Logitech 2012 Annual Report Download - page 249

LOGITECH INTERNATIONAL S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The following table reflects the benefit payments that the Company expects the plans to pay in the periods
noted (in thousands):
Year ending March 31,
2013 ............................................................... $ 4,026
2014 ............................................................... 4,145
2015 ............................................................... 4,166
2016 ............................................................... 4,420
2017 ............................................................... 4,176
Thereafter........................................................... 20,714
$41,647
The Company expects to contribute approximately $4.5 million to its defined benefit pension plans during
fiscal year 2013.
Deferred Compensation Plan
One of the Company’s subsidiaries offers a deferred compensation plan which permits eligible employees
to make 100%-vested salary and incentive compensation deferrals within established limits. The Company does
not make contributions to the plan. Prior to December 2010, the participants’ deferrals were invested in Company-
owned life insurance contracts held in a Rabbi Trust. In December 2010, the Company surrendered the life insurance
contracts for cash, and invested the proceeds of $11.3 million, in addition to $0.8 million in cash held by the Rabbi
Trust, investment earnings and employee contributions, in a Company-selected portfolio of marketable securities,
which are also held by the Rabbi Trust.
The fair value of the deferred compensation plan’s assets is included in other assets in the statements of
financial position. The marketable securities are classified as trading investments and 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. Earnings, gains
and losses on trading investments are included in other income (expense), net.
The unsecured obligation to pay the compensation deferred was approximately $14.4 million and $13.1 million
at March 31, 2012 and 2011, and was included in other liabilities.
Note 5 — Interest and Other Income
Interest and other income (expense), net was comprised of the following (in thousands):
Year ended March 31,
2012 2011 2010
Interest income ..................................................... $ 3,121 $2,343 $2,406
Interest expense .................................................... (447) (27) (286)
Interest income, net ................................................. $ 2,674 $2,316 $2,120
Gain on sale of buildings ............................................. $ 8,967 $ 838 $ —
Gain on sale of available-for-sale securities ............................... 6,109 — —
Foreign currency exchange gains, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,575 480 1,720
Investment income related to deferred compensation plan . . . . . . . . . . . . . . . . . . . 227 1,409 1,221
Write-down of investments ........................................... — (43) (643)
Other, net ......................................................... (256) 792 841
Other income, net ................................................... $16,622 $3,476 $3,139
Note 4 — Employee Benefit Plans (Continued)
ANNUAL REPORT
239