Logitech 2015 Annual Report Download - page 145

Our other contractual obligations and commitments that require cash are described in the following
sections.
For over ten years, we have generated positive cash flows from our operating activities, including
cash from operations of $178.6 million, $205.4 million and $122.4 million during fiscal years 2015, 2014
and 2013, respectively. If we do not generate sufficient operating cash flows to support our operations
and future planned cash requirements, our operations could be harmed and our access to credit facilities
could be restricted or eliminated. However, we believe that the trend of our historical cash flow generation,
our projections of future operations and reduced expenses and our available cash balances will provide
sufficient liquidity to fund our operations for at least the next 12 months.
Contractual Obligations and Commitments
As of March 31, 2015, our outstanding contractual obligations and commitments included: (i) inventory
purchase commitments and obligations, (ii) capital expenditure purchase commitments, and (iii) facilities
leased under operating lease commitments. The following table summarizes our contractual obligations
and commitments as of March 31, 2015 (in thousands):
Payments Due by Period
March 31,
2015 <1 year 1-3 years 4-5 years >5 years
Inventory commitments . . . . . . . . . . . . . . . . $165,912 $165,912 $ — $ — $ —
Capital commitments . . . . . . . . . . . . . . . . . . 14,390 14,390 — — —
Operating leases . . . . . . . . . . . . . . . . . . . . . 54,232 13,829 18,727 11,768 9,908
$234,534 $194,131 $18,727 $11,768 $9,908
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 2030.
Purchase Commitments
As of March 31, 2015, we have fixed purchase commitments of $165.9 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
2016. We record a liability for firm, non-cancelable, and unhedged inventory purchase commitments
in excess of anticipated demand or market value consistent with our valuation of excess and obsolete
inventory. As of March 31, 2015, the liability for these purchase commitments was $9.8 million and is
recorded in accrued and other current liabilities and is not included in the preceding table. We have
fixed purchase commitments of $14.4 million for capital expenditures, primarily related to commitments
for tooling, 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, 2015, we had $72.1 million in non-current income taxes payable, including interest
and penalties, related to our income tax liability for uncertain tax positions. At this time, we are unable to
make a reasonably reliable estimate of the timing of payments in individual years in connection with these
tax liabilities; therefore, such amounts are not included in the above contractual obligation table.
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Annual Report Fiscal Year 2015