Logitech 2012 Annual Report Download - page 260

LOGITECH INTERNATIONAL S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Management performed a goodwill impairment analysis of each of its reporting units as of December 31, 2011.
The carrying value of goodwill attributable to the peripherals and video conferencing reporting units was $220.9
million and $339.7 million as of March 31, 2012. As of December 31, 2011, management determined the fair value
of our peripherals reporting unit exceeded the carrying value of the reporting unit by more than 30% of the carrying
value, and the fair value of our video conferencing reporting unit exceeded the carrying value of the reporting unit
by more than 80% of the carrying value. Management continues to evaluate and monitor all key factors impacting
the carrying value of the Company’s recorded goodwill, as well as other long-lived assets. Further adverse changes
in the Company’s expected operating results, market capitalization, business climate, or other negative events could
result in a material non-cash impairment charge in the future.
The Company’s acquired other intangible assets subject to amortization were as follows (in thousands):
March 31, 2012 March 31, 2011
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Trademark/trade name . . . . . . . $ 32,104 $ (26,095) $ 6,009 $ 31,907 $(23,290) $ 8,617
Technology . . . . . . . . . . . . . . . . 91,954 (62,548) 29,406 88,068 (45,686) 42,382
Customer contracts .......... 39,926 (21,823) 18,103 38,537 (14,920) 23,617
$ 163,984 $(110,466) $53,518 $158,512 $(83,896) $74,616
During fiscal year 2012, changes in the gross carrying value of other intangible assets related primarily to our
acquisition of Mirial. During fiscal year 2011, changes in the gross carrying value of other intangible assets related
primarily to our acquisition of Paradial.
For fiscal years 2012, 2011 and 2010, amortization expense for other intangible assets was $26.5
million, $27.8 million and $14.5 million. The Company expects that annual amortization expense for the
fiscal years ending 2013, 2014, 2015 and 2016 will be $24.4 million, $18.2 million, and $9.1 million, and $1.8
million thereafter.
Note 10 — Financing Arrangements
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. There were no outstanding borrowings under the credit facility at March 31, 2012.
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. Borrowings under the credit facility will accrue interest
at a per annum rate based on LIBOR (London Interbank Offered Rate), or EURIBOR (Euro Interbank Offered
Rate) in the case of loans denominated in euros, plus a variable margin determined quarterly based on the ratio of
senior debt to earnings before interest, taxes, depreciation and amortization for the preceding four-quarter period,
plus, if applicable, an additional rate per annum intended to compensate the lenders for the cost of compliance with
regulatory reserve requirements and other banking regulations. The Company also pays a quarterly commitment
Note 9 — Goodwill and Other Intangible Assets (Continued)
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