Logitech 2013 Annual Report Download - page 129

ADDITIONAL FINANCIAL DISCLOSURES
MARKETING, SALES AND DISTRIBUTION
Principal Markets
During fiscal year 2013, we determined that the net sales to unaffiliated customers by geographic region
amounts previously reported for fiscal years 2012 and 2011 were not properly stated. The table below presents
revised amounts along with amounts previously reported in our Form 10-K for fiscal year 2012. These revisions
have no impact on the previously reported consolidated statements of operations, consolidated balance sheets or
other consolidated financial statements.
Year ended March 31,
2013 2012 2011
As Reported Adjustment As Revised As Reported Adjustment As Revised
Americas . . . . . . . . . . . $ 809,224 $ 953,867 $(74,791) $ 879,076 $ 1,032,988 $(78,299) $ 954,689
EMEA . . . . . . . . . . . . . 799,075 846,464 51,093 897,557 872,774 55,647 928,421
Asia Pacific . . . . . . . . . 491,584 515,872 23,698 539,570 457,124 22,652 479,776
Total net sales. . . . $ 2,099,883 $ 2,316,203 $ — $ 2,316,203 $ 2,362,886 $ — $2,362,886
Sales are attributed to countries on the basis of the customers’ locations. Revenues from sales to customers in
Switzerland, our home domicile, represented 2% of our total consolidated net sales in fiscal years 2013, 2012 and
2011. In fiscal years 2013, 2012 and 2011, the United States represented 33%, 34% and 36% of our total consolidated
net sales. No other single country represented more than 10% of our total consolidated net sales for fiscal years
2013, 2012 and 2011.
In fiscal years 2013, 2012 and 2011, Ingram Micro Inc. and its affiliated entities together accounted for 11%,
14% and 12% of our sales. No other customer individually accounted for more than 10% of our net sales during
fiscal years 2013, 2012 and 2011. The material terms of our distribution agreements with Ingram Micro and its
affiliated entities are summarized as follows:
• The agreements are non-exclusive in the particular territory and contain no minimum
purchase requirements.
• Each agreement may be terminated for convenience at any time by either party. Most agreements
provide for termination on 30 days written notice from either party, with two Ingram Micro agreements
providing for termination on 90 days notice.
• We generally offer an allowance for marketing activities equal to a negotiated percentage of sales and
volume rebates related to purchase volumes or sales of specific products to specified retailers. These
terms vary by agreement.
• Most agreements allow price protection credits to be issued for on—hand or in transit new inventory if
we, in our sole discretion, lower the price of the product.
• We grant limited rights to return product, which vary by distributor.
Marketing
Logitech builds awareness of our products and recognition of the Logitech brand through targeted
advertising, public relations efforts, social media, distinct packaging of our retail products, in-store promotions and
merchandising, a Worldwide Web site and other efforts. We also acquire knowledge of our users through customer
feedback and market research, including focus groups, product registrations, user questionnaires, primary and
multi-client surveys and other techniques. In addition, manufacturers of PCs and other products also receive
customer feedback and perform user market research, which sometimes results in requests to Logitech for specific
products, features or enhancements.
ANNUAL REPORT
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