Logitech 2012 Annual Report Download - page 190

increase to support investment in product innovations and growth opportunities, to repurchase our stock, or to
acquire or invest in complementary businesses, products, services, and technologies. Additional financing may not
be available at all or on terms favorable to us.
In December 2011, the Company entered into a Senior Revolving Credit Facility Agreement with a group of
primarily Swiss banks that provides for a revolving multicurrency unsecured credit facility in an amount of up to
$250.0 million. The Company may, upon notice to the lenders and subject to certain requirements, arrange with
existing or new lenders to provide up to an aggregate of $150.0 million in additional commitments, for a total of
$400.0 million of unsecured revolving credit. The credit facility may be used for working capital, general corporate
purposes, and acquisitions. The credit facility matures on October 31, 2016. The Company may prepay the loans
under the credit facility in whole or in part at any time without premium or penalty. The facility agreement contains
representations, covenants and events of default customary in Swiss credit markets. There were no outstanding
borrowings under the credit facility at March 31, 2012. As of March 31, 2012, the Company was in compliance with
all covenants and conditions.
In September 2008, our Board of Directors approved a share buyback program, which authorizes 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 approved amount remaining under the amended
September 2008 program was $94.3 million.
During the second quarter of fiscal year 2012, the U.S. Internal Revenue Service completed its field
examinations of tax returns for the Company’s U.S. subsidiary for fiscal years 2006 and 2007, and issued NOPAs
(notices of proposed adjustment) related to international tax issues for those years. The Company disagrees with the
NOPAs and is contesting through the administrative process for the U.S. Internal Revenue Service claims regarding
2006 and 2007.
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, the Company is not able to estimate the potential impact that these examinations
may have on income tax expense. If the examinations are resolved unfavorably, there is a possibility they may have
a material negative impact on our results of operations.
Although the Company believes it has adequately provided for uncertain tax positions, the provisions on these
positions may change as revised estimates are made or the underlying matters are settled or otherwise resolved.
Although the timing of the resolution or closure on audits is highly uncertain, the Company does not believe it is
reasonably possible that the unrecognized tax benefits would materially change in the next twelve months.
On April 25, 2012, we announced a restructuring plan to reduce operating costs and improve financial
results. We estimate pre-tax restructuring charges related to employee termination costs, contract termination
costs, and other associated costs of approximately $25 million to $40 million will be incurred in connection with
the restructuring plan, which is expected to be completed within fiscal year 2013.
Other contractual obligations and commitments of the Company which require cash are described in the
following sections.
Based upon our available cash balances, credit lines and credit facility, and the trend of our historical cash
flow generation, we believe we have sufficient liquidity to fund operations for at least the next 12 months.
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