Logitech 2015 Annual Report Download - page 225

LOGITECH INTERNATIONAL S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For fiscal years 2015, 2014 and 2013, amortization expense for other intangible assets was $8.4
million, $17.8 million and $23.6 million, respectively. The Company expects that annual amortization
expense for the fiscal years 2016 and 2017 to be $1.7 million and $0.2 million, respectively.
Note 10—Financing Arrangements
The Company had several uncommitted, unsecured bank lines of credit aggregating $38.1 million as
of March 31, 2015. There are no financial covenants under these lines of credit with which the Company
must comply. As of March 31, 2015, the Company had outstanding bank guarantees of $5.1 million under
these lines of credit. There was no borrowing outstanding under the line of credit as of March 31, 2015 or
March 31, 2014.
Note 11—Commitments and Contingencies
Operating Leases
The Company leases facilities under operating leases, certain of which require it to pay property
taxes, insurance and maintenance costs. Operating leases for facilities are generally renewable at the
Company’s option and usually include escalation clauses linked to inflation. Future minimum annual
rentals under non-cancelable operating leases at March 31, 2015 are as follows (in thousands):
Years Ending March 31,
2016. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,829
2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,397
2018. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,330
2019. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,575
2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,193
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,908
$ 54,232
Rent expense for fiscal years 2015, 2014 and 2013 was $12.6 million, $14.7 million and
$25.3 million, respectively.
In connection with its leased facilities, the Company recognized a liability for asset retirement
obligations for 2015 and 2014 representing the present value of estimated remediation costs to be
incurred at lease expiration. The liabilities for asset retirement obligations were not material as of
March 31, 2015 and 2014.
Product Warranties
All of the Company’s Peripherals products are covered by warranty to be free from defects in material
and workmanship for periods ranging from one year to five years. At the time of sale, the Company accrues
a warranty liability for estimated costs to provide products, parts or services to repair or replace products
in satisfaction of the warranty obligation. The Company’s estimate of costs to fulfill its warranty obligations
is based on historical experience and expectations of future conditions. When the Company experiences
changes in warranty claim activity or costs associated with fulfilling those claims, the warranty liability is
adjusted accordingly.
Note 9—Goodwill and Other Intangible Assets (Continued)
109
Annual Report Fiscal Year 2015