Logitech 2012 Annual Report Download - page 193

Logitech Europe S.A., a subsidiary of the parent holding company, has guaranteed the purchase obligations
of another Logitech subsidiary and third-party contract manufacturers under three guarantee agreements. Two of
these guarantees do not specify a maximum amount. The remaining 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 agreements. The maximum amount of these guarantees was $3.7 million as of March 31, 2012. As
of March 31, 2012, $0.7 million of guaranteed purchase obligations were outstanding under these agreements.
Logitech International S.A. and Logitech Europe S.A. have guaranteed certain contingent liabilities of
various subsidiaries related to transactions occurring in the normal course of business. The maximum amount of
the guarantees was $69.1 million as of March 31, 2012. As of March 31, 2012, $16.0 million of guaranteed liabilities
were subject to these guarantees.
Indemnifications
Logitech indemnifies some of its suppliers and customers for losses arising from matters such as intellectual
property disputes and product safety defects, subject to certain restrictions. The scope of these indemnities varies,
but in some instances, includes indemnification for damages and expenses, including reasonable attorneys’ fees.
No amounts have been accrued for indemnification provisions at March 31, 2012. The Company does not believe,
based on historical experience and information currently available, that it is probable that any material amounts will
be required to be paid under its indemnification arrangements.
Logitech also indemnifies its current and former directors and certain of its current and former officers.
Certain costs incurred for providing such indemnification may be recoverable under various insurance policies.
Logitech is unable to reasonably estimate the maximum amount that could be payable under these arrangements
because these exposures are not capped, the obligations are conditional in nature, and the facts and circumstances
involved in any situation that might arise.
ANNUAL REPORT
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