Logitech 2014 Annual Report Download - page 187

Operating Leases
We lease facilities under operating leases, certain of which require us to pay property taxes, insurance and
maintenance costs. Operating leases for facilities are generally renewable at our option and usually include escalation
clauses linked to inflation. The remaining terms on our non-cancelable operating leases expire in various years
through 2028. The liability for asset retirement obligations was not material for fiscal years 2014, 2013, and 2012.
Purchase Commitments
As of March 31, 2014, we have fixed purchase commitments of $102.8 million for inventory purchases made
in the normal course of business to original design manufacturers, contract manufacturers and other suppliers, the
majority of which are expected to be fulfilled during the first quarter of fiscal year 2015. We also had commitments
of $46.0 million for consulting services, marketing arrangements, advertising, outsourced customer services,
information technology maintenance and support services, and other services. Fixed purchase commitments for
capital expenditures amounted to $13.0 million and primarily relate to commitments for computer hardware and
leasehold improvements. We expect to continue making capital expenditures in the future to support product
development activities and ongoing and expanded operations. Although open purchase commitments are considered
enforceable and legally binding, the terms generally allow us the option to reschedule and adjust our requirements
based on business needs prior to delivery of goods or performance of services.
Income Taxes Payable
As of March 31, 2014, we had $93.1 million in non-current income taxes payable and $0.3 million in current
income taxes payable, including interest and penalties, related to our income tax liability for uncertain tax positions.
As of March 31, 2013, we had $98.8 million in non-current income taxes payable.
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.
Obligation for Management Deferred Compensation
At March 31, 2014, we had $16.6 million in liabilities related to a deferred compensation plan offered by one
of our subsidiaries. See Note 5, Employee Benefit Plans, for more information.
Pension and Post-Employment Obligations
At March 31, 2014, we had $39.0 million in liabilities related to our defined benefit pension plans and
non-retirement post-employment benefit obligations, of which $1.1 million is payable in the next 12 months. See
Note 5, Employee Benefit Plans, for more information.
Off-Balance Sheet Arrangements
We have not entered into any transactions with unconsolidated entities whereby we have financial guarantees,
subordinated retained interests, derivative instruments or other contingent arrangements that expose us to material
continuing risks, contingent liabilities, or any other obligation under a variable interest in an unconsolidated entity
that provides financing, liquidity, market risk or credit risk support to us.
ANNUAl REPORT
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