Logitech 2015 Annual Report Download - page 205

LOGITECH INTERNATIONAL S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The 2006 Plan provides for the grant to eligible employees and non-employee directors of stock
options, stock appreciation rights, restricted stock and RSUs. Awards under the 2006 Plan may be
conditioned on continued employment, the passage of time or the satisfaction of performance and market
vesting criteria. The 2006 Plan had an expiration date of June 16, 2016 until September 5, 2012 when
shareholder approved the amendment of the 2006 Plan to eliminate the expiration date. All stock options
under this plan have terms not exceeding ten years and are issued at exercise prices not less than the
fair market value on the date of grant.
Time-based RSUs granted to employees under the 2006 Plan generally vest in four equal annual
installments on the grant date anniversary. Time-based RSUs granted to non-executive board members
under the 2006 Plan vest in one annual installment on the grant date anniversary. Performance-based
RSUs granted under the 2006 plan vest contingent upon the achievement of pre-determined financial
metrics. The performance period for performance-based RSUs granted in fiscal year 2015 is three years.
Market-based options granted under the 2006 Plan vest upon meeting certain share price performance
criteria. Market-based RSUs granted under the 2006 Plan vest at the end of the performance period upon
meeting certain share price performance criteria measured against market conditions. The performance
period is four years for market-based options granted in fiscal year 2013. The performance period
is three years for market-based RSU granted in fiscal years 2015, 2014 and 2013. An aggregate of
24.8 million shares was reserved for issuance under the 2006 Plan. As of March 31, 2015, a total of
9.1 million shares were available for issuance under this plan.
Under the 2012 Plan, stock options and RSUs may be granted to eligible employees to serve as
inducement material to enter into employment with the Company. Awards under the 2012 Plan may be
conditioned on continued employment, the passage of time or the satisfaction of market stock performance
criteria, based on individual written employment offer letter. The 2012 Plan has an expiration date of
March 28, 2022. Premium-priced stock options granted under the 2012 Plan vest in full if and only when
Logitech’s average closing share price, over a consecutive ninety-day trading period, meets or exceeds
the exercise price of each of the three tranches of the grant. An aggregate of 1.8 million shares was
reserved for issuance under the 2012 Plan. As of March 31, 2015, no shares were available for issuance
under this plan.
The grant date fair value of the awards using the Black-Scholes-Metron option-pricing valuation
model and Monte-Carlo simulation method are determined applying the following assumptions and values:
Employee Purchase Plans Stock Option Plans
Premium Priced
Options
Market-based Stock
Option Plan
Fiscal Years Ended
March 31,
Fiscal Years Ended
March 31,
Fiscal Years Ended
March 31,
Fiscal Years Ended
March 31,
2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013
Dividend yield . . . . . 1.97% 0.43% —% n/a n/a —% n/a n/a —% n/a n/a —%
Risk-free
interest rate . . . . 0.14% 0.07% 0.09% n/a n/a 1.20% n/a n/a 2.00% n/a n/a 1.93%
Expected volatility . . . 30% 36% 47% n/a n/a 46% n/a n/a 46% n/a n/a 44%
Expected
life (years) . . . . . . 0.6 0.5 0.5 n/a n/a 6.0 n/a n/a 7.0 n/a n/a 6.0
Weighted average
fair value . . . . . . . $3.18 $2.46 $2.14 n/a n/a $3.64 n/a n/a $2.52 n/a n/a $2.58
Note 4—Employee Benefit Plans (Continued)
89
Annual Report Fiscal Year 2015