Logitech 2015 Annual Report Download - page 150

In fiscal years 2015, 2014 and 2013, Ingram Micro Inc. and its affiliated entities together accounted
for 14%, 14% and 11% of our net sales, respectively. No other customer individually accounted for more
than 10% of our net sales during fiscal years 2015, 2014 and 2013. The material terms of our distribution
agreements with Ingram Micro and its affiliated entities are summarized as follows:
• The agreements are non-exclusive in the particular territory and contain no minimum purchase
requirements.
• Each agreement may be terminated for convenience at any time by either party. Most
agreements provide for termination on 30 days written notice from either party, with two Ingram
Micro agreements providing for termination on 90 days notice.
• We generally offer an allowance for marketing activities equal to a negotiated percentage of
sales and volume rebates related to purchase volumes or sales of specific products to specified
retailers. These terms vary by agreement.
• Most agreements allow price protection credits to be issued for on-hand or in-transit new
inventory if we, in our sole discretion, lower the price of the product.
• We grant limited stock rotation return rights, which vary by agreement.
Logitech’s peripherals products can be purchased in most major retail chains, where we typically
have access to significant shelf space. These chains in the U.S. include Best Buy, Wal-Mart, Staples,
Office Depot and Target. In Europe, chains include Metro Group (Media-Saturn Group), Carrefour Group,
Kesa Electricals, Fnac, and Dixons Stores Group PLC. In Asia Pacific, retail chains include Australia’s
Dick Smith Electronics Limited. Logitech products can also be purchased online either directly from
Logitech.com or through e-tailers, such as Amazon.com, TigerDirect.com, Buy.com, CDW, Insight
Enterprises, Inc. and others.
Logitech’s OEM products are sold to large OEM customers through a direct sales force, and we
support smaller OEM customers through distributors. While OEM business has been an important part of
our history, given our heightened focus on our growing retail business, we plan to exit OEM.
Our video conferencing Lifesize division maintains a marketing and sales organization, separate
from the Peripherals segment that sells Lifesize products and services to distributors, value-added
resellers, OEMs and direct enterprise customers. The large majority of Lifesize revenues are derived
from sales of products for use by small-to-medium businesses, public healthcare providers, educational
institutions and government organizations.
Through our operating subsidiaries, we maintain sales offices or sales representatives in
approximately 43 countries.
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND
ISSUER PURCHASES OF EQUITY SECURITIES
Logitech’s shares are listed and traded on both the SIX Swiss Exchange, where the share price
is denominated in Swiss francs, and on the Nasdaq Global Select Market, where the share price is
denominated in U.S. Dollars. The trading symbol for Logitech shares is LOGN on the SIX Swiss Exchange
and LOGI on Nasdaq. As of May 12, 2015, there were 173,106,620 shares issued (including 8,547,748
shares held as treasury stock) held by 14,252 holders of record, and the closing price of our shares was
CHF 14.05 ($15.11 based on exchange rates on such date) per share on the SIX Swiss Exchange and
$15.11 per share as reported by the Nasdaq Stock Market.
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Annual Report Fiscal Year 2015