
    ...? Wenn Sie Ihre Aklien über ein amerikanisches oder kanadisches Inslilul hallen, können Sie bis am 30. Augusl 2012, 23.59 Uhr (U.S. Saslern Daylighl Time) Slimminslruklionen erleilen. Kann ich eine Instruktion ändern? Sie können Ihre Vollmachl widerrufen und Ihre Inslruklionen jederzeil bis...

  • Page 49
    ...inveslor relalions, 7600 Galeway Boulevard, Newark, California 94560 schreiben. Sie können auch eine S-mail an unsere investor relations group an [email protected] senden. Andere... einzuholen, und dies für ein Snlgell von US$5.00 pro Anruf zuzüglich angemessener Spesen. In 39 DEUTSCH

  • Page 50
    ...Diese Frisl isl für die Generalversammlung vom 5. Seplember 2012 am 6. Juli 2012 abgelaufen. Dennoch erlaubl das schweizerische Rechl eingelragenen Aklionä...Tagesordnung zu verlangen, können auf unserer Webseile unler http://ir.logitech.com abgerufen werden. Sie können auch den Sekrelär des ...

  • Page 51
    ... Konzernrechnung und der Jahresrechnung der Logitech International S.A. für das Geschäftsjahr 2012 DEUTSCH Antrag Der Verwallungsral beanlragl die... best practice Smpfehlung, angeregl durch den „Swiss Code of Best Practice for Corporate Governance" der "economiesuisse", dem führenden ...

  • Page 52
    ... practices in Corporate Governance" in der Schweiz und den Vereiniglen Slaalen von Amerika. Dieser Anlrag, allgemein auch als „say-on-pay" Anlrag bekannl... 2012 erläulerl, hal Logilech sein Snlschädigungsprogramm derarl geslallel, um die enlscheidende Anzahl leilender Angeslelller, Manager ...

  • Page 53
    .... DEUTSCH Antrag 3 Verwendung des Bilanzgewinns und Ausschüttung von Reserven aus Kapitaleinlagen 3.1 Verwendung des Bilanzgewinns Antrag Der Verwallungsral beanlragl, den Belrag des Bilanzgewinns von CHF 460,919,135 (US $482,397,967 zum Wechselkurs vom 30. Juni 2012) wie folgl zu verwenden: 43

  • Page 54
    ...äftsjahr am 31. März 2012 (in KCHF) CHF 507,730 Gewinnvorlrag zu Beginn des Geschäflsjahres 2012 - Verwendung des Gewinnvorlrages gemäss Beschluss der Generalversammlung 2011 - Dividende Zuweisung an die Reserve für eigene Aklien (51,880) Nellogewinn des Geschäflsjahres 2012 5,069 CHF 460,919...

  • Page 55
    ... der Gesellschafl als freie Reserven umgebuchl werden und diese freien Reserven an die Aklionäre im Belrag von elwa CHF 0.81 pro Aklie (US $0.84 pro Aklie zum Wechselkurs vom 30. Juni 2012)* bis zum Gesamlbelrag von CHF 125,650,814 wie folgl ausgeschüllel werden: Ende Geschäftsjahr am 31. März...

  • Page 56
    ... pro Aklie* bis zum Gesamlbelrag von CHF 125,650,814 zuzuslimmen. Antrag 4 Aktienkapitalherabsetzung durch Vernichtung zurückgekaufter Aktien Antrag Der Verwallungsral beanlragl, 18.5 Millionen zurückgekaufle Aklien gemäss dem vom Verwallungsral im Seplember 2008 genehmiglen und im November 2011...

  • Page 57
    ... Zuleilungen slehen, und des Smployee Slock Purchase Plans) gemäss dem am 30. Juni 2012 elwa 4.8 Millionen Aklien zur Ausgabe ausslehend waren. Wir gehen davon aus, dass diese verbleibende Anzahl Aklien vor der ordenllichen Generalversammlung 2014 erschöpfl sein wird, lrolz der Talsache...

  • Page 58
    ...Anfänglich genehmigle Aklien gemäss Plan Zusälzlich genehmigle Aklien anlässlich der Generalversammlung 2009 Zugeleille Aklien von Juni 2006 bis zum 30. Juni 2012, gekürzl um Annullierungen Zusälzlich beanlragle Aklien gemäss diesem Anlrag Tolal der zur Ausgabe verfügbaren Aklien am 30. Juni...

  • Page 59
    ...Tochlergesellschafl sind berechligl, incentive stock options (ISOs) gemäss... 2012 gewährlen Prämien). (1) Oplionen (2) SARs (3) Gesperrle Aklien (4) Gesperrle Stock ... als dem Verkehrswerl (fair market value) der Aklien der Gesellschafl ...Compensation Committee, das sich ausschliesslich aus 49 ...

  • Page 60
    ...kann auch basierend auf einem Durchschnill der Handelskurse während einer Periode vor oder nach dem Dalum der Zuleilung beslimml werden. Am 30. Juni 2012 enlsprach der Schlusskurs einer Aklie der Gesellschafl CHF 10.22 an der SIX Swiss Sxchange und US $ 10.67 an der NASDAQ Global Selecl Markel. 50

  • Page 61
    ... Vergülung. Laufzeit der Option. Die Laufzeil der Oplion... sein Nachlass, Begünsligle oder die Person, welche das Rechl zur Ausübung ... mindeslens dem Verkehrswerl (fair market value) einer Aklie der Gesellschafl ...Stock Units Eeinschliesslich leistungsabhängige gesperrte Stock Units). Gesperrle stock...

  • Page 62
    ...zu erhallen, sofern die gesperrlen stock units ausübbar sind. Gesperrle stock units sind gemäss den... den Krilerien der Zielerreichung enlsprechend Seclion 162(m) des Codes basieren. Im Umfang als die Zuleilung als leislungsabhängige...Sleuern und Amorlisalion; Srlrag pro Aklie, wirlschafllicher Gewinn,...

  • Page 63
    ... Aklien an den Inhaber, der dem Belrag pro Aklie enlsprichl, den Aklionäre der Gesellschafl ..., die gemäss dem Code auf den Plan anwendbar sind... (im nichl ausgeüblen Umfang), im Belrag, der dem Verkehrswerl (fair market value) der den Aklien, der Prämie unlerliegen, abzüglich jeden Belrags, ...

  • Page 64
    ... des Codes begrenzl isl. Gesperrte Stock Units....Verkehrswerl (fair market value) von jeglichen ...2012 gewährl wurden: Name der Person oder Gruppe Executive Officers Guerrino de Luca Gerald P.Quindlen Srik K.Bardman Junien Labrousse Werner Heid L.Joseph Sullivan Derzeilige Executive Officers...

  • Page 65
    ... Angeslelllen, einschliesslich Officers mil Ausnahme von Executive Officers, als Gruppe 27'100 42'100 58'100 43'100 57'100 28'600 57'100 42'100 _____ 355'300 _____ 9'975'560 _____ (¹) Sinschliesslich die Herren De Luca, Bardman und Sullivan. Herr Darrell wurde am 9. April 2012 Präsidenl der...

  • Page 66
    ...Swiss Sxchange hal die Gesellschafl Aklienrückkäufe gemäss dem Aklienrückkaufprogramm millels einer „second trading line...30. Juni 2012 wird die ...trading line" oder auf andere Weise, um anlässlich einer Kapilalherabselzung, welche der ordenllichen Generalversammlung 2013 und/oder 2014...

  • Page 67
    ...und der Geschäflsleilung für die Täligkeil im Geschäflsjahr 2012. Antrag 8 Kürzung der Amtsdauer von Mitgliedern des Verwaltungsrates ...Anlrag 8 angenommen wird, isl diese Änderung ab der ordenllichen Generalversammlung 2012 anwendbar; sie wird insbesondere für die Wahlen gemäss Anlrag 9...

  • Page 68
    ... vom 5. Seplember 2012. Die drille vorgeschlagene Person wurde durch den ...General Manager, Far Saslern Area and Worldwide Operalions zurück. Im April 1997 wurde Herr Chang Senior Vice Presidenl, General Manager, Far Saslern Area and Worldwide Operalions. Weilere Berufserfahrungen bringl Herr Chang...

  • Page 69
    ...Chang...angenommen wird. Kee-Lock Chua isl Pr...Chua Managing Direclor...Universily, California.. ...Compensation...Life Sciences, Sleklronik und Kommunikalion. Sr isl seil 1999 bei Agilenl lälig und war von November 2007 bis Juli 2010 Chief Accounling Officer und seil April 2010 inlerim Chief Financial Officer...

  • Page 70
    ...Asia Pacific...Company. Sr isl ebenfalls Milglied des Verwallungsrales der Inlernalional Reclifier, einem an der New...Chief Financial Officer...Logitech's Revisionsstelle und Bestätigung der Wahl von PricewaterhouseCoopers LLP als Logitech... Genehmigung aufgrund von Corporate Governance Überlegungen. ...

  • Page 71
    ...PwC AG und PwC LLP enlnehmen Sie dem unlenslehenden Abschnill unler dem Tilel "Independenl Public Accounlanls" und "Reporl of lhe Audil Commillee". Sin Milglied der PwC AG ... Snlschädigungsberichl verweisen wir Sie auf die englische Version dieser Sinladung. Der englische Texl isl die massgebliche...

  • Page 72
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  • Page 73
    ... be voted on at the meeting, information on how you can exercise your voting rights, information concerning Logitech's compensation of its Board members and executive officers and other relevant information. Whether or not you plan to attend the Annual General Meeting, your vote is important. Thank...

  • Page 74
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  • Page 75
    ... of repurchased shares ENglISH Amendment and restatement of the 2006 Stock Incentive Plan, including an increase to the number of shares available for issuance under the Plan Authorization to exceed 10% holding of own share capital Release of the Board of Directors and Executive Officers from...

  • Page 76
    QUESTIONS AND ANSWERS ABOUT THE LOGITECH 2012 ANNUAL GENERAL MEETING GENERAL INFORMATION FOR ALL SHAREHOLDERS Why am I receiving this "Invitation and Proxy Statement"? This document is designed to comply with both Swiss corporate law and U.S. proxy statement rules. Outside of the U.S. and Canada ...

  • Page 77
    ... year 2012 filed with the U.S. Securities and Exchange Commission are available on our website at http://ir.logitech.com. Shareholders also may request free copies of these materials at our principal executive offices in Switzerland or the United States, at the addresses and phone numbers above...

  • Page 78
    ... sell your Logitech shares before the meeting and Logitech's Share Registrar is notified of the sale, your votes with those shares will not be counted. Any person who purchases shares after the Share Register closes on Thursday, August 30, 2012 will not be able to register them until the day after...

  • Page 79
    ... to be returned to us before the meeting, please begin the registration process as far before August 30, 2012 as possible. If I am a U.S. or Canadian "street name" beneficial owner, how do I vote? If you are a beneficial owner of shares held in "street name" and you wish to vote in person at the...

  • Page 80
    ... our investor relations group at [email protected]. Other shareholders who have multiple accounts in their names or who share an address with other stockholders can authorize us to discontinue mailings of multiple annual reports and proxy statements by calling or writing to investor relations...

  • Page 81
    ... as professional asset managers, are obliged to inform Logitech of the number and par value of the registered shares they represent. Meeting Proposals There are no other matters that the Board intends to present, or has reason to believe others will present, at the Annual General Meeting. If other...

  • Page 82
    ... our issued share capital or (ii) an aggregate par value of one million Swiss francs to demand that an item be placed on the agenda of a meeting of shareholders are available on our website at http://ir.logitech.com. You may also contact the Secretary of Logitech at our principal executive office in...

  • Page 83
    ... Ended March 31, 2012 Senior management of Logitech International S.A. will provide the Annual General Meeting with a presentation and report on operations of the Company for fiscal year 2012. B. PROPOSALS Proposal 1 Approval of the Annual Report, the Compensation Report, the Consolidated Financial...

  • Page 84
    ...'s named executive officers disclosed in Logitech's Compensation Report for fiscal year 2012. Explanation At Logitech's 2009 and 2010 Annual General Meetings, the Logitech Board of Directors voluntarily asked shareholders to approve Logitech's compensation philosophy, policies and practices, as set...

  • Page 85
    ... the votes cast in person or by proxy at the Annual General Meeting, not counting abstentions. Recommendation The Board of Directors recommends a vote "FOR" approval of the following advisory resolution: "Resolved, that the compensation paid to Logitech's named executive officers as disclosed in the...

  • Page 86
    ... its shareholders to retain Logitech's earnings for future investment in the growth of Logitech's business, for share repurchases, and for the possible acquisition of other companies or lines of business. In the event of a negative vote on this proposal by shareholders, the Board of Directors will...

  • Page 87
    ... value of CHF 0.25 (twenty-five centimes) each. Explanation In September 2008, the Board of Directors approved a share buyback program which authorizes the Company to invest up to US $250 million to purchase its own shares. In November 2011, the Company received approval from the Swiss regulatory...

  • Page 88
    ...shareholders approve the cancellation of 18.5 million shares repurchased under the amended September 2008 program and that the share capital set forth in Article 3 of the Company's Articles of Incorporation be reduced accordingly. In their special audit report prepared for the Annual General Meeting...

  • Page 89
    ... are outstanding. Employees, directors, and consultants of the Company, a parent, a subsidiary or an affiliate generally are eligible to receive each type of award offered under the Plan. Only employees of the Company, a parent or a subsidiary are eligible to receive incentive stock options (ISOs...

  • Page 90
    ... of certain changes in the capitalization of the Company. If the amendments are approved by the shareholders, approximately 13.8 million shares will be available for the grant of new awards under the Plan (based on awards granted through June 30, 2012). Award Types (1) (2) (3) (4) Options SARs...

  • Page 91
    ... the time the options are granted, but the exercise price generally must be at least equal to the fair market value of a share of the Company on the date of grant. The fair market value of a share generally is determined with reference to the closing sale price for a share of the Company on the day...

  • Page 92
    ...'s service is terminated for cause, if a participant is prevented from exercising an option within the applicable post-termination time period due to legal compliance issues relating to the issuance of shares, the option will remain exercisable for thirty days after the date on which the Company...

  • Page 93
    ..., product cost reduction, product mix, product release schedules, product ship targets, quality, return on assets or net assets, return on capital, return on capital employed, return on equity, return on invested capital, return on operating revenue, return on sales, revenue, sales, share price...

  • Page 94
    ... any shares received, any gain or loss, based on the difference between the sale price and the fair market value on the settlement date, will be taxed as a long-term or short-term capital gain or loss, depending on the holding period. Logitech Inc. generally will be entitled to a tax deduction equal...

  • Page 95
    ...Mr. Darrell became the Company's President on April 9, 2012 and, as of June 30, 2012, had no shares awarded under the 2006 Stock Incentive Plan. Voting Requirement to Approve Proposal The affirmative "FOR" vote of a majority of the votes cast in person or by proxy at the Annual General Meeting, not...

  • Page 96
    ... at the 2012 and/or 2013 Annual General Meeting of the Company. Since the November 11, 2011 approval by the Swiss Takeover Board and the SIX Swiss Exchange, the Company has been making repurchases under its stock repurchase program through a "second trading line" that permits the Company to comply...

  • Page 97
    ...this change will be applicable as of the 2012 Annual General Meeting; it will, in particular, be applicable to the elections under Proposal 9. Article 14 (New Text): The Board of Directors of the Company shall be composed of at least three members appointed by the general meeting of shareholders for...

  • Page 98
    ...a member of the Board of Directors since June 2006. Until April 2006 Mr. Chang was the Company's Senior Vice President, Worldwide Operations and General Manager, Far East. Mr. Chang first joined Logitech in 1986 to establish its operations in Taiwan. After leaving the Company in 1988, he returned in...

  • Page 99
    ... chief executive officer of publicly-traded companies in Asia. He brings to the Board senior leadership, and financial and global expertise. As a director of public companies in Asia, and of private companies, he also provides cross-board experience. Mr. Chua currently serves on the Compensation...

  • Page 100
    ... shareholders. Information on the fees paid by Logitech to PwC S.A. and PwC LLP, as well as further information regarding PwC S.A. and PwC LLP, is set out below under the heading "Independent Public Accountants" and "Report of the Audit Committee." A member of PwC S.A. will be present at the Annual...

  • Page 101
    ... listing requirements of NASDAQ and Swiss corporate governance best practices guidelines. The Board of Directors has determined that Erh-Hsun Chang, Kee-Lock Chua and Didier Hirsch, the director nominees standing for re-election or election at the 2012 Annual General Meeting, each qualifies as...

  • Page 102
    ...Chief Executive Officer, Mr. Borel brings deep knowledge of and a passion for Logitech, its people and its products, as well as senior leadership, industry, technical, and global experience. As a director for Nestlé, Mr. Borel also provides cross-board experience. Matthew Bousquette ...53 Years Old...

  • Page 103
    ...-Hsun Chang ...63 Years Old Director since 2006 Former Senior Vice President, Worldwide Operations and General Manager, Far East, Logitech Taiwan national Erh-Hsun Chang has been a member of the Board of Directors since June 2006. Until April 2006 Mr. Chang was the Company's Senior Vice President...

  • Page 104
    ... strategy and product portfolio knowledge, provides the Board with expertise in senior leadership, technology, product strategy, and financial management. Guerrino De Luca ...59 Years Old Director since 1998 Chairman of the Board of Directors and Chief Executive Officer of Logitech International...

  • Page 105
    ... as a member of the senior leadership of a leading digital delivery company, provides the Board with expertise in technology, product strategy, and senior leadership. Richard Laube ...56 Years Old Director since 2008 Chief Executive Officer, Nobel Biocare Holding A.G. Swiss and U.S. national...

  • Page 106
    ...shareholders, see "Questions and Answers about the Logitech 2012 Annual General Meeting - If I am not a registered shareholder, can I attend and vote at the meeting?" If the agenda of a general meeting of shareholders includes an item calling for the election of directors, any registered shareholder...

  • Page 107
    ... it assists our directors in understanding, advising, and overseeing Logitech's structure, financial reporting, and internal control of such activities. Industry and Technical Expertise. Because we develop and manufacture hardware and software products, ship them worldwide, and sell to both major...

  • Page 108
    ... Chang and Mr. Chua expires at the 2012 Annual General Meeting, and each is being presented for re-election to the Board of Directors at that meeting. BOARD RESPONSIBILITIES AND STRUCTURE The Board of Directors is responsible for supervising the management of the business and affairs of the Company...

  • Page 109
    ...and the approval of the sale or acquisition, including related borrowings, of the Company's real estate. The Board of Directors has delegated the management of the Company to the Chief Executive Officer and the executive officers, except where Swiss law or the Company's Articles of Incorporation or...

  • Page 110
    ...The Board of Directors is regularly informed on developments and issues in Logitech's business, and monitors the activities and responsibilities of the executive officers in various ways. • At each regular Board meeting the Chief Executive Officer reports to the Board of Directors on developments...

  • Page 111
    ...related to internal control over financial reporting and Logitech's risk tolerance in cash-management investments. The Board's role in oversight does not have a direct impact on the Board's leadership structure, which is discussed above. Board Meetings The Chairman sets the agenda for Board meetings...

  • Page 112
    ... 2011 Annual General Meeting. All directors attended at least 75% of the meetings of the Board and the Committees on which he or she served. Detailed attendance information for Board and Board Committee meetings during fiscal year 2012 is as follows: Board of Directors Audit Committee Compensation...

  • Page 113
    ... approval, the compensation of executive officers and Logitech's compensation policies and programs, including share-based compensation programs and other incentive-based compensation. Within the guidelines established by the Board and the limits set forth in the Company's employee equity incentive...

  • Page 114
    ... and Chief Executive Officer as of July 27, 2011, consisted of Mr. De Luca and Mr. Quindlen. The Committee for Board Compensation met once in fiscal year 2012. The meeting was held in person and lasted approximately one hour. At the Committee's invitation, the Company's Vice President of Worldwide...

  • Page 115
    ... an officer or employee of Logitech. None of our executive officers serves on the board of directors or compensation committee of a company that has an executive officer that serves on our Board of Directors. COMMUNICATIONS WITH THE BOARD OF DIRECTORS Shareholders may contact the Board of Directors...

  • Page 116
    ...the Company under applicable Swiss laws, to own beneficially more than 5% of our outstanding shares as of June 30, 2012; each director and each nominee for director; the persons named in the Summary Compensation Table in the Compensation Report (the "named executive officers"); and all directors and...

  • Page 117
    ... outstanding). Based on information set forth in a Schedule 13G filed with the SEC on February 14, 2012 by Capital Research Global Investors, a division of Capital Research and Management Company (CRMC), reporting ownership of Logitech's shares as of December 31, 2011, and indicating sole investment...

  • Page 118
    ... or had time remaining to do so. To support our goal of Logitech's executive officers holding meaningful amounts of Logitech stock, in June 2011, the Compensation Committee adopted a provision, applicable to executive officers and Chief Executive Officer or President direct reports who have...

  • Page 119
    ...elected by the shareholders as Logitech's auditors at the Annual General Meeting in September 2011. For purposes of U.S. securities law reporting, PricewaterhouseCoopers LLP, San Jose, California, serves as the Company's independent registered public accounting firm. Together, PricewaterhouseCoopers...

  • Page 120
    ... by PwC with a set dollar limit per type of service. The Vice President, Corporate Controller or Acting Corporate Controller is responsible for ensuring that the work performed is within the scope and dollar limit as approved by the Audit Committee. Management must report to the Audit Committee...

  • Page 121
    ... financial statements to generally accepted accounting principles and attesting to the effectiveness of Logitech's internal control over financial reporting. The Board of Directors has adopted a written charter for the Audit Committee. A copy of the Charter can be found on our website at http://ir...

  • Page 122
    ... 16 of the Exchange Act requires Logitech's directors, executive officers and any persons who own more than 10% of Logitech's shares, to file initial reports of ownership and reports of changes in ownership with the SEC. Such persons are required by SEC regulation to furnish Logitech with copies of...

  • Page 123
    ... decisions with respect to Logitech's named executive officers and its Board members. This Compensation Report has been designed to comply with the proxy statement rules under U.S. securities laws as well as Swiss regulations and best corporate governance practices. This Report is an integrated part...

  • Page 124
    ... as Senior Vice President of Worldwide Sales and Marketing was eliminated and he left the Company. As part of that same restructuring, Mr. Labrousse's roles as Executive Vice President of the Products Group and President of Logitech Europe were eliminated, he ceased to be an executive officer and...

  • Page 125
    ... of this support for our pay-for-performance compensation philosophy in retaining our general compensation practices and setting fiscal year 2012 compensation for our executive officers. ENglISH NAMED EXECUTIVE OFFICERS In this Compensation Report, we refer to our "named executive officers" in many...

  • Page 126
    ... year 2012 consisted of performance-based stock units and time-based restricted stock units. Our executive officers are also eligible to participate in our health and benefits plans, retirement savings plans, and our employee share purchase plans, which are generally available to our employees. We...

  • Page 127
    ... the annual incentive program; and (2) Logitech's stock price performance in fiscal year 2012, which resulted in fiscal year 2012 annual equity grant values that were approximately half the value of the prior year. Guerrino De Luca All Other Named Executive Officers(1) Equity incentive awards 44...

  • Page 128
    ...is equally weighted. These metrics address both ''top line'' (revenue) and ''bottom line'' (adjusted operating income) corporate financial goals, both of which the Committee believes are critical to driving long-term shareholder value. The Bonus Plan is designed to motivate and reward executives for...

  • Page 129
    ... below. Named Executive Officer 2012 Annual Target Bonus Percentage of Base Salary 2011 Annual Target Bonus Percentage of Base Salary Change 2011 to 2012 Guerrino De Luca ...Erik K. Bardman...Junien Labrousse ...L. Joseph Sullivan...Former Officers: Gerald P. Quindlen ...Werner Heid ... 100% 75...

  • Page 130
    ... Supply Chain Costs performance measures. All other named executive officers' bonuses were based 100% on achievement against Logitech's revenue and adjusted operating income goals. Please see further details below under the heading "Bonus Plan performance targets and results for fiscal year 2012...

  • Page 131
    ... named executive officers (1) (2) (3) Adjusted Operating Income target reflects a reduction of $34 million from the Board-approved Operating Income target resulting from the Logitech Revue inventory write-off during the fiscal year. Contribution Margin targets for the Sales Group and the Product...

  • Page 132
    ...his resignation from the Company in July 2011. Long-term equity incentive awards During fiscal year 2012 the Compensation Committee granted our named executive officers long-term equity incentive awards in the form of performance-based stock units, or PSUs, and time-based restricted stock units, or...

  • Page 133
    .... For purposes of the PSUs, relative TSR reflects (i) the aggregate change in the 30-day average closing price of Logitech shares against the companies in the NASDAQ-100 Index, and (ii) the value (if any) returned to shareholders in the form of dividends or similar distributions, assumed to be...

  • Page 134
    ..., Logitech will have to outperform the market in terms of stock price appreciation. Grants were made in particular as follows: Grants to Mr. Quindlen. On April 11, 2011, as part of the annual executive compensation review, Mr. Quindlen received a PSU grant for 124,000 shares, assuming 100% target...

  • Page 135
    ... Grants (#) 2011 Shares Shares Subject Subject to Equity 2012 Grant 2011 Grant to Equity Grants Date Fair Date Fair Grants Change Value Value (#) 2011 to 2012 ($)(1) ($)(1) Grant Date Fair Value Change 2011 to 2012 Named Executive Officer Type of Equity Grant Guerrino De Luca ...PSUs Options 30...

  • Page 136
    ...for the meeting or the consent, not Logitech's share price. In fiscal year 2012 grants were made to new hires and promoted employees, including those at the executive officer level, through regularly scheduled monthly written consents of the Compensation Committee. BRACKEN DARRELL'S NEW HIRE PACKAGE...

  • Page 137
    ... year 2012 executive officer compensation proposals for base salary, bonus targets and equity grant values were developed by Radford and presented to both the Compensation Committee and Logitech's management. Based on the analysis performed by Radford, Logitech's Vice President of Worldwide Human...

  • Page 138
    ...4 of the companies in our prior peer group were removed due to acquisition. For fiscal year 2012, the compensation peer group consisted of: Activision Blizzard, Inc. Agilent Technologies, Inc. Analog Devices, Inc. Autodesk, Inc. BMC Software, Inc. Brocade Communications Systems, Inc. Electronic Arts...

  • Page 139
    ... recently available four quarters as of February 2011. Market Capitalization as of March 28, 2011. Produced by Radford, Source: Hoovers, A D&B Company In addition, to assist the Committee in its review of executive compensation, Logitech's compensation department provides compensation data compiled...

  • Page 140
    ... the Switzerland Logitech Employee Pension Fund. This is a defined benefit pension plan available to all our employees in Switzerland. Severance and related benefits All named executive officers are eligible to receive benefits under certain conditions in accordance with Logitech's Change of Control...

  • Page 141
    ... Logitech's executive officer benefit programs are substantially the same as for all other eligible employees except as set out below. Mr. Quindlen, Logitech's former President and Chief Executive Officer, was provided with personal tax preparation services in fiscal year 2012. Expenses related...

  • Page 142
    ... certain persons designated by the Company as insiders, including officers and directors, to trade in puts, calls, warrants or other derivative Logitech securities traded on an exchange or in any other organized securities market. Recovery of compensation for restatements and misconduct In June 2010...

  • Page 143
    ... also receive PSUs. In addition, full-time professional staff, in countries where Logitech is able to offer the program, are eligible to participate in the Company's employee share purchase plans, which allow eligible employees to purchase Logitech shares at a 15% discount from the market price of...

  • Page 144
    ... Stock Incentive Plan. Management Performance Bonus Plan. Profit Sharing Plan. Sales commissions plans. Change of Control Severance Agreements in place with executive officers. The review included a consideration of compensation risk areas associated with Logitech's current compensation programs...

  • Page 145
    ... of this Compensation Report with management. Based on this review and discussion, the Compensation Committee recommended to the Board of Directors that the Compensation Discussion and Analysis be included in Logitech's 2012 Invitation and Proxy Statement and Annual Report. Compensation Committee...

  • Page 146
    ...the compensation and benefits earned during fiscal years 2012, 2011 and 2010 by our named executive officers. For more information, please refer to "Compensation Disclosure and Analysis," as well as "Narrative Disclosure to Summary Compensation Table and Grants of PlanBased Awards Table." Changes in...

  • Page 147
    ... and Chief Executive Officer ended July 27, 2011. ENglISH (7) (8) (9) Mr. Heid's service as Senior Vice President, Sales and Marketing ended May 15, 2012. (10) The Compensation Committee approved the payment of this bonus to Mr. Heid to enable him to purchase a value of Logitech shares equal to...

  • Page 148
    ... cost to Logitech related to his use of a company car while working from the Company's office in California. In the case of Mr. Labrousse, represents the cost to Logitech of $21,784 and $21,290 in fiscal years 2012 and 2011, respectively, for tax preparation services for Mr. Labrousse related to his...

  • Page 149
    ... Logitech Employee Pension Fund in Switzerland for Mr. Labrousse, which are available to all of our regular employees who are on our Swiss payroll. Represents the severance compensation paid to Mr. Quindlen, the former President and Chief Executive Officer. (5) (6) (7) GRANTS OF PLAN-BASED AWARDS...

  • Page 150
    ...target number of units awarded. For RSUs, that number is equal to the closing price of Logitech shares on the grant date. The key assumptions for the valuation of the PSUs are presented in Note 4 to the Consolidated Financial Statements included in Logitech's Annual Report to Shareholders and Annual...

  • Page 151
    ...Name Number of Number of Number Securities Securities of Shares Underlying Underlying Option Market or Units of Unexercised Unexercised Exercise Option Value of Stock That Grant Date Options (#) Options (#) Price...400 - 179,400 - 319,800 50,700 140,400 - 179,400 - 370,500 35,100...- Junien Labrousse ...

  • Page 152
    ... Other Rights That Have Not Vested ($)(1) Name Number of Number of Number Securities Securities of Shares Underlying Underlying Option Market or Units of Unexercised Unexercised Exercise Option Value of Stock That Grant Date Options (#) Options (#) Price ($) / Expiration Date Unexercised Have Not...

  • Page 153
    ... Based on the closing trading price of Logitech shares on the NASDAQ Global Select Market. PENSION BENEFITS FOR FISCAL YEAR 2012 Junien Labrousse, Senior Vice President, Consumer Computing Platforms Group, is a participant in Logitech's Swiss Pension plan, which is a benefit offered to all eligible...

  • Page 154
    NON-QUALIFIED DEFERRED COMPENSATION FOR FISCAL YEAR 2012 The following table sets forth information regarding the participation by our named executive officers in the Logitech Inc. U.S. Deferred Compensation Plan during fiscal year 2012 and at fiscal year-end. Executive Contributions in Last Fiscal ...

  • Page 155
    ... for payment of any consideration to any non-executive member of the Board of Directors upon termination of his or her services with the Company. Change of Control Severance Agreements Each of our named executive officers has executed a change of control severance agreement with Logitech. The change...

  • Page 156
    ... date of the change of control. Bracken Darrell Offer Letter We entered into an offer letter with Bracken Darrell dated March 13, 2012. Under his offer letter, in the event he is terminated without "cause" or resigns (within 30 days after Logitech fails to remedy the condition reported to be good...

  • Page 157
    ..., or (ii) if, by January 31, 2013, he is not reporting directly to the Logitech International Board of Directors as Chief Executive Officer. If any amounts become payable to Mr. Darrell under his change of control agreement, or any successor agreement, the aggregate amount of any amounts...

  • Page 158
    ... is just under 3 times the average annual taxable compensation paid by Logitech to the executive in the prior five taxable years, calculated in accordance with the U.S. Tax Code. The 280G cut-back in the Change of Control agreements was not applicable to any of these named executive officers for...

  • Page 159
    ...2,768 CHF amount was converted using the exchange rate of 1 Swiss franc to 1.10705 U.S. Dollar as of March 31, 2012. Non-employee Board members may elect to receive their Board fees in shares, net of withholdings. Any such shares are to be issued under the 2006 Stock Incentive Plan. Annual service...

  • Page 160
    ... the closing price of Logitech shares on NASDAQ on the last trading day of the fiscal year. Information regarding the option and stock awards held as of March 31, 2012 by Guerrino De Luca and Gerald Quindlen, the only members of the Board of Directors that are or were Logitech executive officers as...

  • Page 161
    ...-Employee Directors at Fiscal 2012 Year-End Option Awards Stock Awards Number of Number of Number of Shares or Securities Securities Option Market Units of Market Value of Underlying Underlying Exercise Value of Stock That Shares or Units of Unexercised Unexercised Price / Unexercised Have Not Stock...

  • Page 162
    ... Share Purchase Plan (Non-U.S.), 2006 Stock Incentive Plan, and 1996 Stock Plan (which plan terminated in 2006). 2006 Stock Incentive Plan The Logitech International S.A. 2006 Stock Incentive Plan provides for the grant to eligible employees and non-employee members of the Board of Directors...

  • Page 163
    ... 1996 Plan. No further awards will be granted under the 1996 Plan. Each option issued under the 1996 Stock Plan entitles the holder to purchase one share of Logitech International S.A. at the exercise price. Employee Share Purchase Plans Logitech maintains two employee share purchase plans, one for...

  • Page 164
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  • Page 165
    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 155 ANNUAl REPORT

  • Page 166
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  • Page 167
    ... Internet communications products include webcams, headsets, video communications services, and digital video security systems. Our digital music products include speakers, earphones, custom in-ear monitors and Squeezebox Wi-Fi music players. For home entertainment systems, we offer the Harmony line...

  • Page 168
    webcam and video communications groups. We sell our LifeSize products and services to distributors, value-added resellers, OEMs, and, occasionally, direct enterprise customers. Sales of LifeSize products were 6% of our net sales in the fiscal years ended March 31, 2012 and 2011. We seek to fulfill ...

  • Page 169
    ... year 2012. Retail sales in our Americas region decreased by 9%, due to lower sales from Logitech Revue and our Google TV peripherals, which were impacted by the price drop implemented in our second fiscal quarter of 2012 and our exit from the product line, and weak performance in the digital home...

  • Page 170
    ... price points as we previously directed significant digital home engineering and marketing resources towards our Logitech Revue and related peripherals for Google TV. We have exited the Google TV product category, and we plan to strengthen our Harmony line in fiscal year 2013. Sales of our OEM mice...

  • Page 171
    ... goodwill, as well as other long lived assets. Adverse changes in the Company's expected operating results, market capitalization, business climate, or other negative events could result in a material non-cash impairment charge in the future. Most of our revenue comes from sales to our retail...

  • Page 172
    ... future product returns. Cooperative Marketing Arrangements. We enter into customer marketing programs with many of our distribution and retail customers, and with certain indirect partners, allowing customers to receive a credit equal to a set percentage of their purchases of the Company's products...

  • Page 173
    ... expected to resume in the foreseeable future, if at all. ANNUAl REPORT Allowance for Doubtful Accounts We sell our products through a worldwide network of distributors, retailers, value-added resellers, business enterprises and OEM customers. Logitech generally does not require any collateral from...

  • Page 174
    ..., employee exercise patterns, future forfeitures, dividend yield, related tax effects and the selection of an appropriate fair value model. We estimate expected share price volatility based on historical volatility using daily prices over the term of past options, RSUs or purchase offerings...

  • Page 175
    ... Company's history and future expectations of dividend payouts. The assumptions used in calculating the fair value of share-based compensation expense and related tax effects represent management's best estimates, but these estimates involve inherent uncertainties and the application of management...

  • Page 176
    ... reporting unit by more than 80% of the carrying value. Management continues to evaluate and monitor all key factors impacting the carrying value of our recorded goodwill, as well as other long lived assets. Adverse changes in the Company's expected operating results, market capitalization, business...

  • Page 177
    ...currency exchange rates had been the same in fiscal years 2012 and 2011, and in fiscal years 2011 and 2010, the percentage changes in our constant dollar net sales would have been: 2012 2011 Retail ...OEM...LifeSize ...Total net sales... (3)% (18)% 10% (3)% 18% 12% 476% 22% 167 ANNUAl REPORT We...

  • Page 178
    ..., retail sales for fiscal year 2012 compared with 2011 increased in keyboards/ desktops, were flat in audio, and declined in all other product families, particularly Digital Home, Video and Pointing Devices. Digital Home sales declined $14.3 million due to lower sales of Logitech Revue for Google TV...

  • Page 179
    .... The Digital Home product category combines our Harmony Remote controls and Logitech Revue with related peripherals. Net sales reflect accruals for product returns, cooperative marketing arrangements, customer incentive programs and pricing programs. Retail Pointing Devices Retail unit sales of our...

  • Page 180
    ...6% in units in fiscal year 2011. The Logitech Mini Boombox, a compact Bluetooth sound system that we began shipping in the latter part of fiscal year 2012, contributed significantly to the growth in the digital music speaker category. Retail sales of Ultimate Ears products increased 51% fiscal years...

  • Page 181
    ... or market on our inventory of Logitech Revue and related peripherals on hand and at our suppliers, and an unfavorable shift in retail product mix towards products with lower average selling prices. The improvement in the gross margin percentage in fiscal year 2011 over 2010 was primarily related to...

  • Page 182
    ..., trade shows, customer and technical support and facilities costs. Marketing and selling expense increased 1% in fiscal year 2012 compared with 2011, primarily from higher personnel-related expenses resulting from increased headcount for LifeSize, the enterprise market team, and the Asia Pacific...

  • Page 183
    ...and facilities costs for the finance, information systems, executive, human resources and legal functions. General and administrative expense increased by 1% from fiscal year 2011 to 2012, primarily due to higher personnel-related expenses resulting from increased headcount, mainly from our LifeSize...

  • Page 184
    ...offered by one of our subsidiaries. Investment income for fiscal year 2011 represents earnings, gains, and losses on the trading investments and changes in the cash surrender value of Companyowned life insurance contracts, related to the same deferred compensation plan. In December 2010, the Company...

  • Page 185
    ... related to uncertain tax positions decreased to $7.5 million from $8.0 million as of March 31, 2011. The Company files Swiss and foreign tax returns. For all these tax returns, the Company is generally not subject to tax examinations for years prior to 1999. The U.S. Internal Revenue Service...

  • Page 186
    ...of shares under our share buyback program, offset in part by proceeds of employee stock purchases and the exercise of stock options. At March 31, 2012, we had cash and cash equivalents of $478.4 million. Our cash and cash equivalents are comprised of bank demand deposits and short-term time deposits...

  • Page 187
    ... The following table presents selected financial information and statistics for fiscal years 2012, 2011 and 2010 (dollars in thousands): Year Ended March 31, 2012 2011 2010 Accounts receivable, net ...Inventories ...Working capital...Days sales in accounts receivable (DSO)(1)...Inventory turnover...

  • Page 188
    ...types of incentive promotions offered. Typical payment terms require customers to pay for product sales generally within 30 to 60 days; however, terms may vary by customer type, by country and by selling season. Extended payment terms are sometimes offered to a limited number of customers during the...

  • Page 189
    ... September 2008 buyback program. Cash of $17.6 million, $43.0 million and $28.9 million was provided during the fiscal years 2012, 2011 and 2010 from the sale of shares upon exercise of options and purchase rights pursuant to the Company's stock plans. The payment of tax withholdings related to net...

  • Page 190
    ... the Company to invest up to $250 million to purchase its own shares. In November 2011, the Company received approval from the Swiss regulatory authorities for an amendment to the September 2008 share buyback program to enable future repurchases of shares for cancellation. As of March 31, 2012, the...

  • Page 191
    ...of March 31, 2012 compared with $72.6 million as of March 31, 2011 was due to approximately $13 million for an expansion of our LifeSize headquarters in Austin, Texas and approximately $35 million related to new facilities for our Americas operations in Northern California. Fair value of future rent...

  • Page 192
    ... component suppliers. These guarantees generally have an unlimited term. The maximum potential future payment under the guarantee arrangements is limited to $36.0 million. At March 31, 2012, there were no purchase obligations outstanding for which the parent holding company was required to guarantee...

  • Page 193
    ... guarantee has a total limit of $7.0 million. As of March 31, 2012, $3.9 million of guaranteed purchase obligations were outstanding under these guarantees. Logitech Europe S.A. has also guaranteed payment of the purchase obligations of a third-party contract manufacturer under three guarantee...

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  • Page 195
    ADDITIONAL FINANCIAL DISCLOSURES 185 ANNUAl REPORT

  • Page 196
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  • Page 197
    ... of the Logitech brand through targeted advertising, public relations efforts, social media, distinct packaging of our retail products, in-store promotions and merchandising, a Worldwide Web site and other efforts. We also acquire knowledge of our users through customer feedback and market research...

  • Page 198
    ... maintain sales offices or sales representatives in 41 countries. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Logitech's shares are listed and traded on both the SIX Swiss Exchange, where the share price is denominated in Swiss francs...

  • Page 199
    ... table sets forth certain historical share price information for the Company's shares traded on the SIX Swiss Exchange, as reported by the SIX Swiss Exchange. The U.S. dollar equivalent is based on the noon buying rate on the trading day of the month in which the high or low closing sales price...

  • Page 200
    ...by Logitech of its equity securities (in thousands, except per share amounts): Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program Period Total Number of Shares Purchased as Part of Publicly Announced Program Average Price Paid Per Share in USD in CHF April 2011 ...May...

  • Page 201
    ... to repurchase as of March 31, 2012, $94.3 million, divided by the adjusted close price of the Company's shares traded on the SIX Swiss Exchange as of the same date, $7.81 per share. The Company intends to request shareholder approval at the Company's next Annual General Meeting of Shareholders to...

  • Page 202
    ...be expected in the future. Year ended March 31, 2012 2011 2010 2009 (In thousands, except per share amounts) 2008 Consolidated statements of operations and cash flow data: Net sales ...Gross profit ...Operating expenses: Marketing and selling ...Research and development...General and administrative...

  • Page 203
    ...currency exchange rate risk as it transacts business in multiple foreign currencies, including exposure related to anticipated sales, anticipated purchases and assets and liabilities denominated in currencies other than the U.S. dollar. Logitech transacts business in over 30 currencies worldwide, of...

  • Page 204
    ... exchange forward contracts outstanding at March 31, 2012 relating to foreign currency receivables or payables were $18.7 million. Open forward contracts as of March 31, 2012 consisted of contracts in British pounds to sell euros and contracts in Australian dollars to purchase U.S. dollars at future...

  • Page 205
    ... investment securities. The Company prepared sensitivity analyses of its interest rate exposures to assess the impact of hypothetical changes in interest rates. Based on the results of these analyses, a 100 basis point decrease or increase in interest rates from the March 31, 2012 and March 31, 2011...

  • Page 206
    ... in pretax charges related to sales incentive allowances from fiscal year 2010 and prior quarters in fiscal year 2011. The Company reviewed the accounting errors utilizing SEC Staff Accounting Bulletin No. 99, Materiality and SEC Staff Accounting Bulletin No. 108, Effects of Prior Year Misstatements...

  • Page 207
    REPORT ON CORPORATE GOVERNANCE 2012 197 ANNUAl REPORT

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  • Page 209
    ... and software products that enable or enhance digital navigation, music and video entertainment, gaming, social networking, audio and video communication over the Internet, video security and home-entertainment control. Logitech was founded in Switzerland in 1981, and Logitech International S.A. has...

  • Page 210
    ... Company's shares outstanding (which is equal to the shares issued less the shares held in the Company's treasury) is set out in the Company's Annual Report, Invitation and Proxy Statement for the 2012 Annual General Meeting, available at http://ir.logitech.com, under the heading "Security Ownership...

  • Page 211
    ... share capital. As of March 31, 2012, Logitech has no authorized share capital. Conditional share capital. Under Swiss corporate law the total nominal par value of the shares authorized by shareholders for future issuance on the conversion or exercise of derivative securities issued by a company...

  • Page 212
    ... For information on Logitech's shareholders' equity as of March 31, 2012 and 2011, refer to the Swiss Statutory Balance Sheets on page 269 of our Annual Report, Invitation and Proxy Statement. During fiscal years 2012, 2011 and 2010, the Company had the following approved share buyback programs in...

  • Page 213
    ...further information on Logitech's share repurchases please refer to "Additional Financial Disclosures - Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities" in our Annual Report. 2.4 Share Categories Registered Shares. Logitech International...

  • Page 214
    ... for the 2012 Annual General Meeting, under the heading "Corporate Governance and Board of Directors Matters" at pages 91 to 112. 4. Senior Management 4.1 Members of Senior Management The members of our senior management, referred to by Logitech as our "executive officers," are set out below...

  • Page 215
    ...49 Years Old President U.S. National Bracken P. Darrell joined Logitech as President in April 2012. Prior to joining Logitech, Mr. Darrell served as President of Whirlpool EMEA and Executive Vice President of Whirlpool Corporation, a home appliance manufacturer and marketing company, from January...

  • Page 216
    ... Old Executive Vice President, Products and President, Logitech Europe French national Junien Labrousse joined Logitech as Vice President of the Video Division in 1997. He was named Senior Vice President, Video Business Unit in April 2001, Senior Vice President, Entertainment and Communications...

  • Page 217
    ... have registered their shares by the date set by the Board of Directors for the closing of the share register before each general meeting of shareholders. Refer to section 2.6 for more information on the registration process. Any shareholder may be represented at a meeting by a person of its choice...

  • Page 218
    ... to make an offer for all outstanding shares of the Company. 7.2 Change of Control Provisions Please refer to our Compensation Report at pages 113 to 153 of our Annual Report, Invitation and Proxy Statement for the 2012 Annual General Meeting, of which this Report is a part, for information on the...

  • Page 219
    ...to ask questions of the Chief Executive Officer and Chief Financial Officer. Logitech also holds periodic analyst days where senior management present reviews of Logitech's business. These events are webcast and remain available on Logitech's Investor Relations website for a period of time after the...

  • Page 220
    ....com/alerts.cfm. As a Swiss company traded on the SIX Swiss Exchange, and as a company subject to the provisions of Section 16 of the Securities Exchange Act of 1934, as amended, we file reports on transactions in Logitech securities by members of Logitech's Board of Directors and executive officers...

  • Page 221
    ... Name of Subsidiary Jurisdiction of Incorporation Group Holding % Share Capital EUROPE Labtec Europe S.A...Logi Trading and Services Limited Liability Company ...Logitech U.K. Limited ...Logitech (Jersey) Limited ...Logitech Czech Republic, s.r.o...Logitech Espana BCN SL...Logitech Europe S.A...SAS...

  • Page 222
    ...LifeSize Communications, Inc...UE Acquisition Inc...Logitech Latin America, Inc...Labtech Inc...ASIA PACIFIC LogiCool Co., Ltd...Logitech Electronic (India) Private Limited ...Logitech Far East, Ltd...Logitech Hong Kong Limited...Logitech Korea Ltd...Logitech New Zealand Co., Ltd...Logitech Service...

  • Page 223
    ... 2010 ...Consolidated Balance Sheets - March 31, 2012 and 2011 ...Consolidated Statements of Cash Flow - Years Ended March 31, 2012, 2011 and 2010 ...Consolidated Statements of Changes in Shareholders' Equity - Years Ended March 31, 2012, 2011 and 2010 ...214 216 217 218 219 220 213 ANNUAl REPORT

  • Page 224
    ... financial statements of Logitech International SA, which comprise the balance sheet, income statement, statement of cash flows, statement of changes in shareholders' equity and notes for the year ended March 31, 2012. Board of Directors' Responsibility The Board of Directors is responsible for...

  • Page 225
    ...article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal control system exists which has been designed for the preparation of consolidated financial statements according to the instructions of the Board of Directors. We recommend that the consolidated financial...

  • Page 226
    LOGITECH INTERNATIONAL S.A. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Year ended March 31, 2012 2011 2010 Net sales ...Cost of goods sold ...Gross profit ...Operating expenses: Marketing and selling...Research and development...General and administrative......

  • Page 227
    LOGITECH INTERNATIONAL S.A. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) Year ended March 31, 2012 2011 2010 Net income...Other comprehensive income: Foreign currency translation...Defined benefit pension plan adjustments during the period: Net gain (loss)...Deferred tax benefit (...

  • Page 228
    ...Total liabilities ...Commitments and contingencies Shareholders' equity: Shares, par value CHF 0.25-191,606 issued and authorized and 50,000 conditionally authorized at March 31, 2012 and 2011 ...Additional paid-in capital...Shares in treasury, at cost, 27,173 at March 31, 2012 and 12,433 at March...

  • Page 229
    ... expense...Write-down of investments ...Gain on disposal of property and plant ...Gain on sale of available-for-sale securities...Excess tax benefits from share-based compensation ...Gain on cash surrender value of life insurance policies ...Deferred income taxes and other ...Changes in assets and...

  • Page 230
    ..., 2010 ...Total comprehensive income ...Tax benefit from exercise of stock options ...Shares issued for director services ...Sale of shares upon exercise of options and purchase rights ...Issuance of shares upon vesting of restricted stock units ...Share-based compensation expense ...March 31, 2011...

  • Page 231
    ... Internet communications products include webcams, headsets, video communication services, and digital video security systems. Our digital music products include speakers, earphones, custom in-ear monitors, and Squeezebox Wi-Fi music players. For home entertainment systems, we offer the Harmony line...

  • Page 232
    ... available. Management judgment must be used to determine the appropriate deliverables and associated relative selling prices. The Company has identified Logitech Revue and the LifeSize video conferencing products as products sold with software components that qualify as multiple-deliverable revenue...

  • Page 233
    ... value of that benefit. Significant management judgment and estimates must be used to determine the cost of these programs in any accounting period. The Company grants limited rights to return product. Return rights vary by customer, and range from just the right to return defective product to stock...

  • Page 234
    ... partners, allowing customers to receive a credit equal to a set percentage of their purchases of the Company's products, or a fixed dollar credit for various marketing programs. The objective of these arrangements is to encourage advertising and promotional events to increase sales of our products...

  • Page 235
    ...customers to pay for product sales generally within 30 to 60 days; however terms may vary by customer type, by country and by selling season. Extended payment terms are sometimes offered to a limited number of customers during the second and third fiscal quarters. The Company does not modify payment...

  • Page 236
    LOGITECH INTERNATIONAL S.A. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 2 - Summary of Significant Accounting Policies (Continued) Investments The Company's investment securities portfolio consists of bank time deposits, marketable securities related to a deferred compensation plan, ...

  • Page 237
    ..., accounts receivable, accounts payable and accrued liabilities approximates fair value due to their short maturities. The Company's trading investments related to the deferred compensation plan are reported at fair value based on quoted market prices. Available-for-sale securities are reported at...

  • Page 238
    ...based on the average share price for each fiscal period using the treasury stock method, which assumes that the amount used to repurchase shares includes the amount the employee must pay for exercising share-based awards, the amount of compensation cost not yet recognized for future service, and the...

  • Page 239
    ... the exercise of employee stock options and purchase rights, the vesting of restricted stock units, and acquisitions, or may be cancelled with shareholder approval. Derivative Financial Instruments The Company enters into foreign exchange forward contracts to reduce the short-term effects of foreign...

  • Page 240
    ... dilution effect of share-based awards granted, assumed and exercised (in thousands): Year ended March 31 2011 2010 2012 Basic weighted average shares outstanding as of March 31 ...Stock options and RSUs granted ...Stock options and restricted stock assumed in LifeSize acquisition ...Stock options...

  • Page 241
    ...expense and related tax benefit recognized for fiscal years 2012, 2011 and 2010 (in thousands): Year Ended March 31, 2012 2011 2010 Cost of goods sold ...Share-based compensation expense included in gross profit ...Operating expenses: Marketing and selling ...Research and development ...General and...

  • Page 242
    ...fair value of options vested as of March 31, 2012, 2011 and 2010 was $76.0 million, $74.3 million and $66.4 million. The fair value of employee stock options granted and shares purchased under the Company's employee purchase plans was estimated using the Black-Scholes-Merton option-pricing valuation...

  • Page 243
    ... share-based compensation expense only for those awards that are expected to vest. The following table presents the weighted average grant-date fair values of options granted and the expected forfeiture rates: Year ended March 31, 2011 2010 2012 2011 2010 Purchase Plans Stock Option Plans 2012...

  • Page 244
    ...priced stock options will vest in full if and only when Logitech's average closing share price, over a consecutive ninety-day trading period, meets or exceeds the exercise price of the grant. Defined Contribution Plans Certain of the Company's subsidiaries have defined contribution employee benefit...

  • Page 245
    ... all of their employees. Benefits are provided based on employees' years of service and earnings, or in accordance with applicable employee benefit regulations. The Company's practice is to fund amounts sufficient to meet the requirements set forth in the applicable employee benefit and tax...

  • Page 246
    ... investment return with an acceptable level of overall risk. Investment strategies and allocation decisions are also governed by applicable governmental regulatory agencies. The Company's investment strategy with respect to its largest defined benefit plan, which is available only to Swiss employees...

  • Page 247
    LOGITECH INTERNATIONAL S.A. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 4 - Employee Benefit Plans (Continued) Level 1 March 31, 2011 Level 2 Level 3 Total Cash ...Equity securities ...Debt securities ...Swiss real estate fund ...Hedge fund ...Commodity fund...Other ...Total plan ...

  • Page 248
    LOGITECH INTERNATIONAL S.A. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 4 - Employee Benefit Plans (Continued) Changes in accumulated other comprehensive loss related to the defined benefit pension plans were as follows (in thousands): March 31, 2012 2011 Accumulated other ...

  • Page 249
    ...): Year ended March 31, 2012 2011 2010 Interest income ...Interest expense ...Interest income, net ...Gain on sale of buildings ...Gain on sale of available-for-sale securities ...Foreign currency exchange gains, net ...Investment income related to deferred compensation plan ...Write-down of...

  • Page 250
    ... (in thousands): Year ended March 31, 2011 2010 2012 Expected tax provision at statutory income tax rates ...Income taxes at different rates ...Research and development tax credits ...Unrealized investment income ...Stock compensation ...Transaction costs ...Valuation allowance ...Other ...Total...

  • Page 251
    ... fiscal year 2011. In fiscal year 2011, the Company sold its equity interest in certain 3Dconnexion subsidiaries, and its intellectual property rights related to the manufacture and sale of certain 3Dconnexion products, to a group of third party individuals and certain 3Dconnexion employees. A full...

  • Page 252
    ... Deferred tax assets relating to tax benefits of employee stock option grants and RSUs have been reduced to reflect exercises in fiscal years 2012 and 2011. Exercises in fiscal year 2011 resulted in tax deductions in excess of previously recorded share-based compensation expense (''windfalls''). The...

  • Page 253
    ...effect on our consolidated operating results. In addition, the U.S. Internal Revenue Service is in the process of examining the Company's U.S. subsidiary for fiscal years 2008 and 2009. The Company is also under examination and has received assessment notices in other tax jurisdictions. At this time...

  • Page 254
    ... 31, 2012 2011 Accounts receivable: Accounts receivable ...Allowance for doubtful accounts...Allowance for returns ...Allowances for cooperative marketing arrangements...Allowances for customer incentive programs ...Allowances for pricing programs ...Inventories: Raw materials...Work-in-process...

  • Page 255
    ...,835 The increase in deferred rent primarily relates to new facilities for the Company's Americas operations in Northern California. Note 8 - Financial Instruments Fair Value Measurements The Company considers fair value as the exchange price that would be received for an asset or paid to transfer...

  • Page 256
    ... inputs other than quoted market prices. The following table presents the changes in the Company's Level 3 financial assets during the fiscal years ended March 31, 2012, 2011 and 2010 (in thousands): March 31, 2011 2012 2010 Available-for-sale securities, beginning balance...Proceeds from...

  • Page 257
    LOGITECH INTERNATIONAL S.A. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 8 - Financial Instruments (Continued) cycle of one year. The marketable securities are recorded at a fair value of $14.3 million and $13.1 million as of March 31, 2012 and 2011, based on quoted market prices. ...

  • Page 258
    ... amounts of foreign exchange forward contracts outstanding related to forecasted inventory purchases were $58.1 million (A43.5 million) and $54.9 million (A38.7 million) at March 31, 2012 and 2011. The notional amount represents the future cash flows under contracts to purchase foreign currencies...

  • Page 259
    ... outstanding at March 31, 2012 and 2011 relating to foreign currency receivables or payables were $18.7 million and $12.9 million. Open forward contracts as of March 31, 2012 consisted of contracts in euros to sell British pounds and contracts in Australian dollars to purchase U.S. dollars at future...

  • Page 260
    ... year 2011, changes in the gross carrying value of other intangible assets related primarily to our acquisition of Paradial. For fiscal years 2012, 2011 and 2010, amortization expense for other intangible assets was $26.5 million, $27.8 million and $14.5 million. The Company expects that annual...

  • Page 261
    ... require it to pay property taxes, insurance and maintenance costs. Operating leases for facilities are generally renewable at the Company's option and usually include escalation clauses linked to inflation. Future minimum annual rentals under non-cancelable operating leases at March 31, 2012 are as...

  • Page 262
    ... 2010. The increase in future minimum annual rentals as of March 31, 2012 compared with $72.6 million as of March 31, 2011 was due to approximately $35 million related to new facilities for our Americas operations in Northern California, and approximately $13 million for an expansion of our LifeSize...

  • Page 263
    ... guarantees generally have an unlimited term. The maximum potential future payment under the guarantee arrangements is limited to $36.0 million. At March 31, 2012, there were no purchase obligations outstanding for which the parent holding company was required to guarantee payment. Logitech Europe...

  • Page 264
    .... This conditional capital was created in order to provide financing flexibility for future expansion, investments or acquisitions. Dividends Pursuant to Swiss corporate law, Logitech International S.A. may only pay dividends in Swiss francs. The payment of dividends is limited to certain amounts...

  • Page 265
    ... price of the Company's shares traded on the SIX Swiss Exchange as of the same date, $7.81 per share. The Company repurchased shares under these buyback programs as follows (in thousands): Amounts Repurchased During Year ended March 31,(1) Program to date 2012 2011 Shares Amount Shares Amount Shares...

  • Page 266
    ... and encompasses the design, manufacturing and marketing of LifeSize video conferencing products, infrastructure and services for the enterprise, public sector and other business markets. The Company's operating segments do not record revenue on sales between segments, as such sales are not material...

  • Page 267
    ... the Company's total consolidated net sales during those periods. Revenues from sales to customers in Switzerland, the Company's home domicile, represented a small portion of the Company's total consolidated net sales in all periods presented. In fiscal years 2012, 2011 and 2010, one customer group...

  • Page 268
    ... long-lived assets at March 31, 2012 and 2011. Note 14 - Acquisitions and Divestitures Mirial On July 18, 2011, the Company acquired all of the outstanding shares of Mirial S.r.l., a Milan-based privatelyheld provider of personal and mobile video conferencing solutions, for a total consideration of...

  • Page 269
    ... products and services. Logitech expects the acquisition to drive growth in video communication for the enterprise and small-to-medium business markets by leveraging the two companies' technology expertise, including camera design, firewall traversal, video compression and bandwidth management...

  • Page 270
    .../trade name was estimated by capitalizing the estimated profits saved as a result of acquiring or licensing the asset. Customer relationships and other relates to the ability to sell existing, in-process, and future versions of the technology and services to LifeSize's existing customer base, valued...

  • Page 271
    ... certain assets from TV Compass, Inc., a Chicago, Illinois-based company providing video software and services for the Web and mobile devices. The acquisition has been treated as an acquisition of a business and has been accounted for using the purchase method of accounting. The total consideration...

  • Page 272
    ... years 2012, 2011, and 2010. Compensation and Security Ownership of Board Members and Executive Officers In accordance with the Swiss Code of Obligations, the compensation and security ownership of members of the Board of Directors of Logitech International S.A. and of Logitech executive officers is...

  • Page 273
    ...Logitech Management Performance Bonus Plan and predecessor plans. No non-executive members of the Board of Directors participated in any non-equity incentive compensation plans in any of fiscal years 2012, 2011 or 2010. Amounts shown reflect the grant date fair value, by fiscal year, of stock awards...

  • Page 274
    ... fiscal years 2012, 2011 and 2010 to parties closely related to members of the Board of Directors or executive officers. The following table sets forth the shares and options held by each of the individual members of the Board of Directors and executive officers as of March 31, 2012: Options, PRSUs...

  • Page 275
    ...Directors, the options become exercisable over three years in equal annual installments from the date of grant. PRSUs granted to executive officers are performance-based restricted stock units that may vest at the end of two or three years from the grant date upon meeting certain minimum share price...

  • Page 276
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  • Page 277
    ... Balance Sheets (unconsolidated) ...Swiss Statutory Statements of Income (unconsolidated) ...Notes to Swiss Statutory Financial Statements ...Proposal of the Board of Directors for Appropriation of Retained Earnings ...Report of the Statutory Auditor ... 269 270 271 275 276 267 ANNUAl REPORT

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  • Page 279
    LOGITECH INTERNATIONAL S.A., APPLES SWISS STATUTORY BALANCE SHEETS (unconsolidated) (In thousands of Swiss francs) March 31, 2012 2011 ASSETS Current assets: Cash ...Short-term bank deposits ...Accrued interest and other receivables ...Advances to and amounts receivable from group companies ......

  • Page 280
    ...,461 29 53,893 CHF 20,213 Administrative expenses ...Brand development expenses ...Interest paid to subsidiaries ...Income, capital and non-recoverable withholding taxes ...Loss on treasury shares ...Gain on long-term investments ...Realized exchange losses, net of exchange gains ...Other expenses...

  • Page 281
    ... March 31, 2012, there were no purchase obligations outstanding for which the Holding Company was required to guarantee payment. Note 3 - Financing Arrangements: In December 2011, the Holding Company entered into a Senior Revolving Credit Facility Agreement with a group of primarily Swiss banks that...

  • Page 282
    ... a share buyback program which authorizes the Holding Company to invest up to USD 250,000,000 to purchase its own shares. In November 2011, the Company received approval from the Swiss regulatory authorities for an amendment to the September 2008 share buyback program to enable future repurchases of...

  • Page 283
    ... direct and indirect subsidiaries as of December 31, 2011. Number of shares held by Capital Research Global Investors, a division of CRMC (Capital Research and Management Company), is based on a notification filed by Capital Research Global Investors with the U.S. Securities and Exchange Commission...

  • Page 284
    ... Note 9 - Compensation and Security Ownership of Board Members and Executive Officers: In accordance with the Swiss Code of Obligations, the compensation and security ownership of members of the Board of Directors of Logitech International S.A. and of Logitech executive officers is presented in the...

  • Page 285
    ...FOR DISTRIBUTION OF CAPITAL CONTRIBUTIONS RESERVES TO SHAREHOLDERS The Board of Directors proposes the release of reserves from capital contributions and the distribution of such capital contribution reserves to shareholders (in thousands): Year ended March 31, 2012 275 ANNUAl REPORT Free reserve...

  • Page 286
    ... of Logitech International S.A., which comprise the balance sheet, income statement and notes, for the year ended March 31, 2012. Board of Directors' Responsibility The Board of Directors is responsible for the preparation of the financial statements in accordance with the requirements of Swiss law...

  • Page 287
    ... confirm that an internal control system exists which has been designed for the preparation of financial statements according to the instructions of the Board of Directors. We further confirm that the proposed appropriation of available earnings complies with Swiss law and the company's articles of...

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  • Page 291
    ... Chairman of the Board Logitech Matthew Bousquette Chairman EGI Holdings LLC Erh-Hsun Chang Former Senior Vice President, Worldwide Operations and General Manager, Far East Logitech Kee-Lock Chua Martha Tuma Vice President, Human Resources President and Chief Executive Officer Vertex Group Sally...

  • Page 292
    SIX: LOGN-VX NASDAQ: LOGI For more information about Logitech and its products, please visit our web site: www.logitech.com.