Logitech 2012 Annual Report Download - page 248

LOGITECH INTERNATIONAL S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (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 comprehensive loss, beginning of year ....................... $(18,073) $(10,813)
Transition obligation recognized ......................................... — 5
Prior service cost recognized............................................ (15) 146
Loss recognized ...................................................... 275 396
Settlement loss recognized ............................................. — 23
Loss occurred........................................................ (11,808) (5,609)
Deferred tax benefit (expense)........................................... 170 (241)
Foreign currency exchange rate changes................................... 89 (1,980)
Accumulated other comprehensive loss, end of year ............................ $(29,362) $(18,073)
The following table presents the amounts included in accumulated other comprehensive loss as of
March 31, 2012, which are expected to be recognized as a component of net periodic benefit cost in fiscal year 2013
(in thousands):
March 31, 2012
Amortization of net transition obligation ................................ $ 5
Amortization of net prior service costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
Amortization of net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,719
$1,876
The Company reassesses its benefit plan assumptions on a regular basis. The actuarial assumptions for the
pension plans for fiscal years 2012 and 2011 were as follows:
2012 2011
Benefit Obligation Periodic Cost Benefit Obligation Periodic Cost
Discount rate .......................... 1.75% to 3.25% 2.00% to 3.75% 2.00% to 3.75% 2.00% to 3.75%
Estimated rate of compensation increase .... 3.00% to 8.00% 2.50% to 5.00% 3.00% to 5.00% 2.50% to 5.00%
Expected average rate of return on
plan assets ......................... 1.00% to 3.75% 1.00% to 4.75% 1.00% to 4.00% 1.00% to 4.75%
The discount rate is estimated based on corporate bond yields or securities of similar quality in the respective
country, with a duration approximating the period over which the benefit obligations are expected to be paid. The
Company bases the compensation increase assumptions on historical experience and future expectations. The
expected average rate of return for the Company’s defined benefit pension plans represents the average rate of
return expected to be earned on plan assets over the period that the benefit obligations are expected to be paid,
based on government bond notes in the respective country, adjusted for corporate risk premiums as appropriate.
Note 4 — Employee Benefit Plans (Continued)
238