Logitech 2015 Annual Report Download - page 240

LOGITECH INTERNATIONAL S.A., APPLES
NOTES TO SWISS STATUTORY FINANCIAL STATEMENTS
Note 1 — General and Basis of Presentation:
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.
The Swiss statutory financial statements of Logitech International S.A., Apples (“the Holding
Company”) are prepared in accordance with the provisions of the Swiss Code of Obligations prior to
the changes introduced on January 1, 2013, in accordance with the transitional provisions of the new
accounting law, which will be effective for the Holding Company for the year ending March 31, 2016.
The statutory financial statements present the financial position and results of operations of the Holding
Company on a standalone basis and do not represent the consolidated financial position of the Holding
Company and its subsidiaries.
Note 2 — Contingent Liabilities:
The Holding Company issued guarantees to various banks for lines of credit available to its
subsidiaries for CHF 59.8 million and CHF 54.5 million at March 31, 2015 and March 31, 2014, respectively.
The Holding Company also issued a guarantee to one financial institution at March 31, 2015 for lines of
credit available to its subsidiaries without specific amount. As of March 31, 2015 and 2014, the drawn
down is not material.
As previously announced in the Company’s Annual Report on Form 10-K for fiscal year 2014, some
of the issues reviewed by the Audit Committee are also the subject of an ongoing formal investigation by
the SEC (“Securities and Exchange Commission”), including the accounting for Revue inventory valuation
reserves that resulted in the restatement, revision to the Company’s consolidated financial statements
concerning warranty accruals and amortization of intangible assets presented in the Company’s
Amended Annual Report on Form 10-K/A, filed on August 7, 2013, and the Company’s transactions with
a distributor for fiscal year 2007 through fiscal year 2009. The Company is cooperating with the SEC in
its ongoing investigation. The Company has entered into an agreement with the SEC to extend the statute
of limitations. The Holding Company has made an accrual in its statutory financial statements related to
this matter. The Company cannot predict the timing, range of possible loss or final outcome of this matter.
Note 3 — Investments in subsidiaries:
The Holding Company’s principal operating subsidiaries include the following:
Company name Country
Percentage
of ownership Currency Share capital Purpose
Logitech Europe S.A. . . . Switzerland 100% CHF 100,000 Administration,
research, development,
sales and distribution
Logitech Inc. . . . . . . . . . . U.S.A 100% USD 11,522,396 Administration,
research, development,
sales and distribution
Logitech Technology
(Suzhou) Co., Ltd . . . . People’s Republic of China 100% USD 22,000,000 Manufacturing
All subsidiaries are directly or indirectly 100% owned by the Holding Company.
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Annual Report Fiscal Year 2015