Logitech 2015 Annual Report Download - page 212

LOGITECH INTERNATIONAL S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Deferred Compensation Plan
One of the Company’s subsidiaries offers a deferred compensation plan that permits eligible
employees to make 100% vested salary and incentive compensation deferrals within established limits.
The Company does not make contributions to the plan.
The fair value of the deferred compensation plan’s assets is included in other assets on the
consolidated balance sheets. The marketable securities are classified as trading investments and were
recorded at a fair value of $17.2 million and $16.6 million as of March 31, 2015 and 2014, respectively, based
on quoted market prices. The Company also had $17.2 million and $16.6 million deferred compensation
liability as of March 31, 2015 and 2014, respectively. Earnings, gains and losses on trading investments
are included in other income (expense), net and corresponding changes in deferred compensation liability
are included in operating expenses and cost of goods sold.
Note 5—Interest and Other Income (Expense), net
Interest income (expense), net comprises of the following (in thousands):
Years Ended March 31,
2015 2014 2013
Interest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,225 $ 1,831 $ 2,215
Interest expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (2,228) (1,308)
Interest income (expense), net . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,225 $ (397) $ 907
Other income (expense), net comprises of the following (in thousands):
Years Ended March 31,
2015 2014 2013
Investment income related to deferred compensation plan . . . . . . . . . $ 1,055 $1,487 $ 933
Gain on sale of securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 831
Impairment of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,298) (624) (3,600)
Currency exchange gain (loss), net . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,280) 62 104
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (229) 1,068 (466)
Other income (expense), net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(2,752) $1,993 $(2,198)
Note 6—Income Taxes
The Company is incorporated in Switzerland but operates in various countries with differing tax laws
and rates. Further, a portion of the Company’s income (loss) before taxes and the provision for (benefit
from) income taxes is generated outside of Switzerland.
Income (loss) before income taxes for the fiscal years 2015, 2014 and 2013 is summarized as
follows (in thousands):
Years Ended March 31,
2015 2014 2013
Swiss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $112,308 $49,503 $ (53,004)
Non-Swiss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (98,535) 28,079 (200,324)
Income (loss) before taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,773 $77,582 $(253,328)
Note 4—Employee Benefit Plans (Continued)
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Annual Report Fiscal Year 2015