Logitech 2012 Annual Report Download - page 244

LOGITECH INTERNATIONAL S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The Company determines the fair value of the time-based RSUs based on the share market price on the date
of grant. The fair value of the performance-based RSUs is estimated using the Monte-Carlo simulation model
applying the following assumptions:
FY 2012
Grants
FY 2011
Grants
FY 2010
Grants
Dividend yield ............................................. 0% 0% 0%
Expected life .............................................. 3 years 3 years 2 years
Expected volatility ......................................... 49% 51% 58%
Risk-free interest rate ....................................... 0.99% 0.81% 1.11%
The dividend yield assumption is based on the Company’s history and future expectations of dividend payouts.
The expected life of the performance-based RSUs is the service period at the end of which the RSUs will vest if the
performance conditions are satisfied. The volatility assumption is based on the actual volatility of Logitech’s daily
closing share price over a look-back period equal to the years of expected life. The risk free interest rate is derived
from the yield on US Treasury Bonds for a term of the same number of years as the expected life.
As of March 31, 2012, the grant date fair values of outstanding RSUs ranged from $6 to $28 per RSU, and the
weighted average contractual life was 9.2 years.
In April 2012, Logitech’s Board of Directors approved the 2012 Stock Inducement Equity Plan. Under this
plan, Logitech’s newly-hired President, Bracken P. Darrell, was granted the following equity incentive awards (in
thousands, except per share exercise price, vesting period and term):
Type of Grant
Number
of Shares
Exercise
Price
Grant Date
Fair Value
Vesting
Period(1) Term
Stock Options............................... 500 $ 8 $1,820 4.0 10.0
Time-based RSUs ........................... 100 $ — 803 4.0 10.0
Premium-priced stock options:(2)
First Tranche ............................ 400 $ 14 1,100 2.5 10.0
Second Tranche .......................... 400 $ 16 1,024 3.0 10.0
Third Tranche............................ 400 $ 20 896 3.9 10.0
(1) Vesting period for premium-priced stock options represents estimated requisite service period.
(2) Each grant of premium-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 plans covering all or
a portion of their employees. Contributions to these plans are discretionary for certain plans and are based on
specified or statutory requirements for others. The charges to expense for these plans for fiscal years 2012, 2011
and 2010, were $11.6 million, $8.9 million and $8.2 million.
Note 4 — Employee Benefit Plans (Continued)
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