Logitech 2012 Annual Report Download - page 271

LOGITECH INTERNATIONAL S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
lives. The goodwill associated with the acquisition is primarily attributable to the opportunities and economies of
scale from combining the operations and technologies of Logitech and LifeSize. This goodwill is not subject to
amortization and is not expected to be deductible for income tax purposes. The debt that Logitech assumed as part
of the acquisition was repaid in full on December 18, 2009.
Unaudited pro forma financial information
The unaudited pro forma financial information in the table below summarizes the combined results of
operations of Logitech and LifeSize during the fiscal years ended March 31, 2010 as though the acquisition took
place as of the beginning of each fiscal year. The pro forma financial information also includes certain adjustments
such as amortization expense from acquired intangible assets, share-based compensation expense related to
unvested stock options and restricted stock assumed, depreciation adjustments from alignment of the companies’
policies related to property, plant and equipment, interest expense related to debt assumed, expense related to
retention bonuses, pre-acquisition transaction costs, and the income tax impact of the pro forma adjustments. The
pro forma financial information presented below (in thousands except per share amounts) is for informational
purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had
taken place at the beginning of the periods presented.
2010
(Unaudited)
Net sales ......................................................... $2,023
Net income ....................................................... $ 44
Net income per share—basic ......................................... $ 0.25
Net income per share—diluted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.25
TV Compass
On November 27, 2009, Logitech acquired certain assets from TV Compass, Inc., a Chicago, Illinois-based
company providing video software and services for the Web and mobile devices. The acquisition has been treated
as an acquisition of a business and has been accounted for using the purchase method of accounting. The total
consideration paid of $10.0 million was allocated based on estimated fair values to $4.2 million of identifiable
intangible assets, with the balance allocated to goodwill. Fair values were determined by Company management
based on information available at the date of acquisition. The intangible assets acquired are amortized on a straight-
line basis over their estimated useful lives of 6 years. The goodwill results from expected incremental revenue from
the use of the acquired technology in enhancing our products. The goodwill is not subject to amortization and is not
expected to be deductible for income tax purposes. In addition, Logitech incurred $0.3 million in transaction costs,
which are included in operating expenses.
3Dconnexion
On March 31, 2011, the Company sold its equity interest in certain 3Dconnexion subsidiaries, the provider
of the Company’s 3D controllers, and its intellectual property rights related to the manufacture and sale of certain
3Dconnexion products, to a group of third party individuals and certain 3Dconnexion employees. The sale price
was $9.1 million, not including cash retained. Under the sale agreement, the Company will continue to manufacture
3Dconnexion products and sell to the buyers for a period of three years. The loss resulting from the sale was
not material.
Note 14 — Acquisitions and Divestitures (Continued)
ANNUAL REPORT
261