Logitech 2015 Annual Report Download - page 193

LOGITECH INTERNATIONAL S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1—The Company
Logitech International S.A, together with its consolidated subsidiaries, (“Logitech” or the “Company”)
develops and markets innovative hardware and software products that enable or enhance digital
navigation, music and video entertainment, gaming, social networking, audio and video communication
over the Internet, video security and home-entertainment control.
The Company has two operating segments, peripherals and video conferencing. Logitech’s
peripherals segment encompasses the design, manufacturing and marketing of peripherals for personal
computers (“PCs”), tablets and other digital platforms. The Company’s video conferencing segment offers
scalable high-definition, or HD, video communication endpoints, HD video conferencing systems with
integrated monitors, video bridges, a Cloud-based video conferencing solution and other infrastructure
software and hardware to support large-scale video deployments and services to support these products.
The Company sells its peripherals products to a network of distributors, retailers and original
equipment manufacturers (“OEMs”). The Company sells its video conferencing products and services
to distributors, value-added resellers, OEMs and, occasionally, direct enterprise customers. The large
majority of the Company’s net sales have historically been derived from peripherals products for use
by consumers.
Logitech was founded in Switzerland in 1981 and Logitech International S.A. has been the parent
holding company of Logitech since 1988. Logitech International S.A. is a Swiss holding company with its
registered office in Apples, Switzerland, which conducts its business through subsidiaries in Americas,
Europe, Middle East, Africa (“EMEA”) and Asia Pacific. Shares of Logitech International S.A. are listed
on both the SIX Swiss Exchange under the trading symbol LOGN and the Nasdaq Global Select Market
under the trading symbol LOGI.
Note 2—Summary of Significant Accounting Policies
Basis of Presentation
The consolidated financial statements include the accounts of Logitech and its subsidiaries. All
intercompany balances and transactions have been eliminated. The consolidated financial statements
are presented in accordance with U.S. GAAP (accounting principles generally accepted in the United
States of America).
Fiscal Year
The Company’s fiscal year ends on March 31. Interim quarters are thirteen-week periods, each
ending on a Friday. For purposes of presentation, the Company has indicated its quarterly periods as
ending on the month end.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to
make judgments, estimates and assumptions that affect reported amounts of assets, liabilities, net sales
and expenses, and the disclosure of contingent assets and liabilities. Examples of significant estimates
and assumptions made by management involve the fair value of goodwill, warranty liabilities, accruals
for discretionary customer programs, sales return reserves, allowance for doubtful accounts, inventory
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Annual Report Fiscal Year 2015