Logitech 2015 Annual Report Download - page 241

LOGITECH INTERNATIONAL S.A., APPLES
NOTES TO SWISS STATUTORY FINANCIAL STATEMENTS (Continued)
Note 4 – Release of Hidden Reserves:
For the fiscal year ended March 31, 2015, the Holding Company released CHF 16.9 million in net
hidden reserves related to the provision on treasury shares. For the fiscal year ended March 31, 2014,
there was no release of hidden reserves.
Note 5 — Treasury Shares:
During fiscal years 2015 and 2014, repurchases of and issuances from the Holding Company’s
treasury shares were as follows:
Number of
shares
Total cost
(in thousands)
Held by the Holding Company at March 31, 2013 . . . . . . . . . . . . . . . . 13,855,436 CHF 172,391
Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — —
Disposals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,648,986) (67,584)
Held by the Holding Company at March 31, 2014 . . . . . . . . . . . . . . . . 10,206,450 104,807
Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115,000 1,535
Disposals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,696,629) (31,043)
Held by the Holding Company at March 31, 2015 . . . . . . . . . . . . . . . . 8,624,821 CHF 75,299
In March 2014, the Company’s Board of Directors approved the 2014 share buyback program, which
authorizes the Company to use up to $250.0 million to purchase its own shares. The Company’s share
buyback program is expected to remain in effect for a period of three years. Shares may be repurchased
from time to time on the open market, through block trades or otherwise. Purchases may be started or
stopped at any time without prior notice depending on market conditions and other factors. During the
fiscal year ended March 31, 2015, the Company repurchased 115,000 registered shares for approximately
$1.7 million, including transaction costs, under this plan. There were no shares repurchased under this
plan during the fiscal year ended March 31, 2014.
Treasury shares are recorded as a long-term asset at the lower of cost or market value. The disposal
of treasury shares during the period was to the Holding Company’s directors and employees under
the Holding Company’s share option and share purchase plans. The gain or loss on the disposal of
repurchased treasury shares is recorded in the statement of income.
Note 6 — Authorized and Conditional Share Capital Increases:
Conditional capital
In September 2008, the Company’s shareholders approved an amendment to the Company’s
Articles of Incorporation to reserve conditional capital of 25.0 million shares for potential issuance on the
exercise of rights granted under the Company’s employee equity incentive plans. The shareholders also
approved the creation of conditional capital representing the issuance of up to 25.0 million shares to cover
any conversion rights under a future convertible bond issuance. This conditional capital was created in
order to provide financing flexibility for future expansion, investments or acquisitions.
As of March 31, 2015, none of the aforementioned conditional registered shares had been issued.
During fiscal years 2015 and 2014, all employee equity incentive commitments were satisfied from treasury
shares held by the Holding Company. A description of the employee equity incentive commitments still
outstanding is presented in the consolidated financial statements of Logitech International S.A.
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Annual Report Fiscal Year 2015