Logitech 2012 Annual Report Download - page 261

LOGITECH INTERNATIONAL S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
fee of 40% of the applicable margin on the available commitment. In connection with entering into the credit
facility, the Company incurred non-recurring fees totaling $1.5 million, which are amortized on a straight-line basis
over the term of the credit facility.
The facility agreement contains representations, covenants and events of default customary in Swiss credit
markets. Affirmative covenants include covenants regarding reporting requirements, maintenance of insurance,
maintenance of properties and compliance with applicable laws and regulations, and financial covenants that
require the maintenance of net senior debt, interest cover and adjusted equity ratios determined in accordance with
the terms of the facility. Negative covenants limit the ability of the Company and its subsidiaries, among other
things, to grant liens, make investments, incur debt, make restricted payments, enter into a merger or acquisition,
or sell, transfer or dispose of assets, in each case subject to certain exceptions. As of March 31, 2012, the Company
was in compliance with all covenants and conditions.
Upon an uncured event of default under the facility, the lenders may declare all or a portion of the outstanding
obligations payable by the Company to be immediately due and payable, terminate their commitments and exercise
other rights and remedies provided for under the facility. The events of default under the facility include, among
other things, payment defaults, covenant defaults, inaccuracy of representations and warranties, cross defaults with
certain other indebtedness, bankruptcy and insolvency events and events that have a material adverse effect (as
defined in the facility). Upon a change of control of the Company, lenders whose commitments aggregate more than
two-thirds of the total commitments under the facility may terminate the commitments and declare all outstanding
obligations to be due and payable.
The Company had several uncommitted, unsecured bank lines of credit aggregating $77.3 million at
March 31, 2012. There are no financial covenants under these lines of credit with which the Company must comply.
At March 31, 2012, the Company had no outstanding borrowings under these lines of credit. The Company also
had credit lines related to corporate credit cards totaling $30.8 million as of March 31, 2012. The outstanding
borrowings under these credit lines are recorded in other current liabilities. There are no financial covenants under
these credit lines.
Note 11 — Commitments and Contingencies
Operating Leases
The Company leases facilities under operating leases, certain of which require it to pay property taxes,
insurance and maintenance costs. Operating leases for facilities are generally renewable at the Company’s option
and usually include escalation clauses linked to inflation. Future minimum annual rentals under non-cancelable
operating leases at March 31, 2012 are as follows (in thousands):
Year ending March 31,
2013 .......................................................
$ 20,834
2014 ....................................................... 15,707
2015 ....................................................... 13,978
2016 ....................................................... 12,465
2017 ....................................................... 10,874
Thereafter................................................... 37,141
$ 110,999
Note 10 — Financing Arrangements (Continued)
ANNUAL REPORT
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