Logitech 2014 Annual Report Download - page 185

The purchases and sales of trading investments during fiscal years 2014, 2013 and 2012 represent mutual fund
activity directed by participants in a deferred compensation plan offered by one of our subsidiaries. The mutual
funds are held by a Rabbi Trust.
Cash Flow from Financing Activities
Years Ended March 31,
2014 2013 2012
Payment of cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (36,123)(133,462)—
Purchases of treasury shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (87,812)(156,036)
Proceeds from sales of shares upon exercise of options and
purchase rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,914 15,982 17,591
Tax withholdings related to net share settlements of restricted
stock units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,718)(2,375)(966)
Excess tax benefits from share-based compensation . . . . . . . . . . . . . . . . . . . 2,246 26 37
(22,681) (207,641) (139,374)
During fiscal year 2014, we paid an annual cash dividend of $36.1 million, compared to a special one-time
distribution of $133.5 million during fiscal year 2013.
There was no stock repurchase activity during fiscal year 2014. During fiscal year 2013, we repurchased
8.6 million shares for $87.8 million, compared to 17.5 million shares for $156.0 million during fiscal year 2012.
Proceed from the sale of shares upon exercise of options and purchase rights pursuant our stock plans during
fiscal years 2014, 2013 and 2012 was $16.9 million, $16.0 million and $17.6 million, respectively. The payment of
tax withholdings related to net share settlements of RSUs (restricted stock units) required during fiscal years 2014,
2013 and 2012 was $5.7 million, $2.4 million and $1.0 million, respectively.
Cash Outlook
Our principal sources of liquidity are our cash and cash equivalents, cash flow generated from operations
and, to a much lesser extent, capital markets and borrowings. Our future working capital requirements and capital
expenditures may increase to support investment in product innovations and growth opportunities, or to acquire or
invest in complementary businesses, products, services, and technologies.
In March 2014, our Board of Directors approved a new share buyback program, which authorizes us to invest
up to $250.0 million to purchase our own shares. Our share buyback program provides us with the opportunity to
make opportunistic repurchases during periods of favorable market conditions and is expected to remain in effect
for a period of three years. Shares may be repurchased from time to time on the open market, through block trades
or otherwise. Purchases may be started or stopped at any time without prior notice depending on market conditions
and other factors.
We file Swiss and foreign tax returns. For all these tax returns, we are generally not subject to tax examinations
for years prior to fiscal year 2001. We are under examination and have received assessment notices in foreign tax
jurisdictions. At this time, we are not able to estimate the potential impact that these examinations may have on
income tax expense. If the examinations are resolved unfavorably, there is a possibility they may have a material
negative impact on our results of operations.
During the second quarter of fiscal year 2014, we implemented a restructuring plan solely affecting our
video conferencing operating segment to align our organization to our strategic priorities of increasing focus on a
tighter range of products, expanding cloud-based video conferencing services and improving profitability. During
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