Logistea
Annual Report 2015

2015 Annual General Meeting Invitation, Proxy Statement and Annual Report(iii)

To Our Shareholders

We  are  pleased  to  report  that  Fiscal  Year  2015  was  a 
strong year for Logitech, further advancing the Company’s 
transformation that started two years ago. 

This  past  year  demonstrated  the  effectiveness  of  our 
strategy and its resilience even in the face of challenges. 
The PC market declined, the iPad market declined and we 
underwent a lengthy internal investigation. By November 
2014  the  internal  investigation  was  behind  us  and  our 
financial  statements  had  been  corrected.  Against  this 
backdrop, we delivered solid Fiscal Year 2015 results:

•	 Sales of $2.11 billion, down 1 percent compared to FY 

2014, and up 2 percent in constant currency. 

•	 GAAP operating income was $15 million with earnings 

per share at $0.06. 

•	 Cash  flow  from  operations  was  $179  million.  We 
ended  the  year  with  more  than  $0.5  billion  in  cash, 
up $68 million over last year. That is after distributing 
$44 million in dividends to our shareholders.

While these numbers are solid, once you analyze them in 
more detail they are even more impressive. 

Excellent results
Logitech’s  primary  focus  is  on  our  Retail  Strategic 
business – the company’s Profit Maximization and Growth 
categories. It does not include OEM and Lifesize, which 
together broke even. Retail Strategic is nearly 90 percent 
of our business – the future of our company. If you look at 
our performance in this business – in constant currency 
to take out the unusually significant impact of exchange 
rates – you will see we grew FY 2015 sales by 6 percent 
compared  to  last  year.  In  the  last  half  of  the  year,  they 
grew 7 percent. This means the business that represents 
the future of Logitech is already growing within our high-
single-digit,  long-term  growth  target.  It  also  shows  that 
we ended FY 2015 with momentum.

In  FY  2015,  we  took  a  non-cash,  non-tax-deductible 
goodwill  impairment  charge  related  to  the  acquisition 
of  Lifesize  of  $123  million.  We  began  to  reorganize  this 
business  and  accelerate  the  transition  to  Lifesize’s  new 
cloud-based  offering,  which  is  gaining  significant  market 
traction.  If  you  put  aside  this  one-time  charge,  Logitech 
delivered our best earnings in seven years in FY 2015 and 
we tripled profitability in just two years.

A few years ago, we promised to 
deliver fewer, bigger products. And we 
are delivering.

It’s  clear  that  those  parts  of  Logitech’s  business  that 
we focus on most – the Company’s future – show great 
promise. Here’s more detail:

Growth Category
Logitech’s Growth category comprised Tablet and Other 
Accessories, Gaming, and Mobile Speakers at the start 
of Fiscal Year 2015. By Q4 we added a fourth business: 
Video Collaboration. 

Our  growth  businesses  are  key  engines  of  our  growth 
transformation. And these engines showed horsepower: 
our  Growth  category  contributed  nearly  $600  million  in 
sales for FY 2015 and grew 25 percent year over year. 
Both  our  Mobile  Speakers  and  Video  Collaboration 
businesses  more  than  doubled  over  the  course  of  the 
fiscal year. 

In constant currency, the Growth category increased by 
28 percent year over year in FY 2015, and by 45 percent 
in Q4, demonstrating the momentum we carried into the 
new fiscal year.

Profit Maximization
In  FY  2015,  sales  in  our  PC  Peripherals  business 
decreased  by  5  percent  year  over  year  –  2  percent  in 
constant currency. 

We  achieved  this  in  a  PC  market  environment  that’s 
declining between 5 and 7 percent. That means we grew 
share in most of our PC Peripheral categories. We have 
market leadership in all of them. We also delivered record 
gross margins and, through the strength of our product 
innovations,  even  drove  5  percent  growth  in  constant 
currency in our Keyboards and Combos category. 

We expect the Profit Maximization category to continue 
to decline. We will manage that decline, maximizing profit 
as category leaders along the way. And we will continue 
to  optimize  our  performance  in  this  business  over  the 
coming years, regardless of declines in the PC market.

Our Products Are Big Experiences 
We  have  also  been  working  to  reinvent  Logitech  as  a 
Design-centric company – one in which Design is part of 
our culture and used as a strategic differentiator. 

To  achieve  this,  we  have  changed  our  innovation 
machine. We have opened up our office spaces to make 
them  more  collaborative.  We  have  encouraged  a  small 
company  culture  where  hierarchy  and  bureaucracy  are 
being  replaced  by  team-work,  hunger  and  speed.  We 
are seeing the fruits of our Design-focused work. Thanks 
to  our  design  and  innovation  teams,  our  products  have 
evolved into big experiences.

(iii)

Letter to ShareholdersA  few  years  ago,  we  promised  to  deliver  fewer,  bigger 
products. And we are delivering. Take the UE BOOM mobile 
speaker  for  example.  Not  only  was  it  our  biggest  product 
in  Fiscal  Year  2015,  it  has  become  our  best  performing 
product  in  the  34-year  history  of  the  company.  The  UE 
MEGABOOM  –  UE  BOOM’s  big  brother  –  immediately 
became a top five selling product in Q4. And we launched 
another  family  member,  the  wild  child  of  UE  BOOM,  UE 
ROLL, just a few weeks ago. 

Another example can be found in our Video Collaboration 
business.  The  Logitech  ConferenceCam  CC3000e  –  a 
video  camera,  mic  and  speaker  in  a  single  unit  –  has 
seen  a  very  positive  reception.  It’s  another  top-selling 
product,  just  like  the  G502  PROTEUS  CORE  Tunable 
Gaming Mouse that quickly became our biggest gaming 
mouse after launch last year.

Five  of  our  top  13  products  in  the  company  are  now 
from our Growth category. And innovative products from 
our  traditional  businesses,  like  the  Logitech  Bluetooth 
Multi-Device  Keyboard  K480,  are  catching  consumers’ 
attention  too.  Last  quarter,  six  of  our  products  were 
honored  with  Red  Dot  2015  Product  Design  Awards. 
We  were  also  multiple  honorees  at  CES.  Over  the  last 
eighteen  months,  we’ve  received  over  50  prestigious 
design awards – more product design awards than in any 
period in our history. 

This  shows  the  power  of  the  long-term  strategies  we 
have put in place to transform Logitech for the future. 

Thanks to this price and cost management initiative, we 
expect  to  be  able  to  invest  more  deeply  into  the  many 
growth opportunities we see ahead of us. Over the last 
two years, we have already reduced our R&D spend in 
traditional PC Peripherals by over two thirds, reinvesting 
the savings into our Growth category and future projects. 
We  will  also  invest  in  new  capabilities,  both  in  R&D 
and  in  our  regional  go-to-market  organizations.  Last, 
but  not  least,  we  are  returning  more  value  to  you,  our 
shareholders, through dividends and share buybacks. 

Thanks to this price and cost 
management initiative, we expect to 
be able to invest more deeply into the 
many growth opportunities we see 
ahead of us.

We  thank  our  committed  and  hard-working  employees. 
They have helped transform Logitech into a company that 
can grow again. And we thank you, our most committed 
shareholders,  for  your  loyalty  over  this  last  year.  We 
look  forward  to  Fiscal  Year  2016  as  we  accelerate  our 
transformation for growth. 

Looking Ahead
We  closed  a  solid  Fiscal  Year  2015  with  healthy 
momentum.  Looking  ahead,  however,  the  strong  U.S. 
dollar is presenting a challenge for Logitech.

Guerrino De Luca 
Chairman of the Board

Bracken P. Darrell 
President and Chief Executive Officer

The dollar’s strength has negatively affected our margins 
over the last few months. We do not believe this is simply 
a short-term change and we went on the offensive.  

We deployed price increases in impacted markets across 
most of our products and will continue to assess prices 
as  products  launch  throughout  Fiscal  Year  2016.  We 
developed  new  cost  reduction  initiatives  targeting  our 
products, overhead and infrastructure. These build on FY 
2015’s  disciplined  spend  management  –  our  operating 
expenses  were  down  for  the  second  consecutive  year 
and  fell  to  their  lowest  level  in  five  years.  We  are  also 
undertaking a targeted realignment of resources, notably 
exiting our OEM business and reorganizing Lifesize as a 
cloud-based provider. 

(iv)

Letter to Shareholders 
2015 Annual General Meeting 
Invitation, Proxy Statement and Annual Report

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This page is intentionally left blank.July 24, 2015

To our shareholders:

You  are  cordially  invited  to  attend  Logitech’s  2015  Annual  General  Meeting. 
The meeting will be held on Wednesday, September 9, 2015 at 2:00 p.m. at the 
SwissTech Convention Center, EPFL, in Lausanne, Switzerland.

Enclosed  is  the  Invitation  and  Proxy  Statement  for  the  meeting,  which  includes 
an agenda and discussion of the items to be voted on at the meeting, instructions 
on  how  you  can  exercise  your  voting  rights,  information  concerning  Logitech’s 
compensation  of  its  Board  members  and  executive  officers,  and  other  relevant 
information.

Whether  or  not  you  plan  to  attend  the  Annual  General  Meeting,  your  vote 
is important. 

Thank you for your continued support of Logitech.

Guerrino De Luca 
Chairman of the Board

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This page is intentionally left blank.LOGITECH INTERNATIONAL S.A.
Invitation to the Annual General Meeting 
Wednesday, September 9, 2015 
2:00 p.m. (registration starts at 1:30 p.m.) 
SwissTech Convention Center, EPFL – Lausanne, Switzerland 

*****  
AGENDA

A.  Reports 

Report on Operations for the fiscal year ended March 31, 2015 

B.  Proposals 

1.  Approval  of  the  Annual  Report,  the  consolidated  financial  statements  and  the  statutory  financial 

statements of Logitech International S.A. for fiscal year 2015

2.  Advisory vote to approve executive compensation

3.  Appropriation of retained earnings and declaration of dividend

4.  Release of the Board of Directors and Executive Officers from liability for activities during fiscal year 

2015

5.  Elections to the Board of Directors

5.A.  Re-election of Mr. Kee-Lock Chua

5.B.  Re-election of Mr. Bracken Darrell

5.C.  Re-election of Ms. Sally Davis

5.D.  Re-election of Mr. Guerrino De Luca

5.E.  Re-election of Mr. Didier Hirsch

5.F.  Re-election of Dr. Neil Hunt

5.G.  Re-election of Mr. Dimitri Panayotopoulos

5.H.  Election of Dr. Edouard Bugnion

5.I.  Election of Ms. Sue Gove

5.J.  Election of Dr. Lung Yeh

6.  Election of the Chairman of the Board

7.  Elections to the Compensation Committee

7.A.  Re-election of Ms. Sally Davis

7.B.  Re-election of Dr. Neil Hunt

7.C.  Election of Mr. Dimitri Panayotopoulos

8.  Approval of Compensation for the Board of Directors for the 2015 to 2016 Board Year

9.  Approval of Compensation for the Group Management Team for Fiscal Year 2017

10.  Re-election of KPMG AG as Logitech’s auditors and ratification of the appointment of KPMG LLP as 

Logitech’s independent registered public accounting firm for fiscal year 2016

11.  Re-election of Ms. Béatrice Ehlers as Independent Representative

Apples, Switzerland, July 24, 2015 

The Board of Directors

2015 Annual General Meeting Invitation, Proxy Statement 
 
This page is intentionally left blank.General Information for All Shareholders

WHy AM I RECEIvING 
THIS “INvITATION ANd 
PROxy STATEMENT”? 

WHO IS ENTITLEd  
TO vOTE AT THE 
MEETING? 

WHO IS A REGISTEREd 
SHAREHOLdER? 

This  document  is  designed  to  comply  with  both  Swiss  corporate  law  and  U.S. 
proxy statement rules. Outside of the U.S. and Canada this Invitation and Proxy 
Statement will be made available to registered shareholders with certain portions 
translated into French and German. We made copies of this Invitation and Proxy 
Statement available to shareholders beginning on July 24, 2015. 

The Response Coupon is solicited on behalf of the Board of Directors of Logitech 
for  use  at  Logitech’s  Annual  General  Meeting.  The  meeting  will  be  held  on 
Wednesday, September 9, 2015 at 2:00 p.m. at the SwissTech Convention Center, 
EPFL, in Lausanne, Switzerland.

Shareholders  registered  in  the  Share  Register  of  Logitech  International  S.A. 
(including  in  the  sub-register  maintained  by  Logitech’s  U.S.  transfer  agent, 
Computershare)  on  Thursday,  September  3,  2015  have  the  right  to  vote.  No 
shareholders will be entered in the Share Register between September 3, 2015 
and the day following the meeting. As of June 30, 2015, there were 102,572,279 
shares registered and entitled to vote out of a total of 164,430,567 Logitech shares 
outstanding. The actual number of registered shares that will be entitled to vote 
at the meeting will vary depending on how many more shares are registered, or 
deregistered, between June 30, 2015 and September 3, 2015. 

For  information  on  the  criteria  for  the  determination  of  the  U.S.  and  Canadian 
“street name” beneficial owners who may vote with respect to the meeting, please 
refer  to  “Further  Information  for  U.S.  and  Canadian  “Street  Name”  Beneficial 
Owners” below.

If your shares are registered directly in your name with us in the Share Register of 
Logitech International S.A., or in our sub-register maintained by our U.S. transfer 
agent,  Computershare,  you  are  considered  a  registered  shareholder,  and  this 
Invitation  and  Proxy  Statement  and  related  materials  are  being  sent  or  made 
available to you by Logitech. 

1  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementQuestions and Answers about The Logitech 2015 Annual General MeetingWHO IS A BENEfICIAL 
OWNER WITH SHARES 
REGISTEREd IN THE 
NAME Of A CuSTOdIAN, 
OR “STREET NAME” 
OWNER? 

Shareholders that have not requested registration on our Share Register directly, 
and hold shares through a broker, trustee or nominee or other similar organization 
that is a registered shareholder, are beneficial owners of shares registered in the 
name of a custodian. If you hold your Logitech shares through a U.S. or Canadian 
broker,  trustee  or  nominee  or  other  similar  organization  (also  called  holding  in 
“street name”), which is the typical practice of our shareholders in the U.S. and 
Canada,  the  organization  holding  your  account  is  considered  the  registered 
shareholder for purposes of voting at the meeting, and this Invitation and Proxy 
Statement and related materials are being sent or made available to you by them. 
You have the right to direct that organization on how to vote the shares held in 
your account. 

WHy IS IT IMPORTANT 
fOR ME TO vOTE? 

Logitech is a public company and key decisions can only be made by shareholders. 
Whether or not you plan to attend, your vote is important so that your shares are 
represented.

There is no quorum requirement for the meeting. Under Swiss law, public companies 
do  not  have  specific  quorum  requirements  for  shareholder  meetings,  and  our 
Articles of Incorporation do not otherwise provide for a quorum requirement. 

Logitech’s  principal  executive  office  in  Switzerland  is  at  EPFL  –  Quartier  de 
l’Innovation,  Daniel  Borel  Innovation  Center  1015  Lausanne,  Switzerland,  and 
our principal executive office in the United States is at 7700 Gateway Boulevard, 
Newark,  California  94560.  Logitech’s  main  telephone  number  in  Switzerland 
is  +41-(0)21-863-5111  and  our  main  telephone  number  in  the  United  States  is 
+1-510-795-8500. 

A  copy  of  our  2015  Annual  Report  to  Shareholders,  this  Invitation  and  Proxy 
Statement  and  our  Annual  Report  on  Form  10-K  for  fiscal  year  2015  filed  with 
the U.S. Securities and Exchange Commission (the “SEC”) are available on our 
website  at  http://ir.logitech.com.  Shareholders  also  may  request  free  copies  of 
these  materials  at  our  principal  executive  offices  in  Switzerland  or  the  United 
States, at the addresses and phone numbers above. 

We intend to announce voting results at the meeting and issue a press release 
promptly after the meeting. We will also file the results on a Current Report on 
Form 8-K with the SEC by Tuesday, September 15, 2015. A copy of the Form 8-K 
will be available on our website at http://ir.logitech.com. 

HOW MANy 
REGISTEREd SHARES 
MuST BE PRESENT 
OR REPRESENTEd TO 
CONduCT BuSINESS AT 
THE MEETING? 

WHERE ARE 
LOGITECH’S PRINCIPAL 
ExECuTIvE OffICES? 

HOW CAN I OBTAIN 
LOGITECH’S PROxy 
STATEMENT, ANNuAL 
REPORT ANd OTHER 
ANNuAL REPORTING 
MATERIALS? 

WHERE CAN I fINd  
THE vOTING RESuLTS 
Of THE MEETING? 

 – Proxy Statement  |  2

2015 Annual General Meeting Invitation, Proxy StatementQuestions and Answers about The Logitech 2015 Annual General MeetingIf I AM NOT A 
REGISTEREd 
SHAREHOLdER, CAN I 
ATTENd ANd vOTE AT 
THE MEETING? 

You may not attend the meeting and vote your shares in person at the meeting 
unless  you  either  become  a  registered  shareholder  by  September  3,  2015  or 
you  obtain  a  “legal  proxy”  from  the  broker,  trustee  or  nominee  that  holds  your 
shares,  giving  you  the  right  to  vote  the  shares  at  the  meeting.  If  you  hold  your 
shares through a non-U.S. or non-Canadian broker, trustee or nominee, you may 
become a registered shareholder by contacting our Share Registrar at Logitech 
International S.A., c/o Devigus Shareholder Services, Birkenstrasse 47, CH-6343 
Rotkreuz,  Switzerland,  and  following  their  registration  instructions  or,  in  certain 
countries, by requesting registration through the bank or brokerage through which 
you hold your shares. If you hold your shares through a U.S. or Canadian broker, 
trustee or nominee, you may become a registered shareholder by contacting your 
broker, trustee or nominee, and following their registration instructions. 

Further Information for Registered Shareholders

HOW CAN I vOTE If I dO 
NOT PLAN TO ATTENd 
THE MEETING? 

If  you  do  not  plan  to  attend  the  meeting,  you  may  appoint  the  Independent 
Representative, Ms. Béatrice Ehlers, to represent you at the meeting. Please provide 
your voting instructions by marking the applicable boxes beside the agenda items 
on the Internet voting site for registered shareholders, gvmanager.ch/logitech for 
shareholders on the Swiss share register or www.proxyvote.com for shareholders 
on the U.S. share register, or on the Response Coupon or Proxy Card, as applicable. 

SWISS  SHARE  REGISTER  –  INTERNET  vOTING  –  Go  to  the  Internet  voting 
site  gvmanager.ch/logitech  and  log  in  with  your  one-time  code  on  the  Response 
Coupon. Please use the menu item “Grant Procuration” and submit your instructions 
by clicking on the “Send” button. Your code is only valid once; it expires once you 
have submitted your voting or any other instructions and signed off the portal. As 
long as you remain signed in to the portal, you may change your voting instructions 
at your discretion.

SWISS SHARE REGISTER – RESPONSE COuPON – Mark the box under Option 
3  on  the  enclosed  Response  Coupon.  Please  sign,  date  and  promptly  mail  your 
completed Response Coupon to Ms. Béatrice Ehlers using the appropriate enclosed 
postage-paid envelope.

u.S.  SHARE  REGISTER  –  INTERNET  vOTING  –  Go  to  the  Internet  voting  site 
www.proxyvote.com and log in with your 16-digit voting control number printed in 
the box marked by the arrow on the Notice of Internet Availability of Proxy Materials 
that  you  received  from  us.  Please  follow  the  menus  to  select  the  Independent 
Representative, Ms. Béatrice Ehlers, to represent you at the meeting.

u.S. SHARE REGISTER – PROxy CARd – If you have requested a Proxy Card, 
mark  the  box  “Yes”  on  the  Proxy  Card  to  select  the  Independent  Representative, 
Ms.  Béatrice  Ehlers,  to  represent  you  at  the  meeting.  Please  sign,  date  and 
promptly  mail  your  completed  Proxy  Card  to  Broadridge  using  the  enclosed 
postage-paid envelope.

3  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementQuestions and Answers about The Logitech 2015 Annual General MeetingHOW CAN I ATTENd THE 
MEETING? 

CAN I HAvE ANOTHER 
PERSON REPRESENT 
ME AT THE MEETING? 

 – Proxy Statement  |  4

If you wish to attend the meeting, you will need to obtain an admission card. You may 
order  your  admission  card  on  the  Internet  voting  site  for  registered  shareholders, 
www.gvmanager.ch/logitech  for  shareholders  on  the  Swiss  share  register  or 
www.proxyvote.com for shareholders on the U.S. share register, or on the Response 
Coupon or Proxy Card, as applicable, and we will send you an admission card for the 
meeting. If an admission card is not received by you prior to the meeting and you are 
a  registered  shareholder  as  of  September  3,  2015,  you  may  attend  the  meeting  by 
presenting proof of identification at the meeting. 

SWISS  SHARE  REGISTER  –  INTERNET  vOTING  –  Go  to  the  Internet  voting 
site gvmanager.ch/logitech and log in with your one-time code on the Response 
Coupon.  Please  use the  menu  item “Order Admission  Card”. Your code is only 
valid once; it expires as soon as you have ordered an admission card by clicking 
on the “Send” button or submitted any other instructions and signed off the portal. 

SWISS SHARE REGISTER – RESPONSE COuPON – Mark the box under Option 1 
on the enclosed Response Coupon. Please send the completed, signed and dated 
Response  Coupon  to  Logitech  using  the  enclosed  postage-paid  envelope  by 
Thursday, September 3, 2015.

u.S. SHARE REGISTER – INTERNET vOTING – Go to the Internet voting site 
www.proxyvote.com  and  log  in  with  your  16-digit  voting  control  number  printed 
in  the  box  marked  by  the  arrow  on  the  Notice  of  Internet  Availability  of  Proxy 
Materials that you received from us. Please follow the menus to indicate that you 
will personally attend the meeting.

u.S.  SHARE  REGISTER  –  PROxy  CARd  –  If  you  have  requested  a  Proxy 
Card, mark the box “Yes” on the Proxy Card to indicate that you will personally 
attend  the  meeting.  Please  sign,  date  and  promptly  mail  your  completed  Proxy 
Card  to  Broadridge  using  the  enclosed  postage-paid  envelope  by  Thursday, 
September 3, 2015.

Yes.  If  you  would  like  someone  other  than  the  Independent  Representative  to 
represent  you  at  the  meeting,  please  mark  Option  2  on  the  Response  Coupon 
(for  shareholders  on  the  Swiss  share  register)  or,  if  you  requested  a  Proxy  Card 
(for shareholders on the U.S. share register), mark the box on the Proxy Card to 
authorize the person you name on the reverse side of the Proxy Card. On either the 
Response Coupon or the Proxy Card, please provide the name and address of the 
person you want to represent you. Please return the completed, signed and dated 
Response  Coupon  to  Logitech  or  Proxy  Card  to  Broadridge,  using  the  enclosed 
postage-paid  envelope  by  September  3,  2015.  We  will  send  an  admission  card 
for  the  meeting  to  your  representative.  If  the  name  and  address  instructions  you 
provide are not clear, Logitech will send the admission card to you, and you must 
forward it to your representative. 

If  you  requested  and  received  an  admission  card  to  attend  the  meeting,  you 
can  also  authorize  someone  other  than  the  Independent  Representative  to 
represent  you  at  the  meeting  on  the  admission  card  and  provide  that  signed, 
dated  and  completed  admission  card  to  your  representative,  together  with  your 
voting instructions.

You do not have the option to order an admission card for your representative on 
the Internet voting sites.

2015 Annual General Meeting Invitation, Proxy StatementQuestions and Answers about The Logitech 2015 Annual General MeetingCAN I SELL My SHARES 
BEfORE THE MEETING 
If I HAvE vOTEd? 

If I vOTE By PROxy, 
CAN I CHANGE My vOTE 
AfTER I HAvE vOTEd? 

Logitech does not block the transfer of shares before the meeting. However, if you 
sell  your  Logitech  shares  before  the  meeting  and  Logitech’s  Share  Registrar  is 
notified of the sale, your votes with those shares will not be counted. Any person 
who purchases shares after the Share Register closes on Thursday, September 3, 
2015 will not be able to register them until the day after the meeting and so will not 
be able to vote the shares at the meeting. 

You  may  change  your  vote  by  Internet  or  by  mail  through  September  3,  2015. 
You may also change your vote by attending the meeting and voting in person. 
For  shareholders  on  the  Swiss  share  register,  you  may  revoke  your  vote  by 
requesting  a  new  one-time  code  and  providing  new  voting  instructions  at 
gvmanager.ch/logitech, or by requesting and submitting a new Response Coupon 
from our Swiss Share Register at Devigus Shareholder Services (by telephone at 
+41-41-798-48-33 or by e-mail at logitech@devigus.com). For shareholders on the 
U.S. share register, you may revoke your vote by providing new voting instructions 
at www.proxyvote.com, if you voted by Internet, or by requesting and submitting a 
new Proxy Card. Your attendance at the meeting will not automatically revoke your 
vote or Response Coupon or Proxy Card unless you vote again at the meeting or 
specifically request in writing that your prior voting instructions be revoked.

SWISS  SHARE  REGISTER  –  INTERNET  vOTING  –  After  you  receive  the  new 
one-time  code,  go  to  the  Internet  voting  site  gvmanager.ch/logitech  and  log  in. 
Please  use  the  menu  item  “Grant  Procuration”.  Follow  the  directions  on  the  site 
to complete and submit your new instructions until Thursday, September 3, 2015, 
23:59 (Central European Time), or you may attend the meeting and vote in person.

SWISS  SHARE  REGISTER  –  RESPONSE  COuPON  –  If  you  request  a  new 
Response Coupon and wish to vote again, you may complete the new Response 
Coupon and return it to us by September 3, 2015, or you may attend the meeting 
and vote in person.

u.S. SHARE REGISTER – INTERNET vOTING – Go to the Internet voting site 
www.proxyvote.com  and  log  in  with  your  16-digit  voting  control  number  printed 
in  the  box  marked  by  the  arrow  on  the  Notice  of  Internet  Availability  of  Proxy 
Materials that you received from us. Please follow the menus to submit your new 
instructions until Thursday, September 3, 2015, 11:59 p.m. (U.S. Eastern Daylight 
Time), or you may attend the meeting and vote in person.

u.S.  SHARE  REGISTER  –  PROxy  CARd  –  If  you  request  a  new  Proxy  Card 
and  wish  to  vote  again,  you  may  complete  the  new  Proxy  Card  and  return  it 
to  Broadridge  by  September  3,  2015,  or  you  may  attend  the  meeting  and  vote 
in person.

5  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementQuestions and Answers about The Logitech 2015 Annual General MeetingIf I vOTE By PROxy, 
WHAT HAPPENS If I 
dO NOT GIvE SPECIfIC 
vOTING INSTRuCTIONS? 

SWISS  SHARE  REGISTER  –  INTERNET  vOTING  –  If  you  are  a  registered 
shareholder and vote using the Internet voting site, you have to give specific voting 
instructions for all agenda items before you can submit your instructions.

SWISS  SHARE  REGISTER  –  RESPONSE  COuPON  –  If  you  are  a  registered 
shareholder  and  sign  and  return  a  Response  Coupon  without  giving  specific 
voting  instructions  for  some  or  all  agenda  items,  you  thereby  give  instructions 
to  the  Independent  Representative  to  vote  your  shares  in  accordance  with  the 
recommendations  of  the  Board  of  Directors  for  such  agenda  items  as  well  as 
for  new  and  amended  proposals  that  could  be  formulated  during  the  course  of 
the meeting.

u.S.  SHARE  REGISTER  –  INTERNET  vOTING  –  If  you  are  a  registered 
shareholder  and  vote  using  the  Internet  voting  site  without  giving  specific 
voting  instructions  for  some  or  all  agenda  items,  you  thereby  give  instructions 
to  the  Independent  Representative  to  vote  your  shares  in  accordance  with  the 
recommendations  of  the  Board  of  Directors  for  such  agenda  items  as  well  as 
for  new  and  amended  proposals  that  could  be  formulated  during  the  course  of 
the meeting.

u.S. SHARE REGISTER – PROxy CARd – If you are a registered shareholder 
and  sign  and  return  a  Proxy  Card  without  giving  specific  voting  instructions  for 
some  or  all  agenda  items,  you  thereby  give  instructions  to  the  Independent 
Representative to vote your shares in accordance with the recommendations of 
the Board of Directors for such agenda items as well as for new and amended 
proposals that could be formulated during the course of the meeting.

WHO CAN I CONTACT If 
I HAvE quESTIONS? 

If  you  have  any  questions  or  need  assistance  in  voting  your  shares,  please  
call us at +1-510-713-4220 or e-mail us at logitechIR@logitech.com. 

 – Proxy Statement  |  6

2015 Annual General Meeting Invitation, Proxy StatementQuestions and Answers about The Logitech 2015 Annual General MeetingFurther Information for U.S. or Canadian “Street Name”  
Beneficial Owners 

WHy dId I RECEIvE A 
ONE-PAGE NOTICE IN 
THE MAIL REGARdING 
THE INTERNET 
AvAILABILITy Of 
PROxy MATERIALS 
INSTEAd Of A fuLL SET 
Of PROxy MATERIALS?

We  have  provided  access  to  our  proxy  materials  over  the  Internet  to  beneficial 
owners holding their shares in “street name” through a U.S. or Canadian broker, 
trustee  or  nominee.  Accordingly,  such  brokers,  trustees  or  nominees  are 
forwarding a Notice of Internet Availability of Proxy Materials (the “Notice”) to such 
beneficial owners. All such shareholders will have the ability to access the proxy 
materials on a website referred to in the Notice or request to receive a printed set 
of  the  proxy  materials.  Instructions  on  how  to  access  the  proxy  materials  over 
the Internet or to request a printed copy may be found on the Notice. In addition, 
beneficial owners holding their shares in street name through a U.S. or Canadian 
broker, trustee or nominee may request to receive proxy materials in printed form 
by mail or electronically by email on an ongoing basis.

HOW CAN I GET 
ELECTRONIC ACCESS 
TO THE PROxy 
MATERIALS?

The Notice will provide you with instructions regarding how to:

•	 View our proxy materials for the meeting on the Internet; and

•	 Instruct us to send our future proxy materials to you electronically by email.

Choosing to receive your future proxy materials by email will save us the cost of 
printing and mailing documents to you and will reduce the impact of our annual 
shareholders’ meetings on the environment. If you choose to receive future proxy 
materials by email, you will receive an email next year with instructions containing 
a link to those materials and a link to the proxy voting site. Your election to receive 
proxy materials by email will remain in effect until you terminate it.

7  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementQuestions and Answers about The Logitech 2015 Annual General MeetingWHO MAy PROvIdE 
vOTING INSTRuCTIONS 
fOR THE MEETING? 

For  purposes  of  U.S.  or  Canadian  beneficial  shareholder  voting,  shareholders 
holding shares through a U.S. or Canadian broker, trustee or nominee organization 
on July 10, 2015 may direct the organization on how to vote. Logitech has made 
arrangements with a service company to U.S. and Canadian brokers, trustees and 
nominee organizations for that service company to provide a reconciliation of share 
positions of U.S. and Canadian “street name” beneficial owners between July 10, 
2015 and August 24, 2015, which Logitech determined is the last practicable date 
before the meeting for such a reconciliation. These arrangements are intended to 
result in the following adjustments: If a U.S. or Canadian “street name” beneficial 
owner  as  of  July  10,  2015  votes  but  subsequently  sells  their  shares  before 
August 24, 2015, their votes will be cancelled. A U.S. or Canadian “street name” 
beneficial owner as of July 10, 2015 that has voted and subsequently increases 
or decreases their shareholdings but remains a beneficial owner as of August 24, 
2015 will have their votes increased or decreased to reflect their shareholdings as 
of August 24, 2015. 

If  you  acquire  Logitech  shares  in  “street  name”  after  July  10,  2015  through  a 
U.S. or Canadian broker, trustee or nominee, and wish to vote at the meeting or 
provide voting instructions by proxy, you must become a registered shareholder. 
You may become a registered shareholder by contacting your broker, trustee or 
nominee, and following their registration instructions. In order to allow adequate 
time for registration, for proxy materials to be sent or made available to you, and 
for your voting instructions to be returned to us before the meeting, please begin 
the registration process as far before September 3, 2015 as possible. 

If I AM A u.S. OR 
CANAdIAN “STREET 
NAME” BENEfICIAL 
OWNER, HOW dO  
I vOTE? 

If you are a beneficial owner of shares held in “street name” and you wish to vote 
in person at the meeting, you must obtain a valid proxy from the organization that 
holds your shares.

If you do not wish to vote in person, you may vote by proxy. You may vote by proxy 
over the Internet, by mail or by telephone by following the instructions provided in 
the Notice or on the Proxy Card.

 – Proxy Statement  |  8

2015 Annual General Meeting Invitation, Proxy StatementQuestions and Answers about The Logitech 2015 Annual General MeetingWHAT HAPPENS If I 
dO NOT GIvE SPECIfIC 
vOTING INSTRuCTIONS? 

If you are a beneficial owner of shares held in “street name” in the United States 
or Canada and do not provide your broker, trustee or nominee with specific voting 
instructions,  then  under  the  rules  of  various  national  and  regional  securities 
exchanges, your broker, trustee or nominee may generally vote on routine matters 
but cannot vote on non-routine matters. If the organization that holds your shares 
does not receive instructions from you on how to vote your shares on a non-routine 
matter, your shares will not be voted on such matter and will not be considered votes 
cast on the applicable Proposal. We encourage you to provide voting instructions 
to the organization that holds your shares by carefully following the instructions 
provided in the Notice. We believe the following Proposals will be considered non-
routine: Proposal 2 (Advisory vote to approve executive compensation), Proposal 
3  (Appropriation  of  retained  earnings  and  declaration  of  dividend),  Proposal  4 
(Release  of  the  Board  of  Directors  and  Executive  Officers  from  liability  for 
activities during fiscal year 2015), Proposal 5 (Elections to the Board of Directors), 
Proposal 6 (Election of the Chairman), Proposal 7 (Elections to the Compensation 
Committee),  Proposal  8  (Approval  of  Compensation  for  the  Board  of  Directors 
for the 2015 to 2016 Board Year), Proposal 9 (Approval of Compensation for the 
Group  Management  Team  for  Fiscal  Year  2017),  Proposal  11  (Election  of  the 
Independent Representative). All other Proposals involve matters that we believe 
will be considered routine. Any “broker non-votes” on any Proposals will not be 
considered votes cast on the Proposal. 

WHAT IS THE dEAdLINE 
fOR dELIvERING My 
vOTING INSTRuCTIONS? 

If you hold your shares through a U.S. or Canadian bank or brokerage or other 
custodian,  you  have  until  11:59  pm  (U.S.  Eastern  Daylight  Time)  on  Thursday, 
September 3, 2015 to deliver your voting instructions. 

CAN I CHANGE  
My vOTE AfTER  
I HAvE vOTEd? 

You may revoke your proxy and change your vote at any time before the final vote 
at the meeting. You may vote again on a later date on the Internet or by telephone 
(only  your  latest  Internet  or  telephone  proxy  submitted  prior  to  the  meeting  will 
be counted), or by signing and returning a new proxy card with a later date, or by 
attending the meeting and voting in person, if you have a “legal proxy” that allows 
you  to  attend  the  meeting  and  vote.  However,  your  attendance  at  the  Annual 
General Meeting will not automatically revoke your proxy unless you vote again 
at the meeting or specifically request in writing that your prior proxy be revoked. 

9  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementQuestions and Answers about The Logitech 2015 Annual General MeetingHOW dO I OBTAIN A 
SEPARATE SET Of 
PROxy MATERIALS OR 
REquEST A SINGLE SET 
fOR My HOuSEHOLd IN 
THE uNITEd STATES? 

We  have  adopted  a  procedure  approved  by  the  SEC  called  “householding”  for 
shareholders in the United States. Under this procedure, shareholders who have 
the same address and last name and do not participate in electronic delivery of 
proxy  materials  will  receive  only  one  copy  of  our  proxy  statement  and  annual 
report  unless  one  or  more  of  these  shareholders  notifies  us  that  they  wish  to 
continue  receiving  individual  copies.  This  procedure  reduces  our  printing  costs 
and  postage fees. Each  U.S. shareholder who  participates  in  householding will 
continue to be able to access or receive a separate proxy card. 

If you wish to receive a separate proxy statement and annual report at this time, 
please request the additional copy by contacting our mailing agent, Broadridge, 
by telephone at +1-866-540-7095 or by e-mail at sendmaterial@proxyvote.com. 
If any shareholders in your household wish to receive a separate proxy statement 
and annual report in the future, they may call our investor relations group at +1-
510-713-4220 or write to Investor Relations, 7700 Gateway Boulevard, Newark, 
California  94560.  They  may  also  send  an  email  to  our  investor  relations  group 
at logitechIR@logitech.com. Other shareholders who have multiple accounts in 
their names or who share an address with other stockholders can authorize us to 
discontinue mailings of multiple proxy statements and annual reports by calling or 
writing to investor relations.

Further Information for Shareholders with Shares Registered Through a Bank 
or Brokerage as Custodian (Outside the U.S. or Canada) 

HOW dO I vOTE By 
PROxy If My SHARES 
ARE REGISTEREd 
THROuGH My BANk 
OR BROkERAGE AS 
CuSTOdIAN? 

WHAT IS THE 
dEAdLINE fOR 
dELIvERING My vOTING 
INSTRuCTIONS If My 
LOGITECH SHARES 
ARE REGISTEREd 
THROuGH My BANk 
OR BROkERAGE AS 
CuSTOdIAN? 

Your  broker,  trustee  or  nominee  should  have  enclosed  or  provided  voting 
instructions for you to use in directing the broker, trustee or nominee how to vote 
your shares. If you did not receive such instructions you must contact your bank 
or brokerage for their voting instructions. 

Banks and brokerages typically set deadlines for receiving instructions from their 
account holders. Outside of the U.S. and Canada, this deadline is typically two to 
three days before the deadline of the company holding the general meeting. This 
is so that the custodians can collect the voting instructions and pass them on to 
the company holding the meeting. If you hold Logitech shares through a bank or 
brokerage outside the U.S. or Canada, please check with your bank or brokerage 
for their specific voting deadline and submit your voting instructions to them as far 
before that deadline as possible. 

 – Proxy Statement  |  10

2015 Annual General Meeting Invitation, Proxy StatementQuestions and Answers about The Logitech 2015 Annual General MeetingOther Meeting Information

Meeting Proposals 

There are no other matters that the Board intends to present, or has reason to believe others will present, at the Annual 
General Meeting. 

If you are a registered shareholder:

SWISS SHARE REGISTER

U.S. SHARE REGISTER

INTERNET  vOTING  –  If  you  are  a  registered  shareholder  and  vote  using  the 
Internet  voting  site,  you  have  to  give  specific  voting  instructions  to  all  agenda 
items before you can submit your instructions.

RESPONSE COuPON – If you are a registered shareholder and sign and return 
a  Response  Coupon  without  giving  specific  voting  instructions  for  some  or  all 
agenda  items,  you  thereby  give  instructions  to  the  Independent  Representative 
to  vote  your  shares  in  accordance  with  the  recommendations  of  the  Board  of 
Directors for such agenda items as well as for new and amended proposals that 
could be formulated during the course of the meeting.

INTERNET  vOTING  –  If  you  are  a  registered  shareholder  and  vote  using  the 
Internet  voting  site  without  giving  specific  voting  instructions  for  some  or  all 
agenda  items,  you  thereby  give  instructions  to  the  Independent  Representative 
to  vote  your  shares  in  accordance  with  the  recommendations  of  the  Board  of 
Directors for such agenda items as well as for new and amended proposals that 
could be formulated during the course of the meeting.

PROxy CARd – If you are a registered shareholder and sign and return a Proxy 
Card without giving specific voting instructions for some or all agenda items, you 
thereby give instructions to the Independent Representative to vote your shares in 
accordance with the recommendations of the Board of Directors for such agenda 
items as well as for new and amended proposals that could be formulated during 
the course of the meeting.

If you are a beneficial owner of shares held in “street name” in the United States or Canada, if other matters are properly 
presented for voting at the meeting and you have provided discretionary voting instructions on a voting instruction card 
or through the Internet or other permitted voting mechanisms or have not provided voting instructions, your shares will 
be voted in accordance with the recommendations of the Board of Directors at the meeting on such matters. 

Proxy Solicitation 

We do not expect to retain a proxy solicitation firm. Certain of our directors, officers and other employees, without 
additional compensation, may also solicit  proxies personally or  in  writing,  by telephone, e-mail or otherwise. In the 
United States, we are required to request that brokers and nominees who hold shares in their names furnish our proxy 
material to the beneficial owners of the shares, and we must reimburse such brokers and nominees for the expenses 
of doing so in accordance with certain U.S. statutory fee schedules. 

11  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementQuestions and Answers about The Logitech 2015 Annual General MeetingTabulation of votes 

Representatives  of  at  least  two  Swiss  banks  will  serve  as  scrutineers  of  the  vote  tabulations  at  the  meeting.  As  is 
typical for Swiss companies, our Share Registrar will tabulate the voting instructions of registered shareholders that 
are provided in advance of the meeting. 

Shareholder Proposals and Nominees 

Shareholder Proposals for 2015 Annual General Meeting 

Under our Articles of Incorporation, one or more registered shareholders who together represent shares representing 
at least the lesser of (i) one percent of our issued share capital or (ii) an aggregate par value of one million Swiss francs 
may demand that an item be placed on the agenda of a meeting of shareholders. Any such proposal must be included 
by the Board in our materials for the meeting. A request to place an item on the meeting agenda must be in writing 
and describe the proposal. With respect to the 2015 Annual General Meeting, the deadline to receive proposals for the 
agenda was July 9, 2015. In addition, under Swiss law registered shareholders, or persons holding a valid proxy from 
a registered shareholder, may propose alternatives to items on the 2015 Annual General Meeting agenda before or at 
the meeting. 

Shareholder Proposals for 2016 Annual General Meeting 

We anticipate holding our 2016 Annual General Meeting on or about September 7, 2016, and therefore mailing the 
Invitation and Proxy Statement for the 2016 Annual General Meeting on or about July 22, 2016. A registered shareholder 
that satisfies the minimum shareholding requirements in the Company’s Articles of Incorporation may demand that an 
item be placed on the agenda for our 2016 Annual General Meeting of shareholders by delivering a written request 
describing  the  proposal  to  the  Secretary  of  Logitech  at  our  principal  executive  office  in  either  Switzerland  or  the 
United States no later than July 8, 2016. In addition, if you are a registered shareholder and satisfy the shareholding 
requirements under Rule 14a-8 of the U.S. Securities Exchange Act of 1934 (the “Exchange Act”), you may submit 
a proposal for consideration by the Board of Directors for inclusion in the 2016 Annual General Meeting agenda by 
delivering a request and a description of the proposal to the Secretary of Logitech at our principal executive office in 
either Switzerland or the United States no later than March 26, 2016. The proposal will need to comply with Rule 14a-8 
of the Exchange Act, which lists the requirements for the inclusion of shareholder proposals in company-sponsored 
proxy materials under U.S. securities laws. Under the Company’s Articles of Incorporation only registered shareholders 
are  recognized  as  Logitech  shareholders.  As  a  result,  if  you  are  not  a  registered  shareholder  you  may  not  make 
proposals for the 2016 Annual General Meeting.

Nominations of Director Candidates 

Nominations of director candidates by registered shareholders must follow the rules for shareholder proposals above. 

Provisions of Articles of Incorporation 

The  relevant  provisions  of  our  Articles  of  Incorporation  regarding  the  right  of  one  or  more  registered  shareholders 
who  together  represent  shares  representing  at  least  the  lesser  of  (i)  one  percent  of  our  issued  share  capital  or  (ii) 
an aggregate par value of one million Swiss francs to demand that an item be placed on the agenda of a meeting of 
shareholders are available on our website at http://ir.logitech.com. You may also contact the Secretary of Logitech at 
our principal executive office in either Switzerland or the United States to request a copy of the relevant provisions of 
our Articles of Incorporation. 

 – Proxy Statement  |  12

2015 Annual General Meeting Invitation, Proxy StatementQuestions and Answers about The Logitech 2015 Annual General MeetingAgenda Proposals and Explanations

A. Reports

Report on Operations for the Fiscal Year Ended March 31, 2015

Senior management of Logitech International S.A. will provide the Annual General Meeting with a presentation and 
report on operations of the Company for fiscal year 2015.

13  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementAgenda Proposals and Explanations

B. Proposals

Proposal 1
Approval of the Annual Report, the Consolidated Financial Statements and 
the Statutory Financial Statements of Logitech International S.A. for Fiscal 
Year 2015

Proposal

The Board of Directors proposes that the Annual Report, 
the  consolidated  financial  statements  and  the  statutory 
financial  statements  of  Logitech  International  S.A.  for 
fiscal year 2015 be approved.

Explanation

The Logitech consolidated financial statements and the 
statutory  financial  statements  of  Logitech  International 
S.A.  for  fiscal  year  2015  are  contained  in  Logitech’s 
Annual Report, which was made available to all registered 
shareholders on or before the date of this Invitation and 
Proxy  Statement.  The  Annual  Report  also  contains  the 
report  of  Logitech’s  auditors,  the  report  of  the  statutory 
auditors,  Logitech’s  Remuneration  Report  prepared  in 
compliance with the Swiss Ordinance Against Excessive 
Compensation  by  Public  Corporations  (the  so-called 
“Minder Ordinance”) as well as the report of the statutory 
the  Remuneration  Report,  additional 
auditors  on 
information  on  the  Company’s  business,  organization 
and  strategy,  and  information  relating  to  corporate 
governance  as  required  by  the  SIX  Swiss  Exchange 
directive on corporate governance. Copies of the Annual 
Report are available on the Internet at ir.logitech.com.

Under  Swiss  law,  the  annual  report  and  financial 
statements  of  Swiss  companies  must  be  submitted  to 
shareholders for approval or disapproval at each annual 
general meeting. In the event of a negative vote on this 
proposal  by  shareholders,  the  Board  of  Directors  will 
call  an  extraordinary  general  meeting  of  shareholders 
for  re-consideration  of  this  proposal  by  shareholders. 

Approval  of  this  proposal  does  not  constitute  approval 
or  disapproval  of  any  of  the  individual  matters  referred 
to in the Annual Report or the consolidated or statutory 
financial statements for fiscal year 2015.

KPMG  AG,  as  Logitech  auditors,  issued  an  unqualified 
recommendation  to  the  Annual  General  Meeting  that 
the  consolidated  and  statutory  financial  statements  of 
Logitech  International  S.A.  be  approved.  KPMG  AG 
expressed  their  opinion  that  the  “consolidated  financial 
statements  for  the  year  ended  March  31,  2015  present 
fairly, in all material respects, the financial position, the 
results  of  operations  and  the  cash  flows  in  accordance 
with  accounting  principles  generally  accepted  in  the 
United  States  of  America  (U.S.  GAAP)  and  comply 
with  Swiss  law.”  They  further  expressed  their  opinion 
and  confirmed  that  the  financial  statements  and  the 
proposed appropriation of available earnings comply with 
Swiss  law  and  the  Articles  of  Incorporation  of  Logitech 
International S.A. and the Remuneration Report contains 
the information required by Swiss law.

Voting Requirement to Approve Proposal

The affirmative “FOR” vote of a majority of the votes cast 
in person or by proxy at the Annual General Meeting, not 
counting abstentions.

Recommendation

The  Board  of  Directors  recommends  a  vote  “FOR” 
approval of the Annual Report, the consolidated financial 
statements  and  the  statutory  financial  statements  of 
Logitech International S.A. for fiscal year 2015.

 – Proxy Statement  |  14

2015 Annual General Meeting Invitation, Proxy StatementAgenda Proposals and Explanations

Proposal 2
Advisory Vote to Approve Executive Compensation

Proposal

The  Board  of  Directors  proposes  that  shareholders 
approve,  on  an  advisory  basis,  the  compensation 
of  Logitech’s  named  executive  officers  disclosed  in 
Logitech’s Compensation Report for fiscal year 2015.

Explanation

At Logitech’s 2009 and 2010 Annual General Meetings, 
the  Logitech  Board  of  Directors  voluntarily  asked 
shareholders 
to  approve  Logitech’s  compensation 
philosophy,  policies  and  practices,  as  set  out  in  the 
“Compensation Discussion and Analysis” section of the 
Compensation  Report,  as  a  reflection  of  evolving  best 
practices  in  corporate  governance  in  Switzerland  and 
in  the  United  States.  This  proposal,  commonly  known 
as  a  “say-on-pay”  proposal,  gave  our  shareholders  the 
opportunity to express their views on our compensation 
as  a  whole.  Shareholders  were  supportive  of  our 
compensation philosophy, policies and practices in those 
years and every year since.

Beginning  with  the  2011  Annual  General  Meeting,  a 
say-on-pay  advisory  vote  was  required  for  all  public 
companies,  including  Logitech,  that  are  subject  to  the 
applicable U.S. proxy statement rules. At the 2011 Annual 
General  Meeting,  shareholders  approved  a  proposal  to 
take this vote annually. Accordingly, the Board of Directors 
is asking shareholders to approve, on an advisory basis, 
the compensation of Logitech’s named executive officers 
disclosed  in  the  Compensation  Report,  including  the 
“Compensation Discussion and Analysis,” the Summary 
Compensation  table  and  the  related  compensation 
tables,  notes,  and  narrative.  This  vote  is  not  intended 
to  address  any  specific  items  of  compensation  or  any 
specific  named  executive  officer,  but  rather  the  overall 

compensation  of  our  named  executive  officers  and 
the  philosophy,  policies  and  practices  described  in  the 
Compensation Report.

This  say-on-pay  vote  is  advisory  and  therefore  is 
not  binding.  It  is  carried  out  as  a  best  practice  and  to 
comply with applicable U.S. proxy statement rules, and 
is consequently independent from, and comes in addition 
to, the binding vote on the compensation of the Board of 
Directors for the 2015 to 2016 Board Year contemplated 
in  Proposal  8  and  the  binding  vote  on  the  Approval  of 
Compensation  for  the  Group  Management  Team  for 
Fiscal  Year  2017  contemplated  in  Proposal  9  below. 
However, the say-on-pay vote will provide information to 
us regarding shareholder sentiment about our executive 
compensation  philosophy,  policies  and  practices, 
which  the  Compensation  Committee  of  the  Board  will 
be  able  to  consider  when  determining  future  executive 
compensation. The Committee will seek to determine the 
causes of any significant negative voting result.

As  discussed  in  the  Compensation  Discussion  and 
Analysis  section  of  Logitech’s  2015  Compensation 
its  compensation 
Report,  Logitech  has  designed 
programs to:

•	 provide  compensation  sufficient  to  attract  and  retain 
the  level  of  talent  needed  to  create  and  manage  an 
innovative,  high  growth  global  company  in  highly 
competitive and rapidly evolving markets;

•	 support a performance-oriented culture;

•	 maintain  a  balance  between  fixed  and  variable 
compensation  and  place  a  significant  portion  of 
total  compensation  at  risk  based  on  the  Logitech’s 
performance,  while  maintaining  controls  over 
inappropriate  risk-taking  by  factoring  in  both  annual 
and long-term performance;

15  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementAgenda Proposals and Explanations

•	 provide a balance between short-term and long-term 

objectives and results;

•	 align  executive  compensation  with  shareholders’ 
interests by tying a significant portion of compensation 
to increasing share value; and

•	 reflect  the  Compensation  Committee's  assessment 
of  an  executive's  role  and  past  performance  through 
base salary and short-term cash incentives, and his or 
her potential for future contribution through long-term 
equity incentive awards.

The  Compensation  Committee  of 
the  Board  has 
developed  a  compensation  program  that  is  described 
more  fully  in  the  Compensation  Report  included  in  this 
Invitation and Proxy Statement. Logitech’s compensation 
philosophy, compensation program risks and design, and 
compensation paid during fiscal year 2015 are also set 
out in the Compensation Report.

While  compensation  is  a  central  part  of  attracting, 
the  best  executives  and 
retaining  and  motivating 
employees,  we  believe  it  is  not  the  sole  or  exclusive 
reason why exceptional executives or employees choose 
to  join  and  stay  at  Logitech,  or  why  they  work  hard  to 

achieve results for shareholders. In this regard, both the 
Compensation Committee and management believe that 
providing  a  working  environment  and  opportunities  in 
which  executives  and  employees  can  develop,  express 
their individual potential, and make a difference, are also 
a key part of Logitech’s success in attracting, motivating 
and retaining executives and employees.

Voting Requirement to Approve Proposal

The affirmative “FOR” vote of a majority of the votes cast 
in person or by proxy at the Annual General Meeting, not 
counting abstentions.

Recommendation

The  Board  of  Directors  recommends  a  vote  “FOR” 
approval of the following advisory resolution:

“Resolved,  that  the  compensation  paid  to  Logitech’s 
named  executive  officers  as  disclosed 
the 
Compensation  Report,  including  the  “Compensation 
Discussion  and  Analysis,”  the  Summary  Compensation 
table  and  the  related  compensation  tables,  notes,  and 
narrative discussion, is hereby approved.”

in 

 – Proxy Statement  |  16

2015 Annual General Meeting Invitation, Proxy StatementAgenda Proposals and Explanations

Proposal 3
Appropriation of Retained Earnings and Declaration of Dividend

Proposal

Explanation

The Board of Directors proposes that CHF 449,500,812 
(approximately  USD  462,221,685)  based  on 
the 
exchange rate on March 31, 2015) of retained earnings 
be appropriated as follows:

Retained earnings available at the 

end of fiscal year 2015

Proposed dividends*
Balance of retained earnings to be 

Year ended 
March 31, 2015

CHF 449,500,812
CHF (82,661,493)

carried forward*

CHF 366,839,319

The  Board  of  Directors  proposes  distribution  of  a  gross 
aggregate  dividend  of  approximately  CHF  82,661,493, 
based on the Board-approved gross aggregate dividend of 
USD 85,000,000 and the exchange rate on March 31, 2015, 
or  approximately  CHF  0.5025  per  share  (approximately 
USD 0.5167).*

No distribution shall be made on shares held in treasury 
by the Company and its subsidiaries.

If  the  proposal  of  the  Board  of  Directors  is  approved,  the 
dividend payment of approximately CHF 0.5025 per share 
(or  approximately  CHF  0.3266  per  share  after  deduction 
of  35%  Swiss  withholding  tax  whenever  required)  will  be 
made on or about September 22, 2015 to all shareholders 
on record as of the record date (which will be on or about 
September  21,  2015).  We  expect  that  the  shares  will  be 
traded ex dividend as of approximately September 17, 2015.

Under Swiss law, the use of retained earnings must be 
submitted  to  shareholders  for  approval  or  disapproval 
at each annual general meeting. The retained earnings 
at  the  disposal  of  Logitech  shareholders  at  the  2015 
Annual  General  Meeting  are  the  earnings  of  Logitech 
International S.A., the Logitech parent holding company.

The  proposal  of  the  Board  of  Directors  to  distribute  a 
gross  dividend  of  approximately  CHF  0.5025  per  share 
represents  an  increase  of  approximately  91%  over  the 
prior year, following another year of strong cash flow from 
operations, and is an indication of the Board of Directors’ 
confidence  in  the  future  of  the  Company.  Since  fiscal 
year 2013, the Board of Directors decided on a recurring 
annual gross dividend and not on an occasional one. As 
a consequence, the Company expects to propose such 
a  dividend  to  the  shareholders  of  the  Company  every 
year (subject to the approval of the Company’s statutory 
auditors in the applicable year).

Other  than  the  distribution  of  the  dividend,  the  Board  of 
Directors proposes the carry-forward of retained earnings 
based on the Board’s belief that it is in the best interests of 
Logitech and its shareholders to retain Logitech’s earnings 
for future investment in the growth of Logitech’s business, 
for share repurchases, and for the possible acquisition of 
other companies or lines of business.

17  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementAgenda Proposals and Explanations

Voting Requirement to Approve Proposal

The affirmative “FOR” vote of a majority of the votes cast 
in person or by proxy at the Annual General Meeting, not 
counting abstentions.

Recommendation

The  Board  of  Directors  recommends  a  vote  “FOR” 
approval  of  the  proposed  appropriation  of  retained 
earnings  with  respect  to  fiscal  year  2015,  including  the 
payment of a dividend to shareholders in an amount of 
approximately CHF 0.5025 per share.*

* 

Calculated based on a gross aggregate dividend of USD 85,000,000 (approximately CHF 82,661,493 based on the 
exchange rate of CHF 1 = USD 1.0283 as of March 31, 2015), or approximately USD 0.5167 per share (approximately 
CHF 0.5025 per share based on the exchange rate as of March 31, 2015), subject to a maximum gross aggregate 
dividend equal to the retained earnings available at the end of fiscal year 2015. The per share approximations are 
based on 164,481,799 shares outstanding, net of treasury shares, as of March 31, 2015. Subject to the maximum 
gross aggregate dividend, the proposed dividend in Swiss Francs presented at Logitech’s 2015 Annual General 
Meeting  will  be  based  on  USD  85,000,000  and  the  currency  exchange  rate  effective  on  the  date  of  Logitech’s 
2015 Annual General Meeting. Distribution-bearing shares are all shares issued except for treasury shares held by 
Logitech International S.A. on the day preceding the payment of the distribution. 

 – Proxy Statement  |  18

2015 Annual General Meeting Invitation, Proxy StatementAgenda Proposals and Explanations

Proposal 4
Release of the Board of Directors and Executive Officers from Liability for 
Activities during Fiscal Year 2015

Proposal

Voting Requirement to Approve Proposal

The affirmative “FOR” vote of a majority of the votes cast 
in  person  or  by  proxy  at  the  Annual  General  Meeting, 
not  counting  abstentions  and  not  counting  the  votes  of 
any member of the Board of Directors or of any Logitech 
executive officers.

Recommendation

The  Board  of  Directors  recommends  a  vote  “FOR”  the 
proposal to release the members of the Board of Directors 
and Executive Officers from liability for activities during 
fiscal year 2015.

The Board of Directors proposes that shareholders release 
the  members  of  the  Board  of  Directors  and  Executive 
Officers from liability for activities during fiscal year 2015.

Explanation

As is customary for Swiss corporations and in accordance 
with Article 698, subsection 2, item 5 of the Swiss Code 
of  Obligations,  shareholders  are  requested  to  release 
the members of the Board of Directors and the Executive 
Officers from liability for their activities during fiscal year 
2015  that  have  been  disclosed  to  shareholders.  This 
release  from  liability  exempts  members  of  the  Board 
of  Directors  or  Executive  Officers  from  liability  claims 
brought  by  the  Company  or  its  shareholders  on  behalf 
of the Company against any of them for activities carried 
out during fiscal year 2015 relating to facts that have been 
disclosed to shareholders. Shareholders that do not vote 
in favor of the proposal, or acquire their shares after the 
vote without knowledge of the approval of this resolution, 
are not bound by the result for a period ending six months 
after the vote.

19  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementAgenda Proposals and Explanations

Proposal 5
Elections to the Board of Directors

Our  Board  of  Directors  is  presently  composed  of  ten 
members. Each director was elected for a one-year term 
ending at the closing of the 2015 Annual General Meeting.

At the recommendation of the Nominating Committee, the 
Board has nominated the ten individuals below to serve 
as directors for a one-year term, beginning in each case 
as of the Annual General Meeting on September 9, 2015. 
Seven  of  the  nominees  currently  serve  as  members  of 
the Board of Directors. Their current terms expire upon 
the closing of the Annual General Meeting on September 
9, 2015. The other three nominees were recommended 
by the Nominating Committee of the Board and approved 
by  the  Board  in  June  2015  as  nominees  for  election  to 
the  Board.  Dr.  Bugnion’s  candidacy  as  a  nominee  was 
recommended by our director, Mr. Daniel Borel, and Korn 
Ferry in Switzerland, an executive search firm. Ms. Sue 
Gove’s  candidacy  as  a  nominee  was  recommended  by 
Russell  Reynolds,  an  executive  search  firm.  Dr.  Lung 
Yeh’s  candidacy  as  a  nominee  was  recommended  by 
our  director  and  Chair  of  the  Nominating  Committee, 
Mr. Kee-Lock Chua. Ms. Monika Ribar and Mr. Matthew 
Bousquette,  having  served  the  Company  as  members 
of  the  Board  for  eleven  and  ten  years,  respectively, 
have  decided  to  retire  and  not  to  stand  for  re-election. 
Mr.  Daniel  Borel,  the  co-founder  and  former  Chief 
Executive Officer and Chairman of the Company and a 
member of the Board for 27 years, has decided to retire 
and not to stand for re-election.

The term of office ends at the closing of the next Annual 
General  Meeting.  There  will  be  a  separate  vote  on 
each nominee.

Under Swiss law, Board members may only be appointed 
by shareholders. If the individuals below are elected, the 
Board will be composed of ten members. The Board has 
no  reason  to  believe  that  any  of  our  nominees  will  be 
unwilling or unable to serve if elected as a director.

For further information on the Board of Directors, including 
the  current  members  of  the  Board,  the  Committees  of 
the  Board,  the  means  by  which  the  Board  exercises 
supervision  of  Logitech’s  executive  officers,  and  other 
information,  please  see  “Corporate  Governance  and 
Board of Directors Matters” below.

5.A  Re-election of Mr. Kee-Lock Chua

that 
Proposal:  The  Board  of  Directors  proposes 
Mr.  Kee-Lock  Chua  be  re-elected  to  the  Board  for  a 
one-year term ending at the closing of the 2016 Annual 
General Meeting.

For  biographical 
information  and  qualifications  of 
Mr.  Chua,  please  refer  to  “Corporate  Governance  and 
Board  of  Directors  Matters  –  Members  of  the  Board  of 
Directors” on page 34.

5.B  Re-election of Mr. Bracken Darrell

Proposal:  The  Board  of  Directors  proposes  that  the 
Company’s  President  and  Chief  Executive  Officer, 
Mr.  Bracken  Darrell,  be  re-elected  to  the  Board  for  a 
one-year term ending at the closing of the 2016 Annual 
General Meeting.

For  biographical 
information  and  qualifications  of 
Mr. Darrell, please refer to “Corporate Governance and 
Board  of  Directors  Matters  –  Members  of  the  Board  of 
Directors” on page 34.

5.C  Re-election of Ms. Sally Davis

Proposal: The Board of Directors proposes that Ms. Sally 
Davis  be  re-elected  to  the  Board  for  a  one-year  term 
ending at the closing of the 2016 Annual General Meeting.

information  and  qualifications  of 
For  biographical 
Ms.  Davis,  please  refer  to  “Corporate  Governance  and 
Board  of  Directors  Matters  –  Members  of  the  Board  of 
Directors” on page 35.

 – Proxy Statement  |  20

2015 Annual General Meeting Invitation, Proxy StatementAgenda Proposals and Explanations

5.D  Re-election of Mr. Guerrino De Luca

5.H  Election of Dr. Edouard Bugnion

that 
Proposal:  The  Board  of  Directors  proposes 
Mr.  Guerrino  De  Luca  be  re-elected  to  the  Board  for  a 
one-year term ending at the closing of the 2016 Annual 
General Meeting.

biographical 

For 
qualifications 
information 
of Mr. De Luca, please refer to “Corporate Governance 
and Board of Directors Matters – Members of the Board 
of Directors” on page 35.

and 

5.E  Re-election of Mr. Didier Hirsch

Proposal: The Board of Directors proposes that Mr. Didier 
Hirsch  be  re-elected  to  the  Board  for  a  one-year  term 
ending at the closing of the 2016 Annual General Meeting.

information  and  qualifications  of 
For  biographical 
Mr.  Hirsch,  please  refer  to  “Corporate  Governance  and 
Board  of  Directors  Matters  –  Members  of  the  Board  of 
Directors” on page 36.

5.F  Re-election of Dr. Neil Hunt

Proposal: The Board of Directors proposes that Dr. Neil 
Hunt  be  re-elected  to  the  Board  for  a  one-year  term 
ending at the closing of the 2016 Annual General Meeting.

For  biographical 
information  and  qualifications  of 
Dr.  Hunt,  please  refer  to  “Corporate  Governance  and 
Board  of  Directors  Matters  –  Members  of  the  Board  of 
Directors” on page 36.

5.G  Re-election of Mr. Dimitri Panayotopoulos

Proposal:  The  Board  of  Directors  proposes 
that 
Mr. Dimitri Panayotopoulos be re-elected to the Board for 
a one-year term ending at the closing of the 2016 Annual 
General Meeting.

information  and  qualifications  of 
For  biographical 
Mr.  Panayotopoulos,  please 
“Corporate 
Governance and Board of Directors Matters – Members 
of the Board of Directors” on page 37.

refer 

to 

Proposal: In accordance with the recommendation of the 
Nominating Committee, the Board of Directors proposes 
that  Dr.  Edouard  Bugnion  be  elected  to  the  Board  for  a 
one-year  term  ending  at  the  closing  of  the  2016  Annual 
General Meeting.

Edouard  Bugnion  is  a  Professor  in  the  School  of 
Computer  and  Communication  Sciences  at  the  École 
Polytechnique  Fédérale  de  Lausanne  (EPFL).  Prior 
to  joining  the  EPFL  in  August  2012,  Dr.  Bugnion  was  a 
Founder and Chief Technology Officer of Nuova Systems, 
Inc., a developer of enterprise data center solutions, from 
October 2005 to May 2008. Nuova Systems was funded 
by  and  acquired  by  Cisco  Systems,  Inc.,  a  worldwide 
leader  in  Internet  Protocol-based  networking  products 
and services. He joined Cisco as a Vice President and 
Chief Technology Officer of Cisco’s Server Access and 
Virtualization  Business  Unit  from  May  2008  to  June 
2011.  Prior  to  Nuova,  Dr.  Bugnion  was  a  Founder  of 
VMware,  a  leading  provider  of  cloud  and  virtualization 
software  and  services,  where  he  held  many  positions, 
including  Chief  Technology  Officer,  from  1998  to  2005. 
Dr.  Bugnion  holds  an  Engineering  Diplom  from  ETH 
Zürich, a Master’s degree from Stanford University and a 
Ph.D. from Stanford University, all in Computer Science. 
He is 45 years old and is a Swiss and U.S. national.

Dr. Bugnion’s significant expertise in technology, software 
and  cloud  computing,  and  his  experience  founding 
technology  companies  and  as  a  member  of  the  senior 
leadership  of  leading  technology  companies,  provides 
the Board with technology and product strategy expertise 
as well as senior leadership.

The Board of Directors has determined that he will be an 
independent Director.

21  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementAgenda Proposals and Explanations

5.I  Election of Ms. Sue Gove

Proposal:  In  accordance  with  the  recommendation 
of  the  Nominating  Committee,  the  Board  of  Directors 
proposes that Ms. Sue Gove be elected to the Board for 
a one-year term ending at the closing of the 2016 Annual 
General Meeting.

Sue  Gove  is  the  President  of  Excelsior  Advisors,  LLC, 
a  retail  consulting  and  advisory  firm.  Prior  to  founding 
Excelsior  Advisors  in  August  2014,  Ms.  Gove  was  the 
President  and  Chief  Executive  Officer  of  Golfsmith 
International, a multi-channel specialty golf retailer, from 
October 2012 to April 2014 and President from February 
2012 to April 2014. She also served Golfsmith as Chief 
Operating Officer from September 2008 to October 2012, 
as Chief Financial Officer from March 2009 to July 2012 
and as Executive Vice President from September 2008 
to  February  2012.  Prior  to  joining  Golfsmith,  Ms.  Gove 
was  an  independent  consultant,  serving  specialty  retail 
and  private  equity  clients  from  2006  to  2008,  which 
included consultancy for Prentice Capital Management, 
LP from April 2007 to March 2008 and for Alvarez and 
Marsal  Business  Consulting,  L.L.C.  from  April  2006 
to  March  2007.  Ms.  Gove  served  Zale  Corporation,  a 
leading  specialty  jewelry  retailer,  from  1980  to  2006, 
including as Chief Operating Officer from August 2002 to 
March 2006, as Chief Financial Officer from December 
1997  to  February  2003  and  as  a  Board  member  from 
September  2004  to  March  2006.  She  currently  serves 
on the Boards of Iconix Brand Group, a consumer brand 
licensing and marketing company, and AutoZone, Inc., a 
leading retailer and distributor of automotive replacement 
parts and accessories. Ms. Gove holds a BBA degree in 
Accounting from the University of Texas at Austin. She is 
56 years old and is a U.S. national.

Ms.  Gove  has  significant  executive  experience  with 
international retail, marketing, merchandising and global 
operations,  and  brings  to  our  Board  senior  leadership, 

strategic  and  financial  experience.  As  a  member  of 
other  public  company  boards,  Ms.  Gove  also  provides 
cross-board experience.

The Board of Directors has determined that she will be an 
independent Director and qualifies as an audit committee 
financial expert.

5.J  Election of Dr. Lung Yeh

Proposal:  In  accordance  with  the  recommendation 
of  the  Nominating  Committee,  the  Board  of  Directors 
proposes that Dr. Lung Yeh be elected to the Board for a 
one-year term ending at the closing of the 2016 Annual 
General Meeting.

from  2003 

Lung Yeh is the Managing Director of Enspire Capital, a 
Singapore-based venture capital and private equity firm 
focusing on technology, media and telecommunications, 
internet and mobile investments in Silicon Valley, China, 
Taiwan,  Hong  Kong  and  Singapore.  Prior  to  joining 
Enspire Capital in 2004, Dr. Yeh was the Vice President 
of Business Development at Centrality Communications, 
Inc., a leading provider of GPS semiconductor platforms 
for  high-functional  mobile  devices, 
to 
2004,  a  Founder  and  Chief  Executive  Officer  of  Pico 
Communications Inc., a provider of integrated Bluetooth 
and mobile Internet access and networking solutions, from 
1999 to 2003, Vice President of the Communication and 
Internet Division of Creative Labs Ltd., a leader in digital 
entertainment  products,  from  1993  to  1998,  a  Founder 
and Chief Executive Officer of ShareVision Technology, 
Inc., a desktop videoconferencing technology company, 
from 1991 to 1993, and served in various management 
and  technical  positions  at  Apple  Inc.,  NYNEX  and 
Kodak,  from  1985  to  1991.  Dr.  Yeh  holds  a  BSEE  in 
Communication  Engineering  from  National  Chiao-Tung 
University and a Ph.D. in Electrical Engineering from the 
University  of  Wisconsin  –  Madison.  He  is  59  years  old 
and a U.S. national.

 – Proxy Statement  |  22

2015 Annual General Meeting Invitation, Proxy StatementAgenda Proposals and Explanations

Dr. Yeh has extensive investment and senior leadership 
experience,  as  a  venture  capitalist  in  Asia  and  the 
United  States  focused  on  multimedia,  wireless  and 
communications,  and  also  as  the  founder  and  former 
Chief Executive Officer of several technology companies. 
He  brings  to  the  Board  senior  leadership,  business 
development and global expertise.

The Board of Directors has determined that he will be an 
independent Director.

Voting Requirement to Approve Proposals

The affirmative “FOR” vote of a majority of the votes cast 
in person or by proxy at the Annual General Meeting, not 
counting abstentions.

Recommendation

The  Board  of  Directors  recommends  a  vote  “FOR”  the 
election to the Board of each of the above nominees.

23  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementAgenda Proposals and Explanations

Proposal 6
Election of the Chairman of the Board

Pursuant to the so-called “Minder Ordinance”, Swiss law 
requires that the Chairman of the Board of Directors be 
elected on the occasion of each Annual General Meeting 
for a one-year term ending at the closing of the following 
Annual General Meeting.

Voting Requirement to Approve Proposal

The affirmative “FOR” vote of a majority of the votes cast 
in person or by proxy at the Annual General Meeting, not 
counting abstentions.

Proposal

The  Board  of  Directors  proposes  that  Mr.  Guerrino  De 
Luca be re-elected as Chairman of the Board of Directors 
for  a  one-year  term  ending  at  the  closing  of  the  2016 
Annual General Meeting.

Recommendation

The  Board  of  Directors  recommends  a  vote  “FOR”  the 
election  of  Mr.  Guerrino  De  Luca  as  Chairman  of  the 
Board of Directors.

 – Proxy Statement  |  24

2015 Annual General Meeting Invitation, Proxy StatementAgenda Proposals and Explanations

Proposal 7
Elections to the Compensation Committee

Our Compensation Committee is presently composed of 
four members, two of whom are not standing for re-election 
to the Board of Directors. Following the amendment to the 
Swiss corporate law on January 1, 2014, the members of 
the Compensation Committee are to be elected annually 
and  individually  by  the  shareholders.  Only  members  of 
the Board of Directors can be elected as members of the 
Compensation Committee.

At the recommendation of the Nominating Committee, the 
Board  of  Directors  has  nominated  the  three  individuals 
below  to  serve  as  members  of  the  Compensation 
Committee for a term of one year. Two of the nominees 
currently  serve  as  members  of  the  Compensation 
Committee  and,  as  required  by  our  Compensation 
Committee charter, all of the nominees are independent in 
accordance with the requirements of the listing standards 
of the Nasdaq Stock Market, the outside director definition 
of Section 162(m) of the U.S. Internal Revenue Code of 
1986,  as  amended,  the  definition  of  a  “non-employee 
director” for purposes of Rule 16b-3 promulgated by the 
U.S.  Securities  and  Exchange  Commission,  and  Rule 
10C-1(b)(1) of the U.S. Securities Exchange Act of 1934, 
as amended.

The term of office ends at the closing of the next Annual 
General  Meeting.  There  will  be  a  separate  vote  on 
each nominee.

7.A  Re-election of Ms. Sally Davis

Proposal: The Board of Directors proposes that Ms. Sally 
Davis be re-elected to the Compensation Committee for 
a one-year term ending at the closing of the 2016 Annual 
General Meeting.

information  and  qualifications  of 
For  biographical 
Ms.  Davis,  please  refer  to  “Corporate  Governance  and 
Board  of  Directors  Matters  –  Members  of  the  Board  of 
Directors” on page 35.

7.B  Re-election of Dr. Neil Hunt

Proposal: The Board of Directors proposes that Dr. Neil 
Hunt be re-elected to the Compensation Committee for 
a one-year term ending at the closing of the 2016 Annual 
General Meeting.

For  biographical 
information  and  qualifications  of 
Dr.  Hunt,  please  refer  to  “Corporate  Governance  and 
Board  of  Directors  Matters  –  Members  of  the  Board  of 
Directors” on page 36.

7.C  Election of Mr. Dimitri Panayotopoulos

Proposal: The Board of Directors proposes that Mr. Dimitri 
Panayotopoulos  be  elected 
the  Compensation 
Committee for a one-year term ending at the closing of 
the 2016 Annual General Meeting.

to 

information  and  qualifications  of 
For  biographical 
Mr.  Panayotopoulos,  please 
“Corporate 
Governance  and  Board  of  Directors  Matters  –  
Members of the Board of Directors” on page 37.

refer 

to. 

Voting Requirement to Approve Proposals

The affirmative “FOR” vote of a majority of the votes cast 
in person or by proxy at the Annual General Meeting, not 
counting abstentions.

Recommendation

Our  Board  of  Directors  recommends  a  vote  “FOR”  the 
election to the Compensation Committee of each of the 
above nominees.

25  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementAgenda Proposals and Explanations

Proposal 8
Approval of Compensation for the Board of Directors for the 2015 to 2016 
Board Year

Proposal

The  Board  of  Directors  proposes  that  the  shareholders 
approve  a  maximum  aggregate  amount  of 
the 
compensation of the Board of Directors of CHF 4,600,000 
for  the  term  of  office  from  the  Annual  General  Meeting 
2015 until the Annual General Meeting 2016 (the “2015 
–  2016  Board  Year”),  subject  to  adjustment  for  certain 
changes in the applicable currency exchange rate.*

Explanation

Pursuant  to  the  so-called  “Minder  Ordinance”,  the 
compensation of the Board of Directors must be subject 
each year to a binding shareholder vote, in the manner 
contemplated  by  Logitech’s  Articles  of  Incorporation. 
Article  19  quarter,  paragraph  1(a)  of  Logitech’s  Articles 
of  Incorporation  allows  shareholders  to  approve  the 
maximum aggregate amount of the compensation of the 
Board of Directors for the period up to the next Annual 
General  Meeting.  This  required,  binding  vote  on  the 
compensation  of  the  Board  of  Directors  is  independent 
from, and comes in addition to, the non-binding, advisory 
say-on-pay vote contemplated in Proposal 2.

Under  the  Company’s  Articles  of  Incorporation,  the 
compensation of the members of the Board of Directors 
who  do  not  have  management  responsibilities  consists 
of  cash  payments  and  shares  or  share  equivalents. 
The  value  of  cash  compensation  and  shares  or  share 
equivalents corresponds to a fixed amount, which reflects 

the functions and responsibilities assumed. The value of 
shares or share equivalents is calculated at market value 
at the time of grant.

Pursuant to Article 19 bis, paragraph 2 of the Company’s 
Articles  of  Incorporation,  the  compensation  of  the 
members of the Board of Directors who have management 
responsibilities (i.e., executive members of the Board of 
Directors) is structured similarly to the compensation of 
the members of the Group Management Team.

The  proposed  maximum  amount  of  CHF  4,600,000 
has  been  determined  based  on 
following 
non-binding assumptions:

the 

With respect to the eight non-executive members of the 
Board of Directors:

•	 Cash payments of a maximum of approximately CHF 
900,000. Cash payments for non-executive members 
of the Board of Directors include annual retainers for 
Board and committee service and travel fees.

•	 Share  or  share  equivalent  awards  of  a  maximum  of 
approximately CHF 1,200,000. The value of share or 
share equivalent awards corresponds to a fixed amount 
and  the  number  shares  granted  will  be  calculated  at 
market value at the time of their grant.

•	 Other payments, including the Company’s contributions 
to social security, of a maximum of approximately CHF 
300,000.

* 

For each increase of 0.01 in the exchange rate of the Swiss Franc against the U.S. Dollar above the assumed 
level of USD 1.0784 to CHF 1.00, if any, the maximum aggregate amount of the compensation of the Board of 
Directors will increase by CHF 21,000 for the 2015 – 2016 Board Year. This adjustment reflects the fact that the 
compensation of our Chairman, which is included in the maximum aggregate amount of the compensation for the 
Board of Directors, is set in U.S. Dollars.

 – Proxy Statement  |  26

2015 Annual General Meeting Invitation, Proxy StatementAgenda Proposals and Explanations

With  respect  to  executive  members  of  the  Board 
of Directors:

•	 Gross  base  compensation  of  a  maximum  of 

CHF 490,000.**

•	 Performance-based 

cash 

compensation  of  a 
maximum of CHF 980,000.** Performance-based cash 
compensation in the form of incentive cash payments 
may  be  earned  under  the  Logitech  Management 
Performance  Bonus  Plan  (the  “Bonus  Plan”)  or 
other  cash  bonuses  approved  by  the  Compensation 
Committee. Payout under the Bonus Plan is variable, 
and  is  based  on  the  achievement  of  the  Company’s, 
individual  employees’  or  other  performance  goals. 
The proposed maximum amount of the performance-
based  bonus  assumes 
full  achievement  of  all 
performance goals.

•	 Equity  incentive  awards  of  a  maximum  of  CHF 
650,000.**  Long-term  equity  incentive  awards  are 
generally  granted  in  the  form  of  performance-based 
restricted stock units, or PSUs, time-based restricted 
stock  units,  or  RSUs,  or  other  financial  instruments 
contemplated in the applicable equity plans. The value 
of PSUs, RSUs or other financial instruments granted 
as  equity  incentive  awards  is  calculated  at  market 
value at the time of their grant. The proposed maximum 
amount  of  the  equity  incentive  awards  assumes  full 
achievement of all performance goals and full vesting 
of all time-based equity incentive awards.

•	 Other compensation of a maximum of CHF 80,000.** 
Other compensation may include car allowances, tax 
preparation  services,  401(k)  savings  plan  matching 
stock  purchase  plan 
contributions,  employee 

discounts,  premium  for  group  term  life  insurance, 
relocation expenses, travel costs in lieu of relocation 
allowances, defined benefit pension plan employment 
contributions  and  other  awards.  The  Company 
generally does not provide all of these components of 
other  compensation  to  all  executives  each  year,  but 
the proposed maximum amount of compensation has 
been  formulated  to  provide  flexibility  to  cover  these 
compensation components as applicable.

The executive member of the Board of Directors to whom 
the proposed compensation referred to above applies is 
Mr. Guerrino De Luca, the Company’s Chairman. In his 
capacity as a member of the Group Management Team, 
Mr. Bracken Darrell is not entitled to compensation for his 
services on the Company’s Board of Directors.

In  the  event  of  a  negative  vote  on  this  proposal  by 
shareholders,  the  Board  of  Directors  will  submit  an 
alternative  proposal  to  the  same  or  a  subsequent 
general meeting.

Voting Requirement to Approve Proposal

The affirmative “FOR” vote of a majority of the votes cast 
in person or by proxy at the Annual General Meeting, not 
counting abstentions.

Recommendation

The  Board  of  Directors  recommends  a  vote  “FOR”  the 
approval  of  the  maximum  aggregate  amount  of  the 
compensation of the members of the Board of Directors 
of CHF 4,600,000 for the term of office from the Annual 
General Meeting 2015 until the Annual General Meeting 
2016, subject to adjustment as set forth in the proposal.

**  Mr. De Luca’s compensation is set in U.S. Dollars. The estimated amounts in U.S. Dollars used in these assumptions 
were converted using an assumed exchange rate of 1 Swiss Franc to 1.0784 U.S. Dollar based on the 12 month 
(April 2014 to March 2015) average exchange rate.

27  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementAgenda Proposals and Explanations

Proposal 9
Approval  of  Compensation  for  the  Group  Management  Team  for  Fiscal 
Year 2017

Proposal

The  Board  of  Directors  proposes  that  the  shareholders 
approve  a  maximum  aggregate  amount  of 
the 
compensation of the Group Management Team of USD 
19,200,000 for fiscal year 2017, subject to adjustment for 
certain changes in the applicable currency exchange rate.*

Explanation

Pursuant  to  the  so-called  “Minder  Ordinance”,  the 
compensation  of  the  Company’s  Group  Management 
Team must be subject each year to a binding shareholder 
vote, in the manner contemplated by Logitech’s Articles 
of  Incorporation.  Article  19  quarter,  paragraph  1(b)  of 
Logitech’s Articles of Incorporation allows shareholders 
to  approve  the  maximum  aggregate  amount  of  the 
compensation  of  the  Group  Management  Team  for  the 
next fiscal year. As a new requirement arising at the 2015 
Annual  General  Meeting,  taking  place  in  the  middle  of 
Logitech’s  fiscal  year  2016,  the  applicable  next  fiscal 
year  is  fiscal  year  2017.  This  required,  binding  vote  on 
the  compensation  of  the  Group  Management  Team  is 
independent  from,  and  comes  in  addition  to,  the  non-
binding,  advisory  say-on-pay  vote  contemplated  in 
Proposal 2.

Logitech’s Group Management Team currently consists of 
Messrs. Bracken Darrell, President and Chief Executive 
Officer,  Vincent  Pilette,  Chief  Financial  Officer,  Marcel 
Stolk,  Senior  Vice  President,  Consumer  Computing 
Platforms  Business  Group,  and  L.  Joseph  Sullivan, 
Senior Vice President, Worldwide Operations.

Logitech’s  compensation  philosophy,  compensation 
program risks and design, and compensation paid during 
fiscal year 2015 are set forth in the Compensation Report.

The proposed maximum amount of USD 19,200,000 has 
been  determined  based  on  the  following  non-binding 
assumptions for Logitech’s Group Management Team as 
an aggregate group:

•	 Gross base salary of a maximum of USD 2,450,000.

•	 Performance-based cash compensation of a maximum 
of  USD  4,900,000.  Performance-based  cash 
compensation in the form of incentive cash payments 
may  be  earned  under  the  Logitech  Management 
Performance  Bonus  Plan  (the  “Bonus  Plan”)  or 
other  cash  bonuses  approved  by  the  Compensation 
Committee. Payout under the Bonus Plan is variable, 
and  is  based  on  the  achievement  of  the  Company’s, 
individual executives’ or other performance goals, and 
for  fiscal  year  2017  is  expected  to  continue  to  range 
from  0%  to  200%  of  the  executive’s  target  incentive. 
The proposed maximum amount of the performance-
based  bonus  for  fiscal  year  2017  assumes  full 
achievement of all performance goals.

•	 Equity  incentive  awards  of  a  maximum  of  USD 
11,300,000.  Long-term  equity  incentive  awards  are 
generally  granted  in  the  form  of  performance-based 
restricted stock units, or PSUs, time-based restricted 
stock  units,  or  RSUs,  or  other  financial  instruments 
contemplated in the applicable equity plans. The value 

* 

For each reduction of 0.01 in the exchange rate of the Swiss Franc against the U.S. Dollar below the assumed 
level  of  USD  1.0784  to  CHF  1.00,  if  any,  the  maximum  aggregate  amount  of  the  compensation  of  the  Group 
Management Team will increase by USD 27,000 for fiscal year 2017. This adjustment reflects the fact that the 
compensation of one member of our Group Management Team is set in Swiss Francs.

 – Proxy Statement  |  28

2015 Annual General Meeting Invitation, Proxy StatementAgenda Proposals and Explanations

of PSUs, RSUs or other financial instruments granted 
as  equity  incentive  awards  is  calculated  at  market 
value at the time of their grant. The proposed maximum 
amount  of  the  equity  incentive  awards  assumes  full 
achievement of all performance goals and full vesting 
of all time-based equity incentive awards.

•	 Other compensation of a maximum of USD 550,000. 
Other  compensation  includes  car  allowances,  tax 
preparation  services,  401(k)  savings  plan  matching 
contributions,  employee 
stock  purchase  plan 
discounts,  premium  for  group  term  life  insurance, 
relocation expenses, travel costs in lieu of relocation 
allowances, defined benefit pension plan employment 
contributions  and  other  awards.  The  Company 
generally does not provide all of these components of 
other  compensation  to  all  executives  each  year,  but 
the proposed maximum amount of compensation has 
been  formulated  to  provide  flexibility  to  cover  these 
compensation components as applicable.

The  actual  pay-out  to  the  members  of  the  Group 
Management Team for fiscal year 2017 will be disclosed 
in the Compensation Report in the Invitation and Proxy 
Statement for the 2017 Annual General Meeting.

In  the  event  of  a  negative  vote  on  this  proposal  by 
shareholders,  the  Board  of  Directors  will  submit  an 
alternative  proposal  to  the  same  or  a  subsequent 
general meeting.

Voting Requirement to Approve Proposal

The affirmative “FOR” vote of a majority of the votes cast 
in person or by proxy at the Annual General Meeting, not 
counting abstentions.

Recommendation

The  Board  of  Directors  recommends  a  vote  “FOR”  the 
approval  of  the  maximum  aggregate  amount  of  the 
compensation of the Group Management Team of USD 
19,200,000 for fiscal year 2017, subject to adjustment as 
set forth in the proposal.

29  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementAgenda Proposals and Explanations

Proposal 10
Re-election  of  KPMG  AG  as  Logitech’s  Auditors  and  Ratification  of  the 
Appointment  of  KPMG  LLP  as  Logitech’s  Independent  Registered  Public 
Accounting Firm for Fiscal Year 2016

Proposal

The  Board  of  Directors  proposes  that  KPMG  AG  be 
re-elected as auditors of Logitech International S.A. for a 
one-year term and that the appointment of KPMG LLP as 
Logitech’s independent registered public accounting firm 
for fiscal year 2016 be ratified.

Explanation

KPMG AG, upon recommendation of the Audit Committee 
of the Board, is proposed for re-election for a further year 
as  auditors  for  Logitech  International  S.A.  KPMG  AG 
assumed its first audit mandate for Logitech during fiscal 
year 2015.

The Audit Committee has also appointed KPMG LLP, the 
U.S. affiliate of KPMG AG, as the Company’s independent 
registered  public  accounting  firm  for  the  fiscal  year 
ending  March  31,  2016  for  purposes  of  U.S.  securities 
law  reporting.  Logitech’s  Articles  of  Incorporation  do 
not  require  that  shareholders  ratify  the  appointment  of 
KPMG  LLP  as  the  Company’s  independent  registered 
public  accounting  firm.  However,  Logitech  is  submitting 
the  appointment  of  KPMG  LLP  to  shareholders  for 
ratification  as  a  matter  of  good  corporate  governance. 
If  shareholders  do  not  ratify  the  appointment,  the  Audit 
Committee will reconsider whether to retain KPMG LLP. 
Even if the appointment is ratified, the Audit Committee 
may,  in  its  discretion,  change  the  appointment  during 

the  year  if  the  Committee  determines  that  such  a 
change  would  be  in  the  best  interests  of  Logitech  and 
its shareholders.

Information  on  the  fees  paid  by  Logitech  to  KPMG 
AG  and  KPMG  LLP,  the  Company’s  auditors  and 
independent  registered  public  accounting  firm  for  fiscal 
year  2015,  respectively,  as  well  as  further  information 
regarding  KPMG  AG  and  KPMG  LLP,  is  set  out  below 
under the heading “Independent Auditors” and “Report of 
the Audit Committee.”

Members  of  KPMG  AG  will  be  present  at  the  Annual 
General  Meeting,  will  have  the  opportunity  to  make  a 
statement, and will be available to respond to appropriate 
questions you may ask.

Voting Requirement to Approve Proposal

The affirmative “FOR” vote of a majority of the votes cast 
in person or by proxy at the Annual General Meeting, not 
counting abstentions.

Recommendation

Our  Board  of  Directors  recommends  a  vote  “FOR” 
the  re-election  of  KPMG  AG  as  auditors  of  Logitech 
International S.A. and the ratification of the appointment 
of  KPMG  LLP  as  Logitech’s  independent  registered 
public  accounting  firm,  each  for  the  fiscal  year  ending 
March 31, 2016.

 – Proxy Statement  |  30

2015 Annual General Meeting Invitation, Proxy StatementAgenda Proposals and Explanations

Proposal 11
Re-election of Ms. Béatrice Ehlers as Independent Representative

Pursuant  to  the  so-called  “Minder  Ordinance”,  Swiss 
law  requires  that  the  independent  representative  of  the 
shareholders  (Independent  Representative)  be  elected 
on  the  occasion  of  each  Annual  General  Meeting  for 
a  one-year  term  ending  at  the  closing  of  the  following 
Annual General Meeting.

Proposal

The  Board  of  Directors  proposes  that  Ms.  Béatrice 
Ehlers  be  re-elected  as  Independent  Representative  for 
a one-year term ending at the closing of the 2016 Annual 
General Meeting.

Explanation

represent 

Shareholders  may  either 
their  shares 
themselves  or  have  them  represented  by  a  third  party, 
whether or not a shareholder, if the latter is given a written 
proxy. In accordance with Swiss law, each shareholder 
may  be  represented  at  the  general  meeting  by  the 
Independent Representative, Ms. Béatrice Ehlers, or by 
a third-party proxy. Ms. Ehlers is a notary public and has 
served  as  the  Independent  Representative  at  previous 
annual general meetings.

In 

the 

law, 

corporate 

Independent 
Under  Swiss 
independence 
Representative  must  satisfy  strict 
requirements. 
the 
the  absence  of 
Independent  Representative  must  abstain  from  voting. 
General voting instructions can be given with respect to 
a particular general meeting of shareholders with respect 
to  proposals  and  agenda  items  that  have  not  been 
disclosed in the invitation to the general meeting.

instructions, 

Voting Requirement to Approve Proposal

The affirmative “FOR” vote of a majority of the votes cast 
in person or by proxy at the Annual General Meeting, not 
counting abstentions.

Recommendation

recommends  a  vote 
the  re-election  of  Ms.  Béatrice  Ehlers  as 

Our  Board  of  Directors 
“FOR” 
Independent Representative.

31  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementThe  Board  of  Directors  is  elected  by  the  shareholders 
and  holds  the  ultimate  decision-making  authority  within 
Logitech, except for those matters reserved by law or by 
Logitech’s Articles of Incorporation to its shareholders or 
those that are delegated to the executive officers under 
the  organizational  regulations  (also  known  as  by-laws). 
The Board makes resolutions through a majority vote of 

the members present at the meetings. In the event of a 
tie, the vote of the Chairman decides.

Logitech’s  Articles  of  Incorporation  set  the  minimum 
number  of  directors  at  three.  We  had  ten  members  of 
the Board of Directors as of June 30, 2015. If all of the 
nominees  to  the  Board  presented  in  Proposal  5  are 
elected, the Board will have ten members.

Board of Directors Independence 

The  Board  of  Directors  has  determined  that  each  of 
our  directors  and  director  nominees,  other  than  Daniel 
Borel,  Bracken  Darrell  and  Guerrino  De  Luca,  qualifies 
as independent in accordance with the published listing 
requirements  of  the  Nasdaq  Stock  Market  and  Swiss 
corporate  governance  best  practices  guidelines.  The 
Company’s independent directors and director nominees 
include  Matthew  Bousquette,  Kee-Lock  Chua,  Sally 
Davis, Didier Hirsch, Neil Hunt, Dimitri Panayotopoulos, 
Monika Ribar, Edouard Bugnion, Sue Gove and Lung Yeh. 
The Nasdaq independence definition includes a series of 
objective tests, such as that the director is not an employee 

of  the  company  and  has  not  engaged  in  various  types 
of  business  dealings  with  the  company.  In  addition,  as 
further required by Nasdaq rules, the Board has made a 
subjective determination as to each independent director 
that  no  relationships  exist  which,  in  the  opinion  of  the 
Board, would interfere with the exercise of independent 
judgment in carrying out the responsibilities of a director. 
In  making  these  determinations,  the  directors  reviewed 
and discussed information provided by the directors and 
the Company with regard to each director’s business and 
personal  activities  as  they  may  relate  to  Logitech  and 
Logitech’s management.

 – Proxy Statement  |  32

2015 Annual General Meeting Invitation, Proxy StatementCorporate Governance and Board of Directors MattersMembers of the Board of Directors

The members of the Board of Directors, including their principal occupation, business experience, and qualifications, 
are set out below.

Daniel Borel 65 Years Old  Director since 1988
Co-Founder and 
former Chief 
Executive Officer 
and Chairman, 
Logitech 
International S.A. 
Swiss national

Daniel  Borel  is  a  Logitech  founder  and  served  from  May  1988  until  January  1,  2008  as  the 
Chairman of the Board. From July 1992 to February 1998, he also served as Chief Executive 
Officer.  He  has  held  various  other  executive  positions  with  Logitech.  He  serves  on  the  Board 
of  Nestlé  S.A.  In  addition,  he  serves  on  the  Board  of  Fondation  Defitech,  a  Swiss  foundation 
which contributes to research and development projects aimed at assisting the disabled, is the 
Chairman of the Board of SwissUp, a Swiss educational foundation promoting higher learning, 
and  serves  as  President  of  EPFL  Plus,  a  Swiss  foundation  which  raises  funds  for  the  Ecole 
Polytechnique Fédérale de Lausanne. Mr. Borel holds an MS degree in Computer Science from 
Stanford  University  in  California  and  a  BE  degree  in  Physics  from  the  Ecole  Polytechnique 
Fédérale, Lausanne, Switzerland.

As a Logitech co-founder, and its former Chairman and Chief Executive Officer, Mr. Borel brings 
deep  knowledge  of  and  a  passion  for  Logitech,  its  people  and  its  products,  as  well  as  senior 
leadership,  industry,  technical,  and  global  experience.  As  a  director  for  Nestlé,  Mr.  Borel  also 
provides cross-board experience. 

Mr. Borel has decided to retire and not to stand for re-election at the 2015 Annual General Meeting.

Matthew Bousquette 56 Years Old  Director since 2005
Former Chairman, 
EGI Holdings LLC 
U.S. national

Matthew Bousquette is the former Chairman of the Board of EGI Holdings LLC, a U.S.-based 
producer of giftware and home and garden décor products, a position he held from 2007 through 
2012. He is the former president of the Mattel Brands business unit of Mattel, Inc. Mr. Bousquette 
joined  Mattel  as  senior  vice  president  of  marketing  in  December  1993,  and  was  promoted  to 
successively more senior positions at Mattel, including general manager of Boys Toys in July 1995, 
executive vice president of Boys Toys in May 1998, president of Boys/Entertainment in March 
1999,  and  president  of  Mattel  Brands  from  February  2003  to  October  2005.  Mr.  Bousquette’s 
previous  experience  included  various  positions  at  Lewis  Galoob  Toys,  Inc.,  Teleflora  and  the 
Procter  &  Gamble  Company.  He  serves  on  the  Board  and  as  President  of  the  District  181 
Foundation, a foundation supporting initiatives that benefit local district students. Mr. Bousquette 
earned a BBA degree from the University of Michigan. 

Mr.  Bousquette  brings  senior  leadership,  strategic,  financial  and  marketing  expertise  to  the 
Board from his former positions as chairman of a consumer products company and as a senior 
executive at Mattel.

Mr.  Bousquette  currently  serves  on  the  Audit  Committee,  Compensation  Committee  and 
Nominating  Committee.  He  is  also  the  Company’s  Lead  Independent  Director.  The  Board  of 
Directors has determined that he is an independent Director.

Mr.  Bousquette  has  decided  to  retire  and  not  to  stand  for  re-election  at  the  2015  Annual 
General Meeting.

33  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementCorporate Governance and Board of Directors MattersKee-Lock Chua 54 Years Old  Director since 2000
President and 
Chief Executive 
Officer, Vertex 
Group  
Singapore national

Kee-Lock  Chua  is  president  and  chief  executive  officer  of  the  Vertex  Group,  a  Singapore-
headquartered  venture  capital  group.  Prior  to  joining  the  Vertex  Group  in  September  2008, 
Mr. Chua was the president and an executive director of Biosensors International Group, Ltd., 
a developer and manufacturer of medical devices used in interventional cardiology and critical 
care procedures, from 2006 to 2008. Previously, from 2003 to 2006, Mr. Chua was a managing 
director of Walden International, a U.S.-headquartered venture capital firm. From 2001 to 2003, 
Mr. Chua served as deputy president of NatSteel Ltd., a Singapore industrial products company 
active  in  Asia  Pacific.  From  2000  until  2001,  Mr.  Chua  was  the  president  and  chief  executive 
officer of Intraco Ltd., a Singapore-listed trading and distribution company. Prior to joining Intraco, 
Mr. Chua was the president of MediaRing.com Ltd., a Singapore-listed company providing voice-
over-Internet services. He serves on the Board of Yongmao Holdings Limited (where he is lead 
independent director), a publicly traded company in Singapore, and IGG Inc., a Singapore-based 
online gaming company publicly traded on the Stock Exchange of Hong Kong Growth Enterprise 
Market. Mr. Chua holds a BS degree in Mechanical Engineering from the University of Wisconsin, 
and an MS degree in Engineering from Stanford University in California.

Mr. Chua has extensive investment and senior leadership experience, as a venture capitalist in 
Asia  and  the  United  States,  and  also  as  the  former  Chief  Executive  Officer  of  publicly-traded 
companies in Asia. He brings to the Board senior leadership, and financial and global expertise. 
As  a  director  of  public  companies  in  Asia,  and  of  private  companies,  he  also  provides  cross-
board experience.

Mr. Chua currently is Chair of the Nominating Committee and serves on the Audit Committee. 
The Board of Directors has determined that he is an independent Director.

Bracken Darrell 52 Years Old  Director since 2013
President and 
Chief Executive 
Officer, Logitech 
International S.A. 
U.S. national

Bracken Darrell joined Logitech as President in April 2012 and became Chief Executive Officer 
in January 2013. Prior to joining Logitech, Mr. Darrell served as President of Whirlpool EMEA 
and  Executive  Vice  President  of  Whirlpool  Corporation,  a  home  appliance  manufacturer  and 
marketing company, from January 2009 to March 2012. Previously, Mr. Darrell had been Senior 
Vice  President,  Operations  of  Whirlpool  EMEA  from  May  2008  to  January  2009.  From  2002 
to May 2008, Mr. Darrell was with P&G (The Procter & Gamble Company), a consumer brand 
company, most recently as the President of its Braun GmbH subsidiary. Prior to rejoining P&G 
in 2002, Mr. Darrell served in various executive and managerial positions with General Electric 
Company from 1997 to 2002, with P&G from 1991 to 1997, and with PepsiCo Inc. from 1987 to 
1989. Mr. Darrell holds a BA degree from Hendrix College and an MBA from Harvard University. 

In addition to being the President and Chief Executive Officer of the Company, Mr. Darrell brings 
senior leadership, consumer brand marketing and global experience to the Board.

 – Proxy Statement  |  34

2015 Annual General Meeting Invitation, Proxy StatementCorporate Governance and Board of Directors MattersSally Davis 61 Years Old  Director since 2007
Former Chief 
Executive Officer, 
BT Wholesale 
British national 

Sally  Davis  is  the  former  Chief  Executive  Officer  of  BT  Wholesale,  a  division  of  BT  Group 
responsible  for  providing  telecommunications  services  and  bandwidth  to  carriers  and  service 
providers globally, a position she held from 2007 until she retired in August 2011. She was the 
Chief  Portfolio  Officer  of  British  Telecom  from  2005  to  2007.  She  had  previously  held  senior 
executive roles within BT since joining the company in 1999, including President, Global Products, 
Global Services from 2002 to 2005, President, BT Ignite Applications Hosting from 2001 to 2002 
and  Director,  Group  Internet  and  Multimedia  from  1999  to  2001.  Before  joining  BT,  Ms.  Davis 
held  leading  roles  in  several  major  communications  companies,  including  Bell  Atlantic  in  the 
United States and Mercury Communications in the United Kingdom. Ms. Davis is a member of 
the Board of Telenor Group, a global mobile communications services company, and a member 
of the Board of CityFibre Infrastructure Holdings PLC, a fibre optic infrastructure company. She 
holds a BA degree from and is a Fellow of University College, London.

Ms. Davis’ experience as a Chief Executive of a leading European telecommunications company, 
and her significant technology product strategy and product portfolio knowledge, provides the 
Board with expertise in senior leadership, technology, product strategy, and financial management.

Ms. Davis currently is Chair of the Compensation Committee and serves on the Audit Committee 
and  the  Nominating  Committee.  The  Board  of  Directors  has  determined  that  she  is  an 
independent Director.

Guerrino De Luca 62 Years Old  Director since 1998
Chairman, 
Logitech 
International S.A. 
Italian and 
U.S. national

Guerrino  De  Luca  has  served  as  Chairman  of  the  Logitech  Board  of  Directors  since  January 
2008. Mr. De Luca served as Logitech’s Chief Executive Officer from April 2012 to January 2013 
and  as  acting  President  and  Chief  Executive  Officer  from  July  2011  to  April  2012.  Previously, 
Mr. De Luca served as Logitech’s President and Chief Executive Officer from February 1998, 
when he joined the Company, to January 2008. Prior to joining Logitech, Mr. De Luca served 
as  Executive  Vice  President  of  Worldwide  Marketing  for  Apple  Computer,  Inc.,  a  consumer 
electronics and computer company, from February 1997 to September 1997, and as President 
of Claris Corporation, a U.S. personal computing software vendor, from May 1994 to February 
1997. Prior to joining Claris, Mr. De Luca held various positions with Apple in the United States 
and in Europe. Mr. De Luca holds a Laurea degree in Electronic Engineering from the University 
of Rome, Italy.

As  Logitech’s  Chairman  and  former  Chief  Executive  Officer,  Mr.  De  Luca  brings  significant 
senior leadership, industry, strategy, marketing and global experience to the Board and a deep 
knowledge of, passion for and commitment to Logitech, its people and its products.

Mr. De Luca currently is Chairman of the Board.

35  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementCorporate Governance and Board of Directors MattersDidier Hirsch 64 Years Old  Director since 2012
Senior Vice 
President and 
Chief Financial 
Officer, Agilent 
Technologies, Inc.  
French national

Didier Hirsch is the Senior Vice President and Chief Financial Officer of Agilent Technologies, 
Inc., a global leader in life sciences, diagnostics and applied chemical markets. He has served 
in his current position since July 2010 and served in various senior finance positions with Agilent 
since 1999. Mr. Hirsch had joined Hewlett-Packard Company in 1989, and served as Director 
of Finance and Administration of Hewlett-Packard Europe, Middle East and Africa (EMEA) from 
1996 to 1999, Director of Finance and Administration of Hewlett-Packard Asia Pacific from 1993 
to  1996,  and  Director  of  Finance  and  Administration  of  Hewlett-Packard  France  from  1989  to 
1993. Prior to Hewlett-Packard, Mr. Hirsch worked in finance positions with Valeo Inc., Gemplus 
S.C.A., SGS-Thomson Microelectronics, I.B.H. Holding S.A., Bendix Corporation and Ford Motor 
Company. He serves on the Board of Knowles Corporation, a New York Stock Exchange (NYSE)-
listed  global  supplier  of  advanced  micro-acoustic  solutions  and  specialty  components  serving 
the  mobile  communications,  consumer  electronics,  medical  technology,  military,  aerospace 
and  industrial  markets.  Mr.  Hirsch  holds  an  MS  degree  in  Computer  Sciences  from  Toulouse 
University and an MS degree in Industrial Administration from Purdue University. 

As Chief Financial Officer of a leading public technology company, and with significant finance 
expertise developed over several decades at technology and manufacturing companies in the 
U.S.A.,  EMEA  and  Asia  Pacific,  Mr.  Hirsch  brings  senior  leadership,  finance  (including  U.S. 
GAAP), technology and global experience to the Board.

Mr. Hirsch currently is Chair of the Audit Committee. The Board of Directors has determined that 
he is an independent Director.

Neil Hunt 53 Years Old  Director since 2010
Chief Product 
Officer,  
Netflix, Inc.  
U.K. and  
U.S. national 

Neil Hunt is the Chief Product Officer of Netflix, Inc., a California-based company offering the 
world’s largest Internet TV service operating in more than 50 countries worldwide. He has been 
with  Netflix  since  1999,  and  is  responsible  for  the  design,  implementation  and  operation  of 
the  technology  at  Netflix.  Prior  to  his  current  position,  he  served  as  Vice  President,  Internet 
Engineering at Netflix from 1999 to 2002. From 1997 to 1999, Dr. Hunt was Director of Engineering 
for Rational Software, a California-based maker of software development tools, and he served 
in engineering roles at predecessor companies from 1991 to 1997. Dr. Hunt is a member of the 
Board of Directors of Simply Hired, Inc., a private online job listings company. Dr. Hunt holds a 
Doctorate in Computer Science from the University of Aberdeen, U.K. and a Bachelors degree 
from the University of Durham, U.K.

Dr. Hunt’s significant expertise in technology, product development leadership and strategy, and 
his experience as a member of the senior leadership of a leading digital delivery company, provides 
the Board with technology, product strategy and global expertise as well as senior leadership.

Dr. Hunt currently serves on the Compensation Committee. The Board of Directors has determined 
that he is an independent Director.

 – Proxy Statement  |  36

2015 Annual General Meeting Invitation, Proxy StatementCorporate Governance and Board of Directors MattersDimitri Panayotopoulos 63 Years Old  Director since 2014
Senior Advisor, 
The Boston 
Consulting Group  
U.K. national

Dimitri Panayotopoulos is a Senior Advisor at The Boston Consulting Group, a global management 
consulting firm. Prior to joining The Boston Consulting Group in April 2014, Mr. Panayotopoulos 
served with The Procter & Gamble Company (“P&G”), a consumer brand company, from 1977 to 
2014. At P&G, he served as Vice Chairman and Advisor to the Chairman & Chief Executive Officer 
at P&G from July 2013 to January 2014, Vice Chairman of Global Business Units from May 2011 
to July 2013, Vice Chairman of Global Household Care Group from July 2007 to May 2011, Group 
President of Global Fabric Care from July 2004 to July 2007, President of Central and Eastern 
Europe, Middle East and Africa from July 2001 to July 2004, and President-Greater China from 
1999 to July 2001. Mr. Panayotopoulos served in various executive, managerial and other positions 
with P&G in sales, brand management and advertising in Europe (including Switzerland), Egypt 
and the Far East from 1977 to 1999. He serves on the Board of British American Tobacco p.l.c., 
a London Stock Exchange (LSE)-listed global tobacco company. Mr. Panayotopoulos holds a BA 
degree from Sussex University, U.K. 

Mr. Panayotopoulos brings senior leadership, strategic, financial, consumer brand marketing and 
global experience to the Board from his former leadership positions with P&G in a broad spectrum 
of regions. 

The Board of Directors has determined that he is an independent Director.

Monika Ribar 55 Years Old  Director since 2004
Former President 
and Chief 
Executive Officer, 
Panalpina Group 
Swiss national

Monika Ribar is the former President and Chief Executive Officer of the Panalpina Group, a Swiss 
freight forwarding and logistics services provider, a position she held from October 2006 until she 
retired in May 2013. Ms. Ribar was a member of Panalpina’s Executive Board from February 2000 
to May 2013, serving as Panalpina’s Chief Financial Officer from June 2005 to October 2006, and 
as its Chief Information Officer from February 2000 to June 2005. From June 1995 to February 
2000, she served as Panalpina’s Corporate Controller, and from 1991 to 1995 served in project 
management positions at Panalpina. Prior to joining Panalpina, Ms. Ribar worked at Fides Group 
(now KPMG Switzerland), a professional services firm, serving as Head of Strategic Planning, and 
was employed by the BASF Group, a German chemical products company. She also serves on 
the Boards of the Lufthansa Group, an aviation group with global operations, Rexel SA, a French 
distributor  of  electrical  supplies  to  professional  users,  SIKA  AG,  a  SIX  Swiss  Exchange-listed 
supplier of specialty chemical products and industrial materials, and Swiss International Air Lines 
Ltd., the flag carrier airline of Switzerland and a subsidiary of the Lufthansa Group, and is the Vice 
Chairman of the Swiss Railway SBB, the Swiss rail carrier fully-owned by the Swiss government. 
Ms. Ribar holds a Master’s degree in Economics and Business Administration from the University 
of St. Gallen, Switzerland.

Ms.  Ribar  has  significant  executive  experience  with  the  strategic,  financial,  and  operational 
requirements  of  companies  with  global  operations,  and  brings  to  our  Board  senior  leadership, 
logistics industry, global and financial experience. As a member of other public company boards, 
Ms. Ribar also provides cross-board experience.

Ms. Ribar currently serves on the Audit Committee and the Compensation Committee. The Board 
of Directors has determined that she is an independent Director.

Ms. Ribar has decided to retire and not to stand for re-election at the 2015 Annual General Meeting.

37  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementCorporate Governance and Board of Directors MattersOther  than  the  current  employment  and  involvement 
noted above, no other Logitech Board member currently 
has  material  supervisory,  management,  or  advisory 

functions  outside  Logitech.  None  of  the  Company’s 
directors holds any official functions or political posts.

Elections to the Board of Directors

Directors are elected at the Annual General Meeting of 
Shareholders, upon proposal of the Board of Directors. 
The proposals of the Board of Directors are made following 
recommendations of the Nominating Committee.

If  the  agenda  of  a  general  meeting  of  shareholders 
includes an item calling for the election of directors, any 
registered  shareholder  may  propose  a  candidate  for 
election to the Board of Directors before or at the meeting.

Shareholder Recommendations and Nominees

Under  our  Articles  of  Incorporation,  one  or  more 
registered  shareholders  who  together  represent  shares 
representing at least the lesser of (i) one percent of our 
issued share capital or (ii) an aggregate par value of one 
million Swiss francs may demand that an item be placed 
on the agenda of a meeting of shareholders, including a 
nominee for election to the Board of Directors. A request 
to place an item on the meeting agenda must be in writing, 
describe the proposal and be received by our Board of 
Directors at least 60 days prior to the date of the meeting. 
Demands  by  registered  shareholders  to  place  an  item 
on  the  agenda  of  a  meeting  of  shareholders  should  be 
sent  to:  Secretary  to  the  Board  of  Directors,  Logitech 
International S.A., EPFL - Quartier de l’Innovation, Daniel 
Borel Innovation Center, 1015 Lausanne, Switzerland, or 
c/o Logitech Inc., 7700 Gateway Boulevard, Newark, CA 
94560, USA.

Under  the  Company’s  Articles  of  Incorporation  only 
registered shareholders are recognized as shareholders 
of  the  company.  As  a  result,  beneficial  shareholders 
do  not  have  a  right  to  place  an  item  on  the  agenda  of 
a  meeting,  regardless  of  the  number  of  shares  they 
hold.  For  information  on  how  beneficial  shareholders 
may  become  registered  shareholders,  see  “Questions 
and  Answers  about  the  Logitech  2015  Annual  General 
Meeting  -  If  I  am  not  a  registered  shareholder,  can  I 
attend and vote at the meeting?”

The  Nominating  Committee  does  not  have  a  policy  on 
consideration  of  recommendations  for  candidates  to 
the  Board  of  Directors  from  registered  shareholders. 
The  Nominating  Committee  considers  it  appropriate 
not  to  have  a  formal  policy  for  consideration  of  such 
recommendations  because  the  evaluation  of  potential 
members of the Board of Directors is by its nature a case-
by-case  process,  depending  on  the  composition  of  the 
Board at the time, the needs and status of the business 
of the Company, and the experience and qualification of 
the  individual.  Accordingly,  the  Nominating  Committee 
would  consider  any  such  recommendations  on  a  case-
by-case  basis  in  their  discretion,  and,  if  accepted 
for  consideration,  would  evaluate  any  such  properly 
submitted  nominee  in  consideration  of  the  membership 
criteria  set  forth  under  “Board  Composition”  below. 
Shareholder recommendations to the Board of Directors 
should be sent to the above address.

Board Composition

The Nominating Committee is responsible for reviewing 
and  assessing  with  the  Board  the  appropriate  skills, 
experience, and background sought of Board members 
in  the  context  of  our  business  and  the  then-current 
membership  on  the  Board.  The  Nominating  Committee 
has  not  formally  established  any  specific,  minimum 
qualifications  that  must  be  met  by  each  candidate  for 
the Board of Directors or specific qualities or skills that 
are  necessary  for  one  or  more  of  the  members  of  the 
Board of Directors to possess. Similarly, the Nominating 

 – Proxy Statement  |  38

2015 Annual General Meeting Invitation, Proxy StatementCorporate Governance and Board of Directors MattersCommittee does not have a formal policy on considering 
diversity  in  identifying  candidates  for  election  or  re-
election  to  the  Board  of  Directors.  However,  we  do  not 
expect  or  intend  that  each  director  will  have  the  same 
background, skills, and experience; we expect that Board 
members  will  have  a  diverse  portfolio  of  backgrounds, 
skills,  and  experiences.  One  goal  of  this  diversity  is  to 
assist the Board as a whole in its oversight and advice 
concerning our business and operations.

The  review  and  assessment  of  Board  candidates  and 
the current membership of the Board by the Nominating 
Committee  and  the  Board  includes  numerous  diverse 
factors,  such  as:  independence;  understanding  of  and 
experience 
finance,  and  marketing; 
international  experience;  age;  and  gender  and 
ethnic diversity.

technology, 

in 

The priorities and emphasis of the Nominating Committee 
and of the Board with regard to these factors change from 
time  to  time  to  take  into  account  changes  in  Logitech’s 
business  and  other  trends,  as  well  as  the  portfolio 
of  skills  and  experience  of  current  and  prospective 
Board members.

Listed  below  are  key  skills  and  experience  that  we 
currently consider important for our directors to have in 
light  of  our  current  business  and  structure.  We  do  not 
expect  each  director  to  possess  every  attribute.  The 
directors’  biographies  note  each  director’s  relevant 
experience, qualifications, and skills relative to this list.

•	 Senior  Leadership  Experience.  Directors  who  have 
served  in  senior  leadership  positions  are  important 
to  Logitech,  because  they  bring  experience  and 
perspective in analyzing, shaping, and overseeing the 
execution of important operational and policy issues at 
a senior level. 

•	 Financial  Expertise.  Knowledge  of  financial  markets, 
financing and funding operations, and accounting and 
financial  reporting  processes  is  important  because  it 
assists  our  directors  in  understanding,  advising,  and 
overseeing  Logitech’s  structure,  financial  reporting, 
and internal control of such activities. 

•	 Industry and Technical Expertise. Because we develop 
and  manufacture  hardware  and  software  products, 
ship them worldwide, and sell to both major computer 
manufacturers  and  consumer  electronics  distributors 
and  retailers,  expertise  in  hardware  and  software, 
and  experience  in  supply  chain,  manufacturing  and 
consumer  products  is  useful  in  understanding  the 
opportunities  and  challenges  of  our  business  and  in 
providing insight and oversight of management. 

•	 Brand  Marketing  Expertise.  Because  we  are  a 
consumer  products  company,  directors  who  have 
brand marketing experience can provide expertise and 
guidance  as  we  seek  to  maintain  and  expand  brand 
and product awareness and a positive reputation. 

•	 Global Expertise. Because we are a global organization 
with  research  and  development,  and  sales  and 
other  offices  in  many  countries,  directors  with  global 
expertise, particularly in Europe and Asia, can provide 
a  useful  business  and  cultural  perspective  regarding 
many significant aspects of our business.

Identification and Evaluation of Nominees 
for Directors

Our  Nominating  Committee  uses  a  variety  of  methods 
for  identifying  and  evaluating  nominees  for  director. 
Our  Nominating  Committee  regularly  assesses  the 
appropriate  size  and  composition  of  the  Board  of 
Directors,  the  needs  of  the  Board  of  Directors  and  the 
respective  Committees  of  the  Board  of  Directors  and 

39  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementCorporate Governance and Board of Directors Mattersthe  qualifications  of  candidates  in  light  of  these  needs. 
Candidates may come to the attention of the Nominating 
Committee through shareholders, management, current 
members of the Board of Directors or search firms. The 
evaluation  of  these  candidates  may  be  based  solely 

upon  information  provided  to  the  Committee  or  may 
also  include  discussions  with  persons  familiar  with  the 
candidate, an interview of the candidate or other actions 
the Committee deems appropriate, including the use of 
paid third parties to review candidates.

Terms of Office of Directors

Each  director  is  elected  individually  by  a  separate  vote 
of  shareholders.  Until  2012,  each  director  was  elected 
for a term of three years. At the Company’s 2012 Annual 
General Meeting, shareholders approved a change such 
that each director, starting with the directors elected at the 
2012 Annual General Meeting, will be subject to a term of 
one year. Eight of our ten directors are being presented for 
re-election to the Board of Directors at the 2015 Annual 
General  Meeting,  with  two  directors  deciding  to  retire 
and not stand for re-election. Each director is eligible for 
re-election until his or her seventieth birthday. Directors 

Name
Daniel Borel(1)
Matthew Bousquette(1)
Kee-Lock Chua(1)
Bracken Darrell(2)
Sally Davis(1)
Guerrino De Luca(2)
Didier Hirsch(1)
Neil Hunt(1)
Dimitri Panayotopoulos(1)
Monika Ribar(1)

(1)  Non-executive member of the Board of Directors.

(2)  Executive member of the Board of Directors.

may not seek reelection after they have reached 70 years 
of age, unless the Board of Directors adopts a resolution 
to  the  contrary.  A  member  of  the  Board  who  reaches 
70 years of age during the term of his or her directorship 
may  remain  a  director  until  the  expiration  of  the  term. 
A  director’s  term  of  office  as  Chairman  coincides  with 
his or her term of office as a director. A director may be 
indefinitely  re-elected  as  Chairman,  subject  to  the  age 
limit mentioned above.

The year of appointment and remaining term of office as 
of March 31, 2015 for each director are as follows:

Year First 
Appointed
1988
2005
2000
2013
2007
1998
2012
2010
2014
2004

Year Current Term Expires
Annual General Meeting 2015
Annual General Meeting 2015
Annual General Meeting 2015
Annual General Meeting 2015
Annual General Meeting 2015
Annual General Meeting 2015
Annual General Meeting 2015
Annual General Meeting 2015
Annual General Meeting 2015
Annual General Meeting 2015

 – Proxy Statement  |  40

2015 Annual General Meeting Invitation, Proxy StatementCorporate Governance and Board of Directors MattersBoard Responsibilities and Structure

The Board of Directors is responsible for supervising the 
management of the business and affairs of the Company. 
In addition to the non-transferable powers and duties of 
boards of directors under Swiss law, the Logitech Board 
of Directors also has the following responsibilities:

•	 the signatory power of its members; 

•	 the  approval  of  the  budget  submitted  by  the  Chief 

Executive Officer; 

•	 the  approval  of  investments  or  acquisitions  of  more 
than USD 10 million in the aggregate not included in 
the approved budgets; 

•	 the approval of any expenditure of more than USD10 
million  not  specifically  identified  in  the  approved 
budgets; and 

•	 the approval of the sale or acquisition, including related 

borrowings, of the Company’s real estate.

The Board of Directors has delegated the management 
of  the  Company  to  the  Chief  Executive  Officer  and 
the  executive  officers,  except  where  Swiss  law  or  the 
Company’s  Articles  of  Incorporation  or  Organizational 
Regulations (By-Laws) provide differently.

Board Leadership Structure

The Board has since 1997 had a general practice that the 
positions of Chairman of the Board and Chief Executive 
Officer should be held by separate persons as an aid in 
the  Board’s  oversight  of  management.  Since  1997,  the 
Chairman has been a former Chief Executive Officer of the 
Company and has served as a full-time senior executive. 
Logitech believes that there are advantages to having a 
former Chief Executive Officer as Chairman, for matters 
such as: leadership continuity; day-to-day assistance to 
and  oversight  of  the  Chief  Executive  Officer  and  other 
executive  officers;  and  facilitating  communications  and 
relations between the Board, the Chief Executive Officer, 
and other senior management.

Mr.  De  Luca,  the  Company’s  former  Chief  Executive 
Officer  and  current  Chairman,  has  served  in  that  role 
since  January  2008.  On  July  27,  2011,  Mr.  De  Luca 
assumed the role of acting President and Chief Executive 
Officer, in addition to continuing his duties as Chairman, 
at  the  request  of  the  Board  of  Directors.  The  Board 
appointed  Bracken  Darrell  as  President  as  of  April  9, 
2012, and he became the Chief Executive Officer as of 
January  1,  2013.  The  Board  considered  the  holding  of 
both the Chairman and Chief Executive Officer positions 
by  Mr.  De  Luca  as  a  temporary  arrangement,  and 
returned to its general practice of the positions being held 
by separate persons upon the appointment of Mr. Darrell 
as Chief Executive Officer.

The Chairman of the Board is elected by the shareholders 
on  an  annual  basis,  at  the  Annual  General  Meeting  of 
Shareholders.  The  Secretary  of  the  Board  of  Directors 
is  appointed  at  the  Board  meeting  coinciding  with  the 
Annual General Meeting of Shareholders. As of June 30, 
2015,  the  Secretary  was  Mr.  Bryan  Ko,  the  Company’s 
General Counsel.

Role of the Chairman and of the Chief 
Executive Officer 

The  Chairman  assumes  a  leading  role  in  mid-  and 
long-term  strategic  planning  and  the  selection  of  top-
level  management,  and  he  supports  major  transaction 
initiatives of Logitech. 

The  Chief  Executive  Officer  manages  the  day-to-day 
operations  of  Logitech,  with  the  support  of  the  other 
executive  officers.  The  Chief  Executive  Officer  has,  in 
particular, the following powers and duties: 

•	 defining  and 

implementing  short  and  medium 

term strategies; 

•	 preparing the budget, which must be approved by the 

Board of Directors; 

•	 reviewing and certifying the Company’s annual report; 

41  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementCorporate Governance and Board of Directors Matters•	 appointing, dismissing and promoting any employees 
of Logitech other than executive officers and the head 
of the internal audit function; 

•	 taking  immediate  measures  to  protect  the  interests 
of the Company where a breach of duty is suspected 
from executive officers until the Board has decided on 
the matter; 

•	 carrying out Board resolutions; 

•	 reporting  regularly  to  the  Chairman  of  the  Board  of 

Directors on the activities of the business; 

•	 preparing  supporting  documents  for  resolutions  that 

are to be passed by the Board of Directors; and 

•	 deciding  on  issues  brought  to  his  attention  by 

executive officers.

The  detailed  authorities  and  responsibilities  of  the 
Board of Directors, the Chief Executive Officer and the 
executive officers are set out in the Company’s Articles 
Incorporation  and  Organizational  Regulations. 
of 
Please  refer 
for  copies  of 
these documents.

to  http://ir.logitech.com 

Lead Independent Director

As  appointed  by  the  Board,  Mr.  Bousquette  serves  as 
Lead  Independent  Director.  The  responsibilities  of  the 
Lead Independent Director include chairing meetings of 
the non-executive directors and serving as the presiding 
director in performing such other functions as the Board 
may  direct.  The  Lead  Independent  Director  is  elected 
annually by the Independent Directors.

Means by Which the Board of Directors Supervises 
Executive Officers 

informed  on 
The  Board  of  Directors 
developments  and 
in  Logitech’s  business, 
and  monitors  the  activities  and  responsibilities  of  the 
executive officers in various ways.

is  regularly 

issues 

reports 

•	 At  each  regular  Board  meeting  the  Chief  Executive 
the  Board  of  Directors  on 
to 
Officer 
developments  and 
issues.  The  Chief 
important 
Executive  Officer  also  provides  regular  updates  to 
the  Board  members  regarding  Logitech’s  business 
between the dates of regular Board meetings. 

•	 The offices of Chairman and Chief Executive Officer 
are  generally  separated,  to  help  ensure  balance 
between leadership of the Board and leadership of the 
day-to-day management of Logitech. 

•	 Executive  officers  and  other  members  of  senior 
management,  at  the  invitation  of  the  Board,  attend 
portions of meetings of the Board and its Committees 
to  report  on  the  financial  results  of  Logitech,  its 
operations,  performance  and  outlook,  and  on  areas 
of  the  business  within  their  responsibility,  as  well  as 
other  business  matters.  For  further  information  on 
participation by executive officers and other members 
of  senior  management  in  Board  and  Committee 
meetings please refer to “Board Committees” below. 

•	 There  are  regular  quarterly  closed  sessions  of  the 
non-executive, independent members of the Board of 
Directors, led by the Lead Independent Director, where 
Logitech issues are discussed without the presence of 
executive or non-independent members of the Board 
or executive officers. 

•	 The Board holds quarterly closed sessions, where all 
Board  members  meet  without  the  presence  of  non-
Board  members,  to  discuss  matters  appropriate  to 
such sessions, including organizational structure and 
the hiring and mandates of executive officers. 

•	 There  are  regularly  scheduled  reviews  at  Board 
meetings  of  Logitech  strategic  and  operational 
issues, including discussions of issues placed on the 
agenda  by  the  non-executive  members  of  the  Board 
of Directors. 

 – Proxy Statement  |  42

2015 Annual General Meeting Invitation, Proxy StatementCorporate Governance and Board of Directors Matters•	 The Board reviews and approves significant changes 
in  Logitech’s  structure  and  organization,  and  is 
actively  involved  in  significant  transactions,  including 
acquisitions, divestitures and major investments.

•	 All  non-executive  Board  members  have  access,  at 

their request, to all internal Logitech information. 

•	 The head of the Internal Audit function reports to the 

Audit Committee.

The Board’s Role in Risk Oversight

One  of  the  Board’s  functions  is  oversight  of  risk 
management at Logitech. “Risk” is inherent in business, 
and  the  Board  seeks  to  understand  and  advise  on  risk 
in  conjunction  with  the  activities  of  the  Board  and  the 
Board’s Committees.

The  largest  risk  in  any  business  typically  is  that  the 
products  and  services  it  offers  will  not  be  met  by 
customer  demand,  because  of  poor  strategy,  poor 
execution, lack of competitiveness, or some combination 
of  these  or  other  factors.  The  Board  implements  its 
risk  oversight  responsibilities,  at  the  highest  level, 
through  regular  reviews  of  the  Company’s  business, 
product  strategy  and  competitive  position,  and  through 
management  and  organizational  reviews,  evaluations 
and succession planning.

Within the broad strategic framework established by the 
Board,  management  is  responsible  for  identifying  risk 
and risk controls related to significant business activities; 
mapping the risks to company strategy; and developing 
programs  and  recommendations 
the 
sufficiency of risk identification, the balance of potential 
risk  to  potential  reward  and  the  appropriate  manner  in 
which to control risk.

to  determine 

The Board’s risk oversight role is implemented at the full 
Board  level,  and  also  in  individual  Board  Committees. 
The  full  Board  receives  specific  reports  on  enterprise 
risk  management, 
identification  and 
control  of  risk  are  the  primary  topics  of  the  discussion. 
Presentations  and  other  information  for  the  Board  and 

in  which 

the 

Board Committees generally identify and discuss relevant 
risk and risk control; and the Board members assess and 
oversee the risks as a part of their review of the related 
business, financial, or other activity of the Company. The 
Compensation Committee oversees issues related to the 
design and risk controls of compensation programs. The 
Audit  Committee  oversees  issues  related  to  internal 
control  over  financial  reporting  and  Logitech’s  risk 
tolerance in cash-management investments. The Board’s 
role  in  oversight  does  not  have  a  direct  impact  on  the 
Board’s leadership structure, which is discussed above.

Board Meetings

The  Chairman  sets  the  agenda  for  Board  meetings, 
in  coordination  with  the  Chief  Executive  Officer.  Any 
member  of  the  Board  of  Directors  may  request  that  a 
meeting of the Board be convened. The directors receive 
materials in advance of Board meetings allowing them to 
prepare for the handling of the items on the agenda.

The Chairman and Chief Executive Officer recommend 
executive  officers  or  other  members  of  senior 
management who, at the invitation of the Board, attend 
portions  of  each  quarterly  Board  meeting  to  report 
on  areas  of  the  business  within  their  responsibility. 
Infrequently,  the  Board  may  also  receive  reports  from 
external  consultants  such  as  executive  search  or 
succession experts or outside legal experts to assist the 
Board on matters it is considering.

The  Board  typically  holds  regularly  scheduled  Board 
meetings  twice  each  quarter:  once  for  a  review  and 
discussion  of  the  Company,  its  strategy  or  both,  which 
lasts  a  full  day  to  a  day-and-a-half  and  in  which  all 
directors participate in person except in special individual 
circumstances; and once for a quarterly earnings-related 
meeting,  which  lasts  for  approximately  one  to  two 
hours and in which directors participate in person or by 
teleconference or video conference. Additional meetings 
of  the  Board  may  be  held  by  teleconference  or  video 
conference  and  the  duration  of  such  meetings  varies 
depending on the subject matters considered. 

43  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementCorporate Governance and Board of Directors Mattersindependent directors meet to consider matters without 
management  or  non-independent  directors  present. 
During  fiscal  year  2015,  separate  sessions  of  the 
independent directors were held at six separate meetings.

Board Effectiveness

Our  Board  of  Directors  performs  an  annual  self-
assessment  to  evaluate  its  effectiveness  in  fulfilling 
its obligations.

Each  Committee  has  a  written  charter  approved  by 
the  Board.  The  chair  of  each  Committee  determines 
the  Committee’s  meeting  agenda.  The  Board 
Committee  members  receive  materials  in  advance  of 
Committee  meetings  allowing  them  to  prepare  for  the 
meeting.  The  Charters  of  each  Board  Committee  are 
available  on  Logitech’s  Investor  Relations  website  at 
http://ir.logitech.com.  Each  of  the  Audit,  Compensation 
and Nominating Committees has the authority to engage 
outside  experts,  advisors  and  counsel  to  the  extent  it 
considers  appropriate  to  assist  the  Committee  in  its 
work. The members of the Committees are identified in 
the following table.

  Audit   Compensation   Nominating

X
Chair

X

X
X 

X

Chair  

X

X

Chair

X

X

Emergency Resolutions

In case of emergency, the Chairman of the Board may have 
the power to pass resolutions which would otherwise be the 
responsibility of the Board. Decisions by the Chairman of 
the  Board  made  in  this  manner  are  subject  to  ratification 
by the Board of Directors at its next meeting or by way of 
written  consent.  No  such  emergency  resolutions  were 
passed during fiscal year 2015.

Independent Director Sessions

The Board of Directors has adopted a policy of regularly 
scheduled  sessions  of  Board  meetings  where  the 

Board Committees

The  Board  has  standing  Audit,  Compensation,  and 
Nominating  Committees  to  assist  the  Board  in  carrying 
out its duties. Each of the Board committees is composed 
entirely of directors that are independent in accordance 
with  the  published  listing  requirements  of  the  Nasdaq 
Stock  Market  and  Swiss  corporate  governance  best 
practices  guidelines.  At  each  quarterly  Board  meeting, 
each  applicable  Board  Committee  reports  to  the  full 
Board on the substance of the Committee’s meetings, if 
any, during the quarter.

Director
Daniel Borel
Matthew Bousquette
Kee-Lock Chua
Bracken Darrell
Sally Davis
Guerrino De Luca
Didier Hirsch
Neil Hunt
Dimitri Panayotopoulos
Monika Ribar

 – Proxy Statement  |  44

2015 Annual General Meeting Invitation, Proxy StatementCorporate Governance and Board of Directors Matters 
Attendance at Board, Committee and Annual 
Shareholders’ Meetings 

In fiscal year 2015 the Board met eleven times, nine of 
which  were  regularly  scheduled  meetings.  In  addition, 
the  Audit  Committee  met  17  times,  the  Compensation 
Committee met ten times, and the Nominating Committee 
met  six  times.  The  Board  also  met  or  held  conference 
calls at least 13 times during fiscal year 2015 with respect 
to  the  Audit  Committee’s  independent  investigation  of 
certain accounting matters related to Logitech’s previously 
issued  financial  statements.  In  addition  to  its  meetings, 

the Board took six actions for approval by written consent 
during fiscal year 2015. We expect each director to attend 
each meeting of the Board and the Committees on which 
he  or  she  serves,  and  also  expect  them  to  attend  the 
Annual General Meeting of shareholders. Nine of our ten 
directors attended the 2014 Annual General Meeting. All 
of the incumbent directors attended at least 75% of the 
meetings of the Board and the Committees on which he 
or she served. Detailed attendance information for Board 
and Board Committee meetings during fiscal year 2015 
is as follows:

# of meetings held
Daniel Borel
Matthew Bousquette
Kee-Lock Chua
Bracken Darrell
Sally Davis
Guerrino De Luca
Didier Hirsch
Neil Hunt
Dimitri Panayotopoulos(1)
Monika Ribar

Board of
Directors
11
10
11
10
 11
 9
10
11
11
 4
9

Audit
Committee
17

Compensation
Committee
10

Nominating
Committee
6

6
6

6

17
16

16

17

 15

10

9

10

7

(1)  Mr.  Panayotopoulos  was  elected  to  the  Board  as  of  the  Annual  General  Meeting  on  December  18,  2014,  and 

attended all four of the Board meetings that were held on or after that date.

Audit Committee

The  Audit  Committee  is  appointed  by  the  Board  to 
assist  the  Board  in  monitoring  the  Company’s  financial 
accounting,  controls,  planning  and  reporting. 
is 
composed  of  only  non-executive,  independent  Board 
members. Among its duties, the Audit Committee:

It 

•	 reviews  the  adequacy  of  the  Company’s  internal 

controls and disclosure controls and procedures; 

•	 reviews  the  independence,  fee  arrangements,  audit 
scope, and performance of the Company’s independent 
the  appointment  or 
auditors,  and 
replacement  of  independent  auditors  to  the  Board 
of Directors; 

recommends 

•	 reviews  and  approves  all  non-audit  work  to  be 

performed by the independent auditors;

•	 reviews  the  scope  of  Logitech’s  internal  auditing  and 
the  adequacy  of  the  organizational  structure  and 
qualifications of the internal auditing staff; 

45  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementCorporate Governance and Board of Directors Matters 
•	 reviews,  before  release,  the  quarterly  results  and 

interim financial data; 

the 

•	 reviews  with  management  and 

independent 
auditors the Company’s major financial risk exposures 
and the steps management has taken to monitor and 
control  those  exposures,  including  the  Company’s 
guidelines and policies with respect to risk assessment 
and risk management; and 

financial 
the  audited 
release, 
•	 reviews,  before 
statements  and 
“Management’s  Discussion  and 
Analysis  of  Financial  Condition  and  Results  of 
Operations”  contained  in  the  Company’s  annual 
reporting, and recommends that the Board of Directors 
submit  these  items  to  the  shareholders’  meeting 
for approval.

The  Audit  Committee  currently  consists  of  Mr.  Hirsch, 
Chairperson,  Mr.  Bousquette,  Mr.  Chua,  Ms.  Davis 
and  Ms.  Ribar.  The  Board  of  Directors  has  determined 
that  each  member  of  the  Audit  Committee  meets  the 
independence requirements of the Nasdaq Stock Market 
listing standards and the applicable rules and regulations 
of  the  SEC.  In  addition,  the  Board  has  determined  that 
Mr.  Hirsch,  Mr.  Bousquette  and  Ms.  Ribar  are  audit 
committee financial experts as defined by the applicable 
rules and regulations of the SEC.

two-and-a-half  hours  preceding 

The  Audit  Committee  met  17  times  in  fiscal  year  2015. 
Four  meetings  were  held  in  person  on  the  day  prior  to 
the  regularly  scheduled  quarterly  Board  meeting,  for 
approximately  two  to  three  hours,  and  thirteen  were 
held  by  teleconference,  for  approximately  half-an-hour 
to 
the  Company’s 
quarterly  report  of  financial  results,  preceding  the  filing 
of  the  Company’s  quarterly  report  on  Form  10-Q  or  in 
special  circumstances.  The  Committee  received  reports 
and  presentations  before  the  meetings  in  order  to  allow 
them  time  to  prepare  adequately.  At  the  Committee’s 
invitation, 
the  Company’s  Chief  Financial  Officer, 
Corporate Controller, Vice President of Internal Audit and 
General Counsel or Associate General Counsel attended 
each  meeting,  and  representatives  from  the  Company’s 
then-current  independent  registered  public  accounting 
firm, PwC LLP or KPMG LLP, also attended fifteen of the 
seventeen  meetings.  Other  members  of  management 

 – Proxy Statement  |  46

also  participated  in  certain  meetings.  Five  meetings 
also included a separate session with representatives of 
the  independent  registered  public  accounting  firm  and 
separate  sessions  with  the  Chief  Financial  Officer,  with 
the head of Internal Audit or both. In addition to its regular 
and  special  meetings,  the  Audit  Committee  met  or  held 
conference calls at least 32 times during fiscal year 2015 
with respect to the Committee’s independent investigation 
of  certain  accounting  matters  related  to  Logitech’s 
previously issued financial statements.

Compensation Committee

The Compensation Committee reviews and approves, or 
recommends to the Board for approval, the compensation 
of executive officers and non-executive Board members 
and  Logitech’s  compensation  policies  and  programs, 
including  share-based  compensation  programs  and 
other 
the 
incentive-based  compensation.  Within 
guidelines  established  by  the  Board  and  the  limits  set 
forth in the Company’s employee equity incentive plans, 
the  Compensation  Committee  also  has  the  authority 
to  grant  equity  incentive  awards  to  employees  without 
further Board approval. The Committee is composed of 
only non-executive, independent Board members.

The  Compensation  Committee  currently  consists  of 
Ms.  Davis,  Chairperson,  Mr.  Bousquette,  Dr.  Hunt  and 
Ms.  Ribar.  The  Board  of  Directors  has  determined  that 
each member of the Committee meets the independence 
requirements of the Nasdaq Stock Market listing standards.

The Compensation Committee met ten times in fiscal year 
2015. At the Committee’s invitation, the Company’s Vice 
President  of  People  &  Culture  and  the  Vice  President, 
Total  Rewards  (formerly  Worldwide  Compensation  & 
Benefits)  attended  each  meeting,  and  the  Committee’s 
independent  advisors 
from  Radford  Consulting, 
Compensia  or  Agnes  Blust  Consulting  attended  five 
meetings. Four of the meetings were held in person and 
each  meeting  lasted  for  approximately  half-an-hour  to 
three-and-a-half  hours.  In  addition  to  its  meetings,  the 
Committee  took  nine  actions  for  approval  by  written 
consent during fiscal year 2015.

2015 Annual General Meeting Invitation, Proxy StatementCorporate Governance and Board of Directors MattersPlease  refer  to  the  Company’s  Compensation  Report  for 
further  information  on  the  Compensation  Committee’s 
criteria and process for evaluating executive compensation.

Nominating Committee 

The  Nominating  Committee  is  composed  of  at  least 
three  members,  with  each  of  the  members  being  non-
executive,  independent  directors.  Among  its  duties,  the 
Nominating Committee:

•	 evaluates  the  composition  of  the  Board  of  Directors 
and  its  Committees,  determines  future  requirements 
and makes recommendations to the Board of Directors 
for approval; 

•	 determines  on  an  annual  basis  the  desired  Board 
qualifications  and  expertise  and  conducts  searches 
for potential directors with these attributes; 

•	 evaluates and makes recommendations of nominees 

for election to the Board of Directors; and 

•	 evaluates  and  makes 

recommendations 

the 
Board  concerning 
the  appointment  of  directors 
to  Board  Committees  and  the  selection  of  Board 
Committee chairs.

to 

The Nominating Committee may and typically does retain 
an executive search firm to assist with the identification 
and evaluation of prospective Board nominees based on 
criteria  established  by  the  Committee.  For  information 
on the Nominating Committee’s policies with respect to 
director nominations please see “Elections to the Board 
of Directors” above.

The  Nominating  Committee  currently  consists  of 
Mr.  Chua,  Chairperson,  Mr.  Bousquette  and  Ms.  Davis. 
The  Board  of  Directors  has  determined  that  Mr.  Chua, 
Mr.  Bousquette  and  Ms.  Davis  meet  the  independence 
requirements  of 
listing 
the  Nasdaq  Stock  Market 
the  Committee’s  recommendation 
standards.  Upon 
of  nominees  for  election  to  the  Board  of  Directors,  the 
nominees are presented to the full Board. Nominees are 
then selected by a majority of the independent members 
of the Board. The Nominating Committee met six times 
in fiscal year 2015. The meetings were held in person or 
by teleconference and lasted approximately half-an-hour 
to one hour.

47  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementCorporate Governance and Board of Directors MattersCompensation Committee Interlocks and Insider Participation 

None  of  the  members  of  the  Compensation  Committee  has  been  an  officer  or  employee  of  Logitech.  None  of  our 
executive officers serves on the board of directors or compensation committee of a company that has an executive 
officer that serves on our Board of Directors.

Communications with the Board of Directors 

Shareholders may contact the Board of Directors about bona fide issues or questions about Logitech by sending an 
email to generalcounsel@logitech.com or by writing the Corporate Secretary at the following address:

Logitech International S.A. 
Attn: Corporate Secretary  
EPFL - Quartier de l’Innovation  
Daniel Borel Innovation Center  
1015 Lausanne, Switzerland

All such shareholder communications will be forwarded to the appropriate member or members of the Board of Directors 
or, if none is specified, to the Chairman of the Board of Directors.

 – Proxy Statement  |  48

2015 Annual General Meeting Invitation, Proxy StatementCorporate Governance and Board of Directors MattersSecurity Ownership of Certain Beneficial Owners and 
Management as of June 30, 2015
In accordance with the proxy statement rules under U.S. 
securities laws, the following table shows the number of 
our shares beneficially owned as of June 30, 2015 by:

•	 each director and each nominee for director;

•	 the  persons  named  in  the  Summary  Compensation 
Table  in  the  Compensation  Report  (the  “named 
executive officers”); and

•	 all  directors  and  current  executive  officers  as  

a group.

•	 each  person  or  group  known  by  Logitech,  based  on 
filings pursuant to Section 13(d) or (g) under the U.S. 
Securities  Exchange  Act  of  1934  or  notifications  to 
the  Company  under  applicable  Swiss  laws,  to  own 
beneficially  more  than  5%  of  our  outstanding  shares 
as of June 30, 2015;

Beneficial Owner(1)
5% shareholders:
Credit Suisse AG(5)
Daniel Borel(6)
Director, not including the Chairman or  

the CEO:
Daniel Borel(6)
Matthew Bousquette
Kee-Lock Chua
Sally Davis
Didier Hirsch 
Neil Hunt
Dimitri Panayotopoulos(7)
Monika Ribar
Nominees for Director:
Edouard Bugnion
Sue Gove
Lung Yeh
Named Executive Officers:
Guerrino De Luca
Bracken Darrell
Vincent Pilette
Marcel Stolk
L. Joseph Sullivan
Current Directors and Executive Officers  

as a Group(13)

Number 
of Shares 
Owned(2)

11,228,056
9,264,038

9,264,038
51,148
82,487
79,798
25,230
42,128
—
60,540

—
—
—

249,844
186,922
293,800
49,473
73,173

Shares that May 
be Acquired 
Within  
60 Days(3)

Total 
Beneficial 
Ownership

Total as a
Percentage
of Shares
Outstanding(4)

—
—

11,228,056
9,264,038

—
15,000
15,000
30,000
—
—
—
15,000

—
—
—

245,000
775,000
—
112,500
172,500

9,264,038
66,148
97,487
109,798
25,230
42,128
—
75,540

—
—
—

494,844
961,922
293,800
161,973
245,673

6.8%
5.6%

5.6%
*
*
*
*
*
*
*

*
*
*

*
*
*
*
*

10,458,581

1,380,000

11,838,581

7.1%

49  | 

 – Proxy Statement

Security Ownership2015 Annual General Meeting Invitation, Proxy Statement* 

Less than 1%

(1)  Unless otherwise indicated, the address for each beneficial owner listed in this table is c/o Logitech International 
S.A., EPFL, Quartier de l’Innovation, Daniel Borel Innovation Center, 1015 Lausanne, Switzerland / 7700 Gateway 
Boulevard, Newark, California 94560.

(2)  To Logitech’s knowledge, except as otherwise noted in the footnotes to this table, each director and executive 
officer has sole voting and investment power over the shares reported as beneficially owned in accordance with 
SEC rules, subject to community property laws where applicable.

(3) 

Includes shares represented by vested, unexercised options as of June 30, 2015 and options and restricted stock 
units that are expected to vest within 60 days after June 30, 2015. These shares are deemed to be outstanding 
for the purpose of computing the percentage ownership of the person holding the options or restricted stock units, 
but are not treated as outstanding for the purpose of computing the percentage ownership of any other person.

(4)  Based  on  164,430,567  shares  outstanding  on  June  30,  2015  (173,106,620  shares  outstanding  less  8,676,053 

treasury shares outstanding).

(5)  Based on information set forth in a Schedule 13G filed with the U.S. Securities and Exchange Commission on 
February 12, 2015 by Credit Suisse AG, reporting ownership of Logitech’s shares as of December 31, 2014, and 
indicating shared investment and voting power with respect to all of the shares. The address of Credit Suisse AG 
is Uetlibergstrasse 231, P.O. Box 900, CH 8070, Zurich, Switzerland. 

(6)  The  number  of  shares  held  by  Mr.  Borel  includes  (a)  53,000  shares  held  by  a  charitable  foundation,  of  which 
Mr. Borel and other members of his family are board members and (b) 6,500 shares held by Mr. Borel’s spouse. 
As of June 30, 2015, Mr. Borel’s indicated sole investment and voting power with respect to 9,204,538 shares, 
shared investment power with respect to 59,500 shares and shared voting power with respect to 53,000 shares.

(7)  Mr.  Panayotopoulos  was  first  elected  as  a  director  of  the  Company  at  the  Annual  General  Meeting  on 

December 18, 2014.

Share Ownership Guidelines 

Members  of  the  Board  of  Directors  and  executive 
officers  and  other  officers  who  report  directly  to  the 
Chief Executive Officer or President are subject to share 
ownership guidelines. 

Directors  are  required  to  own  Logitech  shares  with  a 
market value equal to 3 times the annual Board retainer 
under guidelines adopted by the Board in June 2006 and 
revised in June 2013. Directors are required to achieve 
this ownership within five years of joining the Board, or, 
in the case of directors serving at the time the guidelines 
were originally adopted, within five years of the effective 
date  of  adoption  of  the  guidelines.  The  guidelines  will 
be  adjusted  to  reflect  any  capital  adjustments,  and  will 

be  re-evaluated  by  the  Board  from  time  to  time.  As  of 
June  30,  2015,  each  director  had  either  satisfied  these 
ownership guidelines or had time remaining to do so.

The Compensation Committee adopted share ownership 
guidelines  for  executive  officers  and  other  officers  who 
report directly to the Chief Executive Officer or President 
effective  September  2008  and  revised  in  September 
2013.  These  guidelines  now  apply  to  executive  officers 
and  other  officers  who  report  directly  to  the  Chief 
Executive Officer. These guidelines require: 

•	 the  Chief  Executive  Officer  to  hold  a  number  of 
Logitech shares with a market value equal to 5 times 
his annual base salary;

 – Proxy Statement  |  50

Security Ownership2015 Annual General Meeting Invitation, Proxy Statement•	 the Chief Financial Officer to hold a number of Logitech 
shares with a market value equal to 3 time his annual 
base salary;

•	 executive  officers,  other  than  the  Chief  Executive 
Officer and Chief Financial Officer, to hold a number 
of Logitech shares with a market value equal to 2 times 
their respective annual base salaries; and

•	 remaining  officers  who  report  directly  to  the  Chief 
Executive Officer to hold a number of Logitech shares 
with  a  market  value  equal  to  their  respective  annual 
base salaries.

Officers subject to the guidelines are required to achieve 
the guideline within five years of being appointed to the 
position making them subject to the guideline, or, in the 
case of such officers serving at the time the guidelines 
were originally adopted, within five years of the effective 
date of adoption of the guidelines. The guidelines will be 
adjusted  to  reflect  any  capital  adjustments,  and  will  be 
re-evaluated by the Compensation Committee from time 

to time. Up to 50% of the guideline may be met through 
the net value of vested, unexercised stock options. If the 
guideline is not met within five years, the Chief Executive 
Officer must hold 100% of his after-tax shares resulting 
from  option  exercises  or  other  equity  incentive  awards 
until  the  guideline  is  reached,  and  all  other  executive 
officers and Chief Executive Officer direct reports must 
hold at least 50% of the net shares resulting from option 
exercises  or  other  equity  incentive  awards  until  the 
guideline  is  reached.  In  addition,  if  the  guideline  is  not 
met,  the  officer  will  have  50%  of  the  after-tax  value  of 
any earned bonuses under the Leadership Team Bonus 
Program  paid  in  fully  vested  Logitech  shares.  This 
provision  was  enforced  for  two  officers  in  connection 
with the fiscal year 2014 bonuses. As of June 30, 2015, 
all of the executive officers and other officers who report 
directly  to  Chief  Executive  Officer  had  either  satisfied 
these  ownership  guidelines  or  had  time  remaining  to 
do so.

51  | 

 – Proxy Statement

Security Ownership2015 Annual General Meeting Invitation, Proxy StatementOur Policies 

It is our policy that all employees must not engage in any 
activities  which  could  conflict  with  Logitech’s  business 
interests,  which  could  adversely  affect  its  reputation 
or  which  could  interfere  with  the  fulfillment  of  the 
responsibilities  of  the  employee’s  job,  which  at  all  times 
must  be  performed  in  the  best  interests  of  Logitech.  In 
addition,  Logitech  employees  may  not  use  their  position 
with  Logitech,  or  Logitech’s  information  or  assets,  for 
their  personal  gain  or  for  the  improper  benefit  of  others. 
These  policies  are  included  in  our  Business  Ethics  and 
Conflict  of  Interest  Policy,  which  covers  our  directors, 

executive officers and other employees. If in a particular 
circumstance the Board concludes that there is or may be 
a perceived conflict of interest, the Board will instruct our 
Legal department to work with our relevant business units 
to determine if there is a conflict of interest. Any waivers 
to these conflict rules with regard to a director or executive 
officer  require  the  prior  approval  of  the  Board,  and  any 
transaction that is a related party transaction under U.S. 
securities laws must be approved by the Audit Committee 
or another independent committee of the Board.

Nasdaq Rules and Swiss Best Corporate Governance Practices 

Nasdaq  rules  defining  “independent”  director  status 
also  govern  conflict  of  interest  situations,  as  do  Swiss 
best  corporate  governance  principles  published  by 
economiesuisse,  a  leading  Swiss  business  organization. 
As discussed above, the Board of Directors has determined 
that  each  of  our  directors  and  nominee  to  be  a  director, 
other than Mr. Borel, Mr. Darrell and Mr. De Luca, qualifies 
as  “independent”  in  accordance  with  the  Nasdaq  rules. 
The Nasdaq rules include a series of objective tests that 
would not allow a director to be considered independent if 

the director has or has had certain employment, business 
or  family  relationships  with  the  company.  The  Nasdaq 
independence definition also includes a requirement that 
the Board review the relations between each independent 
director  and  the  company  on  a  subjective  basis.  In 
accordance  with  that  review,  the  Board  has  made  a 
subjective determination as to each independent director 
that no relationships exist that, in the opinion of the Board, 
would interfere with the exercise of independent judgment 
in carrying out the responsibilities of a director.

SEC Rules 

In  addition  to  the  Logitech  and  Nasdaq  policies  and 
rules  described  above,  the  SEC  has  specific  disclosure 
requirements covering certain types of transactions involving 
Logitech and a director or executive officer or persons and 
entities  affiliated  with  them.  Since  April  1,  2014,  we  have 
not been a party to, and we have no plans to be a party to, 
any transaction or series of similar transactions in which the 
amount involved exceeded or will exceed US $120,000 and 
in  which  any  current  director,  director  nominee,  executive 
officer, holder of more than 5% of our shares, or any member 
of the immediate family of any of the foregoing, had or will 
have a direct or indirect material interest. We have entered 
into an indemnification agreement with each of our directors 
and  executive  officers.  The  indemnification  agreements 
require  us  to  indemnify  our  directors  and  officers  to  the 
fullest extent permitted by Swiss and California law.

 – Proxy Statement  |  52

None  of  the  following  persons  has  been  indebted  to 
Logitech or its subsidiaries at any time since the beginning 
of fiscal year 2015: any of our directors or executive officers; 
any nominee for election as a director; any member of the 
immediate family of any of our directors, executive officers 
or nominees for director; any corporation or organization of 
which any of our directors, executive officers or nominees 
is an executive officer or partner or is, directly or indirectly, 
the beneficial owner of 10% or more of any class of equity 
securities (except trade debt entered into in the ordinary 
course of business); and any trust or other estate in which 
any  of  the  directors,  executive  officers  or  nominees  for 
director has a substantial beneficial interest or for which 
such person serves as a trustee or in a similar capacity.

Certain Relationships and Related Transactions2015 Annual General Meeting Invitation, Proxy StatementIndependent Auditors

Under  Logitech’s  Articles  of 
the 
shareholders elect or re-elect the Company’s independent 
auditors each year at the Annual General Meeting.

Incorporation, 

Logitech’s independent auditors for fiscal year 2015 were 
KPMG AG, Zurich, Switzerland. KPMG AG assumed its 
first audit mandate for Logitech in fiscal year 2015. They 
were elected by the shareholders as Logitech’s auditors 
at  the  Annual  General  Meeting  in  December  2014. 
For  purposes  of  U.S.  securities  law  reporting,  KPMG 
LLP,  Santa  Clara,  California,  served  as  the  Company’s 
independent  registered  public  accounting  firm  for  fiscal 
year  2015.  Together,  KPMG  AG  and  KPMG  LLP  are 
referred  to  as  “KPMG.”  As  appointed  by  the  Board, 
the  Audit  Committee  is  responsible  for  supervising  the 
performance  of  the  Company’s  independent  auditors, 
and  recommends  the  election  or  replacement  of  the 
independent auditors to the Board of Directors.

Representatives  of  KPMG  were  invited  to  attend  all 
regular  meetings  of  the  Audit  Committee.  During  fiscal 
year  2015,  KPMG  representatives  attended  all  of  the 
Audit  Committee  meetings  following  the  engagement 
of  KPMG.  The  Committee  met  separately  two  times 
with  representatives  of  KPMG  in  closed  sessions  of 
Committee meetings.

On  a  quarterly  basis,  KPMG  reports  on  the  findings  of 
their  audit  and/or  review  work  including  their  audit  of 
Logitech’s internal control over financial reporting. These 
reports  include  their  assessment  of  critical  accounting 
policies  and  practices  used,  alternative  treatments  of 
financial  information  discussed  with  management,  and 
other material written communication between KPMG and 
management. At each quarterly Board meeting, the Audit 
Committee reports to the full Board on the substance of 
the Committee meetings during the quarter. On an annual 
basis, the Audit Committee approves KPMG’s audit plan 
and evaluates the performance of KPMG and its senior 
representatives in fulfilling its responsibilities. Moreover, 

the  Audit  Committee  recommends  to  the  Board  the 
appointment or replacement of the independent auditors, 
subject  to  shareholder  approval.  The  Audit  Committee 
reviews  the  annual  report  provided  by  KPMG  as  to 
its independence.

Change in Independent Auditor

in  a  Current  Report  on  Form  8-K 
As  disclosed 
the  Company  on  November  13,  2014, 
filed  by 
PricewaterhouseCoopers  S.A.  (referred  to  as  “PwC 
S.A.”) and PricewaterhouseCoopers LLP (referred to as 
“PwC LLP” and, together with PwC S.A., referred to as 
“PwC”)  declined  to  stand  for  re-election  as  Logitech’s 
independent  auditors  and  as  Logitech’s  independent 
registered  public  accounting  firm,  respectively,  for  the 
fiscal  year  ending  March  31,  2015.  On  November  12, 
2014, the Audit Committee of the Board of Directors (the 
“Audit Committee”) of Logitech appointed KPMG LLP as 
the Company’s independent registered public accounting 
firm for the fiscal year ending March 31, 2015 for purposes 
of U.S. securities law reporting purposes. 

Information about PricewaterhouseCoopers LLP

the  Company’s 

financial 
The  reports  of  PwC  on 
statements for the fiscal years ended March 31, 2013 and 
March 31, 2014 did not contain an adverse opinion or a 
disclaimer of opinion; nor were they qualified or modified 
as  to  uncertainty,  audit  scope  or  accounting  principles. 
In connection with the audits of the Company’s financial 
statements  for  the  fiscal  years  ended  March  31,  2014 
and 2013 and in the subsequent interim period through 
November  6,  2014  there  were  no  “disagreements”  (as 
that  term  is  defined  in  Item  304(a)(1)(iv)  of  Regulation 
S-K)  with  PwC  LLP  on  any  matter  of  accounting 
principles or practices, financial statement disclosure, or 
auditing scope or procedures which, if not resolved to the 
satisfaction of PwC LLP would have caused PwC LLP to 
make reference to the matter in their reports. 

53  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy Statementto 

In  addition 
these  material  weaknesses,  which 
continued  to  exist  as  of  March  31,  2014,  as  a  result  of 
the Audit Committee’s investigation and the restatement 
of  the  Company’s  financial  statements  the  Company’s 
management  concluded  that  two  additional  material 
weaknesses existed as of March 31, 2014, including:

former 

•	 The  Company  did  not  maintain  an  effective  control 
environment  as 
finance  management 
exercised bad judgment and failed to provide effective 
oversight, which resulted in ineffective information and 
communication,  whereby  certain  of  the  Company’s 
finance  personnel  did  not  adequately  document 
and  communicate  accounting  issues  across  the 
organization,  including  to  our  independent  registered 
public  accounting  firm.  Additionally,  there  was  an 
insufficient complement of personnel with appropriate 
accounting  knowledge,  experience  and  competence, 
resulting in incorrect conclusions in the application of 
generally accepted accounting principles; and 

the  underlying  assumptions 

•	 The  Company  did  not  design  and  maintain  effective 
controls  to  consider  all  relevant  information  and 
document 
in  our 
assessment  of  the  valuation  of  finished  goods,  work 
in process and components inventory, including non-
cancelable  orders  for  such  inventory,  related  to  our 
now discontinued Revue product.

These  material  weaknesses,  as  well  as  the  Company’s 
plans  to  remediate  them,  are  set  forth  in  Item  9A  of 
the  Company’s  Annual  Report  on  Form  10-K/A  for  the 
fiscal year ended March 31, 2013 and in Item 9A of the 
Company’s  Annual  Report  on  Form  10-K  for  the  fiscal 
year ended March 31, 2014. Accordingly, the reports of 
PwC LLP on the Company’s internal control over financial 
reporting as of March 31, 2013 and as of March 31, 2014 
as  well  as  management’s  reports  as  of  the  same  date, 

Independent Auditors

There were “reportable events” (as that term is defined 
in Item 304(a)(1)(v)  of  Regulation  S-K) during  the fiscal 
years ended March 31, 2014 and March 31, 2013 and the 
subsequent interim period through November 6, 2014, as 
follows. On September 2, 2014 (U.S. time), the Company 
announced that the Audit Committee concluded that the 
consolidated  financial  statements  for  the  years  ended 
March 31, 2011 and 2012 included in Logitech’s Annual 
Reports on Form 10-K for the fiscal years ended March 
31, 2013, 2012 and 2011 and for the three months ended 
June  30,  2011  included  in  Logitech’s  Quarterly  Report 
on  Form  10-Q  for  the  three  months  ended  June  30, 
2011  can  no  longer  be  relied  on  due  to  an  accounting 
misstatement 
for 
Logitech’s now discontinued Revue product. The restated 
fiscal  year  2012  consolidated  financial  statements  are 
included in the Company’s Annual Report on Form 10-K 
for the fiscal year ended March 31, 2014. In addition, as 
previously disclosed in the Company’s Annual Report on 
Form 10-K/A for the fiscal year ended March 31, 2013, 
the  Company’s  management  concluded  that  material 
weaknesses existed as of March 31, 2013, as follows:

inventory  valuation 

reserves 

for 

•	 The  Company  did  not  design  and  maintain  effective 
controls  over  the  review  of  supporting  information 
to  determine  the  completeness  and  accuracy  of  the 
consolidated statement of cash flows, the consolidated 
income  (loss)  and 
statement  of  comprehensive 
disclosures  in  the  notes  to  the  consolidated  financial 
statements; and

•	 The  Company  did  not  maintain  effective  controls 
related  to  developing  an  appropriate  methodology 
to  accrue  the  costs  of  product  warranties  given  to 
end  customers,  including  an  on-going  review  of  the 
assumptions within the methodology to determine the 
completeness and accuracy of the warranty accrual.

 – Proxy Statement  |  54

2015 Annual General Meeting Invitation, Proxy StatementIndependent Auditors

which  were  included  in  the  Company’s  Annual  Reports 
for  Fiscal  Years  2013  and  2014, 
on  Form  10-K 
respectively,  contained  qualified  opinions  thereon.  The 
material  weaknesses  in  the  Company’s  internal  control 
over  financial  reporting  that  the  Company  disclosed  in 
its  Annual  Report  on  Form  10-K  for  Fiscal  Year  2014 
continued to exist during the subsequent interim period 
through November 6, 2014. 

The  Audit  Committee  discussed  the  subject  matter  of 
the reportable events with PwC. Other than as disclosed 
above, there were no reportable events during the fiscal 
years ended March 31, 2014 and 2013 and through the 
subsequent interim period through November 6, 2014.

Logitech provided PwC with a copy of the disclosure set 
forth in this section, which disclosure was set forth in the 
Current  Report  on  Form  8-K  filed  by  the  Company  on 
November 13, 2014. PwC furnished Logitech with a letter 
addressed  to  the  Securities  and  Exchange  Commission 
stating their agreement with such disclosure. A copy of the 
letter was filed as Exhibit 16.1 to such Current Report on 
Form 8-K. 

Information about KPMG LLP

On November 12, 2014, the Audit Committee appointed 
KPMG  LLP  to  serve  as  its  new  independent  registered 
public  accounting  firm  to  audit  the  Company’s  financial 

Audit and Non-Audit Fees

statements  for  the  fiscal  year  ending  March  31,  2015. 
KPMG  LLP’s  engagement  to  serve  as  the  Company’s 
new  independent  registered  public  accounting  firm 
became effective on November 13, 2014.

During  the  Company’s  two  most  recent  fiscal  years 
ended  March  31,  2014  and  2013  and  prior  to  engaging 
KPMG,  neither  the  Company  nor  anyone  on  its  behalf 
consulted  KPMG  regarding  either:  (i)  the  application  of 
accounting  principles  to  a  specified  transaction,  either 
completed  or  proposed,  or  the  type  of  audit  opinion 
that  might  be  rendered  on  the  Company’s  financial 
statements,  in  connection  with  which  either  a  written 
report or oral advice was provided to the Company that 
KPMG concluded was an important factor considered by 
the Company in reaching a decision as to the accounting, 
auditing or financial reporting issue; or (ii) any matter that 
was  the  subject  of  a  disagreement  or  reportable  event 
as defined in Regulation S-K, Item 304(a)(1)(iv) and Item 
304(a)(1)(v), respectively. 

The  Company  authorized  PwC  to  respond  fully  and 
without limitation to all requests of KPMG concerning all 
matters related to the audited periods by PwC, including 
with respect to the subject matter of the reportable events 
summarized above.

The following table sets forth the aggregate fees billed to us for the audit and other services provided by KPMG during 
the fiscal year ended March 31, 2015 (in thousands): 

Audit fees(1)

2015
$2,596

(1)  Audit fees. This category represent fees for professional services provided in connection with the audit of our 
financial statements, the audit of our internal control over financial reporting, and review of our quarterly financial 
statements and audit services provided in connection with other statutory or regulatory filings.

55  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementIndependent Auditors

Pre-Approval Procedures and Policies

The  Audit  Committee  pre-approves  all  audit  and  non-
audit  services  provided  by  KPMG.  This  pre-approval 
must  occur  before  the  auditor  is  engaged.  The  Audit 
Committee  pre-approves  categories  of  non-audit 
services and a target fee associated with each category. 
Usage of KPMG fees against the target is presented to 
the Audit Committee at each in-person quarterly meeting, 
with additional amounts requested as needed. Services 
that last longer than a year must be re-approved by the 
Audit Committee.

The  Audit  Committee  can  delegate  the  pre-approval 
ability  to  a  single  independent  member  of  the  Audit 
Committee. The delegate must communicate all services 
the  next  scheduled  Audit  Committee 
approved  at 
meeting.  The  Audit  Committee  or  its  delegate  can  pre-
approve types of services to be performed by KPMG with 
a set dollar limit per type of service. The Vice President, 
Corporate Controller is responsible for ensuring that the 
work  performed  is  within  the  scope  and  dollar  limit  as 
approved  by  the  Audit  Committee.  Management  must 
report to the Audit Committee the status of each project 
or service provided by KPMG.

 – Proxy Statement  |  56

2015 Annual General Meeting Invitation, Proxy StatementReport of the Audit Committee

The Audit Committee is responsible for overseeing Logitech’s accounting and financial reporting processes and audits 
of  Logitech’s  financial  statements.  The  Audit  Committee  acts  only  in  an  oversight  capacity  and  relies  on  the  work 
and  assurances  of  management,  which  has  primary  responsibility  for  Logitech’s  financial  statements  and  reports, 
Logitech’s internal auditors, as well as KPMG, Logitech’s independent auditors, which is responsible for expressing an 
opinion on the conformity of Logitech’s audited financial statements to generally accepted accounting principles and 
attesting to the effectiveness of Logitech’s internal control over financial reporting.

The Board of Directors has adopted a written charter for the Audit Committee. A copy of the Charter can be found on our 
website at http://ir.logitech.com. To view the charter, select “Audit Committee Charter” under “Corporate Governance.”

The Audit Committee has reviewed and discussed our audited financial statements for the fiscal year ended March 31, 
2015, with our management. In addition, the Audit Committee has discussed with the independent auditors the matters 
required to be discussed by Auditing Standard No. 16 as adopted by the Public Company Accounting Oversight Board.

The Audit Committee has received the written disclosures and the letter from the independent accountant required by 
applicable requirements of the Public Company Accounting Oversight Board regarding the independent accountant’s 
communications  with  the  Audit  Committee  concerning  independence,  and  has  discussed  with  the  independent 
accountant the independent accountant’s independence.

Based on the reviews and discussions referred to above, the Audit Committee recommended to the Board of Directors 
that the audited consolidated financial statements be included in Logitech’s Annual Report on Form 10-K for the fiscal 
year ended March 31, 2015.

Submitted by the Audit Committee of the Board

Didier Hirsch, Chairperson 
Matthew Bousquette 
Kee-Lock Chua 
Sally Davis 
Monika Ribar 

57  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementSection  16  of  the  Exchange  Act  requires  Logitech’s 
directors,  executive  officers  and  any  persons  who  own 
more than 10% of Logitech’s shares, to file initial reports 
of ownership and reports of changes in ownership with 
the SEC. Such persons are required by SEC regulation to 
furnish Logitech with copies of all Section 16(a) forms that 
they file. As a matter of practice, our administrative staff 
assists our executive officers and directors in preparing 
initial  ownership 
reporting  ownership 
changes, and typically files these reports on their behalf.

reports  and 

We believe that all Section 16(a) filing requirements were 
met in fiscal year 2015, with the exceptions noted below:

•	 A late Form 4 report was filed for L. Joseph Sullivan 
on May 22, 2014 to report the grant of restricted stock 
units on May 14, 2014.

 – Proxy Statement  |  58

Section 16(a) Beneficial Ownership Reporting Compliance2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

This Compensation Report has been designed to comply with both the proxy statement rules under U.S. securities 
laws and Swiss regulations. This Report is an integrated part of our Annual Report, Invitation, and Proxy Statement for 
our 2015 Annual General Meeting.

Compensation Discussion and Analysis

This Compensation Discussion and Analysis is intended 
to assist our shareholders in understanding our executive 
compensation program by providing an overview of our 
executive compensation-related policies, practices, and 
decisions  for  fiscal  year  2015.  It  also  explains  how  we 
determined  the  material  elements  of  compensation  for 
our Chief Executive Officer, our Chief Financial Officer, 
and  the  three  executive  officers  (other  than  our  Chief 
Executive Officer and Chief Financial Officer) who were 
our most highly-compensated executive officers for fiscal 
year 2015, and who we refer to as our “Named Executive 

Officers.”    For  fiscal  year  2015,  our  Named  Executive 
Officers were: 

•	 Guerrino De Luca, our Executive Chairman;

•	 Bracken  Darrell, 
Executive Officer;

our  President 

and  Chief 

•	 Vincent Pilette, our Chief Financial Officer;

•	 Marcel Stolk, our Senior Vice President, CCP Business 

Group; and

•	 L.  Joseph  Sullivan,  our  Senior  Vice  President, 

Worldwide Operations.

Executive Summary

The Compensation Committee believes the design of our 
executive compensation programs has and will continue 
to meet our goal of providing our executives with market-
competitive  compensation  packages  that  provide  for 
above market rewards when Logitech outperforms both 
our  internal  goals  and  the  overall  market,  and  limited 
rewards  when  Logitech’s  performance  does  not  meet 
these objectives.  Overall, our Compensation Committee 
has developed executive compensation programs that it 
believes will provide an incentive to drive the Company’s 
performance  and  reward  both  our  shareholders  and 
our executives.

Business Highlights

the  non-cash  goodwill 

During fiscal year 2015, Logitech had strong performance 
and  good  momentum  in  spite  of  currency  headwinds. 
Excluding 
impairment  with 
respect to our video conferencing segment, we had the 
best  operating  income  and  earnings  per  share  results 
since  fiscal  year  2008.  Our  performance  reflected  the 
many  changes  made  to  improve  company  sales  with  a 
significant  increase  in  revenue  in  our  growth  category 
rigorously  managing  operating 
businesses  while 
expenses to improve profitability. Please see the section 
entitled  Management’s  Discussion  and  Analysis  of 
Financial  Condition  and  Results  of  Operations  in  our 
Annual Report for a more detailed discussion of our fiscal 
year 2015 financial results.

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2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

Executive Compensation Highlights 

Consistent with our strong performance and compensation philosophy, the Compensation Committee took the following 
compensation actions for our executive officers for fiscal year 2015:

FY 2015 Base 
Salary Increase 
from FY 2014
0%
10%
0%
2%
3%

FY 2015 Annual 
Bonus as a 
Percentage of 
Target Bonus

113%
113%
140%
121%
113%

FY 2015 Annual 
Time-Based 
Restricted Stock 
Units Award  
(# of shares)
13,072
134,840
110,210
25,358
17,090

FY 2015 Annual 
Performance-Based 
Restricted Stock 
Units Award (# of 
shares at target)

19,608
202,260
110,210
38,037
25,635

Named Executive Officer
Guerrino De Luca
Bracken Darrell
Vincent Pilette
Marcel Stolk
L. Joseph Sullivan

Emphasis on Variable and Performance-Based Compensation 

The  annual  compensation  of  our  executive  officers 
varies from year to year based on our corporate financial 
and operational results and individual performance. Our 
executive compensation program emphasizes “variable” 
performance-based  pay  over  “fixed”  pay  and  seeks  to 
balance  short-term  and  long-term  incentives  as  well 
as  performance-based  and  time-based  incentives.  In 
fiscal  year  2015,  the  majority  of  the  target  total  direct 
compensation  of  our  CEO  consisted  of  performance-
based  pay,  including  cash  awarded  under  our  annual 

bonus plan and long-term incentives in the form of equity 
awards  for  which  value  is  variable.  Fixed  pay,  primarily 
consisting  of  base  salary,  made  up  only  13%  of  our 
CEO’s  target  total  direct  compensation  in  fiscal  year 
2015,  while  performance-based  pay,  consisting  of  both 
annual bonus and long-term equity incentives, made up 
87%  of  his  target  total  direct  compensation.  This  same 
philosophy  was  applied  to  our  other  executive  officers. 
The  following  charts  show  the  percentages  of  target 
variable pay versus target fixed pay for fiscal year 2015:

CEO COMPENSATION MIX

OTHER NEO COMPENSATION MIX

13%

17%

70%

55%

24%

21%

Salary

Long-term incentives

Salary

Long-term incentives

Target annual incentive

Target annual incentive

 – Proxy Statement  |  60

2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

Executive Compensation Best Practices

We  strive  to  maintain  sound  executive  compensation 
policies  and  practices,  including  compensation-related 
corporate  governance  standards,  consistent  with  our 
executive  compensation  philosophy.  We  have 
the 
following executive compensation policies and practices 
in place, including both those that we have implemented 
to  drive  performance  and  policies  and  practices  that 
either  prohibit  or  minimize  behaviors  that  we  do  not 
believe serve our shareholders’ long-term interests:

What We Do  

 Compensation  Committee  Independence  –  Our 
Board  of  Directors  maintains  a  Compensation 
Committee comprised solely of independent directors.

 Compensation Committee Advisor Independence 
–  The  Compensation  Committee  engages  and 
retains its own advisors. During fiscal year 2015, the 
Compensation  Committee  engaged  Radford,  an  Aon 
Hewitt  company,  Compensia,  Inc.  and  Agnès  Blust 
Consulting to assist with its responsibilities. 

 Annual Compensation Review – The Compensation 
Committee conducts an annual review of our executive 
compensation  philosophy  and  strategy, 
including 
a  review  of  the  compensation  peer  group  used  for 
comparative purposes. 

 Compensation-Related  Risk  Assessment  –  The 
Compensation  Committee  conducts  an  annual 
evaluation  of  our  compensation  programs,  policies, 
and  practices,  which  are  designed  to  ensure  that 
they  reflect  an  appropriate  level  of  risk-taking  but  do 
not  encourage  our  employees  to  take  excessive  or 
unnecessary risks that could have a material adverse 
impact on the Company. 

 Emphasize 

Incentive 
Performance-based 
Compensation  –  The  Compensation  Committee 
designs  our  executive  compensation  program 
to  use  performance-based  short-term  and  long-

term  incentive  compensation  awards  to  align  the 
interests of our executive officers with the interests of 
our shareholders. 

 Emphasize  Long-Term  Equity  Compensation  – 
The Compensation Committee uses equity awards to 
deliver long-term incentive compensation opportunities 
to  our  executive  officers.  These  equity  awards  vest 
or  may  be  earned  over  multi-year  periods,  which 
better serves our long-term value creation goals and 
retention objectives. 

 Limited Executive Perquisites – We do not provide 
perquisites or other personal benefits to our executive 
officers. The executive officers participate in our health 
and welfare benefit programs on the same basis as all 
of our employees. 

 Stock  Ownership  Policy  –  We  maintain  a  stock 
ownership  policy  for  our  directors  and  executive 
officers which requires each of them to own a specified 
amount of our registered shares as a multiple of their 
salary or annual board retainer. 

 Compensation Recovery Policy – We have adopted 
a policy that provides for the recoupment of bonus and 
other incentive compensation and equity compensation 
from  our  executive  officers  resulting  from  fraud  or 
intentional misconduct of an executive officer or if the 
executive officer knew of the fraud or misconduct.

 “Double-Trigger” Change of Control Arrangements 
– The post-employment compensation arrangements 
for  our  executive  officers  are  based  on  a  “double-
trigger”  arrangement  that  provides  for  the  receipt  of 
payments and benefits only in the event of (i) a change in 
control of the Company and (ii) a qualifying termination 
of employment. To comply with the Ordinance against 
excessive  compensation  in  stock  exchange  listed 
companies in Switzerland (the “Minder Ordinance”) by 
the end of calendar year 2015, we will be terminating 

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2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

such  arrangements  for  executive  officers  that  are 
members  of  our  Group  Management  Team  (Messrs. 
Darrell, Pilette, Stolk and Sullivan).

	No  Stock  Option  Repricing  –  We  do  not  reprice 
options  to  purchase  our  registered  shares  without 
stockholder approval.

 Reasonable  Change  of  Control  Arrangements  – 
The  post-employment  compensation  arrangements 
for  our  executive  officers  provide  for  amounts  and 
multiples that we believe are within reasonable market 
norms. 

 Prohibition  on  Hedging  and  Pledging  –  Under 
our  Insider  Trading  Policy,  we  prohibit  our  executive 
officers  from  hedging  any  Company  securities  and 
from pledging any Company securities as collateral for 
a loan. 

 Succession  Planning  –  Our  Board  of  Directors 
reviews on an annual basis our succession strategies 
and plans for our most critical positions. 

What We Do Not Do

	Retirement  Programs  –  Other  than  our  Section 
401(k)  plan  and  our  Swiss  Pension  plan  generally 
available to all employees in the U.S. and Switzerland 
respectively,  we  do  not  offer  defined  benefit  or 
contribution retirement plans or arrangements for our 
executive officers.

	No  Tax  “Gross-Ups”  or  Payments  –  We  do  not 
provide any “gross-ups” or tax payments in connection 
with  any  compensation  element  or  any  excise  tax 
“gross-up”  or  tax  reimbursement  in  connection  with 
any change in control payments or benefits. 

	No Unearned Dividends – We do not pay dividends 
or  dividend  equivalents  on  unvested  or  unearned 
restricted  stock  unit  or  performance-based  restricted 
stock unit awards. 

Say-on-Pay

Logitech has been a leader in providing our shareholders 
with an opportunity for advisory votes on compensation. 
Beginning  in  2009,  Logitech  voluntarily  submitted  its 
compensation  philosophy,  policies,  and  procedures  to 
a  shareholder  advisory  vote.  Our  voluntary  practice  is 
now  a  requirement  under  U.S.  legislation  that  provides 
shareholders  the  ability  to  periodically  cast  advisory 
votes  on  executive  compensation,  and  is  reflected  in 
the  proposals  for  our  2015  Annual  General  Meeting. 
We  remain  committed  to  providing  clear  and  thorough 
disclosure on our executive compensation practices and 
actions, and our Compensation Committee will carefully 
consider the voting results.

Beginning  this  year,  in  compliance  with  the  Minder 
Ordinance,  we  are  also  instituting  binding  shareholder 
votes  on  the  aggregate  compensation  amounts  for  our 
directors  and  for  members  of  our  Group  Management 
Team  consistent  with  the  compensation  structure  that 
shareholders approved in amendments to our Articles of 
Incorporation at our 2014 Annual General Meeting.

At  our  2014  Annual  General  Meeting,  more  than  81% 
of  the  votes  cast  on  our  annual  Say-on-Pay  proposal 
supported  our  named  executive  officer  compensation 
program.  The  Compensation  Committee  was  mindful 
of  shareholder  support  for  our  pay-for-performance 
compensation  philosophy  in  maintaining  our  general 
compensation  practices  and  setting  fiscal  year  2015 
compensation  for  our  executive  officers.  For  more 
information  regarding  our  annual  Say-on-Pay  proposal 
for  fiscal  year  2015,  see  Proposal  2  –  Advisory  vote  to 
approve executive compensation.

 – Proxy Statement  |  62

2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

Compensation Philosophy and Guiding Principles 

We  have  designed  our  executive  compensation 
program to:

•	 Provide  compensation  sufficient  to  attract  and  retain 
the  level  of  talent  needed  to  create  and  manage  an 
innovative,  high  growth  global  company  in  highly 
competitive and rapidly evolving markets;

•	 Support a performance-oriented culture; 

•	 Maintain  a  balance  between  fixed  and  variable 
compensation  and  place  a  significant  portion  of 
total  compensation  at  risk  based  on  the  Company’s 
performance,  while  maintaining  controls  over 
inappropriate  risk-taking  by  factoring  in  both  annual 
and long-term performance;

•	 Provide a balance between short-term and long-term 

objectives and results;

•	 Align  executive  compensation  with  shareholders’ 
interests by tying a significant portion of compensation 
to increasing share value; and

•	 Reflect  the  executive’s  role  and  past  performance 
through  base  salary  and  short-term  cash  incentives, 
and his or her potential for future contribution through 
long-term equity incentive awards.

However,  while  compensation  is  a  central  part  of 
attracting, retaining, and motivating the best executives 
and employees, we believe it is not the sole or exclusive 

Compensation-Setting Process

Role of the Compensation Committee

The  Compensation  Committee,  among 
its  other 
responsibilities,  establishes  our  overall  compensation 
philosophy  and  reviews  and  approves  our  executive 
program, 
specific 
the 
compensation 
officers.  The 
compensation 
our 
of 
to 
Compensation  Committee  has 

including 
executive 

the  authority 

reason why exceptional executives or employees choose 
to  join  and  stay  at  Logitech,  or  why  they  work  hard  to 
achieve results for our shareholders. In this regard, both 
the Compensation Committee and management believe 
that  providing  a  working  environment  and  opportunities 
in which executives and employees can develop, express 
their individual potential, and make a difference are also 
a key part of Logitech’s success in attracting, motivating, 
and retaining executives and employees.

The Compensation Committee periodically reviews and 
analyzes  market  trends  and  the  prevalence  of  various 
compensation  delivery  vehicles  and  adjusts  the  design 
and  operation  of  our  executive  compensation  program 
from time to time as it deems necessary and appropriate. 
In  designing  and  implementing  the  various  elements  of 
our executive compensation program, the Compensation 
Committee  considers  market  and  industry  practices, 
as  well  as  our  compensation  structure’s  tax  efficiency 
and  its  impact  on  our  financial  condition.  While  the 
Compensation Committee considers all of these factors 
in its deliberations, it places no formal weighting on any 
one factor.

The  Compensation  Committee 
our 
compensation  philosophy  and  program  objectives 
as  circumstances  require.  At  a  minimum,  we  expect 
the  Compensation  Committee 
to  review  executive 
compensation annually. 

evaluates 

retain  special  counsel  and  other  advisors,  including 
compensation  consultants,  to  assist  in  carrying  out 
its  responsibilities.  The  Compensation  Committee’s 
authority,  duties,  and  responsibilities  are  described  in 
its  charter,  which  is  reviewed  annually  and  updated  as 
warranted.    The  charter  is  available  on  our  Company 
website at ir.logitech.com.

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2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

While  the  Compensation  Committee  determines  our 
overall  compensation  philosophy  and  approves  the 
compensation  of  our  executive  officers,  it  relies  on  its 
compensation  consultants  and  legal  counsel,  as  well 
as  our  CEO,  our  CFO,  our  Vice  President  of  People  & 
Culture, and our compensation department to formulate 
recommendations with respect to specific compensation 
actions.  The  Compensation  Committee  makes  all  final 
decisions  regarding  executive  compensation,  including 
base salary levels, target annual cash bonus opportunities, 
actual cash bonus payments, and long-term incentives in 
the form of equity awards. The Compensation Committee 
meets on a regularly-scheduled basis and at other times 
as  needed.  The  Compensation  Committee  periodically 
reviews compensation matters with our Board of Directors. 
The chair of the Compensation Committee reports to the 
Board of Directors on the activities of the Compensation 
Committee at quarterly board meeting and the minutes of 
the Compensation Committee meetings are available to 
the members of the Board of Directors. 

At  the  beginning  of  each  year,  the  Compensation 
Committee reviews our executive compensation program 
to assess whether our compensation elements, actions, 
and  decisions  (i)  are  properly  coordinated,  (ii)  are 
aligned  with  our  vision,  mission,  values,  and  corporate 
goals, (iii) provide appropriate short-term and long-term 
incentives  for  our  executive  officers,  (iv)  achieve  their 
intended  purposes,  and  (v)  are  competitive  with  the 
compensation  of  executives  in  comparable  positions 
at  the  companies  with  which  we  compete  for  executive 
talent.  Following  this  assessment,  the  Compensation 
Committee  makes  any  necessary  or  appropriate 
modifications to our existing plans and arrangements or 
adopts new plans or arrangements.  

The Compensation Committee also conducts an annual 
review  of  our  executive  compensation  strategy 
to 
ensure that it is appropriately aligned with our business 
strategy  and  achieving  our  desired  objectives.  Further, 

the  Compensation  Committee  reviews  market  trends 
and changes in competitive compensation practices, as 
further described below. 

The factors considered by the Compensation Committee 
in determining the compensation of our executive officers 
for fiscal year 2015 included:

•	 Each individual executive’s performance;

•	 Each 

individual  executive’s  skills,  experience, 

qualifications and marketability;

•	 The  Company’s  performance  against  financial  goals 

and objectives;

•	 The Company’s performance relative to both industry 

competitors and its compensation peer group;

•	 The  positioning  of  the  amount  of  each  executive’s 

compensation in a ranking of peer compensation;

•	 The  compensation  practices  of  the  Company’s  peer 

group; and

•	 The recommendations of our CEO (except with respect 
to his own compensation and the compensation of our 
Executive Chairman) as described below.

The  Compensation  Committee  did  not  weight  these 
factors  in  any  predetermined  or  formulaic  manner  in 
making its decisions. The members of the Compensation 
Committee  considered  this  information  in  light  of  their 
individual  experience,  knowledge  of  the  Company, 
knowledge  of  each  executive  officer,  knowledge  of  the 
competitive  market,  and  business  judgment  in  making 
their  decisions  regarding  executive  compensation  and 
our executive compensation program.

As  part  of  this  process,  our  Executive  Chairman  works 
closely with the Compensation Committee in determining 
the  compensation  of  our  CEO.  The  Compensation 
Committee,  in  consultation  with  the  non-employee 
members  of  the  Board  of  Directors,  also  evaluates 
the  performance  of  our  Executive  Chairman  and  our 

 – Proxy Statement  |  64

2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

CEO  each  year  and  makes  all  decisions  regarding 
their  base  salary  adjustments,  target  annual  cash 
bonus  opportunities,  actual  cash  bonus  payments,  and 
long-term  incentives  in  the  form  of  equity  awards.  Our 
Executive Chairman and our CEO are not present during 
any of the deliberations regarding their compensation.

Role of our CEO

Our CEO works closely with the Compensation Committee 
in determining the compensation of our other executive 
officers,  excluding  our  Executive  Chairman.    Typically, 
our  CEO  works  with  the  Compensation  Committee  to 
recommend the structure of the annual bonus plan, and 
to identify and develop corporate performance objectives 
for such plan, and to evaluate actual performance against 
the selected measures. 

these 

At  the  beginning  of  each  year,  our  CEO  reviews  the 
prior  year’s  performance  of  our  executive  officers  who 
report  to  him  and  then  makes  recommendations  to 
the  Compensation  Committee  for  each  element  of 
compensation.  Using  his  evaluation  of  each  executive 
officer’s  performance  and  taking  into  consideration 
historical compensation awards to our executive officers 
and  our  corporate  performance  during  the  preceding 
year, 
recommendations  cover  base  salary 
adjustments,  target  annual  cash  bonus  opportunities, 
actual  bonus  payments,  and  long-term  incentives  in 
the  form  of  equity  awards  for  each  of  our  executive 
officers (other than himself and our Executive Chairman) 
based  on  our  results,  the  individual  executive  officer’s 
contribution to these results, and his or her performance 
toward achieving his or her individual performance goals.  
The  Compensation  Committee  then  reviews  these 
recommendations and makes decisions as to the target 
total  direct  compensation  of  each  executive  officer,  as 
well as each individual compensation element.

While the Compensation Committee considers our CEO’s 
recommendations,  as  well  as  the  competitive  market 
analysis prepared by its compensation consultant, these 

recommendations and market data serve as only two of 
several  factors  in  making  its  decisions  with  respect  to 
the  compensation  of  our  executive  officers.    Ultimately, 
the  Compensation  Committee  applies  its  own  business 
judgment  and  experience  to  determine  the  individual 
compensation  elements  and  amount  of  each  element 
for our executive officers. Moreover, no executive officer 
participates  in  the  determination  of  the  amounts  or 
elements of his or her own compensation. 

Role of Compensation Consultants

Pursuant  to  its  charter,  the  Compensation  Committee 
has  the  authority  to  engage  its  own  legal  counsel  and 
other advisors, including compensation consultants, as it 
determines in its sole discretion, to assist in carrying out 
its responsibilities. The Compensation Committee makes 
all  determinations  regarding  the  engagement,  fees, 
and  services  of  these  advisors,  and  any  such  advisor 
reports  directly  to  the  Compensation  Committee.  The 
Compensation Committee may replace its compensation 
consultant or hire additional advisors at any time.

to 

fiscal  year  2015,  pursuant 

In 
this  authority, 
the  Compensation  Committee  engaged  national 
compensation  consulting  firms  Radford  for  the  majority 
of  fiscal  year  2015  and  Compensia,  Inc.,  in  December 
2014. The Compensation Committee also engaged Swiss 
compensation consulting firm Agnès Blust Consulting in 
September 2014. The Compensation Committee engages 
compensation  consultants 
information, 
analysis,  and  other  assistance  relating  to  our  executive 
compensation program on an ongoing basis. The nature 
and scope of the services provided to the Compensation 
Committee by the independent compensation consultants 
in fiscal year 2015 were as follows:

to  provide 

•	 reviewed  and 

recommended  updates 

to 

the 

compensation peer group;

•	 provided  advice  with  respect  to  compensation  best 
practices and market trends for executive officers and 
members of our Board of Directors;

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2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

consulting  services.  The  majority  of  these  additional 
services  consisted  of  activities  Radford  or  Aon  Hewitt 
have provided to Logitech for several years, and include 
the  purchase  of  Radford’s 
industry  compensation 
surveys, the accounting valuations of equity grants, and 
the  calculation  of  PSU  grant  performance.  Compensia 
and Agnès Blust Consulting have not provided any other 
services to us and have received no compensation other 
than with respect to the services described above.

Compensation Peer Group 

As part of its deliberations, the Compensation Committee 
considers  competitive  market  data  on  executive 
compensation levels and practices and a related analysis 
of  such  data.  This  data  is  drawn  from  a  select  group 
of  peer  companies  developed  by  the  Compensation 
Committee, as well as compensation survey data.

Fiscal Year 2015 Compensation Peer Group

For  fiscal  year  2015,  the  Compensation  Committee 
directed  its  compensation  consultant  to  formulate  a 
group of peer companies to be used as a reference for 
market positioning and for assessing competitive market 
practices.  The  compensation  consultant  undertook  a 
detailed review of the pool of U.S.-based publicly-traded 
companies,  taking  into  consideration  involvement  in 
the  PC-based  consumer  electronics  industry,  revenues 
approximately  equal  to  Logitech’s  and  a  presence  near 
Silicon Valley in the San Francisco Bay Area. Although we 
are a Swiss company, we primarily compete for executive 
management  talent  with  technology  companies  in  the 
United  States,  and  particularly  in  the  high-technology 
area of Silicon Valley. 

•	 conducted  an  analysis  of 

levels  of  overall 
compensation and each element of compensation for 
of our executive officers;

the 

•	 conducted  an  analysis  of 

levels  of  overall 
compensation and each element of compensation for 
the members of our Board of Directors; and

the 

•	 provided  legislative  updates  and  ad  hoc  advice  and 

support throughout the year. 

The 
independent  compensation  consultants  attend 
Compensation  Committee  meetings  as  requested  and 
also  communicate  with  the  Compensation  Committee 
outside  of  meetings.  The  compensation  consultants 
report  to  the  Compensation  Committee  rather  than  to 
management,  although  the  compensation  consultants 
typically meet with members of management, including our 
CEO and members of our executive compensation staff, 
for purposes of gathering information on proposals that 
management may make to the Compensation Committee. 

the 
The  Compensation  Committee  has  assessed 
independence  of  the  compensation  consultants  taking 
into account, among other things, the six independence 
related factors as set forth in Exchange Act Rule 10C-1 
issued  by  the  SEC  under  the  Dodd-Frank  Act  and  the 
enhanced independence standards and factors set forth 
in  the  applicable  listing  standards  of  the  Nasdaq  Stock 
Market, and has concluded that its relationship with each 
independent  compensation  consultant  and  the  work  of 
each of them on behalf of the Compensation Committee 
has not raised any conflict of interest.

Logitech  paid  fees  of  less  than  $200,000  to  various 
divisions  and  subsidiaries  of  Aon  Corporation 
for 
to  executive  compensation 
services  not 

related 

 – Proxy Statement  |  66

2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

Following this review, the Compensation Committee approved the following peer group to consist of 15 publicly-traded 
companies for fiscal year 2015:

Adobe Systems Incorporated
Autodesk, Inc.
Brocade Communications Systems, Inc.
Electronic Arts, Inc.
Garmin Ltd.

Intuit, Inc.
Lexmark International, Inc.
NETGEAR, Inc.
Nuance Communications, Inc.
NVIDIA Corporation

Plantronics, Inc.
Polycom, Inc.
SanDisk Corporation
Trimble Navigation Limited
VeriFone Systems, Inc.

Following is the peer group financial data as reflected at the time the fiscal year 2015 executive compensation review 
was performed:

(in millions)
75th Percentile
50th Percentile
25th Percentile
Logitech
Percentile Rank

Revenues
$ 3,933.9
2,287.0
1,804.1
2,093.5
33%

Market 
Capitalization
$10,601.4
8,245.8
2,790.3
2,520.1
22%

Revenue reflects most recently available four quarters as of March 2014 and market capitalization as of February 7, 
2014, as provided by Radford.

the 
This  compensation  peer  group  was  used  by 
Compensation  Committee 
its 
in  connection  with 
annual  review  of  our  executive  compensation  program 
in  fiscal  year  2015.  Specifically,  the  Compensation 
Committee  reviewed  the  compensation  data  drawn 
from the compensation peer group, in combination with 
industry-specific  compensation  survey  data,  to  develop 
a  subjective  representation  of  the  “competitive  market” 

with  respect  to  current  executive  compensation  levels 
and  related  policies  and  practices.  The  Compensation 
Committee then evaluated how our pay practices and the 
compensation levels of our executive officers compared 
to the competitive market. As part of this evaluation, the 
Compensation Committee also reviewed the performance 
measures and performance goals generally used within 
the competitive market to reward performance.

Fiscal Year 2016 Compensation Peer Group

In fiscal year 2015, looking forward to fiscal year 2016, the compensation consultant evaluated the existing compensation 
peer group and used the criteria set forth in the following table to objectively identify companies for inclusion in our 
compensation peer group for fiscal year 2016:

Criteria
Industry

Financial Scope

Other Factors

Rationale

We compete for talent with companies in the following industries:
•	 Technology
•	 Consumer Products
Our Named Executive Officer compensation should be similar to senior managers at 
companies that have comparable financial characteristics including revenues and market 
capitalization
As appropriate, utilize additional refinement criteria (objective or subjective) such as revenue 
growth, profitability, valuation, headcount, business model

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2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

Based  on  these  criteria,  the  Compensation  Committee  selected  the  following  peer  group  of  16  publicly-traded 
companies, which the Compensation Committee subsequently approved and considered when making compensation 
decisions toward the end of fiscal year 2015 and with respect to setting compensation for fiscal year 2016:

Belden Inc.
Brocade Communications Systems, Inc.
Diebold, Incorporated
Garmin Ltd.
GoPro, Inc.
Hasbro, Inc.

JDS Uniphase
Knowles Corporation
Lexmark International, Inc.
NETGEAR, Inc.
Plantronics, Inc.

Polycom, Inc.
Synaptics Inc.
Trimble Navigation Limited
VeriFone Systems, Inc.
Zebra Technologies Corporation

Following is the fiscal 2016 peer group financial data as of March 2015:

(in millions)
75th Percentile
50th Percentile
25th Percentile
Logitech
Percentile Rank

Revenues
$ 2,514
1,804
1,325
2,137
58%

Market 
Capitalization
$ 5,288
3,384
2,166
2,423
30%

Revenue reflects most recently available four quarters as of March 3, 2015 and 30-day average market capitalization 
as of March 3, 2015, as provided by Compensia.

The Compensation Committee believes that information 
regarding the compensation practices at other companies 
is useful in at least two respects. First, the Compensation 
Committee  recognizes  that  our  compensation  policies 
and  practices  must  be  competitive  in  the  marketplace. 
Second,  this  information  is  useful  in  assessing  the 

reasonableness  and  appropriateness  of 
individual 
executive  compensation  elements  and  of  our  overall 
executive  compensation  packages.  This  information 
is  only  one  of  several  factors  that  the  Compensation 
Committee  considers,  however,  in  making  its  decisions 
with respect to the compensation of our executive officers. 

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2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

Compensation Elements 

The  three  primary  elements  of  our  executive  compensation  programs  are:  (1)  base  salary,  (2)  annual  cash  bonus 
opportunities, and (3) long-term incentives in the form of equity awards, as described below: 

Compensation Element
Base salary

Annual cash bonuses

What This Element Rewards

•	 Individual 

performance, 
expected 

level 
future 

experience, 

of 
performance and contributions.

•	 Achievement 

of 

pre-established 
corporate performance objectives (for 
fiscal  year  2015,  focused  on  growing 
revenue  and  profitability),  as  well  as 
management objectives and individual 
contributions.

Purpose and Key Features of  
Element
•	 Provides  competitive 

level  of 

fixed 
compensation determined by the market 
value  of  the  position,  with  actual  base 
salaries  established  based  on  the  facts 
and  circumstances  of  each  executive 
officer and each individual position.

•	 Motivates  executive  officers  to  achieve 

above target performance

•	 Generally, 

performance 

levels 
incentivize  our 
to 
are  established 
executive  officers  to  achieve  or  exceed 
performance  objectives.  For  fiscal  year 
2015, payouts for corporate performance 
objectives could range from 0% to 200%, 
depending on actual achievement.

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2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

Compensation Element
Long-term incentives/equity 
awards

What This Element Rewards
•	 Achievement of corporate performance 
objectives designed to enhance long-
term  shareholder  value  and  attract, 
retain, motivate, and reward executive 
officers 
periods 
over 
for  achieving 
important  corporate 
objectives.

extended 

Purpose and Key Features of  
Element
•	 Provide  a  variable 

risk”  pay 
opportunity  that  aligns  executive  and 
shareholder  interests  through  annual 
equity  awards  that  vest  over  multiple 
years. 

“at 

•	 Because  the  ultimate  value  of  these 
equity  awards  is  directly  related  to  the 
market  price  of  our  registered  shares, 
and  the  awards  are  only  earned  over 
an  extended  period  of  time  subject  to 
vesting, they serve to focus management 
on the creation and maintenance of long-
term shareholder value.

•	 Performance-based 

equity 

links 
compensation  to  key  financial  metrics, 
such  as  growth  and  profitability,  that 
requires  strong  performance  for  target 
or any substantial vesting to occur, and 
provides  an  extraordinary  payout 
if 
performance  significantly  exceeds  that 
of the objective or the benchmark group. 

Our  executive  officers  also  participate  in  the  standard 
employee benefit plans available to most of our employees. 
In addition, during fiscal year 2015, our executive officers 
were eligible for post-employment (severance or change 
in control or both) payments and benefits under certain 
circumstances. Each of these compensation elements is 
discussed in greater detail below, including a description 
of the particular elements and how each element fits into 
our  overall  executive  compensation  and  a  discussion 
of  the  amounts  of  compensation  paid  to  our  executive 
officers in fiscal year 2015 under each of these elements. 

•	 Vesting requirements promote retention.

Base Salary 

We believe that a competitive base salary is a necessary 
element  of  our  executive  compensation  program,  so 
that  we  can  attract  and  retain  a  stable  management 
team.  Base  salaries  for  our  executive  officers  are  also 
intended to be competitive with those received by other 
individuals  in  similar  positions  at  the  companies  with 
which we compete for talent, as well as equitable across 
the executive team. 

Generally,  we  establish  the  initial  base  salaries  of  our 
executive officers through arm’s-length negotiation at the 
time  we  hire  the  individual  executive  officer,  taking  into 

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2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

account  his  or  her  position,  qualifications,  experience, 
prior salary level, competitive and market considerations, 
and the base salaries of our other executive officers. 

Thereafter,  the  Compensation  Committee  reviews  the 
base  salaries  of  our  executive  officers  annually  and 
makes adjustments to base salaries as it determines to 
be necessary or appropriate. 

In  fiscal  year  2015,  the  Compensation  Committee 
reviewed  the  base  salaries  of  our  executive  officers, 
taking  into  consideration  a  competitive  market  analysis 
performed by the then current compensation consultant, 
the  scope  of  each  executive  officer’s  role,  and  the 

Named Executive Officer
Guerrino De Luca
Bracken Darrell
Vincent Pilette
Marcel Stolk

L. Joseph Sullivan

The  base  salaries  of  our  executive  officers  during 
fiscal  year  2015  are  set  forth  in  the  “2015  Summary 
Compensation Table” below.

Annual Cash Bonuses 

We use annual bonuses to motivate our executive officers to 
achieve our short-term financial and operational objectives 
while making progress towards our longer-term growth and 
other  goals.  Consistent  with  our  executive  compensation 
philosophy, these annual bonuses are intended to help us 
to deliver a competitive total compensation opportunity to 
our  executive  officers.  Annual  cash  bonuses  are  entirely 
performance-based,  are  not  guaranteed,  and  may  vary 
materially from year-to-year. 

Typically, the Compensation Committee establishes cash 
bonus  opportunities  pursuant  to  a  formal  cash  bonus 
plan  that  measures  and  rewards  our  executive  officers 

recommendations of our CEO (except with respect to his 
own  base  salary  and  the  base  salary  of  our  Executive 
Chairman), as well as the other factors described above. 
Following  this  review,  the  Compensation  Committee 
set  the  base  salaries  of  our  executive  officers  at  levels 
that  it  believed  were  appropriate  to  maintain  their 
competitiveness. In review of Mr. Darrell’s compensation, 
the Compensation Committee decided to provide a base 
salary  increase  to  Mr.  Darrell  to  bring  his  target  cash 
compensation in line with the CEOs in our compensation 
peer group. The  base salaries of our executive officers 
for fiscal year 2015 were as follows: 

Fiscal Year 2015 
Base Salary
$500,000
$825,000
$500,000
CHF 523,510

Fiscal Year 2014 
Base Salary
$500,000
$750,000
$500,000
CHF 513,000

Percentage 
Adjustment
0%
10%
0%
2%

$427,500

$415,000

3%

for our actual corporate and their individual performance 
over our fiscal year. The cash bonus plan is designed to 
pay  above-target  bonuses  when  we  exceed  our  annual 
corporate  objectives  and  below-target  bonuses  or  no 
bonus when we do not achieve these objectives.

In  fiscal  year  2015,  the  Compensation  Committee 
determined  cash  bonus  opportunities  for  our  executive 
officers pursuant to the cash bonus plan for fiscal year 
2015  under  the  Logitech  Management  Performance 
Bonus  Plan  (the  “Bonus  Plan”).  Under  the  Bonus  Plan, 
the Compensation Committee had the authority to select 
the  performance  measures  and  related  target  levels 
applicable to the annual cash bonus opportunities for our 
executive officers. 

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2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

Target Bonus Opportunities

For fiscal year 2015, the target annual cash bonus opportunities for each of our executive officers under the Bonus 
Plan, expressed as a percentage of his or her annual base salary, were as follows:

Named Executive Officer
Guerrino De Luca
Bracken Darrell
Vincent Pilette
Marcel Stolk

L. Joseph Sullivan

Annual Base 
Salary
$500,000
$825,000
$500,000
CHF 523,510

$427,500

Target Bonus 
Opportunity  
(as a percentage of 
base salary)
100%
125%
80%
80%

75%

Target Bonus 
Opportunity ($)

$500,000
$1,031,250
$400,000
CHF 418,808

$320,625

In  setting  the  amount  of  the  target  incentive,  the 
Compensation Committee takes into account competitive 
market data and the individual’s role and contribution to 
performance. In review of Mr. Darrell’s compensation, the 
Compensation Committee decided to increase his bonus 
target opportunity for fiscal year 2015 from 100% to 125% 
of base salary to bring his target cash compensation in 
line with the CEOs in our compensation peer group. No 
changes were made to target bonus opportunities for the 
rest of the executive officers for fiscal year 2015.

most  directly  influences  long-term  shareholder  value. 
The  Compensation  Committee  established 
target 
performance levels for each of these measures at levels 
that it believed to be challenging, but attainable, through 
the successful execution of our Board approved annual 
operating plan. 

the  corporate 
For  purposes  of 
performance measures were to be calculated as follows:

the  Bonus  Plan, 

•	 “Revenue” meant Net Sales; and

Corporate Performance Objectives

For  purposes  of  the  Bonus  Plan,  the  Compensation 
Committee selected Revenue and Non-GAAP Operating 
Income  as  the  corporate  performance  measures.  Each 
of  these  corporate  performance  measures  was  equally 
weighted.  The  Compensation  Committee  believed 
these  performance  measures  were  appropriate  for  our 
business  because  they  provided  a  balance  between 
generating revenue, managing our expenses, increasing 
profitability, and growing our business, which it believes 

•	 “Non-GAAP  Operating 

Income, 

Income”  meant  GAAP 
Operating 
share-based 
excluding 
compensation  expense,  amortization  of  other 
intangible  assets,  restructure  charges  (credits),  other 
restructuring-related  charges,  investment  impairment 
(recovery),  benefit  from  (provision  for)  income  taxes, 
one-time special charges and other items.

The minimum, target, and maximum levels of achievement 
for  each  corporate  performance  measure  and  their 
respective payment levels were as follows:

Corporate Performance 
Measure
Revenue
Non-GAAP Operating Income

Threshold 
Performance 
Level
97%
95%

Threshold 
Payment 
Level
25%
50%

Target 
Performance 
Level
100%
100%

Target 
Payment 
Level
100%
100%

Maximum 
Performance 
Level
108%
146%

Maximum 
Payment 
Level
200%
200%

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2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

For any bonus payment to be made under the fiscal year 
2015 Bonus Plan, the minimum performance requirements 
must  both  be  met  for  each  of  the  plan  metrics.  In  the 
event of actual performance between the threshold and 
target,  and  target  and  maximum,  performance  levels, 
the payment amount was to be calculated between each 
designated segment on a linear basis.

Corporate Performance Measure
Revenue
Non-GAAP Operating Income

Individual and Business Group Performance 

For executive officers who are business group or regional 
leaders we factor in metrics with respect to their areas of 
responsibility, all of which the Compensation Committee 
believes  are  critical  to  driving  long-term  shareholder 
value. As a result, Mr. Stolk’s annual bonus was based 
50%  on  achievement  of  the  corporate  performance 
measures  described  above  and  50%  on  measures 
specific  to  the  performance  of  the  business  group  for 
which he is responsible. 

The Compensation Committee established the following 
target  levels  for  each  of  the  corporate  performance 
measures under the Bonus Plan: 

Weighting
50%
50%

Fiscal Year 2015 
Target Level
$2.18B
$153M

In addition to the corporate performance objectives, 25% 
of  the  annual  cash  bonuses  for  our  executive  officers, 
other than our CEO and our Executive Chairman, could 
be adjusted based on each executive officer’s individual 
performance  and  other  exogenous  factors  as  reviewed 
and assessed by our CEO. 

2015 Performance Results and Bonus Decisions

For  fiscal  year  2015,  the  Compensation  Committee 
determined that our actual achievement with respect to 
the corporate financial objectives under the Bonus Plan 
was as follows: 

Corporate Performance Measure
Revenue
Non-GAAP Operating Income
Weighted Result

Weighting
50%
50%

Fiscal Year 2015 
Target Level
$2.18B
$153.0M

Fiscal Year 2015 
Actual Result
$2.16B(1)
$191.1M

Fiscal Year 2015  
Funding 
Percentage
72%
154%
113%

(1)  Measured  in  “constant  currency”  sales,  which  excludes  the  impact  of  currency  exchange  rate  fluctuations. 
Constant currency sales are calculated by translating sales in each local currency at the current period’s average 
exchange rate for that currency. For additional information regarding “constant currency” sales, please refer to the 
section entitled Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 
Annual Report.

Historically  we  have  measured  our  annual  performance 
results  in  U.S.  Dollars  which  have  included  normal 
currency fluctuations, however, for fiscal year 2015, based 
on  the  unusual  and  unprecedented  level  of  currency 
fluctuation  during  the  second  half  of  the  2015  fiscal 
year  and  our  strong  performance,  the  Compensation 
Committee exercised its discretion and approved the fiscal 
year 2015 revenue results using constant currency which 

is  a  common  approach  among  many  other  companies 
and is how we will measure revenue performance going 
forward  under  the  Bonus  Plan.  Currencies  of  many 
countries depreciated significantly against the dollar in the 
fourth quarter of fiscal year 2015, including by up to 17% in 
Euro-based countries, far beyond the normal fluctuations. 
Based on management’s recommendation and consistent 
with the presentation of our financial results to investors, 

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2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

the  constant  currency  adjustment  was  made  only  to  the 
revenue metric and not to the non-GAAP operating income 
performance  measure.  The  Compensation  Committee 
determined  that,  based  on  our  actual  performance 
with  respect  to  each  corporate  performance  measure 
on  a  constant  currency  sales  basis,  as  applicable,  the 
corporate  performance  objectives  had  been  achieved, 
in  the  aggregate,  at  a  113%  level.  Based  on  our  CEO’s 
review of individual performance for fiscal year 2015, the 
CEO  recommended,  and  the  Compensation  Committee 
agreed and determined, that Mr. Pilette receive an annual 
incentive at 140% of target. The Compensation Committee 
determined that this bonus amount appropriately reflected 
not  only  Mr.  Pilette’s  strong  performance  in  reducing 
operating  expenses,  and  contributing  to  the  good  113% 
performance of the company, but also the additional and 
highly  intensive  tasks  of  leading  and  helping  to  resolve 
the  Company’s  internal  accounting  investigation  and 

Named Executive Officer
Guerrino De Luca
Bracken Darrell
Vincent Pilette
Marcel Stolk

L. Joseph Sullivan

The annual cash bonuses paid to our executive officers 
for  fiscal  2015  are  set  forth  in  the  “2015  Summary 
Compensation Table” below.

Long-Term Incentive Compensation 

We  use  long-term  incentive  compensation  in  the  form 
of  equity  awards  to  motivate  our  executive  officers  by 
providing  them  with  the  opportunity  to  build  an  equity 
interest  in  the  Company  and  to  share  in  the  potential 
appreciation  of  the  value  of  our  registered  shares.  We 
primarily  use  restricted  stock  unit  (“RSU”)  awards  that 
may  be  settled  for  shares  of  our  common  stock  as  the 

restatement  of  financial  statements  based  on  issues 
that  predated  his  tenure,  reorganizing  and  enhancing 
the  finance  and  accounting  organization  to  remediate 
material  weaknesses  that  also  predated  his  tenure,  and 
assisting with the transition to new auditors upon PwC’s 
independence issue to preserve the Company’s ability to 
file its fiscal year 2014 and 2015 periodic reports. 

Mr. Stolk received an annual incentive at 121% of target 
based  on  achievement  of  the  corporate  performance 
measures  described  above  and  business  group 
performance for which he is responsible.

Based on its review of our overall corporate and business 
group  performance,  and  taking  into  account  the  CEO’s 
recommendations with respect to individual performance 
for  the  executive  officers  other  than  himself  and  the 
Executive  Chairman,  the  Compensation  Committee 
approved  bonus  payments  as  follows  for  our  executive 
officers for fiscal year 2015: 

Target Annual 
Cash Bonus 
Opportunity
$500,000
$1,031,250
$400,000
CHF 418,808

Actual Annual 
Cash Bonus 
Payment

$565,000
$1,165,313
$560,000
CHF 506,758

Percentage of  
Target Annual  
Cash Bonus  
Opportunity
113%
113%
140%
121%

$320,625

$362,306

113%

principal  vehicles  for  delivering  long-term  incentive 
compensation  opportunities  to  our  executive  officers. 
The  Compensation  Committee  views  equity  awards, 
whether  the  awards  are  subject  to  time-based  vesting 
requirements or are to be earned based on the attainment 
of specific performance objectives, as inherently variable 
since the grant date fair value of these awards may not 
necessarily be indicative of their value when, and if, our 
registered  shares  underlying  these  awards  are  ever 
earned  or  purchased.  The  Compensation  Committee 
further  believes  these  awards  enable  us  to  attract  and 
retain key talent in our industry and aligns our executive 

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2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

officers’  interests  with  the  long-term  interests  of  our 
shareholders. The Compensation Committee uses RSUs 
because they are less dilutive than stock options. 

At the beginning of fiscal year 2015, the Compensation 
Committee  approved  equity  awards  for  four  of  our 
executive  officers  in  recognition  of  our  financial  results 
and  each  executive  officer’s  individual  performance 
for fiscal year 2014. In determining the amount of each 
executive  officer’s  equity  award,  the  Compensation 
Committee took into consideration the recommendations 
of our CEO (except with respect to his own equity award 
and  the  Executive  Chairman’s  equity  award),  as  well 
as  the  factors  described  above.  The  Compensation 
Committee  considers  the  dilutive  effect  of  our  long-
term  incentive  compensation  practices,  and  the  overall 
impact  that  these  equity  awards,  as  well  as  awards  to 
other  employees,  will  have  on  shareholder  value.  The 
Compensation  Committee  also  considered  the  existing 
equity  holdings  of  each  executive  officer,  including  the 
current economic value of their unvested equity awards 
and the ability of these unvested holdings to satisfy our 
retention objectives. 

The Compensation Committee did not grant an award to 
our CFO, Mr. Pilette, at the beginning of fiscal year 2015 
since he had recently joined the company and received a 
new-hire grant at the start of his employment in September 
2013. In March 2015, based on Mr. Pilette’s extraordinary 
performance  during  fiscal  year  2015  and  taking  into 
consideration Mr. Pilette’s unvested equity at the time of 
the grant and the competitive market for strong CFOs in 
Silicon  Valley,  the  Compensation  Committee  approved 

an equity award for Mr. Pilette for fiscal year 2015. Due 
to  the  timing  of  Mr.  Pilette’s  award,  the  Compensation 
Committee structured the grant consistent with the PSU 
structure  approved  by  the  Compensation  Committee 
for  fiscal  year  2016  including  a  second  financial  metric 
to  the  PSU  awards.  The  Compensation  Committee 
believes that measuring a company’s performance with 
multiple  metrics  will  provide  a  more  complete  picture 
of  the  Company’s  performance.  Mr.  Pilette’s  PSU  grant 
was  based  on  two  performance  measures  –  50%  on 
Logitech’s  relative  TSR  described  below  and  50%  on 
achievement  of  a  Non-GAAP  Operating  Margin  metric. 
Under  this  portion  of  the  award,  100%  of  the  shares 
will be earned when Logitech achieves a targeted level 
of  Non-GAAP  Operating  Margin  over  four  consecutive 
trailing quarters in a three-year performance period. The 
award  will  vest  annually  over  three  years;  however,  no 
shares will vest until we have achieved the targeted Non-
GAAP Operating Margin. 

The  equity  awards  for  our  executive  officers  were 
composed  of  60%  performance-based  RSUs  (“PSUs”) 
and  40%  time-based  RSUs  that  may  be  settled  for  our 
registered  shares,  except  for  Mr.  Pilette,  who  received 
his  award  as  50%  PSUs  and  50%  time-based  RSUs. 
During  fiscal  year  2015,  as  part  of  the  Compensation 
Committee’s risk analysis, it determined that certain roles 
within our finance department, including our CFO, should 
receive  more  of  their  equity  in  time-based  RSUs  than 
awards  based  on  financial  results.  The  equity  awards 
granted to our executive officers in fiscal year 2015 were 
as follows:

Named Executive Officer
Guerrino De Luca
Bracken Darrell
Vincent Pilette
Marcel Stolk
L. Joseph Sullivan

Performance Share Units
Grant Date 
Number of 
Fair Value
Shares 
19,608
$255,884
$2,639,493
202,260
$1,369,910
110,210
$496,383
38,037
$324,553
25,635

Restricted Stock Units

Number of 
Shares
13,072
134,840
110,210
25,358
17,090

Grant Date 
Fair Value
$171,505
$1,769,101
$1,331,337
$329,714
$221,049

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2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

Performance Share Units

The  PSU  awards  granted  to  our  executive  officers  in 
fiscal year 2015 were subject to Logitech’s relative total 
shareholder return (“TSR”) versus the TSR of companies 
included in the Nasdaq-100 Index.

The PSUs are “at-risk” compensation because Logitech’s 
relative total shareholder return performance must be at 
or  above  the  minimum  threshold  percentile  against  the 
Nasdaq-100 Index over the performance period of three 
years  in  order  for  the  executive  to  receive  any  shares 
from  the  PSU  grant.  If,  at  the  end  of  the  performance 
period,  threshold  performance  is  achieved,  the  number 
of shares in which the executive officer vests is pro-rated 
according to performance.

The  Compensation  Committee  believes  this  measure 
reflects Logitech’s operational and financial performance, 
because it focuses on relative performance against other 
mid- to large-size technology companies.

For  purposes  of  the  PSUs,  relative  TSR  reflects  (i)  the 
aggregate  change  in  the  30-day  average  closing  of 
Logitech shares against the companies in the Nasdaq-100 
Index, and (ii) the value (if any) returned to shareholders in 
the form of dividends or similar distributions, assumed to 
be reinvested in shares when paid, each at the beginning 
and the end of a three-year performance period.

The vesting structure of the PSUs granted in fiscal year 
2015 is summarized in the table below:

Percentile Rank of Logitech TSR Against Nasdaq-100 Index TSR
Below 30th Percentile Rank (threshold)
30th Percentile Rank
50th Percentile Rank (target)
75th Percentile Rank and Above (maximum)

Percentage of
Shares that Vest

0%
50%
100%
150%

The vested percentage attributable to a TSR Percentile 
Rank between the 30th and 50th percentiles, or between 
the  50th  and  75th  percentiles,  will  be  determined  by 
straight-line interpolation.

Restricted Stock Unit Awards

The  RSU  awards  granted  to  our  executive  officers  in 
fiscal  year  2015  were  subject  to  a  time-based  vesting 
requirement and have our typical four-year vesting period 
which vest in four equal annual installments based on the 
continued service of the executive officer on each such 
vesting date.

Welfare and Health Benefits 

We maintain a tax-qualified retirement plan under Section 
401(k) of the Internal Revenue Code of 1986, as amended 
(the “Code”), for our employees in the U.S., including our 
executive officers, that provides them with an opportunity 
to  save  for  retirement  on  a  tax-advantaged  basis.  We 
intend for this plan to qualify under Sections 401(a) and 
501(a) of the Code so that contributions by employees to 
the plan, and income earned on plan contributions, are 
not taxable to employees until distributed from the plan. 
In  addition,  all  contributions  are  deductible  by  us  when 
made.

The  equity  awards  granted  to  our  executive  officers  in 
fiscal  year  2015  are  set  forth  in  the  “2015  Summary 
Compensation  Table”  and  the  “2015  Grants  of  Plan-
Based Awards Table” below.

All  participants’  interests  in  their  deferrals  are  100% 
vested  when  contributed  under  the  plan.  In  fiscal  year 
2015,  we  made  matching  contributions  into  the  Section 
401(k)  plan  for  our  employees,  including  our  executive 

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2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

officers.  Under  the  plan,  pre-tax  contributions  are 
allocated  to  each  participant’s  individual  account  and 
are  then  invested  in  selected  investment  alternatives 
according to the participants’ directions. 

subsidiary  in  the  United  States,  who  earn  more  than  a 
threshold amount the opportunity to defer U.S. taxes on 
up  to  80%  of  their  base  salary  and  up  to  90%  of  their 
bonus or commission compensation. 

In  compliance  with  the  Swiss  federal  pension  law,  we 
maintain a Cash Balance pension plan for our employees 
in  Switzerland,  including  Mr.  Stolk,  with  employee  and 
employer  contributions  which  provides  benefits  in  case 
of retirement and death and disability due to sickness.

In  addition,  we  provide  other  benefits  to  our  executive 
officers on the same basis as all of our full-time employees. 
These benefits include health, dental and vision benefits, 
health  and  dependent  care  flexible  spending  accounts, 
short-term and long-term disability insurance, accidental 
death  and  dismemberment  insurance,  and  basic  life 
insurance  coverage.  We  provide  vacation  and  other 
paid  holidays  to  all  employees,  including  our  executive 
officers. We also offer our employees the opportunity to 
participate  in  the  Logitech  Employee  Share  Purchase 
Plans. 

We  design  our  employee  benefits  programs  to  be 
affordable  and  competitive  in  relation  to  the  market,  as 
well as compliant with applicable laws and practices. We 
adjust our employee benefits programs as needed based 
on  regular  monitoring  of  applicable  laws  and  practices, 
the competitive market and our employees’ needs.

Deferred Compensation Plan

Eligible  employees,  including  our  executive  officers 
based in the United States, are also eligible to participate 
in the Logitech Inc. Deferred Compensation Plan and a 
predecessor  plan,  which  are  unfunded  and  unsecured 
plans that allow employees of Logitech Inc., the Logitech 

Under  the  plan,  compensation  may  be  deferred  until 
termination  of  employment  or  other  specified  dates 
chosen  by  the  participants,  and  deferred  amounts  are 
credited with earnings based on investment benchmarks 
chosen  by  the  participants  from  a  number  of  mutual 
funds selected by Logitech Inc.’s Deferred Compensation 
Committee. The earnings credited to the participants are 
intended  to  be  funded  solely  by  the  plan  investments. 
Logitech  does  not  make  contributions  to  this  plan. 
Information  regarding  executive  officer  participation  in 
the  deferred  compensation  plans  can  be  found  in  the 
Non-Qualified  Deferred  Compensation  for  Fiscal  Year 
2015 table and the accompanying narrative below.

Because  the  listed  officers  do  not  receive  preferential 
or  above-market  rates  of  return  under  the  deferred 
compensation  plan,  earnings  under  the  plan  are  not 
included  in  the  Summary  Compensation  table,  but  are 
included  in  the  “Non-Qualified  Deferred  Compensation 
Table” below.

Perquisites and Other Personal Benefits

program. 

Currently,  we  do  not  view  perquisites  or  other  personal 
benefits  as  a  significant  component  of  our  executive 
compensation 
Logitech’s 
executive  officer  benefit  programs  are  substantially 
the  same  as  for  all  other  eligible  employees.  All  future 
practices  with  respect  to  perquisites  or  other  personal 
benefits will be approved and subject to periodic review 
by the Compensation Committee.

Accordingly, 

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2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

Employment Arrangements

We  have  extended  written  employment  agreements  or 
offer  letters  or  both  to  each  of  our  executive  officers, 
including our CEO and our other executive officers. Each 
of  these  arrangements  was  approved  on  our  behalf  by 
our Board of Directors or the Compensation Committee, 
as applicable. We believe that these arrangements were 
appropriate  to  induce  these  individuals  to  forego  other 
employment opportunities or leave their current employer 
for the uncertainty of a demanding position in a new and 
unfamiliar organization. 

In filling these executive positions, our Board of Directors 
or  the  Compensation  Committee,  as  applicable,  was 
aware  that  it  would  be  necessary  to  recruit  candidates 
with  the  requisite  experience  and  skills  to  manage  a 
growing business in a dynamic environment. Accordingly, 
it  recognized  that  it  would  need  to  develop  competitive 

Post-Employment Compensation

All  named  executive  officers  are  eligible  to  receive 
benefits  under  certain  conditions  in  accordance  with 
Logitech’s  Change  of  Control  Severance  Agreement 
(“Change  of  Control  Agreement”),  as  described  in 
the  section  “Potential  Payments  Upon  Termination  or 
Change in Control” below. These Agreements are being 
reviewed by the Compensation Committee with respect 
to compliance with the Minder Ordinance by the end of 
calendar year 2015.

The purpose of the Change of Control Agreements is to 
support retention in the event of a prospective change of 
control. Should a change of control occur, benefits will be 
paid after a “double trigger” event – meaning that there 
has  been  both  a  change  of  control,  and  the  executive 
is  terminated  without  cause  or  resigns  for  good  reason 
within 12 months thereafter – as described in “Potential 
Payments Upon Termination or Change in Control” below. 
The  RSU  and  PSU  award  agreements  for  executive 
officers generally provide for the acceleration of vesting 

compensation  packages  to  attract  qualified  candidates 
in  a  highly-competitive  labor  market.  At  the  same  time, 
our Board of Directors or the Compensation Committee, 
as  applicable,  was  sensitive  to  the  need  to  integrate 
new executive officers into the executive compensation 
structure that it was seeking to develop, balancing both 
competitive and internal equity considerations. 

Each of these employment arrangements provides for “at 
will”  employment  and  sets  forth  the  initial  compensation 
arrangements for the Named Executive Officer, including 
an  initial  base  salary,  a  target  annual  cash  bonus 
opportunity,  and,  in  some  instances,  a  recommendation 
for an equity award. 

For  a  summary  of  the  material  terms  and  conditions  of 
the employment arrangements with each of our executive 
officers, see “Employment Arrangements” below.

of the RSUs and PSUs subject to the award agreements 
under the same circumstances and conditions as under 
the Change of Control Agreements; namely, if the named 
executive officer is subject to an involuntary termination 
within 12 months after a change of control because his 
or  her  employment  is  terminated  without  cause  or  the 
executive resigns for good reason (a “double trigger”). 

In the event of an involuntary termination within 12 months 
after a change of control with respect to awards granted 
before fiscal year 2015:

•	 All  unvested  shares  subject  to  the  RSUs  will  vest  in 
full.  100%  of  the  shares  subject  to  the  PSUs  will  vest 
if the change of control occurred within 1 year after the 
grant date of the PSUs. If the change of control occurs 
more than 1 year after the grant date of the PSUs, the 
number of shares subject to the PSU that will vest will be 
determined by applying the performance criteria under 
the PSUs as if the performance period had ended on 
the date of the change of control. 

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2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

In  the  event  of  an  involuntary  termination  within  12 
months after a change of control with respect to awards 
granted in April and May 2014:

agreements,  the  Compensation  Committee  considered 
the circumstances of each type of severance, the impact 
on shareholders, and market practices.

•	 No acceleration of any unvested RSUs or PSUs.

In  the  event  of  an  involuntary  termination  within  12 
months after a change of control with respect to awards 
granted in March 2015 or later:

•	 All RSUs and PSUs containing time-based elements 
would accelerate in full with respect to shares that are 
subject  to  time-based  vesting.  No  shares  subject  to 
RSUS or PSUs containing performance-based vesting 
requirements would accelerate.

To  determine  the  level  of  benefits  to  be  provided 
under  each  change  of  control  agreement  and  other 

Other Compensation Policies

Stock Ownership Policy

We  believe  that  stock  ownership  by  our  directors  and 
executive  officers  is  important  to  link  the  risks  and 
rewards inherent in stock ownership of these individuals 
and  our  shareholders.  The  Compensation  Committee 

Named Executive Officer
Chief Executive Officer
Chief Financial Officer
Other Executive Officers

Logitech  does  not  provide  any  payments  to  reimburse 
its  executive  officers  for  additional  taxes  incurred  (also 
known  as  “gross-ups”)  in  connection  with  a  change  of 
control. 

Our  CEO  and  CFO  have  severance  arrangements 
from  their  original  offer  letters.  Mr.  Pilette’s  severance 
arrangement  will  phase  out  in  calendar  year  2015.  For 
a  summary  of  the  post-employment  compensation 
arrangements  with  our  executive  officers,  see  “—
Potential  Payments  upon  Termination  or  Change  in 
Control” below.

has adopted a stock ownership policy that requires our 
executive  officers  to  own  a  minimum  number  of  our 
registered  shares.  These  mandatory  ownership  levels 
are intended to create a clear standard that ties a portion 
of these individuals’ net worth to the performance of our 
stock price. The current ownership levels are as follows:

Minimum Required Level of 
Stock Ownership
5x Base Salary
3x Base Salary
2x Base Salary

Equity interests that count toward the satisfaction of the 
ownership  guidelines  include  shares  owned  outright  by 
the  executive  officer  and  50%  of  vested,  unexercised 
stock  options.  Newly  hired  or  promoted  executives 
have five years from the date of the commencement of 
their  appointment  to  attain  these  ownership  levels.  The 
CEO  must  hold  100%  of  his  after-tax  shares  until  the 
ownership  requirements  are  met.  The  other  executive 
officers must hold at least 50% of their after-tax shares 
until the ownership requirements are met. If an executive 

officer  does  not  meet  the  applicable  guideline  by  the 
end  of  the  five-year  period,  the  executive  officer  will 
have 50% of the after-tax value of any earned bonuses 
under the Leadership Team Bonus Program paid in fully 
vested Logitech shares. Our CEO and each of our other 
executive  officers  have  either  currently  satisfied  his  or 
her  required  stock  ownership  levels  or  have  remaining 
time to achieve the required levels of ownership. 

79  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

Additionally, we have instituted stock ownership guidelines 
for our non-employee directors. For information regarding 
these  guidelines,  see  the  section  entitled  “Security 
Ownership - Share Ownership Guidelines” above. 

•	 makes  an  unauthorized  disclosure  of  any  Logitech 

trade secret or confidential information; or

•	 induces  any  customer 

to  breach  a  contract 

with Logitech.

Any  decision  to  suspend  or  cause  a  forfeiture  of  any 
award held by an executive officer under the 2006 Stock 
Incentive Plan or the Management Performance Bonus 
Plan is subject to the approval of the Board of Directors. 
The Compensation Committee will amend the policy, as 
necessary, to comply with the final SEC rules regarding 
claw-back  policies  required  by  the  Dodd-Frank  Wall 
Street Reform and Consumer Protection Act.

Equity Award Grant Practices 

Determination of long-term equity incentive awards

is 

responsible 

The  Compensation  Committee 
for 
approving  which  executive  officers  should  receive 
equity  incentive  awards,  when  the  awards  should  be 
made,  the  vesting  schedule,  and  the  number  of  shares 
or other rights to be granted. Long-term equity incentive 
awards to executive officers may be granted only by the 
Compensation Committee or the full Board of Directors. 
The  Compensation  Committee  regularly  reports  its 
activity, including approvals of grants, to the Board.

Timing of grants

Long-term  equity  incentive  award  grants  to  executive 
officers  are  typically  and  predominantly  approved  at 
regularly  scheduled,  predetermined  meetings  of  the 
Compensation Committee. These meeting are generally 
scheduled at least 18 months in advance and take place 
before the regularly scheduled, predetermined meetings 
of  the  full  Board.  On  limited  occasions,  grants  may  be 
approved  at  an  interim  meeting  of  the  Compensation 
Committee  or  by  written  consent,  for  the  purpose  of 
approving  the  hiring  and  compensation  package  for 
newly hired or promoted executives. 

Compensation Recovery Policy 

In June 2010, the Compensation Committee adopted a 
policy  regarding  the  recovery  of  compensation  paid  to 
an  executive  officer  or  the  principal  accounting  officer 
of the Company (a “clawback”). Under the terms of the 
policy  we  may  recover  bonus  amounts,  equity  awards 
or  other  incentive  compensation  awarded  or  paid 
within  the  prior  three  years  to  a  covered  officer  if  the 
Compensation Committee determines the compensation 
was based on any performance goals that were met or 
exceeded as a result, in whole or in part, of the officer’s 
fraud  or  misconduct,  or  the  officer  knew  at  the  time  of 
the  existence  of  fraud  or  misconduct  that  resulted  in 
performance goals being met or exceeded, and a lower 
amount would otherwise have been awarded or paid to 
the  officer.  In  addition,  under  the  policy  Logitech  may 
recover gains realized on the exercise of stock options or 
on the sale of vested shares by an executive officer or the 
principal accounting officer if, within three years after the 
date of the gains or sales, Logitech discloses the need for 
a significant financial restatement, other than a financial 
restatement  solely  because  of  revisions  to  U.S.  GAAP, 
and  the  Compensation  Committee  determines  that  the 
officer’s fraud or misconduct caused or partially caused 
the need for the restatement, or the covered officer knew 
at the time of the existence of fraud or misconduct that 
resulted in the need for such restatement.

In  addition,  our  2006  Stock  Incentive  Plan  and  our 
Management  Performance  Bonus  Plan  provide  that 
awards under the plans are suspended or forfeited if the 
plan participant, whether or not an executive officer:

•	 has  committed  an  act  of  embezzlement,  fraud  or 

breach of fiduciary duty;

 – Proxy Statement  |  80

2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

In  fiscal  year  2015,  grants  were  made  to  new  hires 
and  promoted  employees  through  regularly  scheduled 
monthly  written  consents  of 
the  Compensation 
Committee. We do not have any program, plan, or practice 
to select equity compensation grant dates in coordination 
with  the  release  of  material  non-public  information,  nor 
do  we  time  the  release  of  information  for  the  purpose 
of affecting value. We do not backdate options or grant 
options retroactively.

Derivatives Trading, Hedging, and Pledging Policies

We  have  adopted  a  policy  prohibiting  our  employees, 
including  our  executive  officers,  and  members  of 
our  Board  of  Directors  from  speculating  in  our  equity 

Tax and Accounting Considerations 

Deductibility of Executive Compensation

Favorable  accounting  and  tax  treatment  of  the  various 
elements  of  our  compensation  program  is  a  relevant 
consideration  in  their  design.  However,  the  Company 
and the Compensation Committee have placed a higher 
priority on structuring flexible compensation programs to 
promote the recruitment, retention, and performance of 
our officers than on maximizing tax deductibility. Section 
162(m) of the Code, as amended (the “Tax Code”), places 
a limit of $1 million on the amount of compensation that 
Logitech  may  deduct  in  any  one  year  with  respect  to 
certain executive officers. The Compensation Committee 
has the ability through the use of Logitech International 
S.A.  2006  Stock  Incentive  Plan  to  grant  awards  that 
qualify  as  “performance-based  compensation”  exempt 

securities, including the use of short sales, “sales against 
the  box”  or  any  equivalent  transaction  involving  our 
equity securities. In addition, they may not engage in any 
other  hedging  transactions,  such  as  “cashless”  collars, 
forward sales, equity swaps and other similar or related 
arrangements,  with  respect  to  the  securities  that  they 
hold. Finally, no employee, including an executive officer 
or member of our Board of Directors may acquire, sell, or 
trade in any interest or position relating to the future price 
of our equity securities. 

We also have adopted a policy prohibiting the pledging of 
our securities by our employees, including our executive 
officers, and members of our Board of Directors.

from that $1 million limitation but, to maintain flexibility in 
compensating  executive  officers  in  a  manner  designed 
to  promote  varying  corporate  goals,  the  Compensation 
Committee  has  not  adopted  a  policy  requiring  all 
compensation to be deductible, and has in the past and 
will in the future make compensation awards that do not 
qualify to be exempt from the $1 million limitation when 
it believes that it is appropriate to meet its compensation 
objectives.

In  addition  to  considering  the  tax  consequences,  the 
Compensation  Committee  considers  the  accounting 
consequences,  including  the  impact  of  the  Financial 
Accounting  Standard  Board’s  Accounting  Standards 
Codification Section 718, on its decisions in determining 
the forms of different equity awards.

81  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

Compensation Risks Assessment

Since  March  2010,  the  Compensation  Committee  has 
conducted an annual review, with the assistance of the 
Compensation  Committee’s  independent  compensation 
consultant,  of  Logitech’s  compensation  programs 
to  assess  the  risks  associated  with  their  design  and 
associated risk controls. The Compensation Committee 
reviews 
following  compensation 
the 
in  particular 
programs and associated practices:

•	 Equity  grants  made  under 

the  2006  Stock 

Incentive Plan.

•	 Management Performance Bonus Plan.

•	 Employee Performance Bonus Plan.

•	 Sales Commission Plans.

•	 Change of Control Agreements.

As  in  past  years,  based  on  the  March  2015  review, 
the  Compensation  Committee  has  concluded  that  our 
compensation policies and practices do not create risks 
that  are  reasonably  likely  to  have  a  material  adverse 
effect on the Company.

 – Proxy Statement  |  82

2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

Report of the Compensation Committee

The Logitech Compensation Committee, which is composed solely of independent members of the Logitech Board 
of Directors, assists the Board in fulfilling its responsibilities with regard to compensation matters. The Compensation 
Committee has reviewed and discussed the “Compensation Discussion and Analysis” section of this Compensation 
Report with management. Based on this review and discussion, the Compensation Committee recommended to the 
Board of Directors that the Compensation Discussion and Analysis be included in Logitech’s 2015 Invitation and Proxy 
Statement and Annual Report.

Compensation Committee

Sally Davis, Chairman 
Matthew Bousquette 
Neil Hunt 
Monika Ribar

83  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

Summary Compensation Table for Fiscal Year 2015

The following table provides information regarding the compensation and benefits earned during fiscal years 2015, 
2014, and 2013 by our named executive officers. For more information, please refer to “Compensation Disclosure and 
Analysis,” as well as “Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards Table.”

Salary
($)
500,000
500,000

500,000

825,000

750,000

Year
FY15
FY14

FY13

FY15

FY14

Bonus
($)

—
460,000

Stock
Awards
($)(1)
427,389
2,684,200

Option
Awards
($)(1)

—
—

Non-equity
Incentive Plan
Compensation
($)(2)
565,000
575,000

—

—

335,400

—

— 4,408,594

— 3,279,270

—

—

1,165,313

862,500

FY13

735,577

—

803,000

4,840,000

—

FY15

FY14

500,000

286,538

— 2,701,247

— 5,067,550

FY15

FY14

564,558

345,091

826,097

535,714

— 1,100,100

FY15

FY14

427,500

415,000

FY13

402,000

—

—

—

545,602

733,400

258,390

580,500

—

—

—

—

—

—

560,000

512,000

546,492

589,643

362,306

385,950

—

Changes in
Nonqualified
Deferred
Compensation
Earnings  
($)
—
—

All Other
Compensation
($)(3)
18,994
15,764

—

—

—

—

—

—

—

—

—

—

—

31,314

27,531

13,767

226,164

16,816

2,673

104,583

105,517

17,687

14,418

12,358

Total
($)
1,511,383
4,234,964

866,714

6,426,438

4,905,537

6,604,741

3,778,063

5,868,761

2,386,821

2,330,974

1,353,095

1,548,768

1,253,248

Name and Principal 
Position
Guerrino De Luca(4)
Chairman of 
the Board 

Bracken Darrell(5)
President and 
Chief Executive 
Officer 
Vincent Pilette(6)

Chief Financial 
Officer
Marcel Stolk(7)
Senior Vice 
President, CCP 
Business Group

L. Joseph Sullivan
Senior Vice 
President, 
Worldwide 
Operations

(1)  These amounts do not represent the actual economic value realized by the named executive officer. Under SEC 
rules, the values reported in the “Stock Awards” and “Option Awards” columns reflect the aggregate grant date 
fair value of grants stock awards and stock options to each of the listed officers in the fiscal years shown. The 
key assumptions and methodology of valuation of stock awards and stock options are presented in Note 4 to the 
Consolidated Financial Statements included in Logitech’s Annual Report to Shareholders.

For FY15: The amount shown includes an aggregate grant date fair value of the shares issuable for PSUs granted 
in fiscal year 2015 at target achievement. Assuming the highest level of performance is achieved, the maximum 
possible value of the PSUs allocated in FY15, using the market value of our shares on the grant date of the PSUs, 
was: (a) in the case of Mr. De Luca, $402,062; (b) in the case of Mr. Darrell, $4,147,341; (c) in the case of Mr. Pilette 
$1,851,528; (d) in the case of Mr. Stolk, $779,949; and (e) in the case of Mr. Sullivan, $518,509.

For FY14: The amount shown includes an aggregate grant date fair value of the shares issuable for PSUs granted 
in fiscal year 2014 at target achievement. Assuming the highest level of performance is achieved, the maximum 
possible value of the PSUs allocated in FY14, using the market value of our shares on the grant date of the PSUs, 
was: (a) in the case of Mr. De Luca, $315,450; (b) in the case of Mr. Darrell, $2,839,050; (c) in the case of Mr. Stolk, 
$946,350; and (d) in the case of Mr. Sullivan, $630,900.

 – Proxy Statement  |  84

2015 Annual General Meeting Invitation, Proxy Statement 
 
Compensation Report for Fiscal Year 2015 

(2)  Except as noted below, reflects amounts earned under the Logitech Management Performance Bonus Plan. This 
non-equity incentive plan compensation was earned during the applicable fiscal year but, for executive officers, 
was  paid  during  the  next  fiscal  year  in  accordance  with  the  terms  of  the  Logitech  Management  Performance 
Bonus  Plan.  For  fiscal  year  2015,  based  on  the  unexpected  and  unprecedented  level  of  currency  fluctuation 
during the second half of the fiscal year, the Compensation Committee exercised discretion and approved the 
fiscal year 2015 revenue metric results with respect to the Bonus Plan using constant currency. Other than that 
adjustment, the bonus payments for fiscal year 2015 followed the fiscal year 2015 bonus program under the Bonus 
Plan established by the Compensation Committee at the beginning of the fiscal year.

(3)  Details regarding the various amounts included in this column are provided in the following table entitled “All Other 

Compensation.”

(4)  Mr. De Luca received a bonus of $460,000 and an RSU grant of 250,000 shares in fiscal year 2014 in recognition 

for his service as Logitech’s acting Chief Executive Officer from July 2011 through January 2013.

(5)  Mr. Darrell joined the Company as President on April 9, 2012 and was appointed as Chief Executive Officer of the 

Company effective January 1, 2013.

(6)  Mr. Pilette joined the Company as Chief Financial Officer on September 3, 2013.

(7)  Mr. Stolk was designated as an executive officer in September 2013. Mr. Stolk’s fiscal year 2015 compensation 
amounts in Swiss Francs were converted using the 12 month average (April 2014 to March 2015) exchange rate 
of  1  Swiss  Franc  to  1.0784  U.S.  Dollars.  Mr.  Stolk’s  fiscal  year  2014  compensation  amounts  in  Swiss  Francs 
were converted using the 12 month average (April 2013 to March 2014) exchange rate of 1 Swiss Franc to 1.13 
U.S. Dollars. In January 2015, Mr. Stolk received a special retention bonus of CHF320,000 (or $345,091 in U.S. 
Dollars) in recognition of his leadership role in helping transform Logitech.

85  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

ALL OTHER COMPENSATION TABLE

Car
Use or
Service
($)(1)

Tax
Preparation
Services
($)

Name
Guerrino De Luca

Year
FY15
FY14

—
—

Bracken Darrell

Vincent Pilette

Marcel Stolk

L. Joseph Sullivan

FY13 15,882

FY15
FY14

FY13

FY15

FY14

FY15

FY14

FY15
FY14

FY13

—
—

—

—

—

—

—

—
—

—

—
—

—

12,181
1,525

—

—

—

—

—

—
—

—

Group
Term Life
Insurance
($)
11,194
8,114

7,932

6,791
4,592

3,321

2,946

942

—

—

9,592
6,768

4,858

Relocation
or Travel
in lieu of
Relocation
($)(3)

—
—

—

—
—

202,780

1,672

—

—

—

—
—

—

401(k)
($)(2)
7,800
7,650

7,500

8,559
7,650

5,063

8,473

1,731

—

—

7,673
7,650

7,500

Premium for
Deferred
Compensation
Insurance
($) 
—
—

—

—
—

—

—

—

—

—

—
—

—

Defined
Benefit
Pension
Plan
Employer
Contrib.
($)(4)

—
—

—

—
—

Other
Awards
($)(5)

Total
($)

— 18,994
— 15,764

— 31,314

— 27,531
— 13,767

— 15,000 226,164

—

—

104,583

105,517

—
—

—

3,725

16,816

—

2,673

— 104,583

— 105,517

422

17,687
— 14,418

— 12,358

(1)  Represents  the  cost  to  Logitech  of  $15,882  in  fiscal  year  2013  related  to  Mr.  De  Luca’s  occasional  use  of  a 

company car and driver to and from work.

(2)  Represents 401(k) savings plan matching contributions, which are available to all of our regular employees who 

are on our U.S. payroll.

(3)  Represents costs associated with the reimbursement of expenses for Mr. Darrell’s relocation from Switzerland to 
the United States in fiscal year 2013, including airfare, home purchase and sales assistance, tax advice assistance, 
moving costs, temporary living benefits and other costs.

(4)  Represents the matching contributions to the Logitech Employee Pension Fund in Switzerland for Mr. Stolk, which 

are available to all of the Company’s similarly-situated regular employees who are on its Swiss payroll.

(5) 

In the case of Mr. Darrell, for fiscal year 2013, this represents a lump sum payment of $15,000, net of taxes, to be 
applied towards attorney’s fees associated with review of his offer of employment.

 – Proxy Statement  |  86

2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

Grants of Plan-Based Awards Table for Fiscal Year 2015

The  following  table  sets  forth  certain  information  regarding  grants  of  plan-based  awards  to  each  of  our  executive 
officers during fiscal year 2015. For more information, please refer to “Compensation Disclosure and Analysis.”

Estimated Future Payouts
Under Non-Equity
Incentive Plan Awards(1)

Estimated Future Payouts 
Under Equity Incentive Plan 
Awards 

Grant Date
(MM/DD/YY)

Approval
Date

Threshold
($)

Target
($)

Maximum
($)

Actual
($)(2)

Threshold
(#)

Target
(#)

Maximum
(#)

All
Other
Stock
Awards:
Number
of Shares
of Stock 
or Units
(#)(3) 

Grant
Date
Fair
Value
($)(4)

04/15/14

04/15/14

04/15/14

04/15/14

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

13,072 

171,505 

9,804 

19,608 

29,412 

— 

255,884 

N/A 

N/A 

187,500 

500,000  1,000,000  565,000 

04/15/14

04/15/14

04/15/14

04/15/14

— 

— 

— 

— 

— 

— 

— 

— 

—

— 

—

— 

—

— 

—

—

134,840  1,769,101 

101,130 

202,260 

303,390 

—  2,639,493 

N/A 

N/A 

386,719  1,031,250  2,062,500  1,165,313 

03/25/15

03/25/15

03/25/15

03/25/15

03/25/15

03/25/15

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

N/A 

N/A 

150,000 

400,000 

800,000  560,000 

04/15/14

04/15/14

04/15/14

04/15/14

— 

— 

— 

— 

— 

— 

— 

— 

N/A 

N/A 

169,366 

451,643 

903,285  546,492 

04/15/14

04/15/14

05/14/14

05/14/14

04/15/14

04/15/14

05/14/14

05/14/14

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

—

—

110,210  1,331,337 

27,553 

55,105 

55,105 

82,658 

55,105 

55,105 

— 

— 

— 

— 

— 

— 

— 

— 

— 

688,812 

681,098 

—

25,358 

329,714 

19,019 

38,037 

57,056 

— 

496,383 

— 

— 

— 

— 

— 

— 

— 

—

11,890 

155,997 

8,918 

17,835 

26,753 

— 

232,747 

— 

— 

— 

5,200 

3,900 

7,800 

11,700 

65,052 

91,806 

—

— 

— 

Name

Guerrino De Luca

Bracken Darrell

Vincent Pilette

Marcel Stolk

L. Joseph Sullivan

Type

RSU
PSU(5)

FY15 
Bonus

RSU
PSU(5)

FY15 
Bonus

RSU
PSU(5)
PSU(6)

FY15 
Bonus

RSU
PSU(5)

FY15 
Bonus(7)

RSU
PSU(5)

RSU
PSU(5)

FY15 
Bonus

N/A 

N/A 

120,234 

320,625 

641,250  362,306 

— 

— 

— 

(1)  The amounts in these columns reflect potential payouts with respect to each applicable performance period for 
the fiscal year 2015 bonus programs under the Bonus Plan described in “Compensation Discussion and Analysis” 
above.

(2)  Except  as  noted  below,  the  amounts  in  this  column  reflect  actual  payouts  with  respect  to  each  applicable 
performance period for the fiscal year 2015 bonus programs under the Bonus Plan. The actual payout amounts 
are reflected in the Non-Equity Incentive Plan Compensation column of the Summary Compensation Table for 
fiscal year 2015. For fiscal year 2015, based on the unexpected and unprecedented level of currency fluctuation 
during the second half of the fiscal year, the Compensation Committee exercised discretion and approved the 
fiscal year 2015 revenue metric results with respect to the Bonus Plan using constant currency. Other than that 
adjustment, the bonus payments for fiscal year 2015 followed the fiscal year 2015 bonus program under the Bonus 
Plan established by the Compensation Committee at the beginning of the fiscal year.

(3)  RSUs vest at a rate of 25% per year over four years, on each yearly anniversary of the grant date.

87  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy Statement 
 
 
Compensation Report for Fiscal Year 2015 

(4)  These amounts do not represent the actual economic value realized by the named executive officer. Amounts 
in this column represent the grant date fair value of RSUs calculated in accordance with Accounting Standards 
Codification  (ASC)  718  but  does  not  include  any  reduction  for  estimated  forfeitures.  For  performance-based 
RSUs (“PSUs”) based on Total Shareholder Return (“TSR”), that number is calculated by multiplying the value 
determined using the Monte Carlo method by the target number of units awarded. For RSUs and PSUs based on 
Non-GAAP Operating Income Margin, that number calculated based on the closing price of Logitech shares on 
the grant date multiplied by the number of shares granted, adjusted for dividend yield. The key assumptions for 
the valuation of the PSUs are presented in Note 4 to the Consolidated Financial Statements included in Logitech’s 
Annual Report to Shareholders and Annual Report on Form 10-K for fiscal year 2015.

(5)  Represents  PSUs  based  on  TSR.  All  shares  subject  to  the  PSU  vesting  conditions  are  unvested.  The  actual 
amount, if any, of shares that will vest under the PSU grants will not be known until March 31, 2017. The actual 
amount,  if  any,  that  may  vest  depends  on  Logitech’s  TSR  performance  versus  the  Nasdaq-100  Index  TSR 
benchmark over the performance period.

(6)  Represents PSUs based on Non-GAAP Operating Income Margin. All shares subject to the PSU vesting conditions 
are unvested. The actual amount, if any, of shares that will vest under the PSU grants will not be known until 
March 31, 2017. The actual amount, if any, may vest depends on the achievement of a target level of Non-GAAP 
Operating Income Margin.

(7)  Mr. Stolk’s bonus amounts were converted using the 12 month average (April 2014 to March 2015) exchange rate 

of 1 Swiss Franc to 1.0784 U.S. Dollars.

Narrative Disclosure to Summary Compensation Table and Grants of 
Plan-Based Awards Table

Employment Agreements and Offer Letters

Performance-Based Vesting Conditions

We  have  entered  into  employment  agreements  or  offer 
letters  with  each  of  our  named  executive  officers.  The 
employment  agreements  and  offer  letters  generally 
provide  that  the  compensation  of  the  named  executive 
officer is subject to the sole discretion of the Compensation 
Committee or the Board of Directors. The compensation 
earned  by  the  named  executive  officers  in  fiscal  year 
2015 was not the result of any terms of their employment 
agreements or offer letters.

Please refer to “Compensation Disclosure and Analysis—
Elements  of  Compensation—Performance-based  cash 
incentive  awards”  for  a  discussion  of  the  performance 
measures  applicable  to  the  Bonus  Plan  during  fiscal 
year  2015.  In  addition,  please  refer  to  “Compensation 
Disclosure  and  Analysis—Compensation  Elements—
Long-Term  Incentive  Compensation”  for  a  discussion 
of  performance  measures  under  the  PSUs  granted  to 
executive officers during fiscal year 2015. 

 – Proxy Statement  |  88

2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

Outstanding Equity Awards at Fiscal Year 2015 Year-End Table

following 

table  provides 

information  regarding 
The 
outstanding  equity  awards  for  each  of  our  named 
executive  officers  as  of  March  31,  2015.  This  table 
includes  unexercised  and  unvested  stock  options, 
unexercised  and  unvested  performance  stock  options, 
unvested PSUs, and unvested RSUs.

Unless  otherwise  specified,  options  and  RSUs  vest 
at  a  rate  of  25%  per  year  on  each  of  the  first  four 
anniversaries  of  the  grant  date.  The  market  value  for 
stock  options,  including  Premium  Priced  Options  or 

PPOs  and  Performance  Stock  Options  or  PSOs,  is 
calculated by taking the difference between the closing 
price  of  Logitech  shares  on  the  Nasdaq  Global  Select 
Market on the last trading day of the fiscal year ($13.15 
on  March  31,  2015)  and  the  option  exercise  price,  and 
multiplying  it  by  the  number  of  outstanding  options. 
The market value for stock awards (RSUs and PSUs) is 
determined by multiplying the number of shares subject 
to such awards by the closing price of Logitech shares on 
the Nasdaq Global Select Market on the last trading day 
of the fiscal year.

Option Awards

Stock Awards

Name

Guerrino De Luca

Bracken Darrell

Number of 
Securities 
Underlying 
Unexercised 
Options 
(#) 
Exercisable

Number of 
Securities 
Underlying 
Unexercised 
Options 
(#) 
Unexercisable

Grant Date 
(MM/DD/YY)

04/01/05

04/01/06

04/02/07

04/01/08

04/01/09

01/04/13

04/15/13

04/15/13

10/15/13

04/15/14

04/15/14

Total

04/16/12

04/16/12

04/16/12

04/16/12

04/16/12

04/15/13

04/15/13

04/15/14

04/15/14

200,000

100,000

50,000

15,000

15,000

65,000

— 

— 

— 

— 

— 

445,000

250,000

400,000

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

65,000

— 

— 

— 

— 

— 

65,000

250,000

— 

400,000

400,000

— 

— 

— 

— 

— 

Option 
Exercise 
Price ($) / 
Share

19.07(2)

20.05

27.95

26.67

10.64

7.83

— 

— 

— 

— 

— 

8.03

14.05

16.06

20.08

— 

— 

— 

— 

— 

Number 
of 
Shares or 
Units of 
Stock 
That 
Have Not 
Vested 
(#)

Market 
Value of 
Shares or 
Units of 
Stock 
That 
Have Not 
Vested 
($)

Option 
Expiration 
Date 
(MM/DD/YY)

Market 
Value of 
Unexercised 
Options 
($)

Equity 
Incentive 
Plan 
Awards: 
Number 
of 
Unearned 
Shares, 
Units or 
Other 
Rights 
That 
Have Not 
Vested 
(#)

Equity 
Incentive 
Plan 
Awards: 
Market or 
Payout 
Value of 
Unearned 
Shares, 
Units or 
Other 
Rights 
That 
Have Not 
Vested 
($)(1)

04/01/15

04/01/16

04/02/17

04/01/18

04/01/19

01/04/23

— 

— 

— 

— 

— 

04/16/22

04/16/22

04/16/22

04/16/22

— 

— 

— 

— 

— 

— 

— 

— 

— 

37,650

691,600

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

30,000

394,500

15,000

197,250

125,000

1,643,750

— 

— 

— 

— 

— 

— 

19,608

257,845

13,072

171,897

— 

— 

729,250

153,072

2,012,897

49,608

652,345

2,560,000

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

50,000

657,500

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

270,000

3,550,500

132,750

1,745,663

— 

— 

— 

— 

202,260

2,659,719

134,840

1,773,146

— 

— 

Total

650,000

1,050,000

2,560,000

317,590

4,176,309

472,260

6,210,219

89  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

Option Awards

Stock Awards

Name

Vincent Pilette

Marcel Stolk

L. Joseph Sullivan

Number of 
Securities 
Underlying 
Unexercised 
Options 
(#) 
Exercisable

Number of 
Securities 
Underlying 
Unexercised 
Options 
(#) 
Unexercisable

Option 
Exercise 
Price ($) / 
Share

Option 
Expiration 
Date 
(MM/DD/YY)

Market 
Value of 
Unexercised 
Options 
($)

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

112,500

112,500

7.46(3)

01/04/23

1,280,250

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

Grant Date 
(MM/DD/YY)

09/15/13

03/25/15

03/25/15

03/25/15

Total

01/04/13

01/04/13

04/15/13

04/15/13

04/15/14

04/15/14

Equity 
Incentive 
Plan 
Awards: 
Number 
of 
Unearned 
Shares, 
Units or 
Other 
Rights 
That 
Have Not 
Vested 
(#)

Equity 
Incentive 
Plan 
Awards: 
Market or 
Payout 
Value of 
Unearned 
Shares, 
Units or 
Other 
Rights 
That 
Have Not 
Vested 
($)(1)

— 

— 

— 

— 

Number 
of 
Shares or 
Units of 
Stock 
That 
Have Not 
Vested 
(#)

Market 
Value of 
Shares or 
Units of 
Stock 
That 
Have Not 
Vested 
($)

116,666

1,534,158

110,210

1,449,262

— 

— 

— 

— 

55,105

55,105

724,631

724,631

226,876

2,983,419

110,210

1,449,262

— 

11,000

45,000

— 

— 

— 

144,650

591,750

— 

— 

— 

— 

— 

— 

— 

— 

90,000

38,037

1,183,500

500,187

25,358

333,458

— 

— 

Total

112,500

112,500

1,280,250

81,358

1,069,858

128,037

1,683,687

11/02/05

03/23/06

10/02/06

10/02/07

10/01/08

12/12/08

06/29/09

04/11/11

01/04/13

01/04/13

04/15/13

04/15/13

04/15/14

04/15/14

05/14/14

05/14/14

25,000

25,000

22,500

50,000

50,000

25,000

48,750

— 

— 

— 

— 

— 

— 

— 

— 

— 

112,500

112,500

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

20.25

19.96

21.61

30.09

22.59

13.48

14.02

— 

7.83

— 

— 

— 

— 

— 

— 

— 

10/24/15

03/23/16

10/02/16

10/02/17

10/01/18

12/12/18

06/29/19

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

4,000

52,600

01/04/23

1,197,000

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

11,000

144,650

— 

— 

60,000

789,000

30,000

394,500

— 

— 

— 

— 

17,835

234,530

11,890

156,354

— 

— 

— 

— 

7,800

102,570

5,200

68,380

— 

— 

Total

358,750

112,500

1,197,000

62,090

816,484

85,635

1,126,100

(1)  The  actual  conversion,  if  any,  of  the  PSUs  granted  in  each  of  fiscal  years  2012,  2014  and  2015  into  Logitech 
shares following the conclusion of the 3-year performance period will range between 50% and 150% of that target 
amount, depending upon Logitech’s TSR performance versus the Nasdaq-100 index TSR benchmark over the 
performance period.

(2)  The exercise price of the option as granted (as split-adjusted) is 18.55 Swiss Francs per share and 19.07 US 
Dollars per share. Amounts in Swiss Francs were converted using the exchange rate of 1 Swiss Franc to 1.0283 
U.S. Dollars as of March 31, 2015.

 – Proxy Statement  |  90

2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

Option Exercises and Stock Vested Table for Fiscal Year 2015

The following table provides the number of shares acquired and the value realized upon exercise of stock options and 
the vesting of RSUs during fiscal year 2015 by each of our named executive officers. No shares resulted from PSUs 
whose performance period ended during fiscal year 2015 because the minimum performance condition was not met.

Name
Guerrino De Luca
Bracken Darrell
Vincent Pilette
Marcel Stolk
L. Joseph Sullivan

Option Awards

Stock Awards

Number of 
Shares 
Acquired 
on Exercise 
(#)
—
—
—
—
—

Value 
Realized 
on Exercise 
($)(1)
—
—
—
—
—

Number Of 
Shares 
Acquired 
on Vesting 
(#)
130,000
69,250
253,334
26,000
29,500

Value 
Realized 
on Vesting 
($)(2)
1,890,850
955,648
3,693,610
337,228
403,770

(1)  The value realized equals the difference between the option exercise price and the fair market value of Logitech 

shares on the date of exercise, multiplied by the number of shares for which the option was exercised.

(2)  Based on the closing trading price of Logitech shares on the Nasdaq Global Select Market on the date of vesting 

of underlying awards.

Pension Benefits Table for Fiscal Year 2015

Marcel Stolk, Senior Vice President, Consumer Computing Platforms Business Group, is a participant in Logitech’s 
Swiss Pension plan, which is a benefit offered to all eligible Swiss employees.

No other executive officers are beneficiaries under any pension plan benefits maintained by Logitech.

Name
Guerrino De Luca
Bracken Darrell
Vincent Pilette
Marcel Stolk
L. Joseph Sullivan

Plan Name

N/A
N/A
N/A
Logitech Employee Pension Fund
N/A

Number of 
Years of 
Credited 
Service 
(#)
N/A
N/A
N/A
4.00
N/A

Present 
Value of 
Accumulated 
Benefit 
($)

—
—
—
675,140
—

91  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

Non-qualified Deferred Compensation for Fiscal Year 2015

The following table sets forth information regarding the participation by our named executive officers in the Logitech 
Inc. U.S. Deferred Compensation Plan during fiscal year 2015 and at fiscal year-end.

Executive 
Contributions 
in Last 
Fiscal Year 
($)(1)

—
—
—
—
54,255

Logitech 
Contributions 
in Last 
Fiscal Year 
($)
—
—
—
—
—

Aggregate 
Earnings 
in Last 
Fiscal Year 
($)(2)

—
—
—
—
31,954

Aggregate 
Withdrawals/ 
Distributions 
($)
—
—
—
—
—

Aggregate 
Balance 
at Last 
Fiscal Year 
End 
($)

—
—
—
—
583,312

Name
Guerrino De Luca
Bracken  Darrell
Vincent Pilette
Marcel Stolk
L. Joseph Sullivan

(1)  Amounts  are  included  in  the  Summary  Compensation  table  in  the  “Salary”  column  for  fiscal  year  2015.  All 

contributions were made under the Logitech Inc. Deferred Compensation Plan.

(2)  These amounts are not included in the Summary Compensation table because plan earnings were not preferential 

or above market.

Narrative Disclosure to Non-Qualified Deferred Compensation Table

Please refer to “Compensation Disclosure and Analysis—Compensation Elements—Deferred Compensation Plan” for 
a discussion of the Logitech Inc. U.S. Deferred Compensation Plan, effective January 1, 2009.

Payments upon Termination or Change in Control

We  have  entered  into  agreements  that  provide  for 
payments  under  certain  circumstances  in  the  event  of 
termination  of  employment  of  our  executive  officers. 
These agreements include:

•	 Change of control severance agreements, under which 
an executive officer may receive certain benefits if he 
or she is subject to an involuntary termination within 12 
months after a “change of control” because his or her 
employment  is  terminated  without  cause  or  because 
the executive resigns for good reason.

•	 PSU, RSU, and PSO award agreements that provide 
for  the  accelerated  vesting  of  the  shares  subject  to 
the  award  agreements  under  certain  circumstances, 
including  the  same  circumstances  as  under  the 
change of control agreements.

•	 Offer letters with Bracken Darrell and Vincent Pilette, 
under which they are entitled to severance benefits if 
we terminate their employment without cause or if they 
resign for good reason.

•	 An  employment  agreement  with  Marcel  Stolk,  under 
which  he  is  entitled  to  receive  a  three-month  notice 
period if we terminate his employment or if he resigns.

 – Proxy Statement  |  92

2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

These  agreements  are  described  in  more  detail  in  the 
subsections below.

than 

the  agreements  above, 

there  are  no 
Other 
agreements  or  arrangements 
the  payment  of 
severance  to  a  named  executive  officer  in  the  event  of 
his involuntary termination with or without cause.

for 

In  fiscal  year  2014,  Mr.  De  Luca  was  awarded  an  RSU 
grant  of  250,000  shares  in  recognition  of  his  service 
as  Logitech’s  acting  Chief  Executive  Officer  from  July 
2011  through  January  2013.  Given  that  the  award  was 
based on past service, if Mr. De Luca’s service with the 
Company terminates by reason of death or disability or 
if  Mr.  De  Luca  ceases  to  be  Chairman  of  the  Board  at 
the request or upon action of the Board or by action of 
the  Company’s  shareholders  or  is  not  re-elected  to  the 
Board,  all  then  unvested  RSUs  under  the  award  will 
vest immediately.

There  are  no  agreements  providing  for  payment  of  any 
consideration to any non-executive member of the Board 
of Directors upon termination of his or her services with 
the Company.

Change of Control Severance Agreements

Each of our executive officers has executed a change of 
control severance agreement with Logitech. The change 
of control agreements with Mr. De Luca and Mr. Pilette are 
slightly different than those of the other executive officers. 
The  purpose  of  the  change  of  control  agreements  is  to 
support  retention  in  the  event  of  a  prospective  change 
of control. To comply with the Minder Ordinance by the 
end  of  calendar  year  2015,  we  will  be  terminating  such 
arrangements for executive officers that are members or 
our Group Management Team.

Under the change of control agreement, each executive 
officer  is  eligible  to  receive  the  following  benefits, 
should the executive officer be subject to an involuntary 
termination within 12 months after a “change of control” 
because  his  or  her  employment  is  terminated  without 
cause or the executive resigns for good reason:

•	 The  continuation  of 

the  executive’s 

“current 
compensation”  for  12  months  (except  in  the  case  of 
Mr.  Pilette,  which  is  18  months  if  he  is  terminated 
or  resigns  for  good  reason  in  the  first  two  years  of 
his employment);

•	 Continuation  of  health  insurance  benefits  for  up  to 

12 months;

•	 Acceleration  of  vesting  for  all  stock  options  held  by 

the executive;

•	 Acceleration of other employee equity incentives held 
by the executive if provided for under the terms of the 
grant agreement for the equity incentive; and

•	 Executive-level outplacement services of a value of up 

to $5,000.

The term “current compensation” includes:

•	 The greater of (i) the executive’s annual base salary in 
effect immediately prior to the executive’s termination 
and (ii) the executive’s annual base salary in effect on 
the date of the Change of Control Agreement; plus

•	 The amount of the executive’s annual bonuses for the 
fiscal year preceding the fiscal year in which severance 
benefits become payable to the executive.

The  change  of  control  agreement  defines  the  term 
“change of control” to mean:

•	 A  merger  or  consolidation  of  Logitech  with  another 
corporation  resulting  in  a  greater  than  50%  change 
in  the  total  voting  power  of  Logitech  or  the  surviving 
company immediately following the transaction;

•	 The complete liquidation of Logitech;

•	 The sale or other disposition of all or substantially all of 

Logitech’s assets; or

•	 The acquisition by any person of securities of Logitech 
representing 50% or more of the total voting power of 
Logitech’s outstanding shares.

93  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

The  change  of  control  agreement  with  Mr.  De  Luca  is 
the same as for the other executive officers, except that 
only those stock options granted by the Company to him 
before January 28, 2008, while he was serving as Chief 
Executive Officer, are subject to acceleration under the 
agreement.  Options  granted  to  him  after  January  28, 
2008 are not subject to acceleration.

The change of control agreement with Mr. Pilette is the 
same as for the other executive officers, except that (i) the 
continuation of the executive’s “current compensation” is 
for  18  months  if  Mr.  Pilette’s  employment  is  terminated 
following  a  change  of  control  during  the  first  two  years 
of his employment, (ii) current compensation is based on 
base salary and annual target bonus, and (iii) executive-
level outplacement services of a value of up to $15,000.

PSU and RSU Award Agreements

The  PSU  and  RSU  award  agreements  prior  to  fiscal 
year  2015  for  named  executive  officers  provide  for  the 
acceleration of vesting of the equity awards subject to the 
award  agreements  under  the  same  circumstances  and 
conditions  as  under  the  change  of  control  agreements; 
namely,  if  the  named  executive  officer  is  subject  to  an 
involuntary termination within 12 months after a change 
of control because his or her employment is terminated 
without cause or the executive resigns for good reason. 
In the event of such an involuntary termination:

•	 All shares subject to the RSUs will vest; and

•	 100%  of  the  shares  subject  to  the  PSUs  will  vest  if 
the  change  of  control  occurred  within  one  year  after 
the  grant  date  of  the  PSUs.  If  the  change  of  control 
occurred more than one year after the grant date of the 
PSUs, the number of shares subject to the PSU that will 
vest  will  be  determined  by  applying  the  performance 
criteria under the PSUs as if the performance period 
had ended on the date of the change of control.

The RSU award agreement and the PSU award agreement 
are based on the achievement of a non-GAAP Operating 
Margin metric for Mr. Pilette in fiscal year 2015, provide 
for  the  acceleration  of  time-based  vesting  of  the  equity 
awards subject to the award agreements under the same 
circumstances  and  conditions  as  under  the  change  of 
control  agreements  described  above.  The  fiscal  year 
2015 PSU award agreements will not vest except to the 
extent  that  the  performance-based  vesting  conditions 
have been attained.

Bracken Darrell Offer Letter

We entered into an offer letter with Bracken Darrell dated 
March  13,  2012.  Under  his  offer  letter,  in  the  event  he 
is terminated without “cause” or resigns (within 30 days 
after  Logitech  fails  to  remedy  the  condition  reported  to 
be good reason during a 30-day cure period) for “good 
reason”, other than after a change of control, he is entitled 
to receive severance benefits as follows:

•	 If  the  termination  had  occurred  within  one  year  after 
his  employment  start  date  (note  that,  as  of  April  9, 
2013,  the  one-year  anniversary  of  his  employment 
start  date,  Mr.  Darrell  is  no  longer  entitled  to  these 
benefits), he would have been entitled to:

-  an  amount  equal  to  200%  of  his  then-current 
annual base salary, less applicable withholdings; 
plus

-  an  amount  equal  to  200%  of  his  then-current 
annual  targeted  bonus  amount,  less  applicable 
withholdings; plus

-   25% of  his initial stock  option grant for 500,000 
Logitech shares and 25% of his initial restricted 
stock unit grant for 100,000 shares will accelerate 
and vest.

•	 If the termination had occurred more than one year but 
within two years after his employment start date (note 
that,  as  of  April  9,  2014,  the  two-year  anniversary, 
Mr. Darrell is no longer entitled to these benefits), he 
would have been entitled to:

 – Proxy Statement  |  94

2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

-  an  amount  equal  to  150%  of  his  then-current 
annual base salary, less applicable withholdings; 
plus

-  an  amount  equal 

then-
current  annual  targeted  bonus  amount,  less 
applicable withholdings.

to  150%  of  his 

•	 If the termination occurs more than two years after his 

employment start date, he is entitled to:

-  an amount equal to 100% of his then-current annual 
base salary, less applicable withholdings; plus

-  an  amount  equal 

then-
current  annual  targeted  bonus  amount,  less 
applicable withholdings.

to  100%  of  his 

In each case, Mr. Darrell would also be entitled to have 
Logitech pay the premiums to continue his group health 
insurance coverage under COBRA during the applicable 
severance  period,  subject  to  any  maximum  length  of 
coverage limits under applicable law or until he becomes 
eligible for benefits from a subsequent employer.

“Cause” in Mr. Darrell’s offer letter is defined as: (i) theft, 
dishonesty, misconduct or falsification of any employment 
or Logitech records; (ii) improper disclosure of Logitech’s 
confidential  or  proprietary  information;  (iii)  failure  or 
inability  to  perform  any  assigned  duties  after  written 
notice  from  Logitech  of,  and  a  reasonable  opportunity 
to cure, such failure or inability; (iv) conviction (including 
any  plea  of  guilty  or  no  contest)  of  a  felony,  or  of  any 
other criminal act if that act impairs his ability to perform 
his duties; or (v) failure to cooperate in good faith with a 
governmental  or  internal  investigation  of  Logitech  or  its 
directors, officers or employees, if Logitech has requested 
his cooperation. “Good reason” in Mr. Darrell’s offer letter 
is  defined  as:  (i)  a  material  reduction  of  his  authority, 
duties  or  responsibilities,  or  (ii)  if,  by  January  31,  2013, 
he  is  not  reporting  directly  to  the  Logitech  International 
Board of Directors as Chief Executive Officer. Mr. Darrell 
became Chief Executive Officer, reporting directly to the 
Board, on January 1, 2013.

If  any  amounts  become  payable  to  Mr.  Darrell  under 
his  change  of  control  agreement,  or  any  successor 
agreement,  the  aggregate  amount  of  any  amounts 
payable to Mr. Darrell under his offer letter will be reduced 
to the extent necessary so as to prevent the duplication 
of severance payments to him.

If amounts payable to Mr. Darrell under any arrangement 
or agreement with Logitech are payable as a result of a 
change of ownership or control of Logitech and exceed 
the amount allowed under section 280G of the Code, and 
would  be  subject  to  the  excise  tax  imposed  by  section 
4999  of  the  Code,  then,  prior  to  the  making  of  any 
Payments  to  Mr.  Darrell,  a  “best-of”  calculation  will  be 
made comparing (1) the total benefit to Mr. Darrell from 
the Payments after payment of the excise tax, to (2) the 
total benefit to Mr. Darrell if the payments are reduced to 
the extent necessary to avoid being subject to the excise 
tax, and Mr. Darrell will be entitled to the payments under 
the more favorable outcome.

Vincent Pilette Offer Letter

We entered into an offer letter with Vincent Pilette dated 
August 26, 2013. Under his offer letter, in the event he is 
terminated within the first two years after his employment 
start  date  without  “cause”  or  resigns  for  good  reason, 
other  than  after  a  change  of  control,  he  is  entitled  to 
receive severance benefits as follows:

•	 An amount equal to 100% of his then-current annual 

base salary, less applicable withholdings; plus

•	 An  amount  equal 

to  100%  of  his 

targeted  bonus  amount, 

annual 
withholdings; plus

then-current 
less  applicable 

•	 One-third  of  his  initial  RSU  grant  for  175,000  units 
will  accelerate  and  vest  (as  of  September  15,  2014, 
116,666 shares from this grant remain unvested); plus

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2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

•	 If the separation of service had occurred within the first 
year of service (note that, as of September 3, 2014, the 
one-year anniversary, Mr. Pilette is no longer entitled 
to  these  benefits),  100%  of  his  initial  RSU  grant  for 
195,000  units  would  have  accelerated  and  vested 
(as of September 15, 2014, this grant was completely 
vested); plus

•	 Executive-level outplacement services, in the amount 

of up to $15,000.

In each case, Mr. Pilette would also be entitled to have 
Logitech pay the premiums to continue his group health 
insurance coverage under COBRA for a period of up to 
12 months or until he becomes eligible for benefits from 
a subsequent employer.

“Cause” in Mr. Pilette’s offer letter is defined as: (i) willful 
dishonesty or fraud with respect to the business affairs of 
Logitech;  (ii)  intentional  falsification  of  any  employment 
or Logitech records, (iii) conviction (including any plea of 
guilty or no contest) of a felony which the Board of Directors 
of  Logitech  International  reasonably  believes  materially 
impairs  his  ability  to  perform  his  duties  for  Logitech  or 
adversely  affects  Logitech’s  reputation  or  standing  in 
the community, (iv) a willful act by him which constitutes 
misconduct (including, but not limited to, improper use or 
disclosure  of  the  confidential  or  proprietary  information 
of Logitech) and is injurious to Logitech, or (v) continued 
willful violations by him of his obligations to Logitech after 
there  has  been  delivered  to  him  a  written  demand  for 
performance from Logitech which describes the basis for 
Logitech’s belief that he have not substantially performed 
his duties.

“Good  reason”  in  Mr.  Pilette’s  offer  letter  is  defined  as: 
(i) a substantial reduction of the facilities and perquisites 
(including  office  space  and  location)  available  to  him 
immediately prior to such reduction, without his expressed 
written  consent  and  without  good  business  reasons, 
(ii) a material reduction of his base salary, (iii) a material 
reduction in the kind or level of employee benefits to which 
he  is  entitled  immediately  prior  to  such  reduction,  with 
the result that his overall benefits package is significantly 
reduced, (iv) his relocation to a facility or location more 
than thirty (30) miles from his current location, without his 
expressed written consent, (v) the failure of Logitech and 
Logitech International to obtain the assumption of his letter 
agreement by any successor, or (vi) a material reduction 
of  his  duties,  position  or  responsibilities  relative  to  his 
duties,  position  or  responsibilities  in  effect  immediately 
prior  to  such  reduction,  without  his  expressed  written 
consent (“demotion”).

If  any  amounts  become  payable  to  Mr.  Pilette  under 
his  change  of  control  agreement,  or  any  successor 
agreement,  the  aggregate  amount  of  any  amounts 
payable to Mr. Pilette under his offer letter will be reduced 
to the extent necessary so as to prevent the duplication 
of severance payments to him.

If amounts payable to Mr. Pilette under any arrangement 
or agreement with Logitech are payable as a result of a 
change of ownership or control of Logitech and exceed 
the amount allowed under section 280G of the Code, and 
would  be  subject  to  the  excise  tax  imposed  by  section 
4999 of the Code, then the payments are reduced to the 
extent necessary to avoid being subject to the excise tax.

 – Proxy Statement  |  96

2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

Tables of Potential Payments Upon Termination or 
Change in Control

The table below estimates the amount of compensation 
that would be paid in the event of an involuntary termination 
of a listed executive officer without cause after a change 
in  control,  assuming  that  each  of  the  terminations  was 
effective as of March 31, 2015, subject to the terms of the 
change of control agreement and the terms of the PSO, 
PSU and RSU award agreements with each of the listed 
executive officers.

For Mr. Darrell and Mr. Pilette, the additional table below 
estimates the amount of compensation that would have 
been  paid  in  the  event  of  an  involuntary  termination 

without  cause,  assuming  that  the  termination  was 
effective  as  of  March  31,  2015,  subject  to  the  terms  of 
the  agreements  with  them.  As  of  March  31,  2015,  no 
compensation  amounts  were  payable  to  any  named 
executive  officer  in  the  event  of  a  mutual  agreement 
to  terminate  employment,  whether  upon  retirement 
or otherwise.

The price used for determining the value of accelerated 
equity  in  the  tables  below  was  the  closing  price  of 
Logitech’s  shares  on  the  Nasdaq  Global  Select  Market 
on  March  31,  2015,  the  last  business  day  of  the  fiscal 
year, of $13.15. 

POTENTIAL PAYMENTS UPON INVOLUNTARY TERMINATION  
AFTER CHANGE IN CONTROL

Name
Guerrino De Luca
Bracken Darrell(6)
Vincent Pilette
Marcel Stolk
L. Joseph Sullivan

Base 
Salary 
($)(1)
500,000
825,000
500,000
538,325
427,500

Bonus(2)
565,000
1,165,313
400,000
521,099
362,306

Other 
Benefits(3)
13,343
31,647
27,514
8,085
22,538

Value of 
Accelerated 
Equity 
Awards(4)

2,432,750
9,008,913
2,983,419
2,511,650
1,775,250

280G  
cut-back(5)
—
—
—
N/A
(125,427)

Total
3,511,093
11,030,873
3,910,933
3,579,159
2,462,167

(1)  Represents  fiscal  year  2015  annual  base  salary  in  effect  on  March  31,  2015.  Mr.  Pilette’s  agreement 
calls  for  18  months  of  compensation  continuation  if  his  employment  is  terminated  following  a  change 
of  control  during  the  first  two  years  of  his  employment.  Thereafter,  Mr.  Pilette  is  eligible  for  12  months 
of  compensation  continuation.  Mr.  Stolk’s  salary  amount  was  converted  using  the  exchange  rate  of  
1 CHF to 1.0283 USD as of March 31, 2015.

(2)  Represents the amount of bonuses paid for fiscal year 2015 except for Mr. Pilette. Mr. Pilette’s agreement provides 
for bonus based on annual target bonus. Mr. Stolk’s bonus amount was converted using the exchange rate of 1 
CHF to 1.0283 USD as of March 31, 2015.

(3)  Represents  the  estimated  cost  of  medical  and  other  health  insurance  premiums  (COBRA)  for  one  year  after 

termination (18 months for Mr. Pilette) and $5,000 in outplacement services ($15,000 for Mr. Pilette).

(4)  Represents, as of March 31, 2015, the aggregate intrinsic value (market value less exercise price) of unvested 
options and the aggregate market value of shares underlying all unvested RSUs and PSUs, in each case held by 
the named executive officer as of March 31, 2015 that are subject to acceleration according to a change of control 
agreement or the terms of an equity award agreement. For the PSUs granted April 15, 2013, as of March 31, 2015 
the performance condition were at a level which would have produced a payout percentage of 150%, therefore, 
150% of such value was attributed to the shares subject to such PSUs.

97  | 

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2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

(5)  Under the Change of Control agreements for the executive officers listed above other than Mr. Darrell and Mr. Stolk, 
there is a “280G cut-back” so that, in effect, the maximum value of the cash payments plus accelerated equity 
awards to which an executive is entitled under the agreement is just under 3 times the average annual taxable 
compensation paid by Logitech to the executive in the prior five taxable years, calculated in accordance with the 
U.S. Tax Code.

(6)  For Mr. Darrell, if amounts payable under any arrangement or agreement with Logitech are payable as a result of 
a change of ownership or control of Logitech and exceed the amount allowed under section 280G of the Code, 
and would be subject to the excise tax imposed by section 4999 of the Code, then, prior to the making of any 
Payments to Mr. Darrell, a “best-of” calculation will be made comparing (1) the total benefit to Mr. Darrell from the 
payments after payment of the excise tax, to (2) the total benefit to Mr. Darrell if the payments are reduced to the 
extent necessary to avoid being subject to the excise tax, and Mr. Darrell will be entitled to the Payments under 
the more favorable outcome.

POTENTIAL PAYMENTS UPON INVOLUNTARY TERMINATION

Name
Bracken Darrell 

(if terminating after 
April 9, 2014)
Vincent Pilettte 

(if terminating prior to 
September 3, 2015)

Base 
Salary

Bonus

Other 
Benefits(5)

Equity

Total

$825,0001

$1,031,2502

$26,647

N/A

$1,882,897

$500,0003

$400,0004

$23,343

$767,0796

$1,690,422

(1)  Represents 100% of Mr. Darrell’s fiscal year 2015 annual base salary in effect on March 31, 2015.

(2)  Represents 100% of Mr. Darrell’s fiscal year 2015 target bonus in effect on March 31, 2015.

(3)  Represents 100% of Mr. Pilette’s fiscal year 2015 annual base salary in effect on March 31, 2015.

(4)  Represents 100% of Mr. Pilette’s fiscal year 2015 target bonus in effect on March 31, 2015.

(5)  Represents  the  estimated  cost  of  medical  and  other  health  insurance  premiums  (COBRA)  for  one  year  after 

termination and $15,000 in outplacement services for Mr. Pilette.

(6)  Represents the value of 33% vesting of Mr. Pilette’s initial restricted stock unit grant for 175,000 shares based on 

Logitech’s stock price in effect on March 31, 2015.

 – Proxy Statement  |  98

2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

Compensation of Non-Employee Directors

the  Board  of  Directors 

For fiscal year 2015, the compensation of the members 
of 
that  are  not  Logitech 
employees, or non-employee directors, was determined 
by  the  Compensation  Committee,  consisting  entirely 
of  independent  directors,  and  recommended  to  the  full 
Board for approval.

The general policy is that compensation for non-employee 
directors  should  consist  of  a  mix  of  cash  and  equity-
based compensation. For fiscal year 2015, to assist the 
Compensation Committee in its annual review of director 
compensation,  Logitech’s  compensation  department 
provided  director  pay  practices  and  compensation  data 
compiled from the annual reports and proxy statements 
of companies within our compensation peer group.

For fiscal year 2015, cash compensation of non-employee 
directors  consists  solely  of  annual  retainers  based  on 
Board and committee service and payment for travel days 
in  connection  with  attendance  at  Board  meetings.  Non-
employee  directors  also  receive  an  annual  RSU  grant 
based on a fixed market value. These annual RSU grants 
are  generally  made  on  the  day  after  our  Annual  General 
Meeting  and  vest  August  31  prior  to  the  next  Annual 
General  Meeting.  For  fiscal  year  2015,  the  annual  RSU 
grant value was adjusted from CHF 135,000 ($145,584) to 
CHF 150,000 ($161,760) to reflect increases in the market 
for board compensation.

Directors  who  are  Logitech  employees  do  not  receive  any 
compensation  for  their  service  on  the  Board  of  Directors. 
Non-employee  director  compensation  currently  consists  of 
the following elements:

Annual cash retainer
An additional annual cash retainer for the lead independent director
Annual retainer for the Audit Committee chair
Annual retainer for the Compensation Committee chair
Annual retainer for the Nominating Committee chair
Annual retainer for non-chair Audit Committee members
Annual retainer for non-chair Compensation Committee members
Annual retainer for non-chair Nominating Committee members
Annual retainer for Lifesize Board members
Annual RSU grant
Compensation for the number of travel days spent traveling to attend Board and 

Amount (CHF)

60,000
20,000
40,000
40,000
8,000
15,000
15,000
5,000
15,000
150,000

Amount  
($)(1)
$64,705
21,568
43,136
43,136
8,627
16,176
16,176
5,392
16,176
161,762

committee meetings, per day rate.

2,500

2,696

Reimbursement of reasonable expenses for non-local travel (business class)

(1)  Amounts in Swiss Francs were converted using the 12 month average (April 2014 to March 2015) exchange rate 

of 1 Swiss Franc to 1.0784 U.S. Dollar.

Except for fees earned between Logitech’s 2013 Annual 
General  Meeting  and  2014  Annual  General  Meeting, 
non-employee Board members may elect to receive their 
Board fees in shares, net of withholdings at the market 
price  on  the  date  of  the  Annual  General  Meeting.  Any 
such  shares  are  to  be  issued  under  the  2006  Stock 
Incentive Plan.

The following table summarizes the total compensation 
earned  or  paid  by  Logitech  during  fiscal  year  2015  to 
continuing  members  of  the  Board  of  Directors  who 
were  not  executive  officers  as  of  March  31,  2015. 
Because  the  table  is  based  on  Logitech’s  fiscal  year, 
and annual service for purposes of Board compensation 
is  measured  between  the  dates  of  Logitech’s  Annual 

99  | 

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2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

General Meetings, usually held in September each year, 
except for last year when the fiscal 2014 Annual General 
Meeting  was  held  in  December  2014,  the  amounts  in 
the table do not necessarily align with the description of 
Board compensation above.

Information  regarding  compensation  paid  to  and  the 
option and stock awards held by Guerrino De Luca and 
Bracken Darrell, the members of the Board of Directors 
that are Logitech executive officers as of fiscal year-end 
2015,  are  presented  in  the  Summary  Compensation 
Table and the Outstanding Equity Awards at Fiscal Year-
End Table, respectively.

NON-EMPLOYEE DIRECTOR SUMMARY COMPENSATION FOR FISCAL YEAR 2015

Name 
Daniel Borel
Matthew Bousquette
Kee-Lock Chua
Sally Davis
Didier Hirsch 
Neil Hunt
Dimitri Panayotopoulos
Monika Ribar

Standard 
Fees Earned  
in Cash  
($)(1)
70,097 
163,559 
111,076 
147,383 
118,625 
105,594 
48,528 
105,594 

Additional 
Fees 
Earned in 
Cash  
($)(2)

— 
111,615 
60,391 
69,827 
114,311 
30,735 
— 
60,391 

Stock 
Awards  
($)(3)
153,000 
152,350 
152,350 
153,000 
152,350 
152,350 
153,000 
153,000 

Total  
($)
223,097 
427,524 
323,817 
370,210 
385,286 
288,679 
201,528 
318,985 

(1)  Amounts in Swiss Francs were converted using the 12 month average (April 2014 to March 2015) exchange rate 

of 1 Swiss Franc to 1.0784 U.S. Dollar. 

(2)  Additional fees awarded in recognition of the additional Audit Committee and Board meetings and calls and other 
additional work related to the Audit Committee investigation during fiscal year 2015 of accounting issues from 
prior years. The Audit Committee and the independent members of the Board met or held conference calls on a 
frequent basis in addition to their regular meetings.

(3)  Amounts shown do not reflect compensation actually received by the director. Instead, the amount shown is the 
aggregate grant date fair value of stock-related awards in fiscal year 2015 computed in accordance with ASC 
Topic 718 -- Compensation -- Stock Compensation, disregarding forfeiture assumptions. The market value used 
to calculate the aggregate value for fiscal year 2015 was $13.85 or CHF 13.59 per share.

The  following  table  presents  additional  information  with 
respect to the equity awards held as of March 31, 2015 
by  members  of  the  Board  of  Directors  who  were  not 
executive officers as of fiscal year-end.

In 2010, Logitech began granting RSUs instead of stock 
options to continuing non-employee directors. The RSUs 
granted since fiscal year 2010 fully vest on approximately 
the one-year anniversary date of the grant.

The market value for stock options is calculated by taking 
the  difference  between  the  closing  price  of  Logitech 
shares on the Nasdaq Global Select Market on the last 
trading day of the fiscal year ($13.15 on March 31, 2015) 
and  the  option  exercise  price,  and  multiplying  it  by  the 
number  of  outstanding  options.  The  market  value  for 
RSUs is determined by multiplying the number of shares 
subject  to  the  award  by  the  closing  price  of  Logitech 
shares on the Nasdaq Global Select Market on the last 
trading day of the fiscal year.

 – Proxy Statement  |  100

2015 Annual General Meeting Invitation, Proxy StatementCompensation Report for Fiscal Year 2015 

Certain of the options as granted have exercise prices denominated in Swiss Francs. The U.S. Dollar exercise price 
in  the  table  below  for  such  options  is  based  on  an  exchange  rate  of  1  Swiss  Franc  to  1.0283  U.S.  Dollars  as  of 
March 31, 2015. 

OUTSTANDING EqUITY AWARDS FOR NON-EMPLOYEE DIRECTORS AT FISCAL 2015 
YEAR-END

Option Awards

Stock Awards

Number of 
Securities 
Underlying 
Unexercised 
Options 
Exercisable 
(#)

— 
— 
60,000 
15,000 
— 
75,000 
15,000 
— 
15,000 
30,000 
— 
30,000 
— 
— 
— 
— 
— 
— 
— 
15,000 
— 
15,000 

Number of  
Securities  
Underlying  
Unexercised  
Options  
Unexercisable  
(#)
— 
— 
— 
— 
— 
— 
— 
— 
— 
— 
— 
— 
— 
— 
— 
— 
— 
— 
— 
— 
— 
— 

Grant Date 
(MM/DD/YY)
12/19/14
Total
06/16/05
09/10/08
12/19/14
Total
06/16/06
12/19/14
Total
06/20/07
12/19/14
Total
09/05/12
12/19/14
Total
12/19/14
Total
12/19/14
Total
06/20/07
12/19/14
Total

Option 
Exercise 
Price /  
Share  
($)

— 

Market  
Value of 
Unexercised 
Options  
($)
— 

15.41 
23.29 
— 

19.43 
— 

35.42 (2)
— 

— 
— 
— 
— 

— 

35.42 (2)
— 

— 
— 
— 

— 
— 

— 
— 

— 
— 
— 
— 

— 

— 
— 

Market  
Value of  
Shares or  
Units of  
Stock  
That Have  
Not  
Vested  
($)

144,650 
144,650 
— 
— 
144,650 
144,650 
— 
144,650 
144,650 
— 
144,650 
144,650 
119,218 
144,650 
263,868 
144,650 
144,650 
144,650 
144,650 
— 
144,650 
144,650 

Number of 
Shares or 
Units of  
Stock That 
Have Not 
Vested  
(#)(1)
11,000 
11,000 
— 
— 
11,000 
11,000 
— 
11,000 
11,000 
— 
11,000 
11,000 
9,066 (3)
11,000 
20,066 
11,000 
11,000 
11,000 
11,000 
— 
11,000 
11,000 

Name
Daniel Borel

Matthew Bousquette

Kee-Lock Chua

Sally Davis

Didier Hirsch

Neil Hunt

Dimitri Panayotopoulos

Monika Ribar

(1)  Unless otherwise indicated, the shares subject to these stock awards vest in full on August 31, 2015.

(2)  The exercise price of the option as granted is 34.45 Swiss Francs per share.

(3)  Represents a stock award of 27,200 shares, granted to Mr. Hirsch as a new director in 2012, which vests at a rate 

of 33% per year over 3 years from the grant date, on each yearly anniversary of the grant date.

101  | 

 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementEquity Compensation Plan Information 

The following table summarizes the shares that may be 
issued upon the exercise of options (including PSOs and 
PPOs), RSUs, PSUs, and other rights under our employee 
equity compensation plans as of March 31, 2015. These 
plans include the 1996 Employee Share Purchase Plan 
(U.S.)  and  2006  Employee  Share  Purchase  Plan  (Non-

U.S.) (together, the “ESPPs”), 2006 Stock Incentive Plan 
and 2012 Stock Inducement Equity Plan. The table also 
includes shares that may be issued upon the exercise of 
outstanding options under the 1996 Stock Plan (this plan 
terminated in 2006).

(a) 
Number of Securities 
to be Issued Upon 
Exercise of Outstanding 
Options, Warrants 
and Rights  
(#)

(b) 
Weighted 
Average Exercise 
Price of Outstanding 
Options, Warrants 
and Rights(1)

11,064,601(2)

1,750,000(3)

12,814,601

$18

14
$17

Plan Category
Equity Compensation Plans 

Approved by  
Security Holders

Equity Compensation Plans 

Not Approved by 
Security Holders

Total

(c) 
Number of 
Securities 
Remaining 
Available for 
Future Issuance 
Under Equity 
Compensation 
Plans (Excluding 
Securities 
Reflected in 
Column(a))  
(#)

17,362,015

—
17,362,015

(1)  The weighted average exercise price is calculated based solely on outstanding options.

(2) 

Includes options and rights to acquire shares outstanding under our 1996 Employee Share Purchase Plan (U.S.), 
2006 Employee Share Purchase Plan (Non-U.S.), 2006 Stock Incentive Plan and 1996 Stock Plan (which plan 
terminated in 2006).

(3) 

Includes options and rights to acquire shares outstanding under our 2012 Stock Inducement Equity Plan adopted 
under the Nasdaq rules.

2012 Stock Inducement Equity Plan 

Under  the  2012  Stock  Inducement  Equity  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  Stock 
Inducement Equity Plan may be conditioned on continued 
employment,  the  passage  of  time  or  the  satisfaction  of 
performance vesting criteria, based on individual written 
employment  offer  letters.  The  2012  Stock  Inducement 
Equity Plan has an expiration date of March 31, 2022. As 
of March 31, 2015, an aggregate of 1,800,000 shares was 

reserved for issuance under the 2012 Stock Inducement 
Equity  Plan.  As  of  March  31,  2015,  no  shares  were 
available for issuance under this plan. 

2006 Stock Incentive Plan 

The  Logitech  International  S.A.  2006  Stock  Incentive 
Plan  provides  for  the  grant  to  eligible  employees  and 
non-employee  members  of  the  Board  of  Directors  of 
stock options, stock appreciation rights, restricted stock, 
and restricted stock units. As of March 31, 2015, Logitech 
has granted stock options (including PSOs), RSUs, and 

 – Proxy Statement  |  102

2015 Annual General Meeting Invitation, Proxy StatementEquity Compensation Plan Information 

PSUs  under  the  2006  Stock  Incentive  Plan  and  has 
made no grants of restricted shares or stock appreciation 
rights.  Stock  options  granted  under  the  2006  Stock 
Incentive  Plan  generally  will  have  terms  not  exceeding 
ten years and will be issued at exercise prices not less 
than the fair market value on the date of grant. Awards 
under the 2006 Stock Incentive Plan may be conditioned 
on  continued  employment,  the  passage  of  time,  or  the 
satisfaction of performance vesting criteria. As of March 
31, 2015, an aggregate of 24.8 million shares is reserved 
for  issuance  under  the  2006  Stock  Incentive  Plan.  As 
of  March  31,  2015,  a  total  of  9,095,315  shares  were 
available for issuance under this plan. 

1996 Stock Plan 

Under  the  1996  Stock  Plan,  Logitech  granted  options 
for  shares.  Options  issued  under  the  1996  Stock  Plan 
generally vest over four years and remain outstanding for 
periods not to exceed ten years. Options were granted at 
exercise prices of at least 100% of the fair market value 
of  the  shares  on  the  date  of  grant.  Logitech  made  no 
grants of restricted shares, stock appreciation rights, or 
stock units under the 1996 Stock Plan. No further awards 
will be granted under the 1996 Stock Plan.

Each option issued under the 1996 Stock Plan entitles the 
holder  to  purchase  one  share  of  Logitech  International 
S.A. at the exercise price.

Employee Share Purchase Plans 

two  employee  share  purchase 
Logitech  maintains 
plans,  one  for  employees  in  the  United  States  and  one 
for  employees  outside  the  United  States.  The  plan  for 
employees outside the United States is named the 2006 
Employee  Share  Purchase  Plan  (Non-U.S.),  or  2006 
ESPP,  and  was  approved  by  the  Board  of  Directors  in 
June 2006. The plan for employees in the United States 
is  named  the  1996  Employee  Share  Purchase  Plan 
(U.S.), or 1996 ESPP. The 1996 ESPP was the worldwide 
plan until the adoption of the 2006 ESPP in June 2006. 
Under  both  plans,  eligible  employees  may  purchase 
shares  with  up  to  10%  of  their  earnings  at  the  lower  of 
85% of the fair market value at the beginning or the end 
of each six-month offering period. Purchases under the 
plans  are  limited  to  a  fair  value  of  $25,000  in  any  one 
year, calculated in accordance with U.S. tax laws. During 
each  offering  period,  payroll  deductions  of  employee 
participants are accumulated under the share purchase 
plan.  Subject  to  continued  participation  in  these  plans, 
purchase agreements are automatically executed at the 
end of each offering period. A total of 29 million shares 
have been reserved for issuance under both the 1996 and 
2006 ESPPs. As of March 31, 2015, a total of 8,266,700 
shares were available for issuance under these plans. 

**************** 

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 – Proxy Statement

2015 Annual General Meeting Invitation, Proxy StatementThis page is intentionally left blank.Annual Report 
Fiscal Year 2015

Annual Report Fiscal Year 20151

MANAGEMENT’S DISCUSSION AND ANALYSIS 
OF FINANCIAL CONDITION AND RESULTS  
OF OPERATIONS

1

Annual Report Fiscal Year 20153

This page is intentionally left blank.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF 
OPERATIONS

The  following  Management’s  Discussion  and  Analysis  of  Financial  Condition  and  Results  of 
Operations  contains  forward-looking  statements  that  involve  risks  and  uncertainties.  The  Company’s 
actual  results  could  differ  materially  from  those  anticipated  in  these  statements  as  a  result  of  certain 
factors,  including  those  set  forth  in  the  Company’s  Annual  Report  on  Form  10-K  filed  with  the  U.S. 
Securities and Exchange Commission and posted to the Company’s Investor Relations website, under 
Item 1A, Risk Factors, in Item 7A, Quantitative and Qualitative Disclosures about Market Risk (which also 
appears below), and elsewhere. Terms used and not otherwise defined in this Annual Report have the 
meanings set forth in the Company’s Annual Report on Form 10-K.

Overview of Our Company 

Logitech is a world leader in products that connect people to the digital experiences they care about. 
Spanning  multiple  computing,  communication  and  entertainment  platforms,  we  develop  and  market 
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 and home-
entertainment control. We have two reporting segments: peripherals and video conferencing.

 Our peripherals segment encompasses the design, manufacturing and marketing of peripherals for 
PCs, tablets and other digital platforms. Within our peripherals segment, we classify our retail product 
categories as growth, profit maximization, and non-strategic. Our growth product categories are: Mobile 
Speakers,  Gaming,  Video  Collaboration  and  Tablet  &  Other  Accessories.  Our  profit  maximization 
categories  are:  Pointing  Devices,  Keyboards  &  Combos,  Audio-PC  &  Wearables,  PC  Webcams,  and 
Home Control.

Our brand, portfolio management, product development and engineering teams in our peripherals 
segment are responsible for product strategy, technological innovation, product design and development 
and to bring our products to market.

 Our global marketing organization is responsible for developing and building the Logitech brand, 
consumer  insights,  public  relations,  social  media  and  digital  marketing.  Our  regional  retail  sales  and 
marketing  activities  are  organized  into  three  geographic  areas:  Americas  (North  and  South  America), 
EMEA  (Europe,  Middle  East  and  Africa)  and  Asia  Pacific  (including,  among  other  countries,  China, 
Taiwan, Japan and Australia).

We  sell  our  peripherals  products  to  a  network  of  retailers,  including  direct  sales  to  retailers  and 
indirect sales through distributors. Our worldwide retail network includes wholesale distributors, consumer 
electronics  retailers,  mass  merchandisers,  specialty  electronics,  computers  and  telecommunications 
stores, value-added resellers and online merchants. Sales of our retail peripherals were 89%, 88% and 
87% of our net sales for fiscal years 2015, 2014 and 2013, respectively. The large majority of our revenues 
have historically been derived from sales of our peripherals products for use by consumers. Our OEM 
customers include several of the world’s largest PC manufacturers. Sales to OEM customers were 6% of 
our net sales for each of fiscal years 2015, 2014 and 2013.

Our  video  conferencing  segment  encompasses  the  Cloud-based  video  conferencing  solution, 
design,  manufacturing  and  marketing  of  Lifesize  branded  video  conferencing  products,  infrastructure 
and  services  for  the  enterprise,  public  sector  and  other  small  to  medium  business  markets.  Video 
conferencing  products  include  scalable  high-definition,  or  HD,  video  communication  endpoints,  HD 
video  conferencing  systems  with  integrated  monitors,  video  bridges,  and  other  infrastructure  software 
and  hardware  to  support  large-scale  video  deployments  and  services  to  support  these  products.  The 
video conferencing segment maintains a separate marketing and sales organization, which sells Lifesize 

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Annual Report Fiscal Year 2015products and services worldwide. Video conferencing product development and product management 
organizations  are  separate,  but  coordinated  with  our  peripherals  business,  particularly  our  Consumer 
Computing Platform group. In April 2015, we announced our intent to reorganize Lifesize with the goal 
of  de-emphasizing  Lifesize’s  legacy  offerings  more  quickly  to  enable  maximum  traction  with  Lifesize 
Cloud. We plan to shrink our Lifesize business to grow the cloud opportunity faster. We sell our video 
conferencing  products  and  services  to  distributors,  value-added  resellers,  OEMs  and,  occasionally, 
direct enterprise customers. Net sales of video conferencing products and services were 5%, 6% and 
7% of our net sales in the fiscal year 2015, 2014 and 2013, respectively. During fiscal years 2015 and 
2013, we recorded goodwill impairment charges of $122.7 million and $214.5 million related to our video 
conferencing reporting segment, respectively.

We seek to fulfill the increasing demand for interfaces between people and the expanding digital 
world across multiple platforms and user environments. The interface evolves as platforms, user models 
and  our  target  markets  evolve.  As  access  to  digital  information  has  expanded,  we  have  extended  our 
focus to mobile devices, the digital home, and the enterprise as access points to the Internet and the 
digital world. All of these platforms require interfaces that are customized according to how the devices 
are used. We believe that continued investment in product research and development is critical to creating 
the innovation required to strengthen our competitive advantage and to drive future sales growth. We are 
committed to identifying and meeting current and future consumer trends with new and improved product 
technologies, partnering with others where our strengths are complementary, as well as leveraging the 
value of the Logitech and Lifesize brands from a competitive, channel partner and consumer experience 
perspective.

We believe that innovation, design and product quality are important to gaining market acceptance 

and maintaining market leadership.

We  have  been  expanding  the  categories  of  products  we  sell  and  entering  new  markets,  such  as 
the  markets  for  mobile  speakers.  As  we  do  so,  we  are  confronting  new  competitors,  many  of  which 
have  more  experience  in  the  categories  or  markets  and  have  greater  marketing  resources  and  brand 
name recognition than we have. In addition, because of the continuing convergence of the markets for 
computing  devices  and  consumer  electronics,  we  expect  greater  competition  in  the  future  from  well-
established consumer electronics companies in our new categories as well as future ones we might enter. 
Many of these companies have greater financial, technical, sales, marketing and other resources than 
we have.

From time to time, we may seek to partner with, or acquire when appropriate, companies that have 
products,  personnel,  and  technologies  that  complement  our  strategic  direction.  We  continually  review 
our product offerings and our strategic direction in light of our profitability targets, competitive conditions, 
changing consumer trends and the evolving nature of the interface between the consumer and the digital 
world. In April 2015, we announced our intent to exit the OEM business and to reorganize the Lifesize 
business to sharpen its focus on its Cloud-based offering.

Summary of Financial Results

Our  total  net  sales  for  fiscal  year  2015  decreased  1%  in  comparison  to  fiscal  year  2014  due  to 

decreases in video conferencing sales and OEM sales, partially offset by an increase in retail sales. 

Retail sales and units sold during fiscal year 2015 increased 1% and 2%, respectively, compared to 
fiscal year 2014. Retail sales increased 8% and 2% in AMR and Asia Pacific, respectively, partially offset 
by a decrease of 7% in EMEA. 

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Annual Report Fiscal Year 2015OEM sales and units sold during fiscal year 2015 decreased 17% and 25%, respectively, compared 

to fiscal year 2014. 

Sales of Lifesize video conferencing products, which were 5% of total net sales during fiscal year 
2015,  decreased  10%  during  fiscal  year  2015,  compared  to  fiscal  year  2014.  Lifesize  is  in  the  early 
stages  of  transitioning  its  product  portfolio  to  the  recently  announced  Lifesize  Cloud,  a  software-as-
a-service (SaaS) offering. While sales of the Cloud offering are growing rapidly, they are not yet large 
enough to offset the combination of the short-term portfolio transition and soft market conditions for video 
conferencing infrastructure.

Our gross margin for fiscal year 2015 increased to 36.6%, compared to 34.2% for fiscal year 2014. 
The increase in gross margin primarily reflects the combination of a significant improvement in both our 
Profit Maximization categories and Mobile Speakers category, driven largely by product cost reductions 
and economies of scale, as well as the benefit from exiting the products included in the Non-Strategic 
category.

Operating  expenses  for  fiscal  year  2015  were  35.9%  of  net  sales,  compared  to  30.6%  for  fiscal 
year 2014. The increase in total operating expenses as a percentage of net sales was primarily due to 
a goodwill impairment charge of $122.7 million relating to our video conferencing reporting unit, $23.7 
million  in  expenses  related  to  the  Audit  Committee’s  Independent  investigation  (as  described  in  our 
Annual Report on Form 10-K for fiscal year 2014) and related expenses, partially offset by a restructuring 
credit of $4.9 million during fiscal year 2015 resulting from partial lease termination of our Silicon Valley 
campus, which was previously vacated and under a restructuring plan during fiscal year 2014, as opposed 
to  a  restructuring  charge  of  $13.8  million  during  fiscal  year  2014,  as  well  as  savings  from  prior  year’s 
restructuring actions and the ongoing rationalization of infrastructure.

Net income for fiscal year 2015 was $9.3 million, compared to net income of $74.3 million for fiscal 
year 2014. The decline was primarily due to a goodwill impairment charge of $122.7 million during fiscal 
year 2015 partially offset by improvements in gross margin as discussed above. 

Given our global sales presence and the reporting of our financial results in U.S. Dollars, our financial 
results for fiscal year 2015 were affected by significant shifts in currency exchange rates during fiscal 
year 2015. See “Results of Operations” beginning on page 13 for information on the effect of currency 
exchange results on our net sales. If the U.S. Dollar remains at its current strong levels in comparison to 
other currencies, this will affect our results of operations in future periods as well.

Trends in Our Business

Our sales of PC peripherals for use by consumers in Americas and Europe have historically made 
up the large majority of our revenues. In the last several years, the PC market has changed dramatically 
and there continues to be significant weakness in the global market for new PCs. This weakness had 
a negative impact on our net sales in all of our PC-related categories. We believe that this weakness 
reflects the growing popularity of tablets and smartphones as mobile computing devices.

We believe our future growth will be determined by our ability to rapidly create innovative products 
across multiple digital platforms - especially accessories for mobility-related products, including tablets 
and  smartphones,  gaming  and  digital  music  devices,  to  offset  the  decline  in  our  PC  peripherals.  The 
following discussion represents key trends specific to each of our two operating segments: peripherals 
and video conferencing.

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Annual Report Fiscal Year 2015Trends Specific to our Peripherals Segment

Mobile Speakers: The mobile speaker market grew throughout fiscal year 2015 based on consumer 
smartphones, consumption of music through tablets, and the growth of music services and Internet radio. 
This market growth, together with our investments in the UE brand, our introduction of new products and 
our ability to gain market share during fiscal year 2015, has driven our growth in Mobile Speakers.

PC  Peripherals  (Pointing  Devices,  Keyboards  &  Combos,  PC  Webcams,  Gaming  and  Audio  PC 
&  Wearables):  Although  the  installed  base  of  PC  users  is  large,  consumer  demand  for  new  PCs  has 
declined in recent years, and we believe it will continue to decline in future years. As a consequence, 
consumer  demand  for  PC  peripherals  is  slowing,  or  in  some  cases  declining.  As  the  quality  of  PC-
embedded  webcams  improves  along  with  the  increasing  popularity  of  tablets  and  smartphones  with 
embedded webcams, we expect future sales of our PC-connected webcams will continue to be weak (or 
continue to decline on a year-over-year basis). The PC Gaming platform continues to show strong growth 
as online gaming and multi-platform experiences gain greater popularity and gaming content becomes 
increasingly  more  demanding.  We  believe  Logitech  is  well  positioned  to  benefit  from  the  PC  Gaming 
market growth.

Enterprise  Market:  We  are  continuing  our  efforts  to  create  and  sell  products  and  services  to 
enterprises,  including  Video  Collaboration  products.  For  example,  we  have  introduced  the  Logitech 
ConferenceCam CC3000e video collaboration product. Growing our enterprise peripherals business will 
continue to require investment in selected business-specific products, targeted product marketing, and 
sales channel development.

Tablets  and  Other  Accessories:  Smaller  mobile  computing  devices,  such  as  tablets  with  touch 
interfaces,  have  created  new  markets  and  usage  models  for  peripherals  and  accessories.  We  offer  a 
number  of  products  to  enhance  the  use  of  mobile  devices,  including  keyboard  folios  for  the  iPad  and 
iPad mini, and keyboard covers and folios for the iPad Air. We have also introduced keyboard folios for 
the Samsung Galaxy tablet. While we achieved growth in sales of our tablet covers for the iPad, we have 
seen the market decline through fiscal year 2015 for the iPad platform, which has impacted the sales of 
our tablet peripherals.

OEM Business: Sales of our OEM mice and keyboards have historically made up the bulk of our 
OEM sales. In recent years, there has been a dramatic shift away from desktop PCs and there continues 
to be weakness in the global market for PCs, which has adversely affected our sales of OEM mice and 
keyboards, all of which are sold with name-brand desktop PCs. We expect this trend to continue in the 
future, and we plan to exit the OEM business as we see limited opportunities for profitable growth.

Trends  in  Non-Strategic  Peripherals  Product  Categories:  We  continue  to  evaluate  our  product 

offerings and exit those which no longer support our strategic direction.

Trends Specific to our Video Conferencing Segment

The trend among businesses and institutions to use video conferencing offers a long-term growth 
opportunity  for  us.  However,  the  overall  video  conferencing  industry  has  experienced  a  slowdown  in 
recent  quarters.  In  addition,  there  has  been  an  increase  in  the  competitive  environment.  Lifesize  is  in 
the early stages of transitioning its product portfolio to Lifesize Cloud. While sales of this software-as-
a-service  offering  are  growing  rapidly,  they  are  not  yet  large  enough  to  offset  the  combination  of  the 
short-term portfolio transition and soft market conditions for video conferencing infrastructure. Looking 
at this growth opportunity, recently in April 2015, we decided to reorganize Lifesize with the goal of de-
emphasizing Lifesize’s legacy offerings more quickly to enable maximum traction with Lifesize Cloud. We 
plan to shrink our Lifesize business to grow the Cloud opportunity faster. This resulted in an estimated 

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Annual Report Fiscal Year 2015$122.7 million non-cash goodwill impairment charge in the quarter ended March 31, 2015. We believe 
the growth in our video conferencing segment depends in part on our ability to increase sales of our new 
Cloud offering and smooth transition from our legacy infrastructure business.

Critical Accounting Estimates

The  preparation  of  financial  statements  and  related  disclosures  in  conformity  with  U.S.  GAAP 
(Generally  Accepted  Accounting  Principles  in  the  United  States  of  America)  requires  us  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.

We consider an accounting estimate critical if it: (i) requires management to make judgments and 
estimates  about  matters  that  are  inherently  uncertain;  and  (ii)  is  important  to  an  understanding  of  our 
financial condition and operating results.

We base our estimates on historical experience and on various other assumptions we believe to 
be  reasonable  under  the  circumstances.  Although  these  estimates  are  based  on  management’s  best 
knowledge of current events and actions that may impact us in the future, actual results could differ from 
those estimates. Management has discussed the development, selection and disclosure of these critical 
accounting estimates with the Audit Committee of the Board of Directors.

We believe the following accounting estimates are most critical to our business operations and to 
an  understanding  of  our  financial  condition  and  results  of  operations,  and  reflect  the  more  significant 
judgments and estimates used in the preparation of our consolidated financial statements.

Accruals for Customer Programs

We record accruals for product returns, cooperative marketing arrangements, customer incentive 
programs and pricing programs. An allowance against accounts receivable is recorded for accruals and 
program activity related to our direct customers and indirect customers who receive payments for program 
activity through our direct customers. A liability is recorded for accruals and program activity related to our 
indirect customers who receive payments directly and do not have a right of offset against a receivable 
balance.  The  estimated  cost  of  these  programs  is  usually  recorded  as  a  reduction  of  revenue.  If  we 
receive a separately identifiable benefit from the customer and can reasonably estimate the fair value 
of that benefit, such cost is reflected in cost of sales or in operating expenses. Significant management 
judgment and estimates must be used to determine the cost of these programs in any accounting period.

Returns. We grant limited rights to return products. Return rights vary by customer, and range from 
just the right to return defective product to stock rotation rights limited to a percentage of sales approved 
by management. Estimates of expected future product returns are recognized at the time of sale based 
on analyses of historical return trends by customer and by product, inventories owned by and located 
at distributors and retailers, current customer demand, current operating conditions, and other relevant 
customer and product information. Upon recognition, we reduce sales and cost of sales for the estimated 
return.  Return  trends  are  influenced  by  product  life  cycle  status,  new  product  introductions,  market 
acceptance  of  products,  sales  levels,  product  sell-through,  the  type  of  customer,  seasonality,  product 
quality  issues,  competitive  pressures,  operational  policies  and  procedures,  and  other  factors.  Return 
rates  can  fluctuate  over  time,  but  are  sufficiently  predictable  to  allow  us  to  estimate  expected  future 
product returns.

Cooperative Marketing Arrangements. We enter into customer marketing programs with many of our 
distribution and retail customers, and with certain indirect partners, allowing customers to receive a credit 
equal to a set percentage of their purchases of our products, or a fixed dollar credit for various marketing 

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Annual Report Fiscal Year 2015programs. The objective of these arrangements is to encourage advertising and promotional events to 
increase sales of our products. Accruals for these marketing arrangements are recorded at the later of 
time of sale or time of commitment, based on negotiated terms, historical experience and inventory levels 
in the channel.

Customer Incentive Programs. Customer incentive programs include performance-based incentives 
and  consumer  rebates.  We  offer  performance-based  incentives  to  our  distribution  customers,  retail 
customers and indirect partners based on pre-determined performance criteria. Accruals for performance-
based incentives are recognized as a reduction of the sale price at the time of sale. Estimates of required 
accruals are determined based on negotiated terms, consideration of historical experience, anticipated 
volume  of  future  purchases,  and  inventory  levels  in  the  channel.  Consumer  rebates  are  offered  from 
time to time at our discretion for the primary benefit of end-users. Accruals for the estimated costs of 
consumer rebates and similar incentives are recorded at the later of time of sale or when the incentive 
is offered, based on the specific terms and conditions. Certain incentive programs, including consumer 
rebates, require management to estimate the number of customers who will actually redeem the incentive 
based on historical experience and the specific terms and conditions of particular programs.

Pricing Programs. We have agreements with certain customers that contain terms allowing price 
protection credits to be issued in the event of a subsequent price reduction. At our discretion, we also 
offer special pricing discounts to certain customers. Special pricing discounts are usually offered only for 
limited time periods or for sales of selected products to specific indirect partners. Our decision to make 
price reductions is influenced by product life cycle stage, market acceptance of products, the competitive 
environment, new product introductions and other factors. Accruals for estimated expected future pricing 
actions are recognized at the time of sale based on analysis of historical pricing actions by customer and 
by products, inventories owned by and located at distributors and retailers, current customer demand, 
current  operating  conditions,  and  other  relevant  customer  and  product  information,  such  as  stage  of 
product life-cycle.

We  regularly  evaluate  the  adequacy  of  our  accruals  for  product  returns,  cooperative  marketing 
arrangements, customer incentive programs and pricing programs. Future market conditions and product 
transitions may require us to take action to increase such programs. In addition, when the variables used 
to  estimate  these  costs  change,  or  if  actual  costs  differ  significantly  from  the  estimates,  we  would  be 
required to record incremental increases or reductions to revenue or operating expenses. If, at any future 
time, we become unable to reasonably estimate these costs, recognition of revenue might be deferred 
until products are sold to users, which would adversely impact revenue in the period of transition.

Inventory Valuation

We  must  order  components  for  our  products  and  build  inventory  in  advance  of  customer  orders. 
Further, our industry is characterized by rapid technological change, short-term customer commitments 
and rapid changes in demand.

We record inventories at the lower of cost or market value and record write-downs of inventories 
that are obsolete or in excess of anticipated demand or market value. A review of inventory is performed 
each fiscal quarter that considers factors including the marketability and product life cycle stage, product 
development  plans,  component  cost  trends,  demand  forecasts  and  current  sales  levels.  Inventory  on 
hand which is not expected to be sold or utilized is considered excess, and we recognize the write-off in 
cost of sales at the time of such determination. The write-off is determined by comparison of the current 
replacement cost with the estimated selling price less any costs of completion and disposal (net realizable 
value) and the net realizable value less an allowance for normal profit. At the time of loss recognition, 
a new cost basis per unit, lower-cost basis for that inventory is established and subsequent changes in 

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Annual Report Fiscal Year 2015facts and circumstances would not result in an increase in the cost basis. If there were an abrupt and 
substantial  decline  in  demand  for  Logitech’s  products  or  an  unanticipated  change  in  technological  or 
customer requirements, we may be required to record additional write-downs that could adversely affect 
gross margins in the period when the write-downs are recorded.

Share-Based Compensation Expense

Share-based  compensation  expense  includes  compensation  expense,  reduced  for  estimated 
forfeitures. The grant date fair value for stock options and stock purchase rights is estimated using the 
Black-Scholes-Merton option-pricing valuation model. The grant date fair value of RSUs (restricted stock 
units) that vest upon meeting certain market conditions is estimated using the Monte-Carlo simulation 
method. The grant date fair value of time-based RSUs is calculated based on the closing market price on 
the date of grant, adjusted by estimated dividends yield prior to vesting.

Our estimates of share-based compensation expense require a number of complex and subjective 
assumptions including our stock price volatility, employee exercise patterns, future forfeitures, dividend 
yield,  related  tax  effects  and  the  selection  of  an  appropriate  fair  value  model.  We  estimate  expected 
share price volatility based on historical volatility using daily prices over the term of past options, RSUs or 
purchase offerings, as we consider historical share price volatility as most representative of future volatility. 
We estimate expected life based on historical settlement rates, which we believe are most representative 
of future exercise and post-vesting termination behaviors. We use historical data to estimate pre-vesting 
forfeitures, and we record share-based compensation expense only for those awards that are expected to 
vest. The dividend yield assumption is based on our history and future expectations of dividend payouts.

The  assumptions  used  in  calculating  the  fair  value  of  share-based  compensation  expense  and 
related tax effects represent our best estimates, but these estimates involve inherent uncertainties and 
the application of management judgment. As a result, if factors change and we use different assumptions, 
or  if  we  decide  to  use  a  different  valuation  model,  our  share-based  compensation  expense  could  be 
materially different in the future from what we have recorded in the current period, which could materially 
affect our results of operations.

Accounting for Income Taxes

We  operate  in  multiple  jurisdictions  and  our  profits  are  taxed  pursuant  to  the  tax  laws  of  these 
jurisdictions.  Our  effective  income  tax  rate  may  be  affected  by  the  changes  in  or  interpretations  of 
tax  laws  and  tax  agreements  in  any  given  jurisdiction,  utilization  of  net  operating  loss  and  tax  credit 
carryforwards, changes in geographical mix of income and expense, and changes in our assessment of 
matters such as the ability to realize deferred tax assets. As a result of these considerations, we must 
estimate income taxes in each of the jurisdictions in which we operate. This process involves estimating 
current  tax  exposure  together  with  assessing  temporary  differences  resulting  from  different  treatment 
of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, 
which are included in the consolidated balance sheet.

We assess the likelihood that our deferred tax assets will be recovered from future taxable income, 
considering all available evidence such as historical levels of income, expectations and risks associated 
with  estimates  of  future  taxable  income  and  ongoing  prudent  and  feasible  tax  strategies.  When  we 
determine that we are not able to realize all or part of our deferred tax assets, an adjustment is charged 
to earnings in the period when such determination is made. Likewise, if we later determine that it is more 
likely than not that the deferred tax assets would be realized, the previously provided valuation allowance 
would be reversed.

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Annual Report Fiscal Year 2015We make certain estimates and judgments about the application of tax laws, the expected resolution 
of uncertain tax positions and other matters surrounding the recognition and measurement of uncertain 
tax benefits. In the event that uncertain tax positions are resolved for amounts different than our estimates, 
or the related statutes of limitations expire without the assessment of additional income taxes, we will be 
required to adjust the amounts of the related assets and liabilities in the period in which such events occur. 
Such adjustments may have a material impact on our income tax provision and our results of operations.

Goodwill

We conduct a goodwill impairment analysis annually at December 31 or more frequently if indicators 
of impairment exist or if a decision is made to sell or exit a business. A significant amount of judgment is 
involved in determining if an indicator of impairment has occurred. Such indicators may include deterioration 
in general economic conditions, negative developments in equity and credit markets, adverse changes in 
the markets in which an entity operates, increases in input costs that have a negative effect on earnings 
and cash flows, or a trend of negative or declining cash flows or a decline in actual or planned revenue 
or earnings compared with actual and projected results of relevant prior periods, or other relevant entity-
specific events such as changes in management, key personnel, strategy, or customers, contemplation 
of bankruptcy, or litigation. The fair value that could be realized in an actual transaction may differ from 
that used to evaluate the impairment of goodwill.

In reviewing goodwill for impairment, an entity has the option to first assess qualitative factors to 
determine  whether  the  existence  of  events  or  circumstances  leads  to  a  determination  that  it  is  more 
likely than not (greater than 50%) that the estimated fair value of a reporting unit is less than its carrying 
amount. If an entity elects to perform a qualitative assessment and determines that an impairment is more 
likely than not, the entity is then required to perform the two-step quantitative impairment test; otherwise, 
no further analysis is required. An entity also may elect not to perform the qualitative assessment and, 
instead,  proceed  directly  to  the  two-step  quantitative  impairment  test.  The  ultimate  outcome  of  the 
goodwill impairment review for a reporting unit should be the same whether an entity chooses to perform 
the qualitative assessment or proceeds directly to the two-step quantitative impairment test. Goodwill is 
allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating 
segment or one level below an operating segment. We have two reporting units, peripherals and video 
conferencing.

Peripherals

We performed our annual impairment analysis of the goodwill for our peripherals reporting unit at 
December 31, 2014 by performing a qualitative assessment and concluded that it was more likely than 
not that the fair value of our peripherals reporting unit exceeded its carrying amount. In assessing the 
qualitative factors, we considered the impact of these key factors: change in industry and competitive 
environment, growth in market capitalization of $2.3 billion as of December 31, 2014 from $2.2 billion a 
year ago, and budgeted-to-actual revenue performance from the prior year. The peripherals reporting 
unit has seen an improvement in operating income from $64.8 million and $117.8 million for the three and 
nine months ended December 31, 2013 to $76.1 million and $160.3 million for the three and nine months 
ended December 31, 2014, respectively.

Video Conferencing

 We proceeded directly to the two-step quantitative impairment test for the video conferencing reporting 
unit and performed a Step 1 assessment at December 31, 2014. The Step 1 test involves measuring the 
recoverability of goodwill at the reporting unit level by comparing the reporting unit’s carrying amount, 
including  goodwill,  to  the  estimated  fair  value  of  the  reporting  unit.  The  fair  value  is  estimated  using 
an income approach employing a discounted cash flow (“DCF”) and a market-based model. The DCF 
model is based on projected cash flows from our approved most recent forecast (“assessment forecast”) 

10

11

Annual Report Fiscal Year 2015developed in connection with the video conferencing reporting unit to perform the goodwill impairment 
assessment.  The  assessment  forecast  is  based  on  a  number  of  key  assumptions,  including,  but  not 
limited to, discount rate, compound annual growth rate (“CAGR”) during the forecast period, and terminal 
value. The terminal value is based on an exit price at the end of the assessment forecast using an earning 
multiple applied to the final year of the assessment forecast. The discount rate is applied to the projected 
cash flows to reflect the risks inherent in the timing and amount of the projected cash flows, including 
the  terminal  value,  and  is  derived  from  the  weighted  average  cost  of  capital  of  market  participants  in 
similar businesses. The market approach is based on applying certain revenue and earnings multiples 
of comparable companies relevant to each of its reporting units to the respective revenue and earnings 
metrics of our reporting units. The income approach and the market approach require the exercise of 
significant judgment, including assumptions about appropriate discount rates, long-term growth rates for 
purposes of determining a terminal value at the end of the discrete forecast period, economic expectations, 
timing of expected future cash flows, and expectations of returns on equity that will be achieved. Such 
assumptions are subject to change as a result of changing economic and competitive conditions. If the 
carrying amount of the reporting unit exceeds its fair value as determined by these assessments, goodwill 
is  considered  impaired  and  the  Step  2  test  is  performed  to  measure  the  amount  of  impairment  loss. 
The Step 2 test measures the impairment loss by allocating the reporting unit’s fair value to its assets, 
including unrecognized intangibles which are not carried on the books, and liabilities other than goodwill, 
and comparing the resulting implied fair value of goodwill with its carrying amount. The implied fair value 
of goodwill is the excess of the fair value of the reporting unit over the fair value amounts assigned to all 
of the assets and liabilities of that unit as if the reporting unit was acquired in a business combination 
and the fair value of the reporting unit represented the purchase price. If the carrying value of goodwill 
exceeds its implied fair value, an impairment loss equal to such excess would be recognized.

We  use  a  third  party  valuation  expert  in  the  development  of  our  market  and  income  approach 
models. The annual Step 1 assessment performed as of December 31, 2014 resulted in us determining 
that the video conferencing reporting unit passed the Step 1 test because the estimated fair value of video 
conferencing reporting unit from the Step 1 assessment exceeded its carrying value by approximately 
38.0%,  thus  not  requiring  a  Step  2  assessment  of  this  reporting  unit.  Therefore,  we  concluded  it  was 
more  likely  than  not  that  the  goodwill  of  the  video  conferencing  reporting  unit  was  not  impaired  as  of 
December 31, 2014.

During  the  fourth  quarter  of  the  fiscal  year  ended  March  31,  2015,  the  net  sales  of  the  video 
conferencing reporting unit decreased to $24.9 million from $31.0 million in the fourth quarter of the fiscal 
year ended March 31, 2014 and from $29.9 million in the third quarter of fiscal year ended March 31, 2015. 
The sales decline was concentrated in the video conferencing infrastructure legacy business primarily 
due to faster shift of customer preference towards Cloud infrastructure conferencing versus on-premise 
infrastructure solutions and resource realignment, which was not anticipated during annual impairment 
assessment as of December 31, 2014. This quick shift towards Cloud-based offering resulted in the change 
in  business  strategy  to  de-emphasize  Lifesize’s  legacy  offerings  more  quickly  than  planned  to  enable 
maximum traction of the Lifesize Cloud, which would result in shrinking the legacy Lifesize business but 
could grow the Cloud opportunity faster. In the last nine months, the sales of Cloud-based offerings have 
grown rapidly; however, they are not yet large enough to offset the combination of the short-term portfolio 
transition. As a result of the lower-than-expected performance in the legacy infrastructure sales, we made 
a strategic decision to sharpen our focus on our new Cloud-based offering. We plan to realign our costs 
and operations to this new strategy as part of a restructuring plan announced during April 2015 and are 
exploring various other options for our Lifesize business. The significant change in business strategy has 
adversely affected the near-term projections and we expect that it will shrink the Lifesize revenue for the 
next several years, including lowering the overall growth, pushing out the break-even point and increasing 
the operating loss as well as increasing uncertainty in the near term. In light of the aforementioned, we 
concluded it was appropriate to perform the Step 1 goodwill impairment assessment. 

10

11

Annual Report Fiscal Year 2015As  of  March  31,  2015,  taking  into  consideration  the  video  conferencing  reporting  unit’s  updated 
business outlook for fiscal year 2016 based on the factors discussed above and the risk of execution of 
its refocused strategy, we updated the future cash flow assumptions for the video conferencing reporting 
unit and calculated updated estimates of fair value using the income approach. In particular, we lowered 
our  December  31,  2014  goodwill  impairment  test  projections  of  future  revenue  and  operating  income 
(loss) growth and adjusted other factors (such as working capital and capital expenditure). After updating 
the  assumptions  and  projections,  we  then  calculated  a  present  value  of  the  cash  flow  to  arrive  at  an 
estimate of fair value under the income approach as of March 31, 2015. Key assumptions included in the 
income approach were significant reduction in the revenue assumption for fiscal year 2016 through fiscal 
year 2021 compared with the revenue assumption used in our annual goodwill impairment assessment 
as  of  December  31,  2014,  CAGR  at  7.2%,  discount  rate  at  14.0%,  and  terminal  growth  rate  at  4.0%. 
Consistent with the annual impairment test on December 31, 2014, we also updated the estimates of fair 
value determined under the market approach. Based on the income approach and market approach, the 
estimated fair value of the video conferencing reporting unit under the Step 1 assessment was lower than 
the carrying amount of the net asset including goodwill. 

The  video  conferencing  reporting  unit  failed  the  Step  1  test  as  prescribed  under  ASC  350,  thus 
requiring a Step 2 assessment of this reporting unit to determine the goodwill impairment. In determining 
the impairment amount, the fair value of the video conferencing reporting unit was allocated to its assets 
and  liabilities,  including  any  unrecognized  intangible  assets  not  on  the  balance  sheet,  based  on  their 
respective fair values. Assumptions used in measuring the value of these assets and liabilities included 
the  discount  rates,  working  capital,  and  technology  obsolescence  rates  used  in  valuing  the  intangible 
assets, and pricing of comparable transactions in the market in valuing the tangible assets. Based on 
this allocation, the implied value of intangible assets and tangible net assets fully absorbed the fair value 
of the business, leaving no implied fair value left to be allocated to the goodwill. The video conferencing 
reporting unit’s carrying value of goodwill exceeded the implied fair value of goodwill, resulting in a goodwill 
impairment charge of $122.7 million, which is recorded in the Consolidated Statement of Operations. 

The  current  assessment  represents  the  fair  value  of  the  video  conferencing  business  as  of 
March 31, 2015. If we dispose all or any equity interest of the video conferencing reporting unit in the 
future, it may result in a gain. The gain will be recognized as a difference between the carrying amount of 
the video conferencing reporting unit and the proceeds, if any, received from such a disposal.

During  fiscal  year  2013,  our  video  conferencing  reporting  unit  failed  the  Step  1  test  because  the 
estimated fair value was less than its carrying value, thus requiring Step 2 assessment of this reporting unit. 
This impairment primarily resulted from a decrease in the expected CAGR during the assessment forecast 
period based on greater evidence of the overall enterprise video conferencing industry experiencing a 
slowdown, combined with lower demand related to new product launches, increased competition during 
fiscal year 2013, and other market data. These factors had an adverse effect on our video conferencing 
operating results and future outlook. During fiscal year 2013, we recorded goodwill impairment and other 
charges of $214.5 million related to our video conferencing reporting unit.

Determining the fair value of a reporting unit is judgmental in nature and requires the use of significant 
estimates and assumptions, including revenue growth rates, operating margins, discount rates and future 
market  conditions,  among  others.  If  we  are  required  to  take  further  substantial  impairment  charges  in 
future periods, our operating results would be materially and adversely affected in such period.

12

13

Annual Report Fiscal Year 2015Product Warranty Accrual

We estimate the cost of product warranties at the time the related revenue is recognized based on 
historical and projected warranty claim rates, historical and projected costs, and knowledge of specific 
product  failures  that  are  outside  of  our  typical  experience.  Each  quarter,  we  reevaluate  estimates  to 
assess the adequacy of recorded warranty liabilities considering the size of the installed base of products 
subject  to  warranty  protection  and  adjust  the  amounts  as  necessary.  If  actual  product  failure  rates  or 
repair costs differ from estimates, revisions to the estimated warranty liabilities would be required and 
could materially affect our results of operations.

Results of Operations

Non-GAAP Measures

We refer to our net sales excluding the impact of currency exchange rate fluctuations as “constant 
dollar” sales. Constant dollar sales is a non-GAAP financial measure, which is information derived from 
consolidated financial information but not presented in our financial statements prepared in accordance 
with  U.S.  GAAP.  Our  management  uses  these  non-GAAP  measures  in  its  financial  and  operational 
decision-making,  and  believes  these  non-GAAP  measures,  when  considered  in  conjunction  with  the 
corresponding GAAP measures, facilitate a better understanding of changes in net sales. Percentage of 
constant dollar sales growth is calculated by translating prior period sales in each local currency at the 
current period’s average exchange rate for that currency and comparing that to current period sales.

Net Sales

Net sales by channel for fiscal years 2015, 2014 and 2013 were as follows (in thousands):

Retail  . . . . . . . . . . . . . . . . . . . . . . . . . .
OEM . . . . . . . . . . . . . . . . . . . . . . . . . . .
Video conferencing  . . . . . . . . . . . . . . .
Total net sales . . . . . . . . . . . . . . . . .

Retail:

2015
$1,887,446
117,462
109,039
$2,113,947

Years Ended March 31,
2014
$1,866,279
141,749
120,685
$2,128,713

2013
$1,821,051
141,186
137,040
$2,099,277

Change

2015 vs. 
2014

2014 vs. 
2013

1%

(17)
(10)
(1)

2%
—
(12)
1

During fiscal year 2015, retail sales increased 1% and units sold increased 2%, respectively, compared 
to fiscal year 2014. If currency exchange rates had been constant in 2015 and 2014, our constant dollar 
retail sales would have increased 4%. The increase in retail sales is primarily due to triple-digit growth in 
Mobile Speakers and Video Collaboration, and double-digit growth in Gaming, partially offset by declines 
in Audio-PC & Wearables, Tablet & Other Accessories, PC webcams and our Non-Strategic categories, 
compared to fiscal year 2014. Our retail average selling price decreased by 1% during fiscal year 2015 
compared to fiscal year 2014. 

During fiscal year 2014, retail sales increased 2% and units sold decreased 3%, compared to fiscal 
year  2013.  Retail  sales  increased  in  Americas  and  Asia  Pacific  and  decreased  in  EMEA  during  fiscal 
year 2014, compared to fiscal year 2013. The increase in retail sales is primarily due to triple-digit growth 
in Mobile Speakers, double-digit growth in Tablets & Other Accessories and Gaming, offset in part by a 
decline in Audio-PC & Wearables, Video, and our Non-Strategic categories, compared to fiscal year 2013.

12

13

Annual Report Fiscal Year 2015OEM:

During fiscal year 2015, OEM sales and units sold decreased 17% and 25%, respectively, compared 
to fiscal year 2014. If currency exchange rates had been constant in 2015 and 2014, our constant dollar 
OEM net sales would have decreased 17%. The decline was primarily due to the continued weakness in 
global PCs market and loss of volume shares from certain PC manufactures. Given our heightened focus 
on our growing Retail Strategic business, we plan to exit the OEM business.

During fiscal year 2014, OEM sales and units sold remained flat, compared to fiscal year 2013.

Video conferencing:

During fiscal year 2015, video conferencing net sales decreased 10%, compared to fiscal year 2014. 
If currency exchange rates had been constant in 2015 and 2014, our constant dollar video conferencing 
net sales would have decreased 10%. Lifesize is in the process of transitioning its product portfolio to the 
recently announced Lifesize Cloud, a software-as-a-service (SaaS) offering that provides an affordable, 
simple  and  scalable  video  conferencing  solution  with  little  to  no  need  for  IT  involvement.  While  sales 
of the Cloud offering are growing rapidly, they are not yet large enough to offset the combination of the 
short-term portfolio transition and soft market conditions for video conferencing infrastructure. To align 
our  refocus  on  Lifesize  Cloud  offering  and  transition  from  Lifesize  legacy  business,  we  announced  a 
restructuring plan subsequently in April 2015.

During fiscal year 2014, video conferencing net sales decreased 12%, compared to fiscal year 2013. 
The  decrease  primarily  resulted  from  the  combination  of  a  changing  industry  landscape  caused  by  a 
shift to less expensive, Cloud-based video conferencing solutions, an evolving Lifesize product line and 
challenges in execution.

Sales Denominated in Other Currencies

Although our financial results are reported in U.S. Dollars, a portion of our sales were generated 
in currencies other than the U.S. Dollar, such as the Euro, Chinese Renminbi, Japanese Yen, Canadian 
Dollar, Taiwan Dollar, British Pound and Australian Dollar. During fiscal years 2015, 2014 and 2013, 44%, 
45% and 45% of our net sales were denominated in currencies other than the U.S. Dollar, respectively.

Retail Sales by Region

The following table presents the change in retail sales by region for the fiscal year 2015 compared 

with fiscal year 2014 and fiscal year 2014 compared with fiscal year 2013:

2015 vs. 
2014

2014 vs. 
2013

Americas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EMEA  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asia Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8%
(7)
2

9%
(4)
2

Americas

During  fiscal  year  2015,  retail  sales  in  Americas  increased  8%,  compared  to  fiscal  year  2014.  If 
currency exchange rates had been constant in 2015 and 2014, our constant dollar retail sales would have 
increased  9%  in  the  Americas.  We  achieved  sales  increases  in  all  strategic  categories  except  Audio-
PC & Wearables, PC webcams, and Tablets & Other Accessories. This increase was led by triple digit 
growth in Mobile Speakers mainly from UE BOOM and our recently launched UE MEGABOOM, and triple 
digit growth in Video Collaboration mainly from our ConferenceCam CC3000e and Webcam C930e.

14

15

Annual Report Fiscal Year 2015During  fiscal  year  2014,  retail  sales  in  Americas  increased  9%,  compared  to  fiscal  year  2013. 
Retail sales increased in Mobile Speakers, Gaming, Tablet & Other Accessories, Keyboards & Combos 
and  Pointing  Devices,  partially  offset  by  decreases  in  Non-Strategic,  Audio-PC  &  Wearables,  Home 
Control, and PC Webcams. The increase in Tablet & Other Accessories was led by sales of our Ultrathin 
Keyboard Cover for the iPad and from our recently introduced Keyboard Folio suite of products designed 
for the iPad, iPad mini and iPad Air. The increase in Mobile Speakers was primarily from the UE BOOM. 
The  increase  in  Gaming  was  due  to  the  recent  launch  of  our  new  gaming  products.  The  increase  in 
Keyboards & Combos was driven by low-end, mid-range and high-end products. Retail sales improved in 
the United States and Canada during fiscal year 2014, compared to fiscal year 2013.

EMEA

During  fiscal  year  2015,  retail  sales  in  EMEA  decreased  7%,  compared  to  fiscal  year  2014.  If 
currency exchange rates had been constant in 2015 and 2014, our constant dollar retail sales would have 
decreased 3% in the EMEA region. Retail sales decreased across all strategic categories except Gaming, 
Mobile Speakers, Video Collaboration, Home Control and Keyboards and Combos product categories. 
The decline in sales was heavily impacted by market weakness in Russia and Ukraine. We achieved a 
triple digit growth in Video Collaboration, and a double digit growth in both Mobile Speakers and Gaming 
during fiscal year 2015 compared to fiscal year 2014.

During fiscal year 2014, retail sales in EMEA decreased 4%, compared to fiscal year 2013. Retail 
sales decreased in Pointing Devices, PC Webcams, Audio-PC & Wearables, and Non-Strategic, partially 
offset  by  increases  in  Mobile  Speakers,  Gaming,  Tablet  &  Other  Accessories  and  Home  Control.  We 
experienced  a  significant  decrease  in  Germany  due  to  sales  challenges  which  we  overcame  in  the 
second  half  of  fiscal  year  2014.  The  decrease  in  Germany  was  partially  offset  by  an  increase  in  the 
United Kingdom.

Asia Pacific

During fiscal year 2015, retail sales in Asia Pacific increased 2%, compared to fiscal year 2014. If 
currency exchange rates had been constant in 2015 and 2014, our constant dollar retail sales would have 
increased 4% in the Asia Pacific region. We achieved triple digit growths in both Mobile Speakers and 
Video Collaboration, partially offset by the decline in Tablets & Other Accessories, Audio - PC Wearables, 
and Non-Strategic.

During  fiscal  year  2014,  retail  sales  in  Asia  Pacific  increased  2%,  compared  to  fiscal  year  2013. 
Retail sales increased in Mobile Speakers, Gaming, Tablet & Other Accessories and Remotes, partially 
offset  by  decreases  in  Non-Strategic,  Audio-  PC  &  Wearables,  Video,  and  Pointing  Devices  and  PC 
keyboards  &  Desktops.  In  addition,  retail  sell-through  in  Asia  Pacific  increased  2%  during  fiscal  year 
2014, compared to fiscal year 2013.

14

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Annual Report Fiscal Year 2015Net Sales by Product Categories and Sales Channels

Net sales by product categories and sales channels for fiscal years 2015, 2014 and 2013 were as 

follows (in thousands):

Peripherals:

Mobile Speakers . . . . . . . . . . . . . . .
Gaming  . . . . . . . . . . . . . . . . . . . . . .
Video Collaboration. . . . . . . . . . . . .
Tablet & Other Accessories. . . . . . .
Growth. . . . . . . . . . . . . . . . . . . .
Pointing Devices  . . . . . . . . . . . . . . .
Keyboards & Combos . . . . . . . . . . .
Audio-PC & Wearables . . . . . . . . . .
PC Webcams  . . . . . . . . . . . . . . . . .
Home Control  . . . . . . . . . . . . . . . . .
Profit Maximization  . . . . . . . . .
Retail Strategic Sales(1). . . .
Non-Strategic  . . . . . . . . . . .
OEM . . . . . . . . . . . . . . . . . . . . . .

Video Conferencing . . . . . . . . . . . . . .

Years Ended March 31,

2015

2014

2013

Change

2015 vs. 
2014

2014 vs. 
2013

$ 178,038
211,911
62,215
140,994
593,158
487,210
426,117
213,496
96,680
68,060
1,291,563
1,884,721
2,725
117,462
2,004,908
109,039
$2,113,947

$

87,414
186,926
29,058
172,484
475,882
506,884
415,314
250,037
113,791
67,371
1,353,397
1,829,279
37,000
141,749
2,008,028
120,685
$2,128,713

$

33,408
144,512
18,700
119,856
316,476
521,083
399,144
289,313
137,292
71,641
1,418,473
1,734,949
86,102
141,186
1,962,237
137,040
$2,099,277

104%
13
114
(18)
25
(4)
3
(15)
(15)
1
(5)
3
(93)
(17)
—
(10)
(1)

162%
29
55
44
50
(3)
4
(14)
(17)
(6)
(5)
5
(57)
—
2
(12)
1

(1)  Certain products within the retail product families presented in prior years have been reclassified to 

conform to the current year presentation. There’s no impact over total net retail sales.

Retail Strategic Sales

During fiscal year 2015, retail strategic sales increased 3% compared to fiscal year 2014. If currency 
exchange rates had been constant in 2015 and 2014, our constant dollar retail strategic sales would have 
increased 6%.

During fiscal year 2014, retail strategic sales increased 5% compared to fiscal year 2013.

Retail Strategic - Growth Categories:

Mobile Speakers

Our retail Mobile Speakers category products are portable Bluetooth wireless speakers.

During fiscal year 2015, retail sales of Mobile Speakers increased 104% and units sold increased 
99%, compared to fiscal year 2014. The sales increased significantly across our all three regions, with a 
triple digit growth in both Americas and Asia Pacific regions, are primarily due to strong demand for the 
UE BOOM, which is our top revenue generating wireless speaker and experienced a triple digit growth 
in fiscal year 2015, compared to fiscal year 2014. The successful launch of UE MEGABOOM during the 
fourth quarter of fiscal year 2015 contributed 6% of total Mobile Speakers sales for fiscal year 2015.

16

17

Annual Report Fiscal Year 2015During fiscal year 2014, retail sales of Mobile Speakers increased 162% and units sold increased 
88%, compared to fiscal year 2013. The 162% increase in our wireless speakers for smartphones and 
tablets was driven by a strong demand primarily for the UE BOOM. Our top revenue-generating wireless 
speaker products during fiscal year 2014 included the UE BOOM and the UE Mini BOOM.

Gaming

Our  retail  Gaming  category  comprises  gaming  mice,  keyboards,  headsets,  gamepads  and 

steering wheels.

During  fiscal  year  2015,  retail  sales  of  Gaming  increased  13%  and  units  sold  increased  21%, 
compared to fiscal year 2014. This growth was primarily from gaming headsets and gaming mice due to 
the launch of our new gaming products, including mice, keyboards and headsets. New products made up 
12% of total Gaming revenue for fiscal year 2015. Our top revenue-generating Gaming products included 
the Logitech G502 Proteus Core, the Logitech G27 Racing Wheel, the Logitech G930 Wireless Gaming 
Headset, and the G430 Cordless Mice.

During  fiscal  year  2014,  retail  sales  of  Gaming  increased  29%  and  units  sold  increased  24%, 
compared  to  fiscal  year  2013.  This  growth  was  primarily  due  to  the  recent  launch  of  our  new  gaming 
products, including mice, keyboards and headsets. New products made up 23% of total Gaming revenue 
for  fiscal  year  2014.  Our  top  revenue-generating  Gaming  products  included  the  Logitech  G27  Racing 
Wheel,  the  Logitech  G930  Wireless  Gaming  Headset,  the  G500s  Laser  Gaming  Mouse,  the  G700s 
Rechargeable Gaming Mouse, and the G710+ Mechanical Gaming Keyboard.

Video Collaboration

Our  retail  Video  Collaboration  category  primarily  includes  video  products  and  certain  headset 

products that can connect small and medium sized user groups.

During fiscal year 2015, retail sales of Video Collaboration increased 114% and units sold increased 
49%,  compared  to  fiscal  year  2014.  The  sales  increased  significantly  across  all  products  in  this 
category was primarily driven by the success of the Logitech ConferenceCam CC3000e and Logitech 
ConferenceCam C930e.

During fiscal year 2014, retail sales of Video Collaboration increased 55% and units sold increased 
33%, compared to fiscal year 2013. The significant increase in sales across all products in this category 
was primarily driven by the success of the Logitech Webcam C930e. 

Tablet & Other Accessories

Our  retail  Tablet  &  Other  Accessories  category  comprises  keyboards  and  covers  for  tablets  and 

smartphones as well as other accessories for mobile devices.

During fiscal year 2015, retail sales of Tablet & Other Accessories decreased 18% and units sold 
decreased 5%, compared to fiscal year 2014. The reduction in sales, primarily from tablet keyboards, 
reflects  the  combination  of  a  declining  demand  for  iPad  tablet  platform  and  increased  competition, 
partially offset by sales growth with our tablet covers for the iPad.

During fiscal year 2014, retail sales of Tablet & Other Accessories increased 44% and units sold 
increased  87%,  compared  to  fiscal  year  2013.  The  increase  was  driven  by  demand  for  the  Logitech 
Ultrathin Keyboard Cover for the iPad, as well as strong sales from recently introduced products such 
as the Logitech Ultrathin Keyboard Cover for the iPad Mini and from the Logitech Keyboard Folio suite 

16

17

Annual Report Fiscal Year 2015of products designed for the iPad, iPad mini, and iPad Air. The faster growth in unit shipments reflected 
the  broadening  of  our  portfolio  to  address  a  larger  portion  of  the  tablet  accessory  market,  including 
tablet cases.

Retail Strategic - Profit Maximization Categories:

Pointing Devices

Our retail Pointing Devices category comprises PC and Mac-related mice, touchpads and presenters.

During fiscal year 2015, retail sales of Pointing Devices decreased 4% and units sold increased 2%, 
compared to fiscal year 2014. The decrease in retail sales was primarily due to the continued weakness in 
the global PC market. The decrease was primarily from our high-end product offerings, which decreased 
12%, followed by our low-end product offerings which decreased 5%, partially offset by our mid-range 
product offerings which increased 1%. Retail sales of corded mice decreased 4% and units sold remained 
flat. Retail sales of cordless mice decreased 5% and units sold increased 2%. 

During fiscal year 2014, retail sales of Pointing Devices decreased 3% and units sold decreased 1%, 
compared to fiscal year 2013. The decrease in retail sales was primarily due to the continued weakness in 
the global PC market. The decrease was primarily from our high-end product offerings, which decreased 
14%, followed by our mid-range product offerings, which decreased 6%, and our low-end product offerings 
increased by 1%. Retail sales of corded mice decreased 9% and units sold decreased 10%. Retail sales 
of cordless mice decreased 1% and units sold increased 4%.

Keyboards & Combos

Our  retail  Keyboards  &  Combos  category  comprises  PC  keyboards  and  keyboard/mice  combo 

products.

During fiscal year 2015, retail sales of Keyboards & Combos increased 3% and units sold increased 
7%, compared to fiscal year 2014. The sales increase was primarily due to sales increase in our corded 
and cordless combos. Retail sales of corded and cordless combos increased 19% and 6%, respectively, 
and  units  sold  increased  25%  and  10%,  respectively.  Our  best  selling  products  in  this  category  were 
the Logitech Wireless Combo MK270 and Wireless Combo MK520, which feature powerful and reliable 
wireless  connections  and  plug-and-play  simplicity.  Retail  sales  of  corded  and  cordless  keyboards 
decreased 9% and 7%, respectively, and units sold decreased 4% and 3%, respectively. 

During fiscal year 2014, retail sales of Keyboards & Combos increased 4% and units sold decreased 
1%, compared to fiscal year 2013. The sales increase was primarily due to sales increase in our corded 
and cordless combo. Our best selling product in this category was the Wireless Touch Keyboard K400, 
which features an integrated touchpad and has been popular for use in the living room. Retail sales of 
corded and cordless keyboards decreased 17% and 5%, respectively, and units sold decreased 21% and 
6%, respectively. Retail sales of corded and cordless combos increased 3% and 7%, respectively, and 
units sold decreased 1% and increased 10%, respectively.

Audio-PC & Wearables

Our  retail  Audio-PC  &  Wearables  category  comprises  PC  speakers,  PC  headsets  and  in-ear 

headphones.

18

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Annual Report Fiscal Year 2015During fiscal year 2015, retail sales of Audio-PC decreased 15% and units sold decreased 10%, 
compared to fiscal year 2014. The decrease was primarily due to decreases in PC speaker retail sales, 
reflecting a category that appears to be in structural decline as music consumption continues to migrate 
to  mobile  platforms,  which  benefits  our  mobile  speaker  product  category.  Retail  sales  of  our  headset 
products decreased 4% and units decreased 6%. Retail sales of our Wearables products declined 35%.

During fiscal year 2014, retail sales of Audio-PC decreased 14% and units sold decreased 17%, 
compared to fiscal year 2013. The decrease was primarily due to decreases in PC speaker retail sales of 
10% and units sold of 11%. These decreases reflect both a weakness in the overall market for new PCs 
and a market shift toward mobile audio devices. Retail sales of our Wearables products declined 39%, as 
we phased out the headphone category.

PC Webcams

Our PC Webcams category comprises PC-based webcams targeted primarily at consumers.

During fiscal year 2015, retail sales of PC Webcams decreased 15% and units sold decreased 18%, 
compared  to  fiscal  year  2014.  The  weak  sales  reflect  the  ongoing  structural  decline  of  the  consumer 
webcam market, which continues to contract.

During fiscal year 2014, retail sales of PC Webcams decreased 17% and units sold decreased 28%, 
compared to fiscal year 2013. The decrease was due to weakness in our consumer webcam product line, 
which continued to be negatively impacted by the combination of market trends, including the popularity 
of embedded webcams in mobile devices, and the overall weakness of the PC market. 

Home Control

Our  retail  Home  Control  category  comprises  our  Harmony  remotes  and  recently-launched,  new 

Harmony Home Control.

During  fiscal  year  2015,  retail  sales  of  Remotes  increased  1%  and  units  sold  increased  22%, 
compared to fiscal year 2014. The increase in Home Control was primarily concentrated in our mid-range 
and low-end products, partially offset by decreases in our high-end products. New products contributed 
to 17% of total retail sales of Home Control for fiscal year 2015. 

During fiscal year 2014, retail sales of Home Control decreased 6% and units sold decreased 23%, 
compared to fiscal year 2013. The decrease in Home Control was primarily concentrated in our high-end 
and low-end products, partially offset by increases in our mid-range product lines.

Non-Strategic

This category comprises a variety of products that we currently intend to transition out of, or have 
already  transitioned  out  of,  because  they  are  no  longer  strategic  to  our  business.  Products  currently 
included in this category include TV camera, Digital Video Security, TV and home speakers, Google TV 
products, Keyboard/Desktop accessories, and music docks.

During fiscal year 2015, retail sales of this category decreased 93%, compared to fiscal year 2014. 

During fiscal year 2014, retail sales of this category decreased 57%, compared to fiscal year 2013.

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Annual Report Fiscal Year 2015OEM

During fiscal year 2015, OEM sales and units sold decreased 17% and 25%, respectively, compared 
to  fiscal  year  2014.  This  decrease  was  primarily  due  to  weak  mice  sales  which  was  expected  as  we 
elected not to participate in lower margin opportunities with several customers. We plan to exit the OEM 
business as we see limited opportunities for profitable growth.

During fiscal year 2014, OEM sales and units sold remained flat compared to fiscal year 2013.

Video Conferencing

During fiscal year 2015, video conferencing sales decreased 10% compared to fiscal year 2014. If 
currency exchange rates had been constant in 2015 and 2014, our constant dollar video conferencing 
net sales would have decreased 10%. Lifesize is in the process of transitioning its product portfolio to the 
recently announced Lifesize Cloud, a software-as-a-service (SaaS) offering that provides an affordable, 
simple  and  scalable  video  conferencing  solution  with  little  to  no  need  for  IT  involvement.  While  sales 
of  the  Cloud  offering  are  growing  rapidly,  they  are  not  yet  large  enough  to  offset  the  combination  of 
the short-term portfolio transition and soft market conditions for video conferencing infrastructure. We 
recently decided to reorganize Lifesize with the goal of de-emphasizing Lifesize’s legacy offerings more 
quickly to enable maximum traction with Lifesize Cloud. We plan to shrink our Lifesize business to grow 
the Cloud opportunity faster.

During fiscal year 2014, video conferencing sales decreased 12% compared to fiscal year 2013. The 
decrease was primarily due to a combination of a changing industry landscape caused by a shift to less 
expensive, Cloud-based video conferencing solutions, an evolving Lifesize product line and challenges in 
execution experienced in all geographic regions.

Gross Profit

Gross profit for fiscal years 2015, 2014 and 2013 was as follows (in thousands):

Net sales  . . . . . . . . . . . . . . . . . . 
Cost of goods sold  . . . . . . . . . . . 
Gross profit  . . . . . . . . . . . . . . 
Gross margin. . . . . . . . . . . . . 

2015
$2,113,947
1,339,750
$ 774,197

Years Ended March 31,
2014
$2,128,713
1,400,844
$ 727,869

2013
$2,099,277
1,389,643
$ 709,634

36.6%

34.2%

33.8%

Change

2015 vs.  
2014
(1)%
(4)
6

2014 vs.  
2013
1%
1
3

Gross  profit  consists  of  net  sales,  less  cost  of  goods  sold,  which  includes  materials,  direct  labor 
and  related  overhead  costs,  costs  of  manufacturing  facilities,  costs  of  purchasing  components  from 
outside suppliers, distribution costs, shipping and handling cost, outside processing costs, write-down of 
inventories and amortization of intangible assets.

The increase in gross margin during fiscal year 2015, compared to fiscal year 2014, primarily resulted 
from a 0.5% improvement attributable to cost reduction initiatives across the Pointing Devices, Keyboards 
&  Combos  and  Mobile  Speakers  product  categories,  a  0.5%  improvement  attributable  to  exiting  non-
strategic  product  categories,  a  0.7%  improvement  attributable  to  the  combination  of  a  $5.8  million 
reduction in amortization of other intangible assets and a $5.2 million prior year discontinued products 
write off, and a 0.5% improvement attributable to lower inventory reserves in fiscal year 2015 that was 
partially offset by a higher percentage of air shipments in fiscal 2015.

20

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Annual Report Fiscal Year 2015The increase in gross margin during fiscal year 2014, compared to fiscal year 2013, was primarily 
due  to  cost  improvements  across  all  PC-related  categories,  actions  we  took  since  fiscal  year  2013  to 
streamline our product portfolio, inventory reserves of several discontinued Music category products and 
the discontinuation of projects in 2013 due to restructuring.

Operating Expenses

Operating expenses for fiscal years 2015, 2014 and 2013 were as follows (in thousands):

Marketing and selling . . . . . . . . . . . . . . . . .  $378,593

2015

Years Ended March 31,

2014
$379,747

2013
$431,886

Change

2015 vs. 
2014

2014 vs. 
2013

—% (12)%

% of net sales  . . . . . . . . . . . . . . . . . . . . 
Research and development . . . . . . . . . . . . 
% of net sales  . . . . . . . . . . . . . . . . . . . . 
General and administrative  . . . . . . . . . . . . 
% of net sales  . . . . . . . . . . . . . . . . . . . . 
Impairment of goodwill and other assets  . . 
% of net sales  . . . . . . . . . . . . . . . . . . . . 
Restructuring charges (Credits), net. . . . . . 
% of net sales  . . . . . . . . . . . . . . . . . . . . 

17.9%

17.8%

20.6%

131,012

139,385

155,012

(6)

(10)

6.2%

6.5%

7.4%

131,446

118,940

114,381

11

4

6.2%

122,734

5.8%

5.6%
—
—%

5.4%

216,688

NM

(100)

10.3%

(4,888)

13,811

43,704

(135)

(68)

(0.2)%

0.6%

2.1%

Total operating expenses . . . . . . . . . . . . . .  $758,897

$651,883

$961,671

16

(32)

% of net sales  . . . . . . . . . . . . . . . . . . . . 

35.9%

30.6%

45.8%

NM—Not Meaningful.

The  increase  in  total  operating  expenses  during  fiscal  year  2015,  compared  to  fiscal  year  2014, 
was primarily due to a goodwill impairment charge of $122.7 million relating to our video conferencing 
reporting unit and $23.7 million in expense related to the Audit Committee’s Independent investigation 
during fiscal 2015, partially offset by a restructuring credit of $4.9 million during fiscal year 2015 resulting 
from partial lease termination of our Silicon Valley campus, which was previously vacated and under a 
restructuring plan during fiscal year 2014, as opposed to a restructuring charge of $13.8 million during 
fiscal year 2014.

The  decrease  in  total  operating  expenses  during  fiscal  year  2014,  compared  to  fiscal  year  2013, 
was primarily due to the $216.7 million impairment of goodwill and other assets recorded in fiscal year 
2013, combined with the restructuring plans initiated in fiscal year 2013, which reduced personnel-related 
expenses in fiscal year 2014 as well as resulted in a $30.0 million decrease in restructuring expenses in 
fiscal 2013.

Marketing and Selling

Marketing  and  selling  expense  consists  of  personnel  and  related  overhead  costs,  corporate 
and  product  marketing,  promotions,  advertising,  trade  shows,  customer  and  technical  support  and 
facilities costs.

During fiscal year 2015, marketing and selling expense remained flat compared to fiscal year 2014. 

20

21

Annual Report Fiscal Year 2015During  fiscal  year  2014,  marketing  and  selling  expense  decreased  12%,  compared  to  fiscal  year 
2013. The decrease was primarily due to $15 million lower personnel-related expenses from the workforce 
reduction in video conferencing reporting unit as a result of the restructuring plan initiated during fiscal 
2014 and $24 million lower advertising and marketing costs related to the launch of new Music category 
in fiscal year 2013.

Research and Development

Research and development expense consists of personnel and related overhead costs, contractors 
and outside consultants, supplies and materials, equipment depreciation and facilities costs, all associated 
with the design and development of new products and enhancements of existing products.

During  fiscal  year  2015,  research  and  development  expense  decreased  6%,  compared  to  fiscal 
year 2014. The decrease was primarily due to $2.8 million lower personnel-related expenses from the 
workforce reduction in the video conferencing reporting unit as a result of the restructuring plan initiated 
during fiscal year 2014, $1.3 million decrease in stock-based compensation expense due to fewer grants 
during fiscal year 2015, and $1.6 million savings from depreciation and amortization expense.

During fiscal year 2014, research and development expense decreased 10%, compared to fiscal 
year  2013.  The  decrease  was  primarily  due  to  $6  million  lower  personnel-related  expenses  from  the 
workforce reduction in video conferencing reporting unit as a result of the plan initiated during fiscal 2014 
and $9 million lower design and development cost related to the launch of the new Music category in 
fiscal 2013.

General and Administrative

General  and  administrative  expense  consists  primarily  of  personnel  and  related  overhead  and 

facilities costs for the finance, information systems, executives, human resources and legal functions.

During  fiscal  year  2015,  general  and  administrative  expense  increased  11%  compared  to  fiscal 
year 2014. The increase was primarily due to $23.7 million in expense related to the Audit Committee 
Independent investigation and related expenses, partially offset by infrastructure cost savings such as 
$6.5 million decrease in information technology costs, including third party vendor cost, and $6.1 million 
decrease in facility expense as a result of the consolidation of properties. 

During fiscal year 2014, general and administrative expense increased 4%, compared to fiscal year 
2013.  The  increase  was  primarily  due  to  an  $8  million  increase  in  personnel-related  expenses  due  to 
higher variable compensation costs related to our improved performance and share-based compensation 
expense,  partially  offset  by  a  $4  million  decrease  in  facility  related  expenses  due  to  our  restructuring 
plans initiated in fiscal year 2013.

Impairment of Goodwill and Other Assets

We recorded an impairment charge of goodwill of $122.7 million related to our video conferencing 
reporting unit in fiscal year 2015, and therefore the goodwill of video conferencing reporting unit is reduced 
to zero as of March 31, 2015. There was no impairment of goodwill and other assets for fiscal year 2014. 
We recorded an impairment charge of goodwill and other assets of $216.7 million primarily related to the 
video conferencing reporting unit in fiscal year 2013.

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23

Annual Report Fiscal Year 2015Restructuring Charges

The following table summarizes restructuring-related activities during the years ended March 31, 

2015, 2014 and 2013 (in thousands):

Termination
Benefits

Restructuring
Lease Exit
Costs

Total

Accrual balance at March 31, 2013  . . . . . . . . . . . . . . . . . . . . . . 

$ 13,383

$

75

$ 13,458

Charges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Adjustment for deferred rent . . . . . . . . . . . . . . . . . . . . . . . . . 

Cash payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Currency exchange impact . . . . . . . . . . . . . . . . . . . . . . . . . . 

Accrual balance at March 31, 2014  . . . . . . . . . . . . . . . . . . . . . . 

Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Cash payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Accrual balance at March 31, 2015  . . . . . . . . . . . . . . . . . . . . . . 

$

6,463

—

(19,534)
(170)

142

(86)

(56)

—

7,348

1,450

(1,454)
—

7,419

(4,802)

(1,578)

13,811

1,450

(20,988)
(170)

7,561

(4,888)

(1,634)

$ 1,039

$ 1,039

During the second quarter of fiscal year 2014, we implemented a restructuring plan solely affecting 
our video conferencing operating segment to align our organization to our strategic priorities of increasing 
focus  on  a  tighter  range  of  products,  and  improving  profitability.  Restructuring  charges  under  this 
plan  primarily  consist  of  severance  and  other  one-time  termination  benefits.  During  fiscal  year  2014, 
restructuring charges under this plan included $5.0 million in termination benefits and $0.6 million in lease 
exit costs. We substantially completed this restructuring plan by March 31, 2014.

During  the  fourth  quarter  of  fiscal  year  2013,  we  implemented  a  restructuring  plan  to  align  our 
organization  to  our  strategic  priorities  of  increasing  focus  on  mobility  products,  improving  profitability 
in PC-related products and enhancing global operational efficiencies. As part of this restructuring plan, 
we reduced our worldwide non-direct labor workforce. Restructuring charges under this plan primarily 
consisted of severance and other one-time termination benefits. During fiscal year 2015, we recorded 
$4.9 million restructuring credits as a result of partial termination of our lease agreement for the Silicon 
Valley campus, which was partially vacated during fiscal year 2014. During fiscal year 2014, restructuring 
charges under this plan included $1.5 million in termination benefits and $6.7 million in lease exit costs, 
$5.4 million of which pertains to the consolidation of our Silicon Valley campus from two buildings down 
to one during the quarter ended March 31, 2014. We substantially completed this restructuring plan by the 
fourth quarter of fiscal year 2014. 

Interest Income (Expense), Net

Interest income and expense for fiscal years 2015, 2014 and 2013 were as follows (in thousands):

Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Years Ended March 31,
2014
$ 1,831
(2,228)
$ (397)

2013
$ 2,215
(1,308)
907

2015
$1,225
—
$1,225

$

Interest expense decreased during fiscal year 2015, compared to fiscal year 2014. The decrease 
was primarily due to the termination of our $250 million Senior Revolving Credit Facility during fiscal year 
2014. There were no new borrowings since then.

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23

Annual Report Fiscal Year 2015Interest expense increased during fiscal year 2014, compared to fiscal year 2013. The increase was 
primarily due to the write-off of $1.0 million capitalized deferred loan fees related to our $250.0 million 
Senior Revolving Credit Facility which we chose to terminate during fiscal year 2014.

Other Income (Expense), Net

Other income and expense for fiscal years 2015, 2014 and 2013 were as follows (in thousands):

Investment income related to deferred compensation plan  . . . . . . . . 
Gain on sale of securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Impairment of investments  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Currency exchange gain (loss), net . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

$

2013

Years Ended March 31,
2014
$1,487
—
(624)
62
1,068
$1,993

2015
$ 1,055
—
(2,298)
(1,280)
(229)
$(2,752)

933
831
(3,600)
104
(466)
$(2,198)

Investment income for fiscal years 2015, 2014 and 2013 represents earnings, gains, and losses on 

trading investments related to a deferred compensation plan offered by one of our subsidiaries.

The $2.3 million, $0.6 million and $3.6 million investment impairment charges in fiscal years 2015, 
2014  and  2013,  respectively,  primarily  resulted  from  the  write-down  of  investments  in  privately-held 
companies.

During  fiscal  year  2013,  we  sold  two  available-for-sale  securities  with  a  total  carrying  value  of 
$0.4  million  and  a  total  par  value  of  $15.2  million  for  $0.9  million.  This  sale  resulted  in  a  $0.8  million 
gain recognized in other income (expense), net, $0.3 million of which resulted from the recognition of a 
temporary increase in fair value previously recorded in accumulated other comprehensive loss. Following 
the sales in fiscal year 2013, we have not held any available for sale securities.

Currency  exchange  gains  or  losses  relate  to  balances  denominated  in  currencies  other  than  the 
functional  currency  in  our  subsidiaries,  as  well  as  to  the  sale  of  currencies,  and  to  gains  or  losses 
recognized on foreign exchange forward contracts. We do not speculate in currency positions, but we are 
alert to opportunities to maximize foreign exchange gains and minimize foreign exchange losses.

Provision for (Benefit from) Income Taxes

The provision for (benefit from) income taxes and the effective income tax rate for fiscal years 2015, 

2014 and 2013 were as follows (in thousands):

Provision for (benefit from) income taxes . . . . . . . . . . . . . . . . . . .
Effective income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Years Ended March 31,

2015
$4,490

2014
$3,278

2013
$(25,810)

32.6%

4.2%

10.2%

The change in the effective income tax rate between fiscal year 2015 and 2014 was primarily due 
to the non-tax deductible goodwill impairment charge of $122.7 million during fiscal year 2015, the mix of 
income and losses in the various tax jurisdictions in which we operate and a tax benefit of $16.4 million 
during fiscal year 2015, related to the reversal of uncertain tax positions resulting from the expiration of 
the statutes of limitations and the closure of tax examination in the state of California of the United States. 
The effective income tax rate excluding the goodwill impairment charge in fiscal year 2015 is 3.3%. In 
fiscal year 2014, there was a tax benefit of $14.3 million related to the reversal of uncertain tax positions 
resulting from the expiration of the statutes of limitations.

24

25

Annual Report Fiscal Year 2015The change in the effective income tax rate between fiscal year 2014 and 2013 was primarily due to 
the mix of income and losses in the various tax jurisdictions and a tax benefit of $14.3 million during fiscal 
year 2014, related to the reversal of uncertain tax positions resulting from the expiration of the statutes of 
limitations. In fiscal year 2013, there was a tax benefit of $35.6 million related to the reversal of uncertain 
tax positions resulting from the closure of federal income tax examinations in the United States.

On December 19, 2014, the enactment of the Tax Increase Prevention Act of 2014 in the United 
States extended the federal research and development tax credit through December 31, 2014 which had 
previously expired on December 31, 2013. The provision for income taxes for fiscal year ended March 31, 
2015 reflected a $0.9 million tax benefit as a result of the extension of the tax credit.

As  of  March  31,  2015  and  March  31,  2014,  the  total  amount  of  unrecognized  tax  benefits  due  to 
uncertain  tax  positions  was  $79.0  million  and  $91.0  million,  respectively,  of  which  $79.0  million  and 
$86.1 million would affect the effective income tax rate if recognized, respectively.

As of March 31, 2015, we had $72.1 million in non-current income taxes payable and $0.1 million 
in  current  income  taxes  payable,  including  interest  and  penalties,  related  to  our  income  tax  liability 
for  uncertain  tax  positions.  As  of  March  31,  2014,  we  had  $93.1  million  in  non-current  income  taxes 
payable  and  $0.3  million  in  current  income  taxes  payable.  Pursuant  to  ASU  2013-11,  Presentation  of 
an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax 
Credit Carryforward Exists, which became effective in the first quarter of fiscal year 2015, we reclassified 
$10.3 million of unrecognized tax benefits previously presented as non-current income taxes payable to 
a reduction in non-current deferred tax assets primarily for tax credit carryforwards.

We continue to recognize interest and penalties related to unrecognized tax positions in income tax 
expense. We recognized $0.8 million, $1.1 million and $1.0 million in interest and penalties in income tax 
expense during fiscal years 2015, 2014 and 2013, respectively. As of March 31, 2015, 2014 and 2013, we 
had approximately $4.9 million, $5.6 million and $6.6 million of accrued interest and penalties related to 
uncertain tax positions.

We file Swiss and foreign tax returns. We received final tax assessments in Switzerland through 
fiscal year 2012. For other foreign jurisdictions such as the United States, we are generally not subject 
to  tax  examinations  for  years  prior  to  fiscal  year  2011.  We  are  under  examination  and  have  received 
assessment notices in foreign tax jurisdictions. If the examinations are resolved unfavorably, there is a 
possibility they may have a material negative impact on our results of operations.

Liquidity and Capital Resources

Cash Balances, Available Borrowings, and Capital Resources

At March 31, 2015, we had cash and cash equivalents of $537.0 million, compared with $469.4 million 
at March 31, 2014. Our cash and cash equivalents consist of bank demand deposits and short-term time 
deposits of which 81% is held by our Swiss-based entities and 11% is held by our subsidiaries in Hong 
Kong and China. We do not expect to incur any material adverse tax impact or be significantly inhibited 
by any country in which we do business from the repatriation of funds to Switzerland, our home domicile.

At  March  31,  2015,  our  working  capital  was  $557.1  million  compared  with  working  capital  of 
$478.2 million at March 31, 2014. The increase in working capital over the prior year was primarily due to 
higher cash and inventory balances, partially offset by higher accounts payable balances at March 31, 2015.

During fiscal year 2015, we generated $178.6 million cash from operating activities. Our main sources 
of  operating  cash  flows  were  from  net  income  after  adding  back  non-cash  expenses  of  depreciation, 
amortization, impairment of goodwill and share-based compensation expense, and from an increase in 

24

25

Annual Report Fiscal Year 2015accounts payable, partially offset by increases in inventories and accounts receivable and a decrease 
in  accrued  and  other  liabilities.  Net  cash  used  in  investing  activities  was  $48.3  million,  primarily  for 
purchase of property, plant, and equipment of $45.3 million and investments in privately held companies 
of $2.6 million. Net cash used in financing activities was $48.9 million, primarily for the $43.8 million cash 
dividend payment, $9.2 million tax withholdings related to net share settlements of restricted stock units, 
partially offset by $4.1 million in proceeds received from the sale of shares upon exercise of options and 
purchase rights.

We  had  several  uncommitted,  unsecured  bank  lines  of  credit  aggregating  to  $38.1  million  as  of 
March 31, 2015. There are no financial covenants under these lines of credit which we must comply with. 
As of March 31, 2015, we had outstanding bank guarantees of $5.1 million under these lines of credit. 
There are no financial covenants under these credit lines.

The following table summarizes our Consolidated Statements of Cash Flows (in thousands):

Net cash provided by operating activities . . . . . . . . . . . . . . . . .
Net cash used in investing activities . . . . . . . . . . . . . . . . . . . . .
Net cash used in financing activities . . . . . . . . . . . . . . . . . . . . .
Effect of exchange rate changes on cash and 

2015
$178,632
(48,289)
(48,854)

Years Ended March 31,
2014
$205,421
(46,803)
(22,681)

2013
$ 122,389
(57,723)
(207,641)

cash equivalents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net increase (decrease) in cash and cash equivalents . . . . . . .

(13,863)
$ 67,626

(349)
$135,588

(1,571)
$(144,546)

Cash Flow from Operating Activities

The following table presents selected financial information and statistics for fiscal years 2015, 2014 

and 2013 (dollars in thousands):

Accounts receivable, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Working capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Days sales in accounts receivable (“DSO”)(Days)(1) . . . . . . . . . . . 
Inventory turnover (“ITO”)(x)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

2015
$179,823
270,730
557,113
35
4.6

March 31,
2014
$182,029
222,402
478,213
34
5.9

2013
$178,959
262,644
385,073
34
4.7

(1)  DSO  is  determined  using  ending  accounts  receivable  as  of  the  most  recent  quarter-end  and  net 

sales for the most recent quarter.

(2) 

ITO is determined using ending inventories and annualized cost of goods sold (based on the most 
recent quarterly cost of goods sold).

ITO  as  of  March  31,  2015  decreased  compared  to  March  31,  2014.  The  decrease  was  primarily 
due to higher inventory levels due to the port strike in the west coast of the United States and change in 
shipping strategy from air to ocean during the fourth quarter of fiscal year 2015.

ITO as of March 31, 2014 increased, compared to March 31, 2013. The increase was primarily due 

to lower inventory levels in relation to net sales during the fourth quarter of fiscal year 2014.

26

27

Annual Report Fiscal Year 2015Cash Flow from Investing Activities

Purchases of property, plant and equipment. . . . . . . . . . . . . . . . . . .
Investment in privately held companies  . . . . . . . . . . . . . . . . . . . . . .
Acquisitions, net of cash acquired . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of available-for-sale securities . . . . . . . . . . . . .
Proceeds from return of investment from strategic investments . . . .
Purchase of trading investments . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of trading investments . . . . . . . . . . . . . . . . . . .

Years Ended March 31,
2014
$(46,658)
(300)
(650)
—
261
(8,450)
8,994
$(46,803)

2013
$(54,487)
(4,420)
—
917
—
(4,196)
4,463
$(57,723)

2015
$(45,253)
(2,550)
(926)
—
—
(5,034)
5,474
$(48,289)

Our  expenditures  for  property,  plant  and  equipment  during  fiscal  year  2015,  2014  and  2013 
were  primarily  expenditures  for  leasehold  improvements,  computer  hardware  and  software,  tooling 
and equipment.

During  fiscal  year  2015,  purchases  of  property,  plant  and  equipment  remained  relatively  stable 
compared to fiscal year 2014. We made a $2.5 million strategic investment in one privately held company 
and acquired one privately held company for $0.9 million, during fiscal year 2015.

During fiscal year 2014, purchases of property, plant and equipment decreased, compared to fiscal 
year 2013, primarily due to leasehold improvements related to our new Silicon Valley campus during fiscal 
year 2013. During fiscal year 2014, we made a $0.7 million investment.

During  fiscal  year  2013,  we  purchased  a  strategic  investment  for  $4.0  million  in  exchange  for 
convertible preferred stock. We accounted for this investment under the cost method of accounting since 
we have less than 20% ownership interest and we lack the ability to exercise significant influence over 
the operating and financial policies of the investee. We also purchased another strategic investment for 
$0.4 million. In addition, we sold our two remaining available-for-sale securities for $0.9 million.

The purchases and sales of trading investments during fiscal years 2015, 2014 and 2013 represent 
mutual  fund  activity  directed  by  participants  in  a  deferred  compensation  plan  offered  by  one  of  our 
subsidiaries. The mutual funds are held by a Rabbi Trust.

Cash Flow from Financing Activities

Payment of cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Purchases of treasury shares . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Contingent consideration related to prior acquisition  . . . . . . . . . 
Repurchase of ESPP awards  . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Proceeds from sales of shares upon exercise of options and 

2015
$(43,767)
(1,663)
(100)
(1,078)

Years Ended March 31,
2014
$(36,123)
—
—
—

2013
$(133,462)
(87,812)
—
—

purchase rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

4,138

16,914

15,982

Tax withholdings related to net share settlements of restricted 

stock units  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Excess tax benefits from share-based compensation  . . . . . . . . 

(9,215)
2,831
$(48,854)

(5,718)
2,246
$(22,681)

(2,375)
26
$(207,641)

26

27

Annual Report Fiscal Year 2015During fiscal year 2015 and 2014, we paid annual cash dividends of $43.8 million and $36.1 million, 

respectively, compared to a special one-time distribution of $133.5 million during fiscal year 2013.

During  fiscal  year  2015,  we  repurchased  0.1  million  shares  for  $1.7  million.  There  were  no  stock 
repurchases  during  fiscal  year  2014.  During  fiscal  year  2013,  we  repurchased  8.6  million  shares  for 
$87.8 million.

Proceeds  from  the  sale  of  shares  upon  exercise  of  options  and  purchase  rights  pursuant  to  our 
stock plans during fiscal years 2015, 2014 and 2013 were $4.1 million, $16.9 million and $16.0 million, 
respectively. The payments of tax withholdings related to net share settlements of RSUs (restricted stock 
units) during fiscal years 2015, 2014 and 2013 were $9.2 million, $5.7 million and $2.4 million, respectively.

Translation effect of exchange rate changes on cash and cash equivalents

During fiscal year 2015, there was a $13.9 million currency translation exchange rate effect on cash 
and cash equivalents. This is primarily due to the 22% weakening of Euro versus U.S. Dollar during fiscal 
year 2015 which had an adverse impact on our cash and cash equivalents balances in subsidiaries with 
functional currency as Euro. 

Cash Outlook

Our  principal  sources  of  liquidity  are  our  cash  and  cash  equivalents,  cash  flow  generated  from 
operations  and,  to  a  much  lesser  extent,  capital  markets  and  borrowings.  Our  future  working  capital 
requirements  and  capital  expenditures  may  increase  to  support  investment  in  product  innovations 
and  growth  opportunities,  or  to  acquire  or  invest  in  complementary  businesses,  products,  services, 
and technologies.

In March 2015, we announced a plan to pay $250 million in cumulative dividends for fiscal year 2015 
through fiscal year 2017. The Board of Directors plans to request shareholder approval of the Swiss Franc 
equivalent of an $85 million dividend for fiscal year 2015 at our next annual general meeting. Based on 
exchange rates of 1.0283 and the number of shares outstanding as of March 31, 2015, this represents 
approximately CHF 0.51 per share, compared to dividend of CHF 0.26 per share for fiscal year 2015. 
During fiscal year 2015, we paid a cash dividend of CHF 43.1 million (U.S. Dollar amount of $43.8 million) 
out of retained earnings.

In March 2014, our Board of Directors approved a new share buyback program, which authorizes 
us to invest up to $250.0 million to purchase our own shares. Our share buyback program provides us 
with the opportunity to make repurchases during periods of favorable market conditions and 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 fiscal year 2015, 0.1 million shares were 
repurchased for $1.7 million under this program.

During  the  first  quarter  of  fiscal  year  2016,  we  announced  that  we  are  committing  to  pursue  a 
restructuring, including exiting the OEM business, reorganizing Lifesize to sharpen its focus on its Cloud-
based  offering,  and  streamlining  the  Company’s  overall  cost  structure  through  product,  overhead  and 
infrastructure  cost  reductions  with  a  targeted  resource  realignment.  We  expect  that  we  will  recognize 
restructuring charges of approximately $15 million to $20 million, consisting primarily of severance, other 
one-time  termination  benefits,  and  other  restructuring  charges.  We  expect  this  restructuring  will  save 
personnel-related costs and other overhead costs and we expect to use the savings from the restructuring 
to offset currency headwinds and to invest in future growth.

28

29

Annual Report Fiscal Year 2015Our other contractual obligations and commitments that require cash are described in the following 

sections.

For over ten years, we have generated positive cash flows from our operating activities, including 
cash from operations of $178.6 million, $205.4 million and $122.4 million during fiscal years 2015, 2014 
and 2013, respectively. If we do not generate sufficient operating cash flows to support our operations 
and future planned cash requirements, our operations could be harmed and our access to credit facilities 
could be restricted or eliminated. However, we believe that the trend of our historical cash flow generation, 
our projections of future operations and reduced expenses and our available cash balances will provide 
sufficient liquidity to fund our operations for at least the next 12 months.

Contractual Obligations and Commitments

As of March 31, 2015, our outstanding contractual obligations and commitments included: (i) inventory 
purchase commitments and obligations, (ii) capital expenditure purchase commitments, and (iii) facilities 
leased under operating lease commitments. The following table summarizes our contractual obligations 
and commitments as of March 31, 2015 (in thousands):

Payments Due by Period

Inventory commitments . . . . . . . . . . . . . . . .
Capital commitments . . . . . . . . . . . . . . . . . .
Operating leases . . . . . . . . . . . . . . . . . . . . .

Operating Leases

March 31, 
2015
$165,912
14,390
54,232
$234,534

<1 year
$165,912
14,390
13,829
$194,131

1-3 years
$

— $
—
18,727
$18,727

4-5 years

>5 years
— $ —
—
—
9,908
11,768
$9,908
$11,768

We  lease  facilities  under  operating  leases,  certain  of  which  require  us  to  pay  property  taxes, 
insurance and maintenance costs. Operating leases for facilities are generally renewable at our option 
and usually include escalation clauses linked to inflation. The remaining terms on our non-cancelable 
operating leases expire in various years through 2030.

Purchase Commitments

As of March 31, 2015, we have fixed purchase commitments of $165.9 million for inventory purchases 
made  in  the  normal  course  of  business  to  original  design  manufacturers,  contract  manufacturers  and 
other suppliers, the majority of which are expected to be fulfilled during the first quarter of fiscal year 
2016.  We  record  a  liability  for  firm,  non-cancelable,  and  unhedged  inventory  purchase  commitments 
in excess of anticipated demand or market value consistent with our valuation of excess and obsolete 
inventory.  As  of  March  31,  2015,  the  liability  for  these  purchase  commitments  was  $9.8  million  and  is 
recorded  in  accrued  and  other  current  liabilities  and  is  not  included  in  the  preceding  table.  We  have 
fixed purchase commitments of $14.4 million for capital expenditures, primarily related to commitments 
for  tooling,  computer  hardware  and  leasehold  improvements.  We  expect  to  continue  making  capital 
expenditures  in  the  future  to  support  product  development  activities  and  ongoing  and  expanded 
operations. Although open purchase commitments are considered enforceable and legally binding, the 
terms generally allow us the option to reschedule and adjust our requirements based on business needs 
prior to delivery of goods or performance of services.

Income Taxes Payable

As of March 31, 2015, we had $72.1 million in non-current income taxes payable, including interest 
and penalties, related to our income tax liability for uncertain tax positions. At this time, we are unable to 
make a reasonably reliable estimate of the timing of payments in individual years in connection with these 
tax liabilities; therefore, such amounts are not included in the above contractual obligation table.

28

29

Annual Report Fiscal Year 2015Off-Balance Sheet Arrangements

We have not entered into any transactions with unconsolidated entities whereby we have financial 
guarantees,  subordinated  retained  interests,  derivative  instruments  or  other  contingent  arrangements 
that expose us to material continuing risks, contingent liabilities, or any other obligation under a variable 
interest  in  an  unconsolidated  entity  that  provides  financing,  liquidity,  market  risk  or  credit  risk  support 
to us.

Investment Commitments

During  2015,  we  entered  into  a  limited  partnership  agreement  with  a  private  investment  fund 
specialized in early-stage start-up consumer hardware electronics companies and committed a capital 
contribution of $4.0 million over the life of the fund. As of March 31, 2015, no capital contribution has been 
called by the fund.

Other Contingencies

We  are  subject  to  an  ongoing  formal  investigation  by  the  SEC’s  Enforcement  Division,  relating 
to  certain  issues  including  the  accounting  for  Revue  inventory  valuation  reserves  that  resulted  in  the 
restatement described in the Fiscal Year 2014 Annual Report on Form 10-K, revision to our consolidated 
financial  statements  concerning  warranty  accruals  and  amortization  of  intangible  assets  presented  in 
our  Amended  Annual  Report  on  Form  10-K/A,  filed  on  August  7,  2013,  and  our  transactions  with  a 
distributor for Fiscal Year 2007 through Fiscal Year 2009. We have entered into an agreement with the 
SEC to extend the statute of limitations. We are cooperating with the investigation and recently engaged 
in discussions to settle the matter with the SEC, including making offers of monetary amounts for a civil 
penalty. In accordance with U.S. GAAP, we have made an accrual in our financial statements. We cannot 
predict the timing, range of possible loss or final outcome of this matter.

Guarantees

Logitech  Europe  S.A.  guaranteed  payments  of  third-party  contract  manufacturers’  purchase 
obligations. As of March 31, 2015, the maximum amount of this guarantee was $3.8 million, of which $1.7 
million of guaranteed purchase obligations were outstanding.

Indemnifications

We  indemnify  certain  of  our  suppliers  and  customers  for  losses  arising  from  matters  such  as 
intellectual property disputes and product safety defects, subject to certain restrictions. The scope of these 
indemnities varies, but in some instances, includes indemnification for damages and expenses, including 
reasonable attorneys’ fees. As of March 31, 2015, no amounts have been accrued for indemnification 
provisions. We do not believe, based on historical experience and information currently available, that it 
is probable that any material amounts will be required to be paid under our indemnification arrangements.

We also indemnify our current and former directors and certain of our current and former officers. 
Certain costs incurred for providing such indemnification may be recoverable under various insurance 
policies. We are unable to reasonably estimate the maximum amount that could be payable under these 
arrangements because these exposures are not capped, the obligations are conditional in nature, and the 
facts and circumstances involved in any situation that might arise are variable.

Research and Development

For  a  discussion  of  our  research  and  development  activities,  patents  and  licenses,  please  refer 
to Item 1, Business, in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and 
Exchange Commission and posted to the Company’s Investor Relations website.

30

Annual Report Fiscal Year 2015ADDITIONAL FINANCIAL DISCLOSURES

31

Annual Report Fiscal Year 201533

This page is intentionally left blank.ADDITIONAL FINANCIAL DISCLOSURES

MARKETING, SALES AND DISTRIBUTION

Marketing and Design

Logitech’s Design and Marketing team strives to understand consumers so that we can innovate, 
create and deliver amazing design to our users at each and every touch point of the consumer experience 
with the Logitech brand and products.

We  believe  that  by  creating  products  that  people  desire  and  love,  we  maximize  the  number  of 
consumers  who  actively  buy  and  recommend  Logitech  products,  fueling  brand  preference  within  and 
across our many product categories.

We are making good progress building a strong internal Design and Marketing team, while partnering 
with world renowned design agencies to further our “design-led” approach to product development and 
launch. Our key design centers are in the United States, Switzerland, Ireland and Taiwan.

Principal Markets

Net sales to unaffiliated customers by geographic region for fiscal years 2015, 2014 and 2013 (based 

on the customers’ location) are as follows (in thousands):

Americas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EMEA  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asia Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2015
$ 915,478
710,966
487,503
$2,113,947

Year Ended March 31,
2014
$ 859,893
767,017
501,803
$2,128,713

2013
$ 808,618
799,075
491,584
$2,099,277

Revenues from sales to customers in Switzerland, our home domicile, represented 2% of our total 
consolidated net sales in each of fiscal years 2015, 2014 and 2013. In fiscal years 2015, 2014 and 2013, 
the United States represented 36%, 35% and 33% of our total consolidated net sales, respectively. No 
other single country represented more than 10% of our total consolidated net sales for fiscal years 2015, 
2014 or 2013.

Sales and Distribution

We  primarily  sell  our  peripherals  products  to  a  network  of  distributors  and  retailers.  We  support 
these channels with third-party distribution centers located in North America, Europe and Asia Pacific. 
Some of these distribution centers perform product localization with local language manuals, packaging 
and power plugs.

Logitech directly sells peripherals products to distributors and large retailers. Distributors in North 
America  include  Ingram  Micro,  Tech  Data  Corporation,  D&H  Distributing,  and  Synnex  Corporation.  In 
Europe, pan-European distributors include Ingram Micro, Tech Data, and Gem Distribution. We also sell 
to many regional distributors such as Actebis GmbH in Germany and Copaco Dc B.V. in the Netherlands. 
In  Asia,  major  distributors  include  Beijing  Digital  China  Limited  in  China,  Daiwabo  in  Japan,  and  the 
pan-Asian distributor, Ingram Micro. Our distributor customers typically resell products to retailers, value-
added resellers, systems integrators and other distributors with whom Logitech does not have a direct 
relationship.

33

Annual Report Fiscal Year 2015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.

34

35

Annual Report Fiscal Year 2015SIX Swiss Exchange

The following table sets forth certain historical share price information for the Company’s shares 

traded on the SIX Swiss Exchange, as reported by the SIX Swiss Exchange.

Fiscal Year Ended March 31, 2015

First quarter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Second quarter  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third quarter  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fourth quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fiscal Year Ended March 31, 2014

First quarter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Second quarter  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third quarter  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fourth quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SIX Swiss Exchange
Low 
High 
CHF
CHF

13.80
13.95
14.60
14.25

6.80
8.05
12.25
14.70

11.00
11.15
10.75
11.60

5.92
6.14
7.93
12.00

Nasdaq Global Select Market

The following table sets forth certain historical share price information for the Company’s shares 

traded on the Nasdaq Global Select Market.

Fiscal Year Ended March 31, 2015

First quarter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Second quarter  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Third quarter  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Fourth quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Fiscal Year Ended March 31, 2014

First quarter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Second quarter  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Third quarter  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Fourth quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Nasdaq Global 
Select Market

High

Low

$15.46
15.35
15.00
15.21

$ 7.27
8.97
13.60
16.86

$12.34
12.56
11.51
12.50

$ 6.25
6.47
8.75
13.22

Dividends

Under Swiss law, a corporation may only pay dividends upon a vote of its shareholders. This vote 
typically follows the recommendation of the corporation’s Board of Directors. In March 2015, we announced 
a plan to pay $250.0 million in cumulative dividends for fiscal year 2015 through fiscal year 2017. The 
Board of Directors plans to request shareholder approval of the Swiss Franc equivalent of an $85 million 
dividend for fiscal year 2015 at our next annual general meeting. Based on exchange rates of 1.0283 
and the number of shares outstanding as of March 31, 2015, this represents approximately CHF 0.51 per 
share, compared to dividend of CHF 0.26 per share for fiscal year 2015. On December 8, 2014, Logitech’s 
shareholders approved a cash dividend payment of CHF 43.1 million out of retained earnings to Logitech 
shareholders who owned shares on December 29, 2014. Eligible shareholders were paid CHF 0.26 per 
share  ($0.27  per  share  in  U.S.  Dollars),  totaling  $43.8  million  in  U.S.  Dollars  on  December  30,  2014. 
On September 4, 2013, Logitech’s shareholders approved a cash dividend payment of CHF 33.7 million 

34

35

Annual Report Fiscal Year 2015out of retained earnings to Logitech shareholders who owned shares on September 16, 2013. Eligible 
shareholders were paid CHF 0.21 per share ($0.22 per share in U.S. Dollars), totaling $36.1 million in 
U.S. Dollars on September 17, 2013. On September 5, 2012, Logitech’s shareholders approved a cash 
dividend  payment  of  CHF  125.7  million  out  of  retained  earnings  to  Logitech  shareholders  who  owned 
shares on September 17, 2012. Eligible shareholders were paid CHF 0.79 per share ($0.85 per share in 
U.S. Dollars), totaling $133.5 million in U.S. Dollars on September 18, 2012. The dividend in September 
2012 qualified as a distribution of qualifying additional paid-in-capital and, as such, was not subject to 
Swiss Federal withholding tax.

Dividends paid and similar cash or in-kind distributions made by Logitech to a holder of Logitech 
shares  (including  dividends  or  liquidation  proceeds  and  stock  dividends),  other  than  distributions  of 
qualifying additional paid-in-capital if it is available under the current Swiss tax regime, are subject to a 
Swiss federal anticipatory tax at a rate of 35%. The anticipatory tax must be withheld by Logitech from 
the gross distribution, and paid to the Swiss Federal Tax Administration.

A Swiss resident holder and beneficial owner of Logitech shares may qualify for a full refund of the 
Swiss anticipatory tax withheld from such dividends. A holder and beneficial owner of Logitech shares 
who is a non-resident of Switzerland, but a resident of a country that maintains a double tax treaty with 
Switzerland,  may  qualify  for  a  full  or  partial  refund  of  the  Swiss  anticipatory  tax  withheld  from  such 
dividends  by  virtue  of  the  provisions  of  the  applicable  treaty  between  Switzerland  and  the  country  of 
residence of the holder and beneficial owner of the Logitech shares.

In  accordance  with  the  tax  convention  between  the  United  States  and  the  Swiss  Confederation 
(“Treaty”),  a  mechanism  is  provided  whereby  a  U.S.  resident  (as  determined  under  the  Treaty),  and 
U.S. corporations, other than U.S. corporations having a “permanent establishment” or a fixed base, as 
defined in the Treaty, in Switzerland, generally can obtain a refund of the Swiss anticipatory tax withheld 
from dividends in respect of Logitech shares, to the extent that 15% of the gross dividend is withheld as 
final withholding tax (i.e. 20% of the gross dividend may generally be refunded). In specific cases, U.S. 
companies not having a “permanent establishment” or a fixed base in Switzerland owning at least 10% 
of Logitech registered shares may receive a refund of the Swiss anticipatory tax withheld from dividends 
to the extent it exceeds 5% of the gross dividend (i.e., 30% of the gross dividend may be refunded). To 
get  the  benefit  of  a  refund,  holders  must  beneficially  own  Logitech  shares  at  the  time  such  dividend 
becomes due.

Share Repurchases

The following table presents certain information related to purchases made by Logitech of its equity 
securities under its publicly announced share buyback program (in thousands, except per share amounts):

During Fiscal Year Ended
March 31, 2013  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March 31, 2014  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March 31, 2015  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Weighted 
Average Price 
Per Share

USD
CHF
10.21
9.66
—
—
— 14.43

Amount
Available for
Repurchase
6,472
$
250,000
248,337

Shares
Repurchased
8,600
—
115
8,715

36

37

Annual Report Fiscal Year 2015In fiscal year 2015, the following approved share buyback programs were in place:

Share Buyback Program
March 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Shares
17,311

Approved  
Amounts
$250,000

In  September  2012,  the  Company’s  shareholders  approved  the  cancellation  of  the  18.5  million 
shares repurchased under the September 2008 amended share buyback program. These shares were 
legally cancelled during the quarter ended December 31, 2013.

Performance Graph

 The information contained in the Performance Graph shall not be deemed to be “soliciting material” 
or “filed” with the SEC or subject to the liabilities of Section 18 of the Securities Exchange Act of 1934, as 
amended (the “Exchange Act”), except to the extent that we specifically incorporate it by reference into a 
document filed under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act.

The following graph compares the cumulative total stockholder return on our shares, the Nasdaq 
Composite Index, and the S&P 500 Information and Technology Index. The graph assumes that $100 
was invested in our shares, the Nasdaq Composite Index and the S&P 500 Information and Technology 
Index  on  March  31,  2010,  and  calculates  the  annual  return  through  March  31,  2015.  The  stock  price 
performance on the following graph is not necessarily indicative of future stock price performance.

Comparison of 5 year cumulative total return

$300

$250

$200

$150

$100

$50

$-

2010

2011

2012

2013

2014

2015

Logitech

Logitech

Nasdaq Composite Index

Nasdaq Composite Index

S&P 500 
S&P 500 Index
Information and 
Technology Index

* 

$100  invested  on  March  31,  2010  in  stock  or  index,  including  reinvestment  of  dividends. 
Copyright© 2015 S&P, a division of The McGraw-Hill Companies Inc. All rights reserved.

Logitech . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Nasdaq Composite Index  . . . . . . . . . . . . . . . . . . . . . . 

S&P 500 Information and Technology Index . . . . . . . . 

March 31,

2010

2011

2012

2013

2014

2015

$100

$100

$100

$111

$117

$112

$ 48

$133

$135

$ 47

$144

$133

$102

$188

$167

$ 92

$220

$197

36

37

Annual Report Fiscal Year 2015SELECTED FINANCIAL DATA

The selected financial data set forth below as of March 31, 2015 and 2014, and for the fiscal years 
2015, 2014 and 2013, are derived from our consolidated financial statements included elsewhere in this 
Annual Report. The selected financial data as of March 31, 2013, 2012 and 2011 and for the fiscal years 
2012 and 2011 are derived from financial statements not included in this Annual Report. This financial 
data should be read in conjunction with Management’s Discussion and Analysis of Financial Condition 
and  Results  of  Operations.  These  historical  results  are  not  necessarily  indicative  of  the  results  to  be 
expected in the future.

Consolidated statement of 

operations and cash flow data

2015

Year ended March 31,
2013
(in thousands, except for per share amounts)

2012

2014

2011

Net sales . . . . . . . . . . . . . . . . . . . . . . .  $2,113,947 $2,128,713 $2,099,277 $2,316,203 $2,366,765
1,556,120
Cost of goods sold . . . . . . . . . . . . . . . .  1,339,750
Gross profit . . . . . . . . . . . . . . . . . . . . . 
810,645
774,197
Operating expenses:

1,508,670
807,533

1,400,844
727,869

1,389,643
709,634

Marketing and selling  . . . . . . . . . . .
Research and development  . . . . . .
General and administrative . . . . . . .
Impairment of goodwill and  

378,593
131,012
131,446

379,747
139,385
118,940

431,886
155,012
114,381

422,116
162,159
109,260

420,778
156,021
115,616

other assets(1) . . . . . . . . . . . . . . .

122,734

—

216,688

—

—

Restructuring charges  

(credits), net(2) . . . . . . . . . . . . . . .
Total operating expenses . . . . . .
Operating income (loss)  . . . . . . . . . . . 
Interest income (expense), net  . . . . . . 
Other income (expense), net . . . . . . . . 
Income (loss) before income taxes . . . 
Provision for (benefit from)  

income taxes  . . . . . . . . . . . . . . . . . 
Net income (loss) . . . . . . . . . . . . . . . . . 
Net income (loss) per share:

(4,888)
758,897
15,300
1,225
(2,752)
13,773

13,811
651,883
75,986
(397)
1,993
77,582

43,704
961,671
(252,037)
907
(2,198)
(253,328)

—
693,535
113,998
2,674
7,655
124,327

—
692,415
118,230
2,316
4,578
125,124

4,490
9,283

3,278
74,304

(25,810)
(227,518)

20,090
104,237

19,973
105,151

Basic  . . . . . . . . . . . . . . . . . . . . . . . . $
Diluted . . . . . . . . . . . . . . . . . . . . . . . $

0.06 $
0.06 $

0.46 $
0.46 $

(1.44) $
(1.44) $

0.60 $
0.59 $

0.59
0.59

Shares used to compute net income 

(loss) per share:
Basic  . . . . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . . . . . . . . . . . . . . . . . .
Cash dividend per share . . . . . . . . . $

Net cash provided by  

163,536
166,174

160,619
162,526

158,468
158,468

174,648
175,591

0.27 $

0.22 $

0.85 $

— $

176,928
178,790
—

operating activities . . . . . . . . . . . . .  $ 178,632 $ 205,421 $ 122,389 $ 202,534 $ 165,122
(48,241)

Net cash used in investing activities . .  $

(48,289) $

(57,723) $

(46,803) $

(57,602) $

2015

2014

March 31,
2013

2012

2011

Consolidated balance sheet data

Cash and cash equivalents . . . . . . . $ 537,038 $ 469,412 $ 333,824 $ 478,370 $ 477,931
Total assets . . . . . . . . . . . . . . . . . . . $1,426,680 $1,451,390 $1,382,333 $1,858,009 $1,852,899
Total shareholders’ equity . . . . . . . . $ 758,134 $ 804,128 $ 721,953 $1,131,791 $1,157,874

38

39

Annual Report Fiscal Year 2015(1) 

Impairment  of  goodwill  and  other  assets  during  fiscal  year  2015  was  attributable  to  a  goodwill 
impairment charge related to our video conferencing reporting unit. Impairment of goodwill and other 
assets  during  fiscal  year  2013  was  primarily  attributable  to  a  $214.5  million  goodwill  impairment 
charge related to our video conferencing reporting unit. 

(2)  The $4.9 million in restructuring credits during fiscal year 2015 were related to restructuring plans 
we implemented in fiscal year 2014. The $13.8 million and $43.7 million in restructuring costs during 
fiscal years 2014 and 2013 were related to restructuring plans we implemented in fiscal years 2014 
and 2013. 

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market Risk

Market risk represents the potential for loss due to adverse changes in the fair value of financial 
instruments. As a global concern, we face exposure to adverse movements in currency exchange rates 
and interest rates. These exposures may change over time as business practices evolve and could have 
a material adverse impact on our financial results.

Currency Exchange Rates

We  report  our  results  in  U.S.  Dollars.  Changes  in  currency  exchange  rates  compared  to  the 
U.S.  Dollar  can  have  a  material  impact  on  our  results  when  the  financial  statements  of  our  non-U.S. 
subsidiaries are translated into U.S. Dollars. The functional currency of our operations is primarily the 
U.S. Dollar. Certain operations use the Swiss Franc, or the local currency of the country as their functional 
currencies. Accordingly, unrealized currency gains or losses resulting from the translation of net assets or 
liabilities denominated in other currencies to the U.S. Dollar are accumulated in the cumulative translation 
adjustment component of other comprehensive income (loss) in shareholders’ equity.

We  are  exposed  to  currency  exchange  rate  risk  as  we  transact  business  in  multiple  currencies, 
including  exposure  related  to  anticipated  sales,  anticipated  purchases  and  assets  and  liabilities 
denominated  in  currencies  other  than  the  U.S.  Dollar.  We  transact  business  in  over  30  currencies 
worldwide, of which the most significant to operations are the Euro, Chinese Renminbi, Australian Dollar, 
Taiwanese Dollar, British Pound, Canadian Dollar, Japanese Yen and Mexican Peso. For example, for the 
year ended March 31, 2015, approximately 44% of our sales were in non-U.S. denominated currencies, 
with 23% of our sales denominated in Euro. The mix of our cost of goods sold and operating expenses 
by currency are significantly different from the mix of our sales, with a larger portion denominated in U.S. 
Dollar and less denominated in Euro and other currencies. As a result, a strengthening U.S. Dollar has an 
adverse impact on our operating results. The average exchange rate for the U.S. Dollar for the year ended 
March 31, 2015 strengthened significantly against most of the currencies for the same period in the prior 
fiscal year, which adversely impacted our actual results for the year ended March 31, 2015 including our 
net sales, net income, cash flows from operations and our growth rates year over year. If the U.S. Dollar 
remains at its current strong levels in comparison to other currencies, this will affect our results of operations 
in future periods as well. The table below provides information about our underlying transactions that are 
sensitive to currency exchange rate changes, primarily assets and liabilities denominated in currencies 

38

39

Annual Report Fiscal Year 2015other than the base currency, where the net exposure is greater than $0.5 million as of March 31, 2015. 
The table also presents the U.S. Dollar impact on earnings of a 10% appreciation and a 10% depreciation 
of the base currency as compared with the transaction currency (in thousands):

Currency

Transaction
Base Currency
Currency
U.S. Dollar . . . . . . . . . . . . . . . . . . . . Mexican Peso
Japanese Yen
U.S. Dollar . . . . . . . . . . . . . . . . . . . .
Australian Dollar
U.S. Dollar . . . . . . . . . . . . . . . . . . . .
Canadian Dollar
U.S. Dollar . . . . . . . . . . . . . . . . . . . .
Indian Rupee
U.S. Dollar . . . . . . . . . . . . . . . . . . . .
Singapore Dollar
U.S. Dollar . . . . . . . . . . . . . . . . . . . .
Chinese Renminbi
U.S. Dollar . . . . . . . . . . . . . . . . . . . .
Taiwanese Dollar
U.S. Dollar . . . . . . . . . . . . . . . . . . . .
British Pound
Euro . . . . . . . . . . . . . . . . . . . . . . . . .
Turkish Lira
Euro . . . . . . . . . . . . . . . . . . . . . . . . .
Norwegian Krone
Euro . . . . . . . . . . . . . . . . . . . . . . . . .
Swedish Krona
Euro . . . . . . . . . . . . . . . . . . . . . . . . .

March 31, 2015

Net Exposed
Long (Short)
Currency

Currency Exchange Gain
(Loss) from 10% Change
in Base Currency

Position
$ 11,684
7,244
8,852
7,376
1,896
(6,483)
(7,086)
(16,846)
4,609
859
(510)
(928)
$ 10,667

Appreciation
$(1,062)
(659)
(805)
(671)
(172)
589
644
1,531
(419)
(78)
46
84
$ (972)

Depreciation
$ 1,298
805
984
820
211
(720)
(787)
(1,872)
512
95
(57)
(103)
$ 1,186

Long  currency  positions  represent  net  assets  being  held  in  the  transaction  currency  while  short 

currency positions represent net liabilities being held in the transaction currency.

Our principal manufacturing operations are located in China, with much of our component and raw 
material costs transacted in CNY. As of March 31, 2015, net liabilities held in Chinese Renminbi (CNY) 
totaled $7.1 million.

Derivatives

We enter into foreign exchange forward contracts to hedge against exposure to changes in currency 
exchange  rates  related  to  its  subsidiaries’  forecasted  inventory  purchases.  We  have  one  entity  with  a 
Euro functional currency that purchases inventory in U.S. Dollars. The primary risk managed by using 
derivative instruments is the currency exchange rate risk. We have designated these derivatives as cash 
flow  hedges.  These  hedging  contracts  mature  within  four  months,  and  are  denominated  in  the  same 
currency  as  the  underlying  transactions.  Gains  and  losses  in  the  fair  value  of  the  effective  portion  of 
the  hedges  are  deferred  as  a  component  of  accumulated  other  comprehensive  loss  until  the  hedged 
inventory purchases are sold, at which time the gains or losses are reclassified to cost of goods sold. We 
assess the effectiveness of the hedges by comparing changes in the spot rate of the currency underlying 
the forward contract with changes in the spot rate of the currency in which the forecasted transaction will 
be consummated. If the underlying transaction being hedged fails to occur or if a portion of the hedge 
does not generate offsetting changes in the currency exposure of forecasted inventory purchases, we 
immediately recognize the gain or loss on the associated financial instrument in other income (expense), 
net. Such gains and losses were not material during fiscal years 2015, 2014 and 2013. Cash flows from 
such  hedges  are  classified  as  operating  activities  in  the  Consolidated  Statements  of  Cash  Flows.  As 
of March 31, 2015 and 2014, the notional amounts of foreign exchange forward contracts outstanding 
related  to  forecasted  inventory  purchases  were  $43.5  million  and  $51.8  million,  respectively.  Deferred 
realized gains of $1.9 million are recorded in accumulated other comprehensive loss as of March 31, 2015, 

40

41

Annual Report Fiscal Year 2015and are expected to be reclassified to cost of goods sold when the related inventory is sold. Deferred 
unrealized gains of $2.1 million related to open cash flow hedges are also recorded in accumulated other 
comprehensive loss as of March 31, 2015 and these forward contracts will be revalued in future periods 
until the related inventory is sold, at which time the resulting gains or losses will be reclassified to cost of 
goods sold.

We also enter into foreign exchange forward and swap contracts to reduce the short-term effects 
of currency fluctuations on certain currency receivables or payables. These forward contracts generally 
mature within one month. The primary risk managed by using forward and swap contracts is the currency 
exchange rate risk. The gains or losses on these foreign exchange contracts are recognized in earnings 
based on the changes in fair value. Cash flows from these contracts are classified as operating activities 
in the consolidated statements of cash flows.

The notional amounts of foreign exchange forward and swap contracts outstanding as of March 31, 
2015 and 2014 relating to foreign currency receivables or payables were $61.7 million and $53.7 million, 
respectively. Open forward and swap contracts as of March 31, 2015 and 2014 consisted of contracts in 
Taiwanese Dollars, Australian Dollars, Mexican Pesos, Japanese Yen and British Pounds to be settled at 
future dates at pre-determined exchange rates. 

Interest Rates

Changes  in  interest  rates  could  impact  our  future  interest  income  on  our  cash  equivalents  and 
investment  securities.  We  prepared  a  sensitivity  analysis  of  our  interest  rate  exposures  to  assess  the 
impact of hypothetical changes in interest rates. Based on the results of this analysis, a 100 basis point 
decrease or increase in interest rates from the March 31, 2015 and March 31, 2014 period end rates would 
not have a material effect on our results of operations or cash flows.

40

41

Annual Report Fiscal Year 2015LOGITECH INTERNATIONAL S.A.

SUPPLEMENTARY DATA

QUARTERLY FINANCIAL DATA 
(unaudited)

The following table contains selected unaudited quarterly financial data for fiscal years 2015 and 

2014 (in thousands, except per share amounts):

Year ended March 31, 2015

Year ended March 31, 2014

Q3
Net sales  . . . . . . . . . . . . . . . . .  $ 482,203 $ 530,311 $ 634,204 $ 467,229 $ 478,530 $ 531,143 $ 628,719 $ 490,321
328,977
402,921
Cost of goods sold . . . . . . . . . . 
Gross profit. . . . . . . . . . . . . . . . 
161,344
231,283
Operating expenses:

414,418
214,301

309,268
169,262

325,533
204,778

310,846
156,383

348,181
182,962

300,450
181,753

Q2

Q3

Q1

Q1

Q4(2)

Q4(3)

Q2(1)

Marketing and selling . . . . . 
Research and  

91,045

95,862

103,307

88,379

101,093

93,451

94,273

90,930

development . . . . . . . . . 

31,316

32,325

33,616

33,755

36,527

37,485

34,577

30,796

General and  

administrative  . . . . . . . . 
Impairment of goodwill and 
other assets  . . . . . . . . . 

Restructuring charges 

(credits), net  . . . . . . . . . 
Total operating 

expenses . . . . . . . . . 
Operating income (loss) . . . . . . 
Interest income (expense), net . . 
Other income 

36,680

34,470

29,808

30,488

29,077

29,172

31,998

28,693

—

—

—

—

— 122,734

—

—

—

—

(146)

(4,742)

2,334

5,465

822

5,190

159,041
22,712
258

162,657
42,121
355

166,585
64,698
224

270,614
(114,231)
388

169,031
231
(23)

165,573
17,389
183

161,670
52,631
(1,022)

155,609
5,735
465

(expense), net . . . . . . . . . . . 

(198)

(885)

(3,016)

1,347

217

62

1,082

632

Income (loss) before 

income taxes  . . . . . . . . . . . 

22,772

41,591

61,906

(112,496)

425

17,634

52,691

6,832

Provision for (benefit from) 

income taxes  . . . . . . . . . . . 

3,096
Net income (loss) . . . . . . . . . . .  $ 19,676 $ 36,090 $ 62,784 $ (109,267) $
Net income (loss) per share:

(3,229)

5,501

(878)

(801)

(3,786)
1,226 $ 14,576 $ 47,884 $ 10,618

4,807

3,058

Basic . . . . . . . . . . . . . . . . . .  $
Diluted. . . . . . . . . . . . . . . . .  $

0.12 $
0.12 $

0.22 $
0.22 $

0.38 $
0.38 $

(0.66) $
(0.66) $

0.01 $
0.01 $

0.09 $
0.09 $

0.30 $
0.29 $

0.07
0.06

Shares used to compute net 
income (loss) per share :
Basic . . . . . . . . . . . . . . . . . . 
Diluted. . . . . . . . . . . . . . . . . 

163,012
165,833

163,230
166,065

163,533
166,321

164,319
164,319

159,298
160,281

159,969
161,183

160,871
163,388

162,255
165,766

(1)  During the quarter ended September 30, 2013, the Company implemented a restructuring plan solely 
affecting the video conferencing operating segment to align its organization to its strategic priorities 
of  increasing  focus  on  a  tighter  range  of  products,  expanding  Cloud-based  video  conferencing 
services and improving profitability.

(2)  The Company incurred $5.4 million of restructuring charges related to lease exit costs which pertains 
to the consolidation our Silicon Valley campus from two buildings down to one during the quarter 
ended March 31, 2014.

(3)  The  impairment  of  goodwill  and  other  assets  during  the  fourth  quarter  of  fiscal  year  2015  was 
attributable  to  goodwill  impairment  charge  related  to  our  video  conferencing  reporting  unit.  The 
Company  recognized  $4.7  million  restructuring  credits  as  result  of  partial  termination  of  its  lease 
agreement for Silicon Valley campus, which was previously vacated and under a restructuring plan 
during fiscal 2014.

42

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Annual Report Fiscal Year 2015REPORT ON CORPORATE GOVERNANCE 2015

42

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Annual Report Fiscal Year 201545

This page is intentionally left blank.REPORT ON CORPORATE GOVERNANCE

Logitech  believes  that  sound  corporate  governance  practices  are  essential  to  an  open  and 
responsible  corporation.  Our  corporate  governance  practices  reflect  a  continuing  commitment  to 
corporate accountability, sound judgment, and transparency to shareholders.

As a company whose securities are listed on both the SIX Swiss Exchange and the Nasdaq Global 
Select  Market,  our  commitment  to  sound  corporate  governance  principles  is  guided  by  the  legal  and 
regulatory  requirements  of  both  Switzerland  and  the  United  States.  In  addition,  Logitech’s  internal 
guidelines regarding corporate governance are provided in our Articles of Incorporation, Organizational 
Regulations (Bylaws), and Board Committee Charters.

This Report has been designed to comply with the Corporate Governance Directive of the SIX Swiss 
Exchange. Portions of the Report are also incorporated by reference from elsewhere in our Invitation, 
Proxy Statement and Annual Report for the 2015 Annual General Meeting, of which this Report is a part.

1.  Group Structure and Shareholders 

1.1  Operational Group Structure

Logitech is a world leader in products that connect people to the digital experiences they care about. 
Spanning  multiple  computing,  communication  and  entertainment  platforms,  we  develop  and  market 
innovative hardware and software products that enable or enhance digital navigation, music and video 
entertainment,  gaming,  social  networking,  and  audio  and  video  communication  over  the  Internet  and 
home-entertainment control.

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 the Americas 
(including North and South America), EMEA (Europe, Middle East, Africa) and Asia Pacific (including, 
among other countries, China, Taiwan, Japan and Australia). Shares of Logitech International S.A. are 
listed on both the Nasdaq Global Select Market (Ticker: LOGI, CUSIP H50430232), and the SIX Swiss 
Exchange (Ticker: LOGN; security number: 257513). The International Securities Identification Number 
(ISIN)  of  our  shares  is  CH0025751329.  As  of  March  31,  2015,  our  market  capitalization,  based  on 
outstanding shares of 164,481,799, net of treasury shares, amounted to approximately $2.2 billion (CHF 
2.1  billion).  Refer  to  section  1.2  below  for  information  on  Logitech  International  S.A.’s  holdings  in  its 
shares as of March 31, 2015.

References  in  this  Report  on  Corporate  Governance  to  the  “Company”  refers  to  Logitech 
International S.A. References to “Logitech,” “we,” “our,” and “us” refer to Logitech International S.A. and 
its consolidated subsidiaries.

Logitech  International  S.A.  directly  or  indirectly  owns  100%  of  all  the  companies  in  the  Logitech 
group, through which it carries on its business and operations. Principal operating subsidiaries include: 
Logitech Inc., Logitech Europe S.A., and Logitech Technology (Suzhou) Co., Ltd. For a list of Logitech 
subsidiaries, refer to the table on pages 59 and 60. None of Logitech International S.A.’s subsidiaries 
have securities listed on a stock exchange as of March 31, 2015.

Please  refer  to  Management’s  Discussion  and  Analysis  of  Financial  Condition  and  Results  of 
Operations under the heading “Overview of our Company” in our Annual Report for further information on 
Logitech’s operational group structure.

45

Annual Report Fiscal Year 20151.2  Significant Shareholders

Greater than 3% Shareholders as of March 31, 2015

The table below sets out, to the knowledge of the Company, beneficial owners holding more than 3% 
of the voting rights of the Company as of March 31, 2015. The number of voting rights of the Company as 
of March 31, 2015 is equal to the number of shares issued, 173,106,620 shares.

Information  on  the  share  ownership  of  the  Company  by  directors,  executive  officers  and  greater 
than 5% shareholders as of June 30, 2015, based on the number of the Company’s shares outstanding 
(which is equal to the shares issued less the shares held in the Company’s treasury) is set out in the 
Company’s  Invitation,  Proxy  Statement  and  Annual  Report  for  the  2015  Annual  General  Meeting, 
available at http://ir.logitech.com, under the heading “Security Ownership of Certain Beneficial Owners 
and Management as of June 30, 2015”.

The  Holding  Company’s  share  capital  consists  of  registered  shares.  To  the  knowledge  of  the 
Company,  the  beneficial  owners  holding  more  than  3%  of  the  voting  rights  of  the  Company  as  of 
March 31, 2015 were as follows:

Name
Credit Suisse AG(3)  . . . . . . . . . . . . . . . . . . . . . .
Daniel Borel(4)  . . . . . . . . . . . . . . . . . . . . . . . . . .
JPMorgan Chase & Co.(5)  . . . . . . . . . . . . . . . . .
Marathon Asset Management LLP(6) . . . . . . . . .
Macquarie Group Limited(7) . . . . . . . . . . . . . . . .
UBS Fund Management (Switzerland) AG(8) . . .
Credit Suisse Funds AG(9) . . . . . . . . . . . . . . . . .

 Number of
Shares(1) 
11,228,056
9,614,038
7,638,433
5,358,296
5,243,857
5,239,853
5,213,350

Percentage
of Voting
Rights(2)
6.5%
5.6%
4.4%
3.1%
3.0%
3.0%
3.0%

Relevant Date
February 12, 2015
March 31, 2015
February 6, 2015
April 5, 2013
December 13, 2013
September 29, 2014
March 25, 2015

(1)   Financial instruments other than shares are not taken into consideration for the calculation of the 

relevant shareholdings.

(2)   Shareholdings are calculated based on the aggregate number of voting rights entered into the Swiss 

commercial register. This aggregate number was 173,106,620 voting rights as of March 31, 2015. 

(3)  The  number  of  shares  held  by  Credit  Suisse  AG  through  its  indirect  subsidiaries  is  based  on  a 
Schedule 13G filed with the U.S. Securities and Exchange Commission on February 19, 2015.
(4)  The  number  of  shares  held  includes  (a)  53,000  shares  held  by  a  charitable  foundation,  of  which 
Mr.  Borel  and  other  members  of  his  family  are  board  members,  and  (b)  6,500  shares  held  by 
Mr. Borel’s spouse. Mr. Borel has not entered into any written shareholders’ agreements.

(5)   The number of shares held by JPMorgan Chase & Co. through its indirect subsidiaries is based on 

a notification filed with the SIX Exchange Regulation on February 19, 2015.

(6)  The number of shares held by Marathon Asset Management LLP is based on a notification filed with 

the SIX Exchange Regulation on April 11, 2013.

(7)   The number of shares held by Macquarie Group Limited through its indirect subsidiaries is based on 

a notification filed with the SIX Exchange Regulation on December 28, 2013.

(8)  The number of shares held by UBS Fund Management (Switzerland) AG is based on a notification 

filed with the SIX Exchange Regulation on October 7, 2014.

(9)  The  number  of  shares  held  by  Credit  Suisse  Funds  AG  is  based  on  a  notification  filed  with  the 

SIX Exchange Regulation on April 2, 2015.

46

47

Annual Report Fiscal Year 2015Under Swiss law shareholders who own voting rights exceeding certain percentage thresholds of 
a company incorporated in Switzerland whose shares are listed on a stock exchange in Switzerland are 
required to notify the company and the relevant Swiss exchange of such holdings. Following receipt of this 
notification, the company is required to inform the public in Switzerland. The notifications are published 
on  the  website  of  the  SIX  Swiss  Exchange  at  http://www.six-swiss-exchange.com/shares/companies/
major_shareholders_en.html ?fromDate=19980101&issuer=2769.

Logitech  has  not  been  notified  of  any  ownership  of  options  or  other  derivative  securities  of  the 
Company, whether privately or publicly traded, by any significant shareholder of the Company that is not 
a member of the Board of Directors or an executive officer.

1.3  Cross-shareholdings

Logitech has no shareholdings in companies that to its knowledge have shareholdings in Logitech. 

2.  Capital Structure

2.1  Share Capital

As  of  March  31,  2015,  Logitech  International  S.A.’s  nominal  share  capital  was  CHF  43,276,655, 

consisting of 173,106,620 shares with a par value of CHF 0.25 each.

Nominal  conditional  share  capital  designated  to  cover  the  potential  issuance  of  shares  under 
employee equity incentive plans amounts to CHF 6,250,000, consisting of 25,000,000 shares. In addition, 
nominal conditional share capital designated to cover conversion rights that may be granted in connection 
with a future issuance of debt obligations convertible into Logitech shares amounts to CHF 6,250,000, 
consisting of 25,000,000 shares. Refer to section 2.2 for more information on the Company’s authorized 
and conditional capital.

2.2  Details on the Company’s Authorized and Conditional Share Capital

Authorized  share  capital.  Under  Swiss  corporate  law  the  total  nominal  par  value  of  the  shares 
authorized by shareholders for future issuance, other than to cover derivative securities, is referred to as 
authorized share capital. As of March 31, 2015, Logitech has no authorized share capital.

Conditional share capital. Under Swiss corporate law the total nominal par value of the shares 
authorized  by  shareholders  for  future  issuance  on  the  conversion  or  exercise  of  derivative  securities 
issued by a company is referred to as conditional share capital. Under Swiss law a company must have 
sufficient conditional capital or available treasury shares to cover any conversion rights under derivative 
securities at the time the derivative securities are issued.

Pursuant to Article 25 of the Company’s Articles of Incorporation, the share capital of the Company 
may be increased by CHF 6,250,000 through the issuance of up to 25,000,000 shares with a par value 
of CHF 0.25 each. The purpose of this conditional share capital is to cover option or other equity rights 
granted or that may be granted to employees, officers and directors of Logitech under its employee equity 
incentive plans. The conditional share capital increase does not have an expiration date. The shareholders 
do not have pre-emptive rights to subscribe to the newly issued shares issued out of conditional share 
capital.  For  more  information  on  Logitech’s  employee  equity  incentive  plans  please  refer  to  Note  4  – 
Employee Benefit Plans - to our Consolidated Financial Statements included in our Annual Report.

Although the Company has been authorized by its shareholders to use conditional capital to meet 
its obligations to deliver shares as a result of employee purchases or exercises under its employee equity 
incentive plans, the Company has for some years used shares held in treasury to fulfill its obligations 
under the plans.

46

47

Annual Report Fiscal Year 2015In addition, pursuant to Article 26 of the Company’s Articles of Incorporation, the share capital of 
the Company may also be increased by CHF 6,250,000 through the issuance of up to 25,000,000 shares 
with a par value of CHF 0.25 each. The purpose of this conditional share capital is to cover conversion 
rights that may be granted in connection with a future issuance of bonds convertible into Logitech shares. 
The conditional share capital increase does not have an expiration date. The shareholders do not have 
pre-emptive rights to subscribe to the newly issued shares issuable on conversion of the bonds.

The Board of Directors may limit or withdraw the shareholders’ right to subscribe for the bonds by 
preference for valid reasons, in particular (a) if the bonds are issued in connection with the financing or 
refinancing  of  the  acquisition  of  one  or  more  companies,  businesses  or  parts  of  businesses,  or  (b)  to 
facilitate the placement of the bonds on the international markets or to increase the security holder base 
of the Company. If the shareholders’ right to subscribe for the bonds by preference is limited or withdrawn, 
the bonds must be issued at market  conditions,  the  exercise  period  of  the conversion rights must not 
exceed 7 years from the date of issuance of the bonds, and the conversion price must be set at a level 
that is not lower than the market price of the shares preceding the determination of the final conditions 
for the bonds.

2.3  Changes in Shareholders’ Equity

As of March 31, 2015, 2014 and 2013, balances in shareholders’ equity of Logitech International S.A., 

based on the parent company’s Swiss Statutory Financial Statements, were as follows (in thousands):

Share capital  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Legal reserves:

General reserve
- Reserve for capital contributions  . . . . . . . . . . . 
- Other general reserves . . . . . . . . . . . . . . . . . . . 
Reserve for treasury shares
- Reserve for treasury shares from 

2015
CHF 43,277

As of March 31,
2014
CHF 43,277

2013
CHF 43,277

1,265
9,580

1,265
9,580

1,264
9,580

capital contributions . . . . . . . . . . . . . . . . . . . . 
- Other general reserves for treasury shares  . . . 
Total legal reserves  . . . . . . . . . . . . . . . . . . . . . . . . . 
Unappropriated retained earnings  . . . . . . . . . . . . . . 
Total shareholders’ equity  . . . . . . . . . . . . . . . . . . . . 

—
75,299
86,144
451,445
CHF 580,866

—
104,807
115,652
458,537
CHF 617,466

—
172,392
183,236
354,602
CHF 581,115

The following table shows authorized and conditional share capital as of the last three fiscal year 

ends (in thousands):

Authorized share capital . . . . . . . . . . . . . . . . . . . . . . . . . . . .
First conditional share capital . . . . . . . . . . . . . . . . . . . . . . . .
Second conditional share capital  . . . . . . . . . . . . . . . . . . . . .

2015

As of March 31,
2014
CHF  — CHF  — CHF  —
CHF  6,250 CHF  6,250 CHF  6,250
CHF  6,250 CHF  6,250 CHF  6,250

2013

For information on Logitech’s shareholders’ equity as of March 31, 2015 and 2014, refer to the Swiss 

Statutory Balance Sheets on page 122 of our Annual Report.

48

49

Annual Report Fiscal Year 2015 
 
During fiscal years 2015, 2014 and 2013, the Company had the following approved share buyback 

programs in place (in thousands):

Share Buyback Program
March 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
September 2008 - amended(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
September 2008(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Approved

  Shares
17,311
28,465
8,344
54,120

Amounts
$250,000
177,030
250,000
$677,030

(1)  Expired in August 2013

Share Repurchases

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.

In September 2008, the Company’s Board of Directors approved the September 2008 share buyback 
program for $250.0 million. In November 2011, an amendment to the September 2008 share buyback 
program (“September 2008 - amended”) was approved by the Company’s Board of Directors to enable 
future  purchases  of  shares  for  cancellation.  In  August  2013,  the  September  2008  share  buyback  and 
September 2008 - amended share buyback programs expired. 

A summary of the approved share buyback programs are shown in the following table (in thousands, 

excluding transaction costs).

Approved

Repurchased

Share Buyback Program
March 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
September 2008 - amended(1) . . . . . . . . . . . . . . . . . . . . . .
September 2008(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1)  Expired in August 2013

  Shares   Amounts   Shares  
$250,000
177,030
250,000
$677,030

115
18,500
7,609
26,224

17,311
28,465
8,344
54,120

Amounts
1,663
$
170,714
73,134
$ 245,511

During fiscal year 2015, 0.1 million shares were repurchased for $1.7 million. There were no share 
repurchases during fiscal year 2014. During fiscal year 2013, 8.6 million shares were repurchased for 
$87.8 million and 18.5 million of the repurchased shares were cancelled. 

For  further  information  on  Logitech’s  share  repurchases  please  refer  to  “Additional  Financial 
Disclosures – Market for Logitech’s Shares, Related Shareholder Matters, and Share Repurchases” in 
our Annual Report.

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49

Annual Report Fiscal Year 20152.4  Share Categories

Registered  Shares.  Logitech  International  S.A.  has  only  one  category  of  shares  –  registered 
shares with a par value of CHF 0.25 per share. Each of the 173,106,620 issued shares carries the same 
rights. There are no preferential rights. However, a shareholder must be entered in the share register of 
the Company to exercise voting rights and the rights deriving therefrom (such as the right to convene a 
general meeting of shareholders or the right to put an item on the meeting’s agenda). Refer to section 6 
for an outline of participation rights of the Company’s shareholders.

Each share entitles its owner to dividends declared, even if the owner is not registered in the share 
register of the Company. Under Swiss law, a company pays dividends upon approval by its shareholders. 
This  request  for  shareholder  approval  typically  follows  the  recommendation  of  the  Board.  Until  2013, 
other than a one-time distribution to shareholders of additional paid-in capital out of its capital contribution 
reserves  in  fiscal  year  2012,  Logitech  had  not  paid  dividends  since  1996,  using  retained  earnings  to 
invest in the growth of the Company and, in more recent years, to repurchase the Company’s shares. In 
2013, the Board proposed that, beginning with fiscal year 2013 and subject to approval by the Company’s 
shareholders and statutory auditors each year, Logitech distribute a recurring annual gross dividend. In 
2013, Logitech distributed a gross dividend of CHF 0.21 per share. Last year, the Board distributed a gross 
dividend of CHF 0.2625 per share. On March 10, 2015, the Board approved, subject to approval by the 
Company’s shareholders and other Swiss statutory requirements, a gross dividend of approximately CHF 
0.5025 per share (based on an approved gross aggregate dividend of $85,000,000 and the exchange 
rate and shares outstanding as of March 31, 2015 – see “Proposal 3 – Appropriation of Retained Earnings 
and Declaration of Dividend” in our Proxy Statement.

Unless  this  right  is  restricted  in  compliance  with  Swiss  law  and  the  Company’s  Articles  of 
Incorporation,  shareholders  have  the  pre-emptive  right  to  subscribe  for  newly  issued  shares.  Refer  to 
section 2.2 for a description of the provisions of the Company’s Articles of Incorporation relating to the 
restriction of the shareholders’ pre-emptive subscription rights.

2.5  Non-Voting Shares and Bonus Certificates

The Company has not issued non-voting shares (“bons de participation,” “Partizipationsscheine”). 
The Company has not issued certificates or equity securities that provide financial rights in consideration 
for  services  rendered  or  claims  waived  (referred  to  as  “bonus  certificates,”  “bons  de  jouissance,”  or 
“Genussscheine”).

2.6  Limitations on Transferability and Nominee Registration

The Company and its agent, Computershare, as U.S. transfer agent, maintain a share register that 
lists  the  names  of  the  registered  owners  of  the  Company’s  shares.  Registration  in  the  share  register 
occurs  upon  request  and  is  not  subject  to  any  conditions.  Nominee  companies  and  trustees  can  be 
entered into the share register with voting rights. There are no restrictions on transfers of shares under 
the Company’s Articles of Incorporation or Swiss law. However, only holders of shares that are recorded 
in  the  share  register  are  recognized  as  shareholders,  and  a  transfer  of  shares  reflected  in  the  share 
register is recognized by the Company only to the extent we are notified of the transfer.

Refer to section 6.1 for the conditions for exercise of shareholders’ voting rights. 

2.7  Conversion and Option Rights

Logitech does not have any outstanding bonds or other publicly traded securities with conversion 

rights and has not issued warrants on its shares.

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Annual Report Fiscal Year 2015Logitech  has  issued  stock  options,  including  performance-based  stock  options  and  premium-
priced stock options, and restricted stock units, including performance-based restricted stock units, to its 
employees and directors. Please refer to our Invitation and Proxy Statement for the 2015 Annual General 
Meeting, under the heading “Equity Compensation Plan Information” at pages 102 to 103, for details on 
option rights and restricted stock units issued under our employee equity incentive plans, as well as other 
information regarding those plans, and to Note 4 – Employee Benefit Plans – included in our Consolidated 
Financial Statements.

3.  The Board of Directors

For  the  current  members  of  our  Board  of  Directors,  further  information  regarding  the  Board  of 
Directors,  Board  Committees,  and  the  allocation  of  responsibility  between  the  Board  of  Directors  and 
executive officers, please see our Invitation and Proxy Statement for the 2015 Annual General Meeting, 
under the heading “Corporate Governance and Board of Directors Matters” at pages 32 to 48.

3.3  Permitted Activities

Pursuant to Article 17 bis of the Company’s Articles of Incorporation, each member of our Board of 
Directors may assume up to ten mandates in supreme management or supervisory bodies of legal entities 
outside the Logitech group, of which no more than four may be in listed companies. In addition, each 
member of our Board of Directors may assume up to ten non-remunerated mandates in the governing 
bodies of charitable or similar organizations. 

The following mandates are not subject to these limitations: 

a)  mandates in companies controlled by the Company or that control the Company; 

b)  mandates that a member of our Board of Directors assumes at the request of the Company or 

of a company controlled by it; and 

c)  mandates  in  companies  that  are  not  required  to  be  registered  in  the  commercial  registry  in 

Switzerland or in an equivalent registry outside of Switzerland. 

Mandates for legal entities under common control or at the request of such legal entities are counted 

as a single mandate for purposes of determining permitted activities. 

Each  member  of  our  Board  of  Directors  is  currently  in  compliance  with  the  above-mentioned 

requirements.

3.4  Elections and terms of office

For information regarding the time of first election and term of office of each member of our Board 
of Directors, please see our Invitation and Proxy Statement for the 2015 Annual General Meeting, under 
the heading “Corporate Governance and Board of Directors Matters” at pages 32 to 48.

Pursuant  to  Article  14  of  the  Company’s  Articles  of  Incorporation,  the  members  of  the  Board  of 
Directors shall be elected individually by the General Meeting for a term of office expiring after completion 
of the subsequent Annual General Meeting. Each member of our Board of Director shall be indefinitely 
re-eligible. 

The  Company’s  Articles  of  Incorporation  do  not  differ  from  the  statutory  legal  provisions  with 
regard  to  the  appointment  of  the  chairman,  the  members  of  the  compensation  committee  and  the 
independent proxy.

50

51

Annual Report Fiscal Year 20154.  Group Management Team

4.1  Members of the Group Management Team

The members of our Group Management Team are set out below:

Bracken Darrell . . . . . . . . . . . . . . . .
52 Years Old 
President and  
Chief Executive Officer  
U.S. national

Vincent Pilette . . . . . . . . . . . . . . . . .
43 Years Old  
Chief Financial Officer  
Belgian national

Bracken  Darrell  joined  Logitech  as  President  in  April  2012  and 
became Chief Executive Officer in January 2013. Prior to joining 
Logitech,  Mr.  Darrell  served  as  President  of  Whirlpool  EMEA 
and Executive Vice President of Whirlpool Corporation, a home 
appliance  manufacturer  and  marketing  company,  from  January 
2009  to  March  2012.  Previously,  Mr.  Darrell  had  been  Senior 
Vice  President,  Operations  of  Whirlpool  EMEA  from  May  2008 
to January 2009. From 2002 to May 2008, Mr. Darrell was with 
The  Procter  &  Gamble  Company  (“P&G”),  a  consumer  brand 
company,  most  recently  as  the  President  of  its  Braun  GmbH 
subsidiary. Prior to rejoining P&G in 2002, Mr. Darrell served in 
various executive and managerial positions with General Electric 
Company from 1997 to 2002, with P&G from 1991 to 1997, and 
with PepsiCo Inc. from 1987 to 1989. Mr. Darrell holds a BA degree 
from Hendrix College and an MBA from Harvard University.

Vincent  Pilette  joined  Logitech  in  September  2013  as  Chief 
Financial Officer. Prior to joining Logitech, Mr. Pilette served as 
Chief Financial Officer of Electronics for Imaging, Inc., a digital 
printing  innovation  and  solutions  company,  from  January  2011 
through  August  2013.  From  January  2009  through  December 
2010, he served as Vice President of Finance for the Enterprise 
Server,  Storage  and  Networking  Group  at  Hewlett-Packard 
Company  (“HP”).  Prior  to  this  role,  Mr.  Pilette  served  as  Vice 
President of Finance for the HP Software Group from December 
2005  through  December  2008.  Mr.  Pilette  held  various  other 
finance  positions  at  HP,  in  the  U.S.  and  Europe,  Middle  East 
and Africa, since joining HP in 1997. Mr. Pilette holds an MS in 
Engineering and Business from Université Catholique de Louvain 
in Belgium and an MBA from Kellogg School of Management at 
Northwestern University.

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Annual Report Fiscal Year 2015Marcel Stolk . . . . . . . . . . . . . . . . . . .
48 Years Old  
Sr. Vice President, 
Consumer Computing  
Platforms Business Group  
Dutch national

L. Joseph Sullivan  . . . . . . . . . . . . .
62 Years Old  
Senior Vice President,  
Worldwide Operations  
U.S. national

Marcel  Stolk  joined  Logitech  in  March  2011  as  Vice  President, 
Sales  and  Marketing  EMEA  and  Executive  Managing  Director 
EMEA,  and  was  appointed  Senior  Vice  President,  Consumer 
Computing  Platforms  Business  Group 
in  January  2013. 
Previously, Mr. Stolk was the Senior Vice President, Worldwide 
Sales  and  Marketing  at  Logitech,  from  March  2001  to  October 
2005,  and  held  a  number  of  positions  within  the  sales  and 
marketing  functions  at  Logitech  from  1991  to  2001.  Prior  to 
rejoining Logitech in 2011, he was the Chief Executive Officer of 
SourceTag BV, a software company for unique tagging of cloud 
based data, from September 2010 to March 2011. Mr. Stolk has 
also  been  the  founder  and  Chief  Executive  Officer  of  Adoria 
Investments BV, a private equity company, from October 2005 to 
July 2010, and he remains the sole owner. Before joining Logitech 
in  1991,  Mr.  Stolk  held  various  sales  and  marketing  positions 
at  Aashima  Technology  BV,  a  provider  of  PC  components  and 
accessories,  in  the  Netherlands.  Mr.  Stolk  studied  at  Utrecht 
University in the Netherlands and has participated in university-
level executive courses, including an executive training course at 
Stanford University.

L.  Joseph  Sullivan  joined  Logitech  in  October  2005  as  Vice 
President, Operations Strategy, and was appointed Senior Vice 
President,  Worldwide  Operations  in  April  2006.  Prior  to  joining 
Logitech, Mr. Sullivan was Vice President of Operational Excellence 
and  Quality  for  Carrier  Corporation,  a  subsidiary  of  United 
Technologies, from 2001 to 2005. Previously, he was with ACCO 
Brands, Inc. in engineering and manufacturing management roles 
from 1998 to 2001. Mr. Sullivan holds a BS degree in Marketing 
Management  and  an  MBA  degree  in  Operations  Management 
from Suffolk University in Massachusetts.

4.2 

Involvements outside Logitech of the Members of the Group Management Team

No  member  of  Logitech’s  Group  Management  Team  currently  has  supervisory,  management,  or 

material advisory functions outside Logitech or holds any official functions or political posts. 

4.3  Permitted Activities

Pursuant to Article 18 ter of the Company’s Articles of Incorporation, each member of our Group 
Management Team may assume up to five mandates in supreme management or supervisory bodies 
of  legal  entities  outside  the  Logitech  group,  of  which  no  more  than  two  may  be  in  listed  companies. 
In  addition,  each  member  of  our  Group  Management  Team  may  assume  up  to  ten  non-remunerated 
mandates in the governing bodies of charitable or similar organizations. 

The following mandates are not subject to these limitations: 

a)  mandates in companies controlled by the Company or that control the Company; 

b)  mandates  that  a  member  of  our  Group  Management  Team  assumes  at  the  request  of  the 

Company or of a company controlled by it; and 

c)  mandates  in  companies  that  are  not  required  to  be  registered  in  the  commercial  registry  in 

Switzerland or in an equivalent registry outside of Switzerland. 

Mandates for legal entities under common control are counted as a single mandate for purposes of 

determining permitted activities. 

52

53

Annual Report Fiscal Year 2015Each member of our Group Management Team is currently in compliance with the above-mentioned 

requirements.

4.4  Management Contracts

Logitech  has  not  entered  into  any  contractual  relationships  regarding  the  management  of  the 

Company or its subsidiaries.

5.  Compensation, Shareholdings and Loans

Please  refer  to  Logitech’s  Compensation  Report  on  pages  59  to  101  of  our  Invitation  and  Proxy 
Statement for the 2015 Annual General Meeting for information on Logitech’s compensation of its Board 
members and executive officers, and regarding how and why we make compensation decisions.

In addition, for information required to be disclosed under Swiss law regarding compensation during 
fiscal year 2015 of the individual members of the Board and of the members of the Group Management 
Team, in aggregate, and regarding the security ownership of members of the Board of Directors and of 
members of the Group Management Team as of March 31, 2015, among other disclosures, please refer to 
the Remuneration Report and Note 9 – Share Ownership of Board Members and Executive Officers – in 
the Company’s Statutory Financial Statements included in our Annual Report.

5.2  Compensation Principles and the Votes on Pay at the General Meeting of Shareholders 

Pursuant  to  Article  19  bis  of  the  Company’s  Articles  of  Incorporation,  compensation  of  non-
executive members of our Board of Directors consists of cash payments and shares or share equivalents 
corresponding to a fixed amount and reflecting the functions and responsibilities assumed. 

Pursuant  to  Article  19  bis  and  ter  of  the  Company’s  Articles  of  Incorporation,  compensation  of 
members of our Board of Directors who have delegated management responsibilities and of our Group 
Management Team consists principally of (i) base salary, (ii) performance-based cash compensation in 
the form of incentive cash payments, and (iii) equity incentive awards. Base salary rewards executives for 
their individual contribution to the Company and their expected day-to-day services. Performance-based 
cash compensation takes appropriate account of the achievement of the Company’s, individual employees’ 
or other performance goals. The target level of the performance-based cash compensation elements is 
determined as a percentage of the base salary. Performance-based cash compensation may amount up 
to a pre-determined multiplier of the target level. Its amount may also reflect an overall assessment of the 
executive’s performance or the Company’s objectives. Equity incentive awards provide a direct incentive 
for future performances and align the interest of the executives with those of the Company’s shareholders. 
Equity incentive awards are governed by performance metrics that take into account strategic or other 
objectives of the Company or by reference to the duration of the executive’s service to the Company or 
companies controlled by it. The performance metrics and target levels applicable to performance-based 
cash compensation and equity incentive awards, as well as their achievement, are determined by our 
Compensation Committee.

Compensation  to  executives  may  also  be  paid  or  granted  in  the  form  of  financial  instruments  or 
similar  units  and  executives  may  participate  in  share  purchase  plans  established  by  the  Company  or 
companies controlled by it, under the terms of which eligible employees may allocate a portion of their 
compensation to the purchase of shares of the Company at a discount to market price.

Our Compensation Committee decides upon each grant as well as the applicable vesting, blocking, 
exercise and forfeiture conditions; it may provide for continuation, acceleration or removal of vesting and 
exercise conditions, for payment or grant of compensation assuming target achievement or for forfeiture 
in the event of pre-determined events such as termination of employment or office or change of control. 
Compensation may be paid by the Company or companies controlled by it.

54

55

Annual Report Fiscal Year 2015Pursuant to Article 19 quarter of the Company’s Articles of Incorporation, upon proposal of the Board 
of Directors, the General Meeting approves the maximum aggregate amount of the compensation of (i) the 
Board of Directors, for the period up to the next Annual General Meeting, and (2) the Group Management 
Team, for the next business year. The Board of Directors may submit to the General Meeting for approval 
proposals  in  respect  of  maximum  aggregate  amounts  and/or  individual  compensation  components 
for  other  time  periods  and/or  propose  the  payment  of  additional  amounts  for  special  or  extraordinary 
services of some or all of the members of the Board of Directors or of the Group Management Team. If the 
General Meeting rejects a proposal submitted by the Board of Directors, the Board of Directors will submit 
an  alternative  proposal  to  the  same  or  a  subsequent  General  Meeting.  The  Company  or  companies 
controlled by it may grant or pay compensation subject to subsequent ratification at a General Meeting 
and claw-back by the Company in case of rejection by the General Meeting.

Pursuant to Article 19 quinquies of the Company’s Articles of Incorporation, if the maximum aggregate 
amount  of  compensation  already  approved  by  the  General  Meeting  is  not  sufficient  to  also  cover  the 
compensation of one or more persons who become members of the Group Management Team during 
a compensation period for which the General Meeting has already approved the compensation of the 
Group Management Team (new hire), the Company or companies controlled by it are authorized to pay 
an additional amount with respect to the compensation period already approved. Such additional amount 
may not exceed: for the head of the Management Team (CEO), 140% of the total annual compensation of 
the former CEO; and for any new hire other than the CEO, 140% of the highest total annual compensation 
of any member of the Management Team other than the CEO.

Pursuant to Article 19 sexies of the Company’s Articles of Incorporation, members of the Board of 
Directors and of the Group Management Team may not receive credits or loans from the Company or 
from a company controlled by it. Compensation paid to members of the Board of Directors or of the Group 
Management Team for activities in companies that are controlled by the Company is permitted, and this 
compensation will be included in the total compensation payable to the Board of Directors or to the Group 
Management  Team,  as  applicable,  which  is  subject  to  the  approval  of  the  General  Meeting.  Pension 
contributions and benefits will be made or provided in accordance with the regulations applicable to the 
pension  schemes  in  which  the  Company  or  the  companies  controlled  by  it  participate  in  Switzerland 
or abroad.

6.  Shareholders’ Participation Rights 

6.1  Exercise and Limitations to Shareholders’ Voting Rights

Each  registered  share  confers  the  right  to  one  vote  at  a  general  meeting  of  shareholders.  There 
are no limitations to the number of voting rights that a shareholder or group of shareholders is entitled 
to exercise, and there are no preferential voting rights. To exercise voting rights at a general meeting of 
shareholders, a shareholder must have registered their shares by the date set by the Board of Directors 
for the closing of the share register before each general meeting of shareholders. Refer to section 2.6 for 
more information on the registration process.

Any  shareholder  may  be  represented  at  a  meeting  by  a  person  of  its  choice  who  need  not  be  a 
shareholder of the Company. The power of attorney must be made in writing. The use of a form prepared 
by the Company may be required.

There  are  currently  no  limitations  under  Swiss  law  or  in  the  Company’s  Articles  of  Incorporation 

restricting the rights of shareholders outside Switzerland to hold or vote Logitech shares.

The Company’s Articles of Incorporation contain no rules on giving instructions to the independent 

proxy and no provisions on electronic participation in the general meeting. 

54

55

Annual Report Fiscal Year 20156.2  Shareholders’ Resolutions for which a Particular Majority is Required

In general, the resolutions of the general meeting of shareholders are passed with a simple majority 
of the votes cast. However, a number of resolutions may only be passed with a majority of two-thirds of 
the votes represented, including the following.

•	 change in the Company’s corporate purpose; 

•	 creation of shares with privileged voting rights;

•	

restriction of the transferability of the shares;

•	 creation of authorized or conditional capital;

•	 capital increases to be paid-in by means of existing reserves, against contributions in kind, or 

conducted with a view to the acquisition of specific assets;

•	 grant of special benefits;

•	 suppression or limitation of the shareholders’ preferential subscription right;

•	 change of the registered office of the Company; and 

•	

liquidation of the Company. 

6.3  Convocation of the General Meeting of Shareholders

The  Board  of  Directors  generally  convenes  a  general  meeting  of  shareholders.  The  convocation 
notice is made in writing and under Swiss law must be sent to each registered shareholder at the address 
recorded in the share register at least 20 days prior to the meeting.

Under our Articles of Incorporation one or more shareholders who represent together at least 10% 
of the share capital of the Company may demand that the Board of Directors convene a meeting. Such 
demands must be made in writing and received by the Board of Directors at least 60 days before the date 
of the proposed meeting.

The  Company  has  received  an  exemption  from  compliance  with  a  Nasdaq  listing  standard  that 
requires that the quorum for shareholder meetings be at least 331/3% of the outstanding voting shares. 
Under Swiss law, public companies do not have specific quorum requirements for shareholder meetings. 
Accordingly, Logitech, like most other Swiss public companies, does not observe quorum requirements 
with respect to its shareholder meetings. In compliance with Swiss law, Logitech sends an invitation to 
all of its registered shareholders and publishes the notice of the meeting in the Swiss financial press. It 
also sends a proxy statement, or a notice of availability of the proxy statement, in either case prepared in 
accordance with U.S. securities laws, to all registered shareholders and all beneficial shareholders where 
requested by the registered shareholder or required by law. Logitech has combined the invitation required 
under Swiss law and the proxy statement required under U.S. law into one document, titled Invitation and 
Proxy Statement, for its 2015 Annual General Meeting, and combined it with its Annual Report required 
under Swiss law and U.S. law to create one convenient document for shareholders. Also, to encourage 
attendance, Logitech holds its Annual General Meeting close to its operations in Switzerland.

6.4  Shareholders’ Right to Place Items on the Agenda of a Meeting

Under the Company’s Articles of Incorporation, one or more registered shareholders who together 
represent shares representing at least the lesser of (i) one percent of the Company’s issued share capital 
or (ii) an aggregate par value of one million Swiss francs, may demand that an item be placed on the 
agenda of a meeting of shareholders.

A request to place an item on the meeting agenda must be in writing, describe the proposal and 
be  received  by  our  Board  of  Directors  at  least  60  days  prior  to  the  date  of  the  meeting.  Demands  by 
registered shareholders to place an item on the agenda of a meeting of shareholders should be sent to: 

56

57

Annual Report Fiscal Year 2015Secretary to the Board of Directors, Logitech International S.A., EPFL – Quartier de l’Innovation, Daniel 
Borel  Innovation  Center  1015  Lausanne,  Switzerland,  or  c/o  Logitech  Inc.,  7700  Gateway  Boulevard, 
Newark, CA 94560, USA.

6.5  Registration in the Company’s Share Register

Registration into the Company’s share register, or the sub-register maintained by the Company’s U.S. 
transfer agent, Computershare, occurs upon request and is not subject to any condition. The Company’s 
share register closes before a general meeting of shareholders on a date designated by the Board of 
Directors. Only those shareholders who are registered in the share register on the day the share register 
is closed have the right to vote at the meeting.

7.  Mandatory Offer and Change of Control Provisions

7.1  Mandatory Offer

Under Swiss law any shareholder who acquires more than 331/3% of the voting rights of a Swiss 
company whose shares are listed in whole or in part in Switzerland is required to make an offer to acquire 
all listed equity securities of the company at a minimum price. Logitech International S.A.’s Articles of 
Incorporation do not remove this requirement. The Articles do not increase the participation threshold 
above which an offer must be made. Consequently, any person having acquired more than a third of the 
Company’s voting rights will be required to make an offer for all outstanding shares of the Company.

7.2  Change of Control Provisions

Please refer to our Compensation Report on pages 59 to 101 of our Invitation and Proxy Statement 
for the 2015 Annual General Meeting for information on the severance and change of control agreements 
in place with Logitech’s executive officers, and regarding the potential payments in the event of termination 
of service of an executive officer or a change-in-control of Logitech.

8.  Auditors

Under the Company’s Articles of Incorporation, the shareholders elect the Company’s independent 

auditors each year at the Annual General Meeting. Re-election is permitted.

The Company’s auditors are currently KPMG AG, Badenerstrasse 172, CH-8026, Zürich, Switzerland. 
KPMG assumed its first audit mandate for Logitech in 2014. The responsible principal audit partner as of 
March 31, 2015 is, and since fiscal year 2015 has been, Rolf Hauenstein. For purposes of U.S. securities 
law  reporting,  KPMG  LLP,  Santa  Clara,  California,  serves  as  the  Company’s  independent  registered 
public accounting firm.

Please  refer  to  the  Corporate  Governance  and  Board  of  Directors  Matters  section  of  Logitech’s 
Invitation, Proxy Statement and Annual Report for the 2015 Annual General Meeting, under the headings 
“Independent Auditors” and “Report of the Audit Committee,” for further information regarding the audit 
and non-audit fees paid by Logitech to KPMG during fiscal year 2015, pre-approval policies for non-audit 
work by KPMG, and the supervisory and control instruments of the Board of Directors, including the Audit 
Committee of the Board, over the work and activities of KPMG. 

9. 

Information Policy

The  Company  reports  its  financial  results  quarterly  with  an  earnings  press  release.  Quarterly 

financial results are scheduled to be released as follows:

Q2 FY’16 Earnings Release and Conference Call . . . . . . . . . . . . . . . . 
Q3 FY’16 Earnings Release and Conference Call . . . . . . . . . . . . . . . . 
Q4 FY’16 Earnings Release and Conference Call . . . . . . . . . . . . . . . . 

October 22, 2015
January 21, 2016
April 28, 2016

56

57

Annual Report Fiscal Year 2015The Company’s 2015 Annual General Meeting is to be held September 9, 2015 at the SwissTech 

Center, EPFL Lausanne, Switzerland. 

All registered shareholders and all shareholders in the United States that hold their shares through 
a U.S. bank or brokerage or other nominee receive a copy of the Logitech Invitation, Proxy Statement 
and  Annual  Report,  or  a  notice  that  such  documents  are  available.  The  Annual  Report  section  of  the 
document  contains  an  overview  of  Logitech’s  business  in  the  fiscal  year,  audited  financial  statements 
for the group and the Company, the Remuneration Report, the Report on Corporate Governance and 
other key financial and business information. The Invitation and Proxy Statement section of the document 
includes a description of the matters to be acted upon at the Annual General Meeting of shareholders, 
a Compensation Report on executive officer and Board member compensation, and other disclosures 
required under applicable Swiss and U.S. laws.

Logitech holds public conference calls after our quarterly earnings releases to discuss the results and 
present an opportunity for institutional analysts to ask questions of the Chief Executive Officer and Chief 
Financial Officer. Logitech also holds periodic analyst days where senior management present reviews 
of Logitech’s business. These events are webcast and remain available on Logitech’s Investor Relations 
website for a period of time after the events. Logitech senior management also regularly participates in 
institutional investor seminars and roadshows, many of which are also webcast.

Our Investor Relations Web site is located at http://ir.logitech.com. We post and maintain an archive 
of our earnings and other press releases, current reports, annual and quarterly reports, earnings release 
schedule, information regarding annual general meetings, further information on corporate governance, 
and other information regarding the Company on the Investor Relations Web site. The information we 
post  includes,  and  in  the  future  will  include,  filings  we  make  with  the  U.S.  Securities  and  Exchange 
Commission, or SEC, including reports on Forms 10-K, 10-Q and 8-K, our proxy statement related to 
our annual shareholders’ meeting, including our Compensation Report on executive officer and Board 
member compensation, and any amendments to those reports or statements filed or furnished pursuant 
to  U.S.  securities  laws  or  Swiss  laws.  All  such  filings  and  information  are  available  free  of  charge  on 
the web site, and we make them available on the web site as soon as reasonably possible after we file 
or furnish them with the SEC. The contents of these web sites are not intended to be incorporated by 
reference into this report or in any other report or document we file and our references to these Web sites 
are intended to be inactive textual references only.

In addition, Logitech publishes press releases upon occurrence of significant events within Logitech. 
Shareholders  and  members  of  the  public  may  elect  to  receive  e-mails  when  Logitech  issues  press 
releases upon occurrence of significant events within Logitech or other press releases by subscribing 
through http://ir.logitech.com/alerts.cfm.

As a Swiss company traded on the SIX Swiss Exchange, and as a company subject to the provisions 
of Section 16 of the Securities Exchange Act of 1934, as amended, we file reports on transactions in 
Logitech securities by members of Logitech’s Board of Directors and executive officers. The reports that 
we file with the SEC on Forms 3, 4 and 5 may be accessed on our website or on the SEC’s website at 
http://www.sec.gov, and the reports that we file that are published by the SIX Swiss Exchange may be 
accessed at http://www.six-exchange-regulation.com/obligations/management_transactions_en.html.

For no charge, a copy of our annual reports and filings made with the SEC are available on our website 
and can be requested by contacting our Investor Relations department: Logitech Investor Relations, 7700 
Gateway Boulevard, Newark, CA 94560 USA, Main 510-795-8500, e-mail: LogitechIR@logitech.com.

58

59

Annual Report Fiscal Year 2015LOGITECH INTERNATIONAL S.A. 
Consolidated Subsidiaries

Jurisdiction of Incorporation

Group 
Holding %

Share Capital

Name of Subsidiary 
EUROPE

Ireland

Labtec Europe S.A. . . . . . . . . . . . . . . . . Switzerland
Logitech U.K. Limited  . . . . . . . . . . . . . . United Kingdom
Logitech (Jersey) Limited  . . . . . . . . . . . Jersey, Channel Islands
Logitech Espana BCN SL . . . . . . . . . . . Spain
Logitech Europe S.A.  . . . . . . . . . . . . . . Switzerland
SAS Logitech France  . . . . . . . . . . . . . . Republic of France
Logitech GmbH . . . . . . . . . . . . . . . . . . . Federal Republic of Germany
Logitech Ireland Services Limited . . . . .
Logitech Italia SRL  . . . . . . . . . . . . . . . . Republic of Italy
Logitech Mirial Srl  . . . . . . . . . . . . . . . . . Republic of Italy
Logitech Nordic AB . . . . . . . . . . . . . . . . Sweden
Logitech Benelux B.V. . . . . . . . . . . . . . . Kingdom of the Netherlands
Logitech Poland Spolka z.o.o  . . . . . . . . Poland
Logitech S.A.. . . . . . . . . . . . . . . . . . . . . Switzerland
Logitech Middle East FZ-LLC  . . . . . . . . United Arab Emirates
Logitech (Streaming Media) SA  . . . . . . Switzerland
Logitech Hellas MEPE  . . . . . . . . . . . . . Greece
Logitech Schweiz AG  . . . . . . . . . . . . . . Switzerland
Logitech Upicto GmbH  . . . . . . . . . . . . . Switzerland
Limited Liability Company “Logitech” . . . Russia
Logi Peripherals Technologies 

(South Africa) (Proprietary) Limited . . . South Africa

Logitech Norway AS  . . . . . . . . . . . . . . . Norway

100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100

100
100

CHF
GBP
USD
EUR
CHF
EUR
EUR
EUR
EUR
EUR
SEK
EUR
PLN
CHF
AED
CHF
EUR
CHF
CHF
RUB

ZAR
NOK

150,000
20,000
188
50,000
100,000
182,939
25,565
3
20,000
100,000
100,000
18,151
50,000
200,000
100,000
100,000
18,000
100,000
20,000
20,000

1,000
100,000

AMERICAS

Logitech Argentina S.R.L. . . . . . . . . . . . Argentina
Dexxa Accessorios 

De Informatica Do Brasil Ltda. . . . . . Brazil
Logitech de Mexico S.A. de C.V.. . . . . . Mexico
Logitech Canada Inc.  . . . . . . . . . . . . . . Canada
Logitech Inc.  . . . . . . . . . . . . . . . . . . . . . United States of America
Logitech (Streaming Media) Inc. . . . . . . United States of America
Logitech (Slim Devices) Inc.  . . . . . . . . . United States of America
WiLife, Inc.. . . . . . . . . . . . . . . . . . . . . . . United States of America
Logitech Servicios Latinoamérica, 

S.A. de C.V.  . . . . . . . . . . . . . . . . . . . Mexico

Ultimate Ears Incorporated . . . . . . . . . . United States of America
SightSpeed, Inc.  . . . . . . . . . . . . . . . . . . United States of America
LifeSize Communications, Inc.  . . . . . . . United States of America
Lifesize, Inc.  . . . . . . . . . . . . . . . . . . . . . United States of America
UE Acquisition Inc.  . . . . . . . . . . . . . . . . United States of America
Logitech Latin America, Inc.  . . . . . . . . . United States of America

100

ARS

10,000

100
100
100
100
100
100
100

100
100
100
100
100
100
100

BRL
MXN
CAD
USD
USD
USD
USD

MXN
USD
USD
USD
USD
USD
USD

10,000
50,000
100
11,522,396
10
1
10

50,000
10
1
1
1
10
1

58

59

Annual Report Fiscal Year 2015LOGITECH INTERNATIONAL S.A. 
Consolidated Subsidiaries—(Continued)

Jurisdiction of Incorporation

Group 
Holding %

Share Capital

Name of Subsidiary 
ASIA PACIFIC

LogiCool Co., Ltd.  . . . . . . . . . . . . . . . . . Japan
Logitech Electronic (India) 

Private Limited.. . . . . . . . . . . . . . . . .

India

Logitech Far East, Ltd.  . . . . . . . . . . . . . Taiwan, Republic of China
Logitech Hong Kong Limited . . . . . . . . . Hong Kong
Logitech Korea Ltd. . . . . . . . . . . . . . . . . Korea
Logitech New Zealand Co., Ltd . . . . . . . New Zealand
Logitech Service 

Asia Pacific Pte. Ltd.  . . . . . . . . . . . . Republic of Singapore
Logitech Singapore Pte. Ltd. . . . . . . . . . Republic of Singapore
Logitech Technology 

100

JPY 155,000,000

100
100
100
100
100

100
100

INR
107,760
TWD 480,000,000
USD
1,282
KRW 150,144,225
10,000
NZD

USD
SGD

1
500

(Suzhou) Co., Ltd . . . . . . . . . . . . . . . People’s Republic of China

100

USD

22,000,000

Logitech (China) 

Technology Co., Ltd.  . . . . . . . . . . . . People’s Republic of China

Logitech Asia Logistics Limited . . . . . . . Hong Kong
Logitech Asia Pacific Limited  . . . . . . . . Hong Kong
Logitech Australia Computer 

100
100
100

USD
USD
USD

7,800,000
13
13

Peripherals Pty, Limited . . . . . . . . . . Commonwealth of Australia

100

AUD

12

Logitech (Beijing) Trading 

Company Limited . . . . . . . . . . . . . . . People’s Republic of China

100

CNY

5,000,000

Logitech Technology (Shenzhen) 

Consulting Co., Ltd. . . . . . . . . . . . . . People’s Republic of China

Logitech Trading Pvt Ltd . . . . . . . . . . . .
Logitech Engineering & Designs 

India

India Private Limited. . . . . . . . . . . . .

India

Logi Computer Peripherals 

100
100

HKD
INR

110,000
50,000

100

INR

500,000

(Malaysia) Sdn. Bhd . . . . . . . . . . . . . Malaysia

100

MYR

2

Due to local legal requirements, there may be holders of nominal shares apart from Logitech.

60

Annual Report Fiscal Year 2015REMUNERATION REPORT 2015

61

Annual Report Fiscal Year 2015KPMG AG
Audit
Badenerstrasse 172 
CH-8004 Zurich 

P.O. Box 1872 
CH-8026 Zurich 

Telephone +41 58 249 31 31 
Fax +41 58 249 44 06 
Internet www.kpmg.ch

Report of the Statutory Auditor to the General Meeting of Shareholders of

Logitech International S.A., Apples

We have audited the accompanying remuneration report dated June 5, 2015 of Logitech International 
S.A. for the year ended March 31, 2015. The audit was limited to the information according to articles 14-
16 of the Ordinance Against Excessive Compensation in Stock Exchange Listed Companies contained 
in sections 2.2, 3.2 and 4.

Responsibility of the Board of Directors

The  Board  of  Directors  is  responsible  for  the  preparation  and  overall  fair  presentation  of  the 
remuneration report in accordance with Swiss law and the Ordinance Against Excessive Compensation in 
Stock Exchange Listed Companies (Ordinance). The Board of Directors is also responsible for designing 
the remuneration system and defining individual remuneration packages.

Auditor’s Responsibility

Our responsibility is to express an opinion on the accompanying remuneration report. We conducted 
our  audit  in  accordance  with  Swiss  Auditing  Standards.  Those  standards  require  that  we  comply  with 
ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the 
remuneration report complies with Swiss law and articles 14 – 16 of the Ordinance.

An audit involves performing procedures to obtain audit evidence on the disclosures made in the 
remuneration report with regard to compensation, loans and credits in accordance with articles 14 – 16 
of the Ordinance. The procedures selected depend on the auditor’s judgment, including the assessment 
of the risks of material misstatements in the remuneration report, whether due to fraud or error. This audit 
also includes evaluating the reasonableness of the methods applied to value components of remuneration, 
as well as assessing the overall presentation of the remuneration report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis 

for our opinion.

Opinion

In our opinion, the remuneration report for the year ended March 31, 2015 of Logitech International 

S.A. complies with Swiss law and articles 14 – 16 of the Ordinance.

62

63

Annual Report Fiscal Year 2015 
 
Logitech International S.A., Apples 
Report of the Statutory Auditor 
on the Remuneration Report 
to the General Meeting of Shareholders

Other Matter

The corresponding figures stated in the remuneration report of Logitech International S.A. for the 
year ended March 31, 2015 were formerly included in the consolidated financial statements of Logitech 
International S.A. for the year ended March 31, 2014. These financial statements were audited by another 
auditor who expressed an unmodified opinion on those statements on November 17, 2014.

KPMG AG

Rolf Hauenstein 
Licensed Audit Expert 
Auditor in Charge

Christopher G. Meredith 
Manager 

Zurich, June 5, 2015 

62

63

Annual Report Fiscal Year 20151. 

Introduction

LOGITECH INTERNATIONAL S.A. 
Remuneration Report

In  accordance  with  the  Ordinance  against  Excessive  Remuneration  in  Swiss  Listed  Companies 
(the  “Ordinance”),  the  compensation  of  members  of  the  Board  of  Directors  of  Logitech  International 
S.A.  and  of  Logitech’s  Group  Management  Team  is  presented  below.  Certain  sections  of  this  report 
are  audited  as  required  by  the  Ordinance.  This  Remuneration  Report  should  be  read  in  conjunction 
with the Compensation Discussion and Analysis and the description of the Compensation of Directors 
included in our Proxy Statement. The Compensation Discussion and Analysis is intended to assist our 
stockholders  in  understanding  our  executive  compensation  programs  by  providing  an  overview  of  our 
executive compensation-related policies, practices and decisions for fiscal year 2015. The description of 
our Compensation of Directors includes additional information describing the elements of compensation 
for the non-employee members of our Board of Directors. 

2.  Compensation of Board of Directors

2.1.  Overview

It is our general policy that compensation for non-employee directors is fixed and should be a mix 
of  cash  and  equity-based  compensation.  For  fiscal  year  2015,  cash  compensation  of  non-employee 
directors  consists  solely  of  annual  retainers  based  on  Board  and  committee  service  and  payment  for 
travel days in connection with Board meetings. Non-employee directors also receive an annual restricted 
stock unit (“RSU”) grant based on a fixed market value. These grants vest based on approximately one 
year of Board service. 

The following tables set forth compensation Logitech paid or accrued for payment to the individual 
members  of  the  Board  of  Directors  for  services  performed  in  the  fiscal  years  ended  March  31,  2015 
and 2014: 

2.2.  Compensation of Board of Directors in Fiscal Years 2015 and 2014

Fiscal Year 2015

Base 
Salary(2)

Addt’l 
Fees(3)

65,000

Bonus(4)
(in CHF)(1)
—
Daniel Borel . . . . . . . . . . . . . . 
—
Matthew Bousquette . . . . . . . 
—
Kee-Lock Chua . . . . . . . . . . . 
—
Sally Davis . . . . . . . . . . . . . . . 
Guerrino De Luca(7) . . . . . . . . 
— 523,920
—
Didier Hirsch . . . . . . . . . . . . . 
—
Neil Hunt . . . . . . . . . . . . . . . . 
Dimitri Panayotopoulos(8) . . . . 
—
Monika Ribar . . . . . . . . . . . . . 
—
Total Board Members(9) . . . .  1,270,814 414,750 523,920

—
151,667 103,500
56,000
103,000
64,750
136,667
463,646
110,000 106,000
28,500
—
56,000

97,917
45,000
97,917

Stock 
Awards(5)
149,490
141,273
141,273
149,490
396,315
141,273
141,273
149,490
149,490
1,559,367

Other 
Compensation(6)
28,569
59,711
45,490
48,554
71,243
60,877
38,281
—
43,159
395,884

Total
243,059
456,151
345,763
399,461
1,455,124
418,150
305,971
194,490
346,566
4,164,735

64

65

Annual Report Fiscal Year 2015Fiscal Year 2014

(in CHF)(10)
Daniel Borel . . . . . . . . . . . . . . . . .
Matthew Bousquette . . . . . . . . . .
Erh-Hsun Chang(11)  . . . . . . . . . . .
Kee-Lock Chua . . . . . . . . . . . . . .
Sally Davis . . . . . . . . . . . . . . . . . .
Guerrino De Luca(7) . . . . . . . . . . .
Didier Hirsch . . . . . . . . . . . . . . . .
Neil Hunt . . . . . . . . . . . . . . . . . . .
Monika Ribar . . . . . . . . . . . . . . . .
Total Board Members(9) . . . . . . .

Base 
Salary(2)

67,513
141,949
37,651
108,279
107,847
459,053
108,626
88,286
99,971
1,219,175

Bonus(4)
—
—
—
—
—
950,238
—
—

950,238

Stock 
Awards(5)
137,003
134,976
—
134,976
137,003
2,464,378
134,976
134,976
137,003
3,415,291

Other 
Compensation(6)
17,193
24,512
19,018
22,436
20,612
34,009
16,846
20,841
21,466
196,933

Total
221,709
301,437
56,669
265,691
265,462
3,907,678
260,448
244,103
258,440
5,781,637

1)  Fiscal year 2015 U.S. Dollar amounts converted to Swiss Francs using the 12 month average (April 

2014 to March 2015) exchange rate of 1CHF = US$1.0784.

2)  Base  salary  for  non-employee  members  of  the  Board  of  Directors  includes  annual  Board  and 

3) 

committee retainers and travel fees.
In connection with the Audit Committee’s investigation during fiscal year 2015 of accounting issues 
from  prior  years,  the  Audit  Committee  and  the  independent  members  of  the  Board  met  or  held 
conference  calls  on  a  frequent  basis  in  addition  to  their  regular  meetings.  Additional  fees  were 
awarded in recognition of the additional Audit Committee and Board meetings and calls and other 
additional work related to the Audit Committee investigation.

4)  Bonus includes amounts earned under the Logitech Management Performance Bonus Plan or other 
cash bonuses approved by the Compensation Committee. For fiscal year 2014, amount includes 
discretionary  bonus  of  $460,000  (CHF  422,328)  received  by  Mr.  De  Luca  in  September  2013  in 
recognition  for  his  service  as  Logitech’s  acting  Chief  Executive  Officer  from  July  2011  through 
January 2013.

5)  Amounts shown reflect the grant date fair value of the annual stock award. The key assumptions 
and methodology for valuation of stock awards are presented in Note 4 to Logitech’s consolidated 
financial statements. 

6)  Other  compensation  for  Mr.  De  Luca  includes  term  life  insurance  premiums,  long-term  disability 
insurance  premiums,  employer’s  contribution  to  medical  premiums,  matching  contributions  made 
by the Company to the Logitech Inc. 401(k) plan and employer’s contribution to social security and 
Medicare.  Other  compensation  for  the  non-employee  members  of  the  Board  includes  payments 
made by Logitech for and related to the individual’s and employer’s contributions to social security.

7)  Guerrino De Luca, Logitech’s Chairman, is an executive member of the Board of Directors and his 
compensation  is  structured  similarly  to  the  members  of  the  Group  Management  Team.  He  does 
not also receive the retainers, equity awards or travel day payments used to compensate the non-
employee members of the Board.

8)  Dimitri Panayotopoulos was first elected as a director at the Annual General Meeting in December 

2014.

9)  Total Board Members does not include the compensation of Bracken Darrell, Logitech’s President 
and  Chief  Executive  Officer,  who  is  also  a  member  of  the  Board.  Mr.  Darrell’s  compensation  is 
included as part of Total Group Management Team.

10)  Fiscal year 2014 U.S. Dollar amounts converted to Swiss Francs using the 12 month average (April 

2013 to March 2014) exchange rate of 1CHF = US$1.0892.

11)  Mr. Erh-Hsun Chang did not stand for re-election as a director at the Annual General Meeting in 

September 2013.

64

65

Annual Report Fiscal Year 20153.  Compensation of members of the Group Management Team

3.1.  Overview

The  Compensation  Committee  believes  the  design  of  our  executive  compensation  programs  – 
including the balance among fixed compensation (base salary), short-term incentives (our annual incentive 
bonus program) and long-term incentives (equity) – has and will continue to meet our goal of providing 
our  executives  with  market-competitive  base  salaries,  compensation  packages  that  provide  for  above 
market rewards when Logitech outperforms our internal goals or the overall market, and limited rewards 
when  Logitech’s  performance  does  not  meet  these  objectives.  Overall,  our  Compensation  Committee 
has developed executive compensation programs that it believes will provide an incentive to drive the 
Company’s performance that will reward our shareholders and, as a result of these programs, will reward 
the executives who help to deliver improved results. 

The following tables set forth the highest compensation paid to a member of the Group Management 
Team  and  the  total  amount  of  compensation  paid  to  members  of  the  Group  Management  Team  for 
services performed in the fiscal years ended March 31, 2015 and 2014: 

3.2.  Compensation of Group Management Team in Fiscal Years 2015 and 2014

Fiscal Year 2015

(in CHF)(1)
Highest Paid Executive
Bracken P. Darrell,  

Base 
Salary

Bonus(2)

Stock 
Awards(3)

Other 
Compensation(4)

Total

President and CEO  . . . . . . . . .

765,016 1,080,586 4,088,056
Total Group Management Team  . . . 2,148,590 2,762,592 7,848,716

86,750
458,166

6,020,408
13,218,064

Fiscal Year 2014

(in CHF)(5)
Highest Paid Executive

Vincent Pilette,  

Base 
Salary

Bonus(2)

Stock 
Awards(3)

Other 
Compensation(4)

Total

Chief Financial Officer . . . . . . .

470,070 4,652,543
Total Group Management Team(6) . . 1,859,818 2,157,631 9,346,603

263,072

76,037
379,952

5,461,722
13,744,004

1)  Fiscal year 2015 U.S. Dollar amounts converted to Swiss Francs using the 12 month average (April 

2014 to March 2015) exchange rate of 1CHF = US$1.0784.

2)  Bonus reflects amounts earned under the Logitech Management Performance Bonus Plan or other 

cash bonuses approved by the Compensation Committee.

3)  Amounts shown reflect the grant date fair value, by fiscal year, of stock awards granted in such fiscal 
year. The key assumptions and methodology for valuation of stock awards are presented in Note 4 
to Logitech’s consolidated financial statements. 

4)  Other compensation includes term life insurance premiums, long-term disability insurance premiums, 
employer’s contribution to medical premiums, tax preparation services (and associated tax gross-
up),  relocation  expenses,  travel  costs  in  lieu  of  relocation,  matching  contributions  made  by  the 
Company to the Logitech Inc. 401(k) plan or the Logitech Employee Pension Fund, and employer’s 
contribution to social security and Medicare.

5)  Fiscal year 2014 U.S. Dollar amounts converted to Swiss Francs using the 12 month average (April 

2013 to March 2014) exchange rate of 1CHF = US$1.0892.
Includes compensation paid to Mr. Eric Bardman who departed the Company on April 26, 2013.

6) 

66

67

Annual Report Fiscal Year 20154.  Loans, credits and other payments

There were no loans and credits made or outstanding at any time during fiscal years 2015 and 2014 
to any current or former members of the Board of Directors or Group Management Team. In addition, 
no compensation was paid or loans made during fiscal years 2015 and 2014 to parties closely related to 
members of the Board of Directors or Group Management Team.

No additional fees or compensation have been paid during fiscal years 2015 and 2014 to any current 

or former members of the Board of Directors or Group Management Team other than as noted above.

66

67

Annual Report Fiscal Year 201569

This page is intentionally left blank.LOGITECH INTERNATIONAL S.A. 

CONSOLIDATED FINANCIAL STATEMENTS 

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Page

Report of Independent Auditors  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  70

Consolidated Statements of Operations—Years Ended 

March 31, 2015, 2014 and 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  72

Consolidated Statements of Comprehensive Income (Loss)—Years Ended  

March 31, 2015, 2014 and 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  73

Consolidated Balance Sheets—March 31, 2015 and 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  74

Consolidated Statements of Cash Flows—Years Ended March 31, 2015, 2014 and 2013 . . . . . . . .  75

Consolidated Statements of Changes in Shareholders’ Equity—Years Ended  

March 31, 2015, 2014 and 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  76

Notes to Consolidated Financial Statements  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  77

69

Annual Report Fiscal Year 2015KPMG AG
Audit
Badenerstrasse 172 
CH-8004 Zurich 

P.O. Box 1872 
CH-8026 Zurich 

Telephone +41 58 249 31 31 
Fax +41 58 249 44 06 
Internet www.kpmg.ch

Report of the Statutory Auditor to the General Meeting of Shareholders of 

Logitech International S.A., Apples

Report of the Statutory Auditor on the Consolidated Financial Statements

As statutory auditor, we have audited the accompanying consolidated financial statements of Logitech 
International S.A. and subsidiaries (the Company), which comprise the consolidated balance sheet as 
of March 31, 2015, and the related consolidated statements of operations, comprehensive income (loss), 
cash flows, and changes in shareholders’ equity for the year then ended, and the related notes to the 
consolidated financial statements.

Board of Directors’ Responsibility

The Board of Directors is responsible for the preparation and fair presentation of the consolidated 
financial statements in accordance with U.S. generally accepted accounting principles and the requirements 
of  Swiss  law.  This  responsibility  includes  designing,  implementing  and  maintaining  an  internal  control 
system relevant to the preparation and fair presentation of consolidated financial statements that are free 
from material misstatement, whether due to fraud or error. The Board of Directors is further responsible 
for  selecting  and  applying  appropriate  accounting  policies  and  making  accounting  estimates  that  are 
reasonable in the circumstances.

Auditor’s Responsibility

Our  responsibility  is  to  express  an  opinion  on  these  consolidated  financial  statements  based  on 
our audit. We conducted our audit in accordance with Swiss law, Swiss Auditing Standards and auditing 
standards generally accepted in the United States of America. Those standards require that we plan and 
perform the audit to obtain reasonable assurance whether the consolidated financial statements are free 
from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in 
the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including 
the  assessment  of  the  risks  of  material  misstatement  of  the  consolidated  financial  statements,  whether 
due to fraud or error. In making those risk assessments, the auditor considers the internal control system 
relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to 
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing 
an opinion on the effectiveness of the entity’s internal control system. An audit also includes evaluating the 
appropriateness of the accounting policies used and the reasonableness of accounting estimates made, as 
well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit 
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

70

71

Annual Report Fiscal Year 2015 
 
Logitech International S.A., Apples
Report of the Statutory Auditor 
on the Consolidated Financial Statements 
to the General Meeting of Shareholders

Opinion

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial 
position of the Company as of March 31, 2015, and the results of its operations and its cash flows for the year 
then ended in accordance with U.S. generally accepted accounting principles and comply with Swiss law.

Other Matter

The consolidated financial statements of Logitech International S.A. as of and for the years ended 
March 31, 2014 and 2013 were audited by another auditor who expressed an unmodified opinion on those 
consolidated financial statements on November 17, 2014 and June 4, 2013, respectively.

Report on Other Legal Requirements

We  confirm  that  we  meet  the  legal  requirements  on  licensing  according  to  the  Auditor  Oversight 
Act (AOA) and independence (article 728 CO and article 11 AOA) and that there are no circumstances 
incompatible with our independence.

In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm 
that  an  internal  control  system  exists,  which  has  been  designed  for  the  preparation  of  consolidated 
financial statements according to the instructions of the Board of Directors.

We recommend that the consolidated financial statements submitted to you be approved.

KPMG AG

Rolf Hauenstein 
Licensed Audit Expert 
Auditor in Charge

Christopher G. Meredith 
Manager 

Zurich, June 5, 2015 

70

71

Annual Report Fiscal Year 2015LOGITECH INTERNATIONAL S.A.

CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)

Net sales  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost of goods sold  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross profit  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Operating expenses:

Marketing and selling  . . . . . . . . . . . . . . . . . . . . . . . . .
Research and development  . . . . . . . . . . . . . . . . . . . .
General and administrative . . . . . . . . . . . . . . . . . . . . .
Impairment of goodwill and other assets. . . . . . . . . . .
Restructuring charges (credits), net  . . . . . . . . . . . . . .
Total operating expenses . . . . . . . . . . . . . . . . . . . .
Operating income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income (expense), net . . . . . . . . . . . . . . . . . . . . .
Other income (expense), net  . . . . . . . . . . . . . . . . . . . . . .
Income (loss) before income taxes  . . . . . . . . . . . . . . . . .
Provision for (benefit from) income taxes. . . . . . . . . . . . .
Net income (loss)  . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net income (loss) per share:

Basic  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Shares used to compute net income (loss) per share :

Basic  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash dividends per share. . . . . . . . . . . . . . . . . . . . . . . . .

Years Ended March 31,

2015
$2,113,947
1,339,750
774,197

2014
$2,128,713
1,400,844
727,869

2013
$2,099,277
1,389,643
709,634

378,593
131,012
131,446
122,734
(4,888)
758,897
15,300
1,225
(2,752)
13,773
4,490
9,283

0.06
0.06

163,536
166,174
0.27

$

$
$

$

379,747
139,385
118,940
—
13,811
651,883
75,986
(397)
1,993
77,582
3,278
74,304

0.46
0.46

160,619
162,526
0.22

$

$
$

$

431,886
155,012
114,381
216,688
43,704
961,671
(252,037)
907
(2,198)
(253,328)
(25,810)
$ (227,518)

$
$

$

(1.44)
(1.44)

158,468
158,468
0.85

72

73

 The accompanying notes are an integral part of these consolidated financial statements.Annual Report Fiscal Year 2015LOGITECH INTERNATIONAL S.A.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In thousands)

Net income (loss)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other comprehensive income (loss):
Currency translation gain (loss):

Currency translation gain (loss), net of taxes. . . . . . . . . . .
Reclassification of currency translation loss (gain) 

Years Ended March 31,

2015
$ 9,283

2014
$74,304

2013
$(227,518)

(19,054)

2,119

(6,381)

included in other income (expense), net . . . . . . . . . . . .

(171)

665

—

Defined benefit plans:

Net gain (loss) and prior service credits (costs),  

net of taxes  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(12,998)

5,551

Reclassification of amortization included in  

operating expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . .

322

2,017

3,873

3,633

Hedging gain (loss):

Deferred hedging gain (loss), net of taxes . . . . . . . . . . . . .
Reclassification of hedging loss (gain) included in cost  

8,971

(3,497)

(1,190)

of goods sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4,505)

2,472

1,756

Net change in unrealized investment loss:

Reclassification of investment gain included in other 

income (expense), net . . . . . . . . . . . . . . . . . . . . . . . . . .
Other comprehensive income (loss) . . . . . . . . . . . . . . .
Total comprehensive income (loss). . . . . . . . . . . . . . . . . . . . .

—
(27,435)
$(18,152)

—
9,327
$83,631

(343)
1,348
$(226,170)

72

73

 The accompanying notes are an integral part of these consolidated financial statements.Annual Report Fiscal Year 2015 LOGITECH INTERNATIONAL S.A.

CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)

Current assets:

ASSETS

Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounts receivable, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current assets  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total current assets  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Non-current assets:

Property, plant and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

LIABILITIES AND SHAREHOLDERS’ EqUITY

Current liabilities:

March 31,

2015

2014

$ 537,038
179,823
270,730
64,429
1,052,020

91,593
218,213
1,866
62,988
$1,426,680

$ 469,412
182,029
222,402
59,157
933,000

88,391
345,010
10,529
74,460
$1,451,390

Accounts payable  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued and other current liabilities  . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 299,995
194,912
494,907

$ 242,815
211,972
454,787

Non-current liabilities:

Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

72,107
101,532
668,546

93,126
99,349
647,262

Commitments and contingencies (Note 11)
Shareholders’ equity:

Registered shares, CHF 0.25 par value: . . . . . . . . . . . . . . . . . . . . . . . .

30,148

30,148

Issued and authorized shares—173,106 at 

March 31, 2015 and 2014

Conditionally authorized shares—50,000 at 

March 31, 2015 and 2014

Additional paid-in capital  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less shares in treasury, at cost—8,625 at March 31, 2015 

and 10,206 at March 31, 2014. . . . . . . . . . . . . . . . . . . . . . . . . . .
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive loss . . . . . . . . . . . . . . . . . . . . . . . .
Total shareholders’ equity  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities and shareholders’ equity  . . . . . . . . . . . . . . . . . . . . .

—

—

(88,951)
930,174
(113,237)
758,134
$1,426,680

(116,510)
976,292
(85,802)
804,128
$1,451,390

74

75

 The accompanying notes are an integral part of these consolidated financial statements.Annual Report Fiscal Year 2015LOGITECH INTERNATIONAL S.A.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

Cash flows from operating activities:

Net income (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $
Adjustments to reconcile net income (loss) to net cash provided by 

9,283

$

74,304

$

(227,518)

Years Ended March 31,
2014

2013

2015

operating activities:
Depreciation  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Amortization of other intangible assets  . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Share-based compensation expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Impairment of goodwill and other assets  . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Impairment of investments  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Loss (gain) on disposal of property, plant and equipment  . . . . . . . . . . . . . . 
Gain on sale of securities  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Excess tax benefits from share-based compensation . . . . . . . . . . . . . . . . . 
Deferred income taxes and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Changes in assets and liabilities, net of acquisitions:

Accounts receivable  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Other assets  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Accounts payable  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Accrued and other liabilities  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Net cash provided by operating activities. . . . . . . . . . . . . . . . . . . . . . . . 

Cash flows from investing activities:

Purchases of property, plant and equipment  . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Investment in privately held companies  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Acquisitions, net of cash acquired. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Proceeds from sales of available-for-sale securities  . . . . . . . . . . . . . . . . . . . . . 
Proceeds from return of investment from strategic investments  . . . . . . . . . . . . 
Purchase of trading investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Proceeds from sales of trading investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Net cash used in investing activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Cash flows from financing activities:

Payment of cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Purchases of treasury shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Contingent consideration related to prior acquisition . . . . . . . . . . . . . . . . . . . . . 
Repurchase of ESPP awards  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Proceeds from sales of shares upon exercise of options and purchase rights . . . . 
Tax withholdings related to net share settlements of restricted stock units . . . . 
Excess tax benefits from share-based compensation . . . . . . . . . . . . . . . . . . . . 
Net cash used in financing activities  . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Effect of exchange rate changes on cash and cash equivalents . . . . . . . . . . . . . . . .
Net increase (decrease) in cash and cash equivalents  . . . . . . . . . . . . . 
Cash and cash equivalents at beginning of period  . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents at end of period  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Non-cash investing activities:

Property, plant and equipment purchased during the period and included in 

41,304
8,361
25,825
122,734
2,298
(44)
—
(2,831)
2,240

(8,018)
(60,510)
(4,284)
60,413
(18,139)
178,632

(45,253)
(2,550)
(926)
—
—
(5,034)
5,474
(48,289)

(43,767)
(1,663)
(100)
(1,078)
4,138
(9,215)
2,831
(48,854)
(13,863)
67,626
469,412
537,038

48,967
17,771
25,546
—
624
4,411
—
(2,246)
(4,828)

(219)
49,471
(1,388)
(21,322)
14,330
205,421

(46,658)
(300)
(650)
—
261
(8,450)
8,994
(46,803)

(36,123)
—
—
—
16,914
(5,718)
2,246
(22,681)
(349)
135,588
333,824
$ 469,412

period end liability accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $

5,242

$

5,204

Supplemental cash flow information:

Interest paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $
Income taxes paid, net  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $

— $
$

10,838

1,080
9,189

51,766
23,571
25,198
216,688
3,600
2,007
(831)
(26)
(3,209)

45,273
23,109
5,381
(33,406)
(9,214)
122,389

(54,487)
(4,420)
—
917
—
(4,196)
4,463
(57,723)

(133,462)
(87,812)
—
—
15,982
(2,375)
26
(207,641)
(1,571)
(144,546)
478,370
333,824

4,828

1,293
14,108

$

$

$
$

74

75

 The accompanying notes are an integral part of these consolidated financial statements.Annual Report Fiscal Year 2015LOGITECH INTERNATIONAL S.A.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EqUITY
(In thousands)

March 31, 2012
Total comprehensive income (loss)  . . .
Purchase of treasury shares . . . . . . . . .
Tax effects from 

share-based awards . . . . . . . . . . . .

Sale of shares upon exercise of 

options and purchase rights . . . . . .

Issuance of shares upon vesting of 

Registered shares

Shares Amount

191,606 $ 33,370
—
—

—
—

—

—

—

—

Additional
paid-in
capital

Treasury shares

Shares Amount

Retained
earnings

$

— 27,173 $ (343,829) $ 1,538,727
(227,518)
—
—
—

—
(87,812)

—
8,600

Accumulated
other
comprehensive
loss

$ (96,477)
1,348
—

Total

$ 1,131,791
(226,170)
(87,812)

(1,178)

—

—

—

(2,326)

(2,604)

61,653

(43,331)

—

—

(1,178)

15,996

restricted stock units . . . . . . . . . . . .
Share-based compensation expense . . .
Cash dividends . . . . . . . . . . . . . . . . . . .
Cancellation of treasury shares . . . . . .
March 31, 2013 . . . . . . . . . . . . . . . . . . . 173,106 $ 30,148
—
Total comprehensive income . . . . . . . .
Tax effects from share-based awards . . .
—
Sale of shares upon exercise of 

—
—
—
(18,500)

—
—

—
(814)
— (21,341)
—
—
24,845
—
(133,462)
—
— $
—
— (18,500)
(3,222) $
(167,492)
— 13,855 $ (179,990) $ 966,924
$
74,304
—
—
(2,046)

19,284
—
—
170,714

—
—

—
—

—
—
—
—
$ (95,129)
9,327
—

(2,057)
24,845
(133,462)
—
$ 721,953
83,631
(2,046)

options and purchase rights . . . . . .

—

—

339

(2,601)

45,388

(28,813)

—

16,914

Issuance of shares upon vesting of 

—
—
—

—
— (23,810)
restricted stock units . . . . . . . . . . . .
—
25,517
—
Share-based compensation expense . . .
—
Cash dividends . . . . . . . . . . . . . . . . . . .
(36,123)
—
— 10,206 $ (116,510) $ 976,292
March 31, 2014 . . . . . . . . . . . . . . . . . . . 173,106 $ 30,148
9,283
—
—
Total comprehensive income (loss)  . . .
—
—
—
Purchase of treasury shares . . . . . . . . .
Tax effects from share-based awards . . .
—
(2,200)
—
Sale of shares upon exercise of 

(1,048)
—
—

—
(1,663)
—

18,092
—
—

—
115
—

—
—
—

$

—
—
—
$ (85,802)
(27,435)
—
—

(5,718)
25,517
(36,123)
$ 804,128
(18,152)
(1,663)
(2,200)

options  . . . . . . . . . . . . . . . . . . . . . .

—

—

(2,367)

(390)

6,505

—

—

4,138

Issuance of shares upon vesting of 

— (20,298)
restricted stock units . . . . . . . . . . . .
25,943
—
Share-based compensation expense . . .
(1,078)
—
Repurchase of ESPP awards . . . . . . . .
—
Cash dividends . . . . . . . . . . . . . . . . . . .
—
—
March 31, 2015 . . . . . . . . . . . . . . . . . . . 173,106 $ 30,148

—
—
—
—

$

(1,306)
—
—
—

(11,634)
22,717
—
—
—
—
(43,767)
—
8,625 $ (88,951) $ 930,174

—
—
—
—
$ (113,237)

(9,215)
25,943
(1,078)
(43,767)
$ 758,134

76

 The accompanying notes are an integral part of these consolidated financial statements.Annual Report Fiscal Year 2015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 

77

Annual Report Fiscal Year 2015Note 2—Summary of Significant Accounting Policies (Continued)

valuation,  uncertain  tax  positions,  and  valuation  allowances  for  deferred  tax  assets.  Although  these 
estimates are based on management’s best knowledge of current events and actions that may impact the 
Company in the future, actual results could differ from those estimates.

Foreign Currencies

The functional currency of the Company’s operations is primarily the U.S. Dollar. Certain operations 
use the Euro, Chinese Renminbi, Swiss Franc, or other local currencies as their functional currencies. 
The financial statements of the Company’s subsidiaries whose functional currency is other than the U.S. 
Dollar  are  translated  to  U.S.  Dollars  using  period-end  rates  of  exchange  for  assets  and  liabilities  and 
monthly average rates for net sales, income and expenses. Cumulative translation gains and losses are 
included  as  a  component  of  shareholders’  equity  in  accumulated  other  comprehensive  income/(loss). 
Gains and losses arising from transactions denominated in currencies other than a subsidiary’s functional 
currency are reported in other income (expense), net in the consolidated statements of operations.

Revenue Recognition

Revenues are recognized when all of the following criteria are met:

•	 Evidence of an arrangement between the Company and the customer exists;

•	 Delivery has occurred and title and risk of loss has transferred to the customer;

•	 The price of the product is fixed or determinable; and

•	 Collectability of the receivable is reasonably assured.

For sales of most hardware peripherals products and hardware bundled with software essential to 
its functionality, these criteria are met at the time delivery has occurred and title and risk of loss have 
transferred to the customer.

The Company’s video conferencing segment has multiple deliverable revenue arrangements that 
include  both  undelivered  software  elements  and,  hardware  with  software  essential  to  its  functionality. 
The Company uses the following hierarchy to determine the relative selling price for allocating revenue 
to the deliverables: (i) VSOE (vendor specific objective evidence) of fair value, if available; (ii) TPE (third 
party evidence), if VSOE is not available; or (iii) ESP (best estimate of selling price), if neither VSOE nor 
TPE are available. Management judgment must be used to determine the appropriate deliverables and 
associated relative selling prices. The Company has identified the Lifesize video conferencing products 
as products sold with software components that qualify as multiple-deliverable revenue arrangements.

Lifesize products include the following deliverables:

Non-software deliverables

•	 Hardware with software essential to the functionality of the hardware device delivered at time 

of sale

•	 Maintenance  for  hardware  with  essential  software,  including  future  when-and-if-available 

unspecified upgrades

•	 Other services, including training and installation

78

79

LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 2—Summary of Significant Accounting Policies (Continued)

Software deliverables

•	 Non-essential software

•	 Maintenance  for  non-essential  software,  including  future  when-and-if  available  unspecified 

upgrades

The relative selling price for hardware with essential software and non-essential software is based on 
ESP, as VSOE and TPE cannot be established due to variable price discounting. Key factors considered 
in developing ESP are historical selling prices of the product, pricing of substantially similar products, and 
other market conditions. Lifesize sells maintenance for non-essential software, maintenance for hardware 
with essential software, and other services on a standalone basis, and therefore has established VSOE 
for those deliverables.

The consideration received for multiple element arrangements consisting of both non-software and 
software deliverables is allocated based on relative selling prices to the non-software deliverables and the 
software deliverables as a group. Amounts allocated to non-software-related elements, such as delivered 
hardware  with  essential  software,  are  recognized  at  the  time  of  sale  provided  that  the  other  criteria 
for revenue recognition have been met. Amounts allocated to maintenance services for hardware and 
essential software are deferred and recognized ratably over the maintenance period. Amounts allocated 
to other services are deferred and recognized upon completion of services. Amounts allocated to software 
deliverables such as non-essential software and related services are further allocated to the individual 
deliverables within the software group. The fair value, based on VSOE, of non-essential software-related 
maintenance is deferred and recognized ratably over the maintenance period. The residual value of the 
amounts allocated to software-related elements is recognized at the time of sale.

Revenue  from  Cloud-based  services  arrangements  that  allow  for  the  use  of  a  hosted  software 
product or service over a contractually determined period of time without taking possession of software 
are accounted for as subscriptions with billings recorded as deferred revenue and recognized as revenue 
ratably over the contractual period beginning on the date the service is made available to customers.

Revenues from sales to distributors and authorized resellers are recognized upon shipment net of 
estimated  product  returns  and  expected  payments  for  cooperative  marketing  arrangements,  customer 
incentive  programs  and  pricing  programs.  The  estimated  cost  of  these  programs  is  recorded  as  a 
reduction of sales or as an operating expense, if the Company receives a separately identifiable benefit 
from the customer and can reasonably estimate the fair value of that benefit. Significant management 
judgment and estimates are used to determine the cost of these programs in any accounting period.

The Company grants limited rights to return products. Return rights vary by customer, and range from 
just the right to return defective product to stock rotation rights limited to a percentage of sales approved 
by management. Estimates of expected future product returns are recognized at the time of sale based 
on analyses of historical return trends by customer and by product, inventories owned by and located 
at distributors and retailers, current customer demand, current operating conditions, and other relevant 
customer and product information. Upon recognition, the Company reduces sales and cost of sales for 
the estimated return. Return trends are influenced by product life cycle status, new product introductions, 
market  acceptance  of  products,  sales  levels,  product  sell-through,  the  type  of  customer,  seasonality, 
product quality issues, competitive pressures, operational policies and procedures, and other factors.

78

79

LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 2—Summary of Significant Accounting Policies (Continued)

Return rates can fluctuate over time, but are sufficiently predictable to allow the Company to estimate 

expected future product returns.

The  Company  enters  into  cooperative  marketing  arrangements  with  many  of  its  distribution  and 
retail customers, and with certain indirect partners, allowing customers to receive a credit equal to a set 
percentage of their purchases of the Company’s products, or a fixed dollar credit for various marketing 
programs. The objective of these arrangements is to encourage advertising and promotional events to 
increase sales of the Company’s products. Accruals for these marketing arrangements are recorded at 
the  later  of  time  of  sale  or  time  of  commitment,  based  on  negotiated  terms,  historical  experience  and 
inventory levels in the channel.

Customer incentive programs include performance-based incentives and consumer rebates. The 
Company offers performance-based incentives to its distribution customers, retail customers and indirect 
partners  based  on  pre-determined  performance  criteria.  Accruals  for  performance-based  incentives 
are recognized as a reduction of the sale price at the time of sale. Estimates of required accruals are 
determined  based  on  negotiated  terms,  consideration  of  historical  experience,  anticipated  volume  of 
future purchases, and inventory levels in the channel. Consumer rebates are offered from time to time 
at  the  Company’s  discretion  for  the  primary  benefit  of  end-users.  Accruals  for  the  estimated  costs  of 
consumer rebates and similar incentives are recorded at the later of time of sale or when the incentive 
is offered, based on the specific terms and conditions. Certain incentive programs, including consumer 
rebates, require management to estimate the number of customers who will actually redeem the incentive 
based on historical experience and the specific terms and conditions of particular programs.

The  Company  has  agreements  with  certain  of  its  customers  that  contain  terms  allowing  price 
protection credits to be issued in the event of a subsequent price reduction. At management’s discretion, 
the  Company  also  offers  special  pricing  discounts  to  certain  customers.  Special  pricing  discounts 
are  usually  offered  only  for  limited  time  periods  or  for  sales  of  selected  products  to  specific  indirect 
partners.  Management’s  decision  to  make  price  reductions  is  influenced  by  product  life  cycle  stage, 
market  acceptance  of  products,  the  competitive  environment,  new  product  introductions  and  other 
factors. Accruals for estimated expected future pricing actions are recognized at the time of sale based 
on analyses of historical pricing actions by customer and by products, inventories owned by and located 
at distributors and retailers, current customer demand, current operating conditions, and other relevant 
customer and product information, such as stage of product life-cycle.

The  Company  regularly  evaluates  the  adequacy  of  its  estimates  for  product  returns,  cooperative 
marketing arrangements, customer incentive programs and pricing programs. Future market conditions 
and product transitions may require the Company to take action to change such programs. In addition, 
when the variables used to estimate these costs change, or if actual costs differ significantly from the 
estimates, the Company would be required to record incremental increases or reductions to sales, cost 
of goods sold or operating expenses. If, at any future time, the Company becomes unable to reasonably 
estimate these costs, recognition of revenue might be deferred until products are sold to users, which 
would adversely impact sales in the period of transition.

Shipping and Handling Costs

The  Company’s  shipping  and  handling  costs  are  included  in  cost  of  sales  in  the  consolidated 

statements of operations for all periods presented.

80

81

LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 2—Summary of Significant Accounting Policies (Continued)

Research and Development Costs

Costs related to research, design and development of products, which consist primarily of personnel, 
product design and infrastructure expenses, are charged to research and development expense as they 
are incurred.

Advertising Costs

Advertising costs are expensed as incurred. Advertising costs are recorded as either a marketing 
and selling expense or a deduction from revenue. Advertising costs reimbursed by the Company to direct 
or indirect customers must have an identifiable benefit and an estimable fair value in order to be classified 
as an operating expense. If these criteria are not met, the cost is classified as a reduction of revenue. 
Advertising costs during fiscal years 2015, 2014 and 2013 were $174.2 million, $161.2 million and $165.8 
million, respectively.

Cash Equivalents

The Company considers all highly liquid instruments purchased with an original maturity of three 
months or less to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist 
principally  of  cash  and  cash  equivalents  and  accounts  receivable.  The  Company  maintains  cash  and 
cash equivalents with various financial institutions to limit exposure with any one financial institution, but 
is exposed to credit risk in the event of default by financial institutions to the extent that cash balances 
with individual financial institutions are in excess of amounts that are insured.

The Company sells to large OEMs, distributors and retailers and, as a result, maintains individually 
significant receivable balances with such customers. In fiscal years 2015, 2014 and 2013, one customer 
in the peripherals operating segment represented 14%, 14% and 11% of the Company’s total net sales, 
respectively. No other customer represented more than 10% of the Company’s total net sales during fiscal 
years 2015, 2014 or 2013. As of March 31, 2015 and 2014, one customer represented 12% and 14% of 
total accounts receivable, respectively. No other customer represented more than 10% of the Company’s 
total  accounts  receivable  at  either  March  31,  2015  or  2014.  Typical  payment  terms  require  customers 
to pay for product sales generally within 30 to 60 days; however terms may vary by customer type, by 
country and by selling season. Extended payment terms are sometimes offered to a limited number of 
customers during the second and third fiscal quarters. The Company does not modify payment terms on 
existing receivables.

The  Company’s  OEM  customers  tend  to  be  well-capitalized  multi-national  companies,  while 
distributors and key retailers may be less well-capitalized. The Company manages its accounts receivable 
credit risk through ongoing credit evaluation of its customers’ financial condition. The Company generally 
does not require collateral from its customers.

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LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 2—Summary of Significant Accounting Policies (Continued)

Allowances for Doubtful Accounts

Allowances  for  doubtful  accounts  are  maintained  for  estimated  losses  resulting  from  the  inability 
of the Company’s customers to make required payments. The allowances are based on the Company’s 
regular  assessment  of  the  credit  worthiness  and  financial  condition  of  specific  customers,  as  well  as 
its historical experience with bad debts and customer deductions, receivables aging, current economic 
trends, geographic or country-specific risks and the financial condition of its distribution channels.

Inventories

Inventories  are  stated  at  the  lower  of  cost  or  market.  Costs  are  computed  under  the  standard 
cost method, which approximates actual costs determined on the first-in, first-out basis. The Company 
records  write-downs  of  inventories  which  are  obsolete  or  in  excess  of  anticipated  demand  or  market 
value based on a consideration of marketability and product life cycle stage, product development plans, 
component cost trends, demand forecasts, historical net sales, and assumptions about future demand 
and market conditions.

As of March 31, 2015 and 2014, the Company also recorded a liability of $9.8 million and $9.2 million, 
respectively, arising from firm, non-cancelable, and unhedged inventory purchase commitments in excess 
of  anticipated  demand  or  market  value  consistent  with  its  valuation  of  excess  and  obsolete  inventory. 
Such liability is included in accrued and other current liabilities.

Investments

The  Company’s  investment  securities  portfolio  consists  of  bank  time  deposits  with  an  original 
maturity of three months or less and marketable securities (money market and mutual funds) related to a 
deferred compensation plan.

The  bank  time  deposits  are  classified  as  cash  equivalents  and  are  recorded  at  cost,  which 

approximates fair value.

The marketable securities related to the deferred compensation plan are classified as non-current 
trading investments, as they are intended to fund the deferred compensation plan long-term liability. Since 
participants in the deferred compensation plan may select the mutual funds in which their compensation 
deferrals are invested within the confines of the Rabbi Trust which holds the marketable securities, the 
Company has designated these marketable securities as trading investments, although there is no intent 
to actively buy and sell securities within the objective of generating profits on short-term differences in 
market prices. These securities are recorded at fair value based on quoted market prices. Earnings, gains 
and losses on trading investments are included in other income (expense), net.

Property, Plant and Equipment

Property,  plant  and  equipment  are  stated  at  cost.  Additions  and  improvements  are  capitalized, 
and maintenance and repairs are expensed as incurred. The Company capitalizes the cost of software 
developed for internal use in connection with major projects. Costs incurred during the feasibility stage 
are expensed, whereas direct costs incurred during the application development stage are capitalized.

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LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 2—Summary of Significant Accounting Policies (Continued)

Depreciation is provided using the straight-line method. Plant and buildings are depreciated over 
estimated useful lives from ten to twenty-five years, equipment over useful lives from three to five years, 
internal-use software development over useful lives of three to seven years and leasehold improvements 
over the lesser of the useful life of the improvement or the term of the lease.

When  property  and  equipment  is  retired  or  otherwise  disposed  of,  the  cost  and  accumulated 

depreciation are relieved from the accounts and the net gain or loss is included in operating expenses.

Valuation of Long-Lived Assets

The Company reviews long-lived assets, such as property and equipment, and finite-lived intangible 
assets,  for  impairment  whenever  events  indicate  that  the  carrying  amounts  might  not  be  recoverable. 
Recoverability of property and equipment, and other finite-lived intangible asset is measured by comparing 
the projected undiscounted net cash flows associated with those assets to their carrying values. If an 
asset is considered impaired, it is written down to fair value, which is determined based on the asset’s 
projected discounted cash flows or appraised value, depending on the nature of the asset. For purposes 
of recognition of an impairment for assets held for use, the Company groups assets and liabilities at the 
lowest level for which cash flows are separately identifiable.

Goodwill and Other Intangible Assets

The  Company’s  intangible  assets  principally  include  goodwill,  acquired  technology,  trademarks, 
and  customer  contracts.  Other  intangible  assets  with  finite  lives,  which  include  acquired  technology, 
trademarks and customer contracts, and other are recorded at cost and amortized using the straight-line 
method over their useful lives ranging from one year to ten years. Intangible assets with indefinite lives, 
which include only goodwill, are recorded at cost and evaluated at least annually for impairment.

In accordance with ASC Topic 350-10 (“ASC 350-10”) as it relates to Goodwill and Other Intangible 
Assets, the Company conducts its annual goodwill impairment analysis as of December 31 each year and 
as necessary if changes in facts and circumstances indicate that it is more likely than not that the fair value 
of its reporting units may be less than its carrying amount. Events or changes in facts and circumstances 
that might indicate potential impairment of goodwill include deterioration in general economic conditions, 
negative developments in equity and credit markets, adverse changes in the markets in which an entity 
operates,  increases  in  input  costs  that  have  a  negative  effect  on  earnings  and  cash  flows,  or  a  trend 
of  negative  or  declining  cash  flows  or  a  decline  in  actual  or  planned  revenue  or  earnings  compared 
with actual and projected results of relevant prior periods, other relevant entity-specific events such as 
changes in management, key personnel, strategy, or customers; contemplation of bankruptcy; or litigation. 
Determining the number of reporting units and the fair value of a reporting unit requires the Company to 
make judgments and involves the use of significant estimates and assumptions. The Company has two 
reporting units: peripherals and video conferencing. The allocation of assets and liabilities to each of the 
reporting units also involves judgment and assumptions.

FASB ASC 350-20 permits the Company to make a qualitative assessment of whether it is more 
likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-
step goodwill impairment test. If an entity concludes that it is not more likely than not that the fair value of a 
reporting unit is less than its carrying amount, it would not be required to perform the two-step impairment 
test for that reporting unit. The Company may elect to proceed directly to Step 1 without performing a 
qualitative assessment.

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LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 2—Summary of Significant Accounting Policies (Continued)

The  Step  1  of  the  two-step  impairment  test  involves  measuring  the  recoverability  of  goodwill  at 
the  reporting  unit  level  by  comparing  the  reporting  unit’s  carrying  amount,  including  goodwill,  to  the 
estimated fair value of the reporting unit. The fair value is estimated using an income approach employing 
a discounted cash flow (“DCF”) and a market-based model. The DCF model is based on projected cash 
flows from the Company’s most recent forecast (“assessment forecast”) developed in connection with 
each of its reporting units to perform the goodwill impairment assessment. The assessment forecast is 
based on a number of key assumptions, including, but not limited to, discount rate, compound annual 
growth rate (“CAGR”) during the forecast period, and terminal value. The terminal value is based on an 
exit price at the end of the assessment forecast using an earnings multiple applied to the final year of the 
assessment forecast. The discount rate is applied to the projected cash flows to reflect the risks inherent 
in the timing and amount of the projected cash flows, including the terminal value, and is derived from 
the weighted average cost of capital of market participants in similar businesses. The market approach 
model is based on applying certain revenue and earnings multiples of comparable companies relevant 
to each of the Company’s reporting units to the respective revenue and earnings metrics of its reporting 
units. To test the reasonableness of the fair values indicated by the income approach and the market-
based  approach,  the  Company  may  assess  the  implied  premium  of  the  aggregate  fair  value  over  the 
market  capitalization  considered  attributable  to  an  acquisition  control  premium,  which  is  the  price  in 
excess of a stock market’s price that investors would typically pay to gain control of an entity. The DCF 
model and the market approach require the exercise of significant judgment, including assumptions about 
appropriate discount rates, long-term growth rates for purposes of determining a terminal value at the 
end of the discrete forecast period, economic expectations, timing of expected future cash flows, and 
expectations of returns on equity that will be achieved. Such assumptions are subject to change as a 
result  of  changing  economic  and  competitive  conditions.  If  the  carrying  amount  of  the  reporting  unit 
exceeds its fair value as determined by these assessments, goodwill is considered impaired, and Step 2 
of the analysis is performed to measure the amount of impairment loss. Step 2 measures the impairment 
loss by allocating the reporting unit’s fair value to its assets and liabilities other than goodwill, comparing 
the resulting implied fair value of goodwill with its carrying amount, and recording an impairment charge 
for the difference.

Income Taxes

The Company provides for income taxes using the asset and liability method, which requires that 
deferred tax assets and liabilities be recognized for the expected future tax consequences of temporary 
differences  resulting  from  differing  treatment  of  items  for  tax  and  accounting  purposes.  In  estimating 
future  tax  consequences,  expected  future  events  are  taken  into  consideration,  with  the  exception  of 
potential tax law or tax rate changes.

The Company’s assessment of uncertain tax positions requires that management makes estimates 
and judgments about the application of tax law, the expected resolution of uncertain tax positions and 
other  matters.  In  the  event  that  uncertain  tax  positions  are  resolved  for  amounts  different  than  the 
Company’s estimates, or the related statutes of limitations expire without the assessment of additional 
income taxes, the Company will be required to adjust the amounts of the related assets and liabilities in 
the period in which such events occur. Such adjustments may have a material impact on the Company’s 
income tax provision and its results of operations.

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LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 2—Summary of Significant Accounting Policies (Continued)

Fair Value of Financial Instruments

The carrying value of certain of the Company’s financial instruments, including cash equivalents, 
accounts  receivable  and  accounts  payable  approximates  fair  value  due  to  their  short  maturities.  The 
Company’s  trading  investments  related  to  the  deferred  compensation  plan  are  reported  at  fair  value 
based on quoted market prices.

Net Income (Loss) per Share

Basic  net  income  (loss)  per  share  is  computed  by  dividing  net  income  (loss)  by  the  weighted 
average outstanding shares. Diluted net income (loss) per share is computed using the weighted average 
outstanding  shares  and  dilutive  share  equivalents.  Dilutive  share  equivalents  consist  of  share-based 
awards,  including  stock  options,  purchase  rights  under  employee  share  purchase  plan,  and  restricted 
stock units (“RSUs”).

The dilutive effect of in-the-money share-based compensation awards is calculated based on the 
average  share  price  for  each  fiscal  period  using  the  treasury  stock  method,  which  assumes  that  the 
amount used to repurchase shares includes  the amount the employee  must pay  for exercising share-
based awards, the amount of compensation cost not yet recognized for future service, and the amount 
of tax impact that would be recorded in additional paid-in capital when the award becomes deductible.

Share-Based Compensation Expense

Share-based  compensation  expense  includes  compensation  expense,  reduced  for  estimated 
forfeitures, for share-based awards granted based on the grant date fair value. The grant date fair value 
for stock options and stock purchase rights is estimated using the Black-Scholes-Merton option-pricing 
valuation model. The grant date fair value of RSUs which vest upon meeting certain market conditions 
is  estimated  using  the  Monte-Carlo  simulation  method.  The  grant  date  fair  value  of  time-based  and 
performance-based  RSUs  is  calculated  based  on  the  market  price  on  the  date  of  grant,  adjusted  by 
estimated dividends yield prior to vesting.

Excess tax benefits resulting from share-based awards are classified as cash flows from financing 
activities in the consolidated statements of cash flows. Excess tax benefits are realized tax benefits from 
tax deductions for exercised options and vested RSUs in excess of the deferred tax asset attributable to 
share-based compensation costs for such share-based awards.

The Company will recognize a benefit from share-based compensation in additional paid-in capital 

only if an incremental tax benefit is realized after all other available tax attributes have been utilized.

Product Warranty Accrual

The Company estimates cost of product warranties at the time the related revenue is recognized 
based on historical and projected warranty claim rates, historical and projected costs, and knowledge of 
specific product failures that are outside of the Company’s typical experience. Each quarter, the Company 
reevaluates estimates to assess the adequacy of recorded warranty liabilities considering the size of the 
installed base of products subject to warranty protection and adjusts the amounts as necessary. If actual 
product failure rates or repair costs differ from estimates, revisions to the estimated warranty liabilities 
would be required and could materially affect the Company’s results of operations.

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LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 2—Summary of Significant Accounting Policies (Continued)

Comprehensive Income (Loss)

Comprehensive  income  (loss)  is  defined  as  the  total  change  in  shareholders’  equity  during  the 
period  other  than  from  transactions  with  shareholders.  Comprehensive  income  (loss)  consists  of  net 
income (loss) and other comprehensive income (loss). Other comprehensive income (loss) is comprised 
of  currency  translation  adjustments  from  those  entities  not  using  the  U.S.  Dollar  as  their  functional 
currency, unrealized gains and losses on marketable equity securities, net deferred gains and losses and 
prior service costs and credits for defined benefit pension plans, and net deferred gains and losses on 
hedging activity.

Treasury Shares

The  Company  periodically  repurchases  shares  in  the  market  at  fair  value.  Treasury  shares 
repurchased  are  recorded  at  cost  as  a  reduction  of  total  shareholders’  equity.  Treasury  shares  held 
may be reissued to satisfy the exercise of employee stock options and purchase rights, the vesting of 
restricted stock units, and acquisitions, or may be cancelled with shareholder approval. Treasury shares 
that are reissued are accounted for using the first-in, first-out basis.

Derivative Financial Instruments

The Company enters into foreign exchange forward contracts to reduce the short-term effects of 
currency fluctuations on certain foreign currency receivables or payables and to hedge against exposure 
to changes in currency exchange rates related to its subsidiaries’ forecasted inventory purchases. These 
forward contracts generally mature within four months.

Gains and losses for changes in  the fair value  of the  effective  portion of the Company’s forward 
contracts related to forecasted inventory purchases are deferred as a component of accumulated other 
comprehensive income (loss) until the hedged inventory purchases are sold, at which time the gains or 
losses are reclassified to cost of goods sold. Gains or losses for changes in the fair value on forward 
contracts that offset translation losses or gains on foreign currency receivables or payables are recognized 
are included in other income (expense), net.

Restructuring Charges

The Company’s restructuring charges consist of employee severance, one-time termination benefits 
and ongoing benefits related to the reduction of its workforce, lease exit costs, and other costs. Liabilities 
for  costs  associated  with  a  restructuring  activity  are  measured  at  fair  value  and  are  recognized  when 
the  liability  is  incurred,  as  opposed  to  when  management  commits  to  a  restructuring  plan.  One-time 
termination  benefits  are  expensed  at  the  date  the  entity  notifies  the  employee,  unless  the  employee 
must  provide  future  service,  in  which  case  the  benefits  are  expensed  ratably  over  the  future  service 
period.  Ongoing  benefits  are  expensed  when  restructuring  activities  are  probable  and  the  benefit 
amounts are estimable. Costs to terminate a lease before the end of its term are recognized when the 
property is vacated. Other costs primarily consist of legal, consulting, and other costs related to employee 
terminations are expensed when incurred. Termination benefits are calculated based on regional benefit 
practices and local statutory requirements.

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LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 2—Summary of Significant Accounting Policies (Continued)

Recent Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update No. 2014-9, “Revenue from Contracts 
with Customers (Topic 606),” (“ASU 2014-9”). ASU 2014-9 outlines a new, single comprehensive model 
for  entities  to  use  in  accounting  for  revenue  arising  from  contracts  with  customers  and  supersedes 
most current revenue recognition guidance, including industry-specific guidance. Under the new model, 
recognition  of  revenue  occurs  when  a  customer  obtains  control  of  promised  goods  or  services  in  an 
amount that reflects the consideration to which the entity expects to be entitled in exchange for those 
goods or services. In addition, the new standard requires that reporting companies disclose the nature, 
amount,  timing,  and  uncertainty  of  revenue  and  cash  flows  arising  from  contracts  with  customers.  As 
currently  issued,  the  new  standard  is  effective  beginning  in  the  first  quarter  of  2017;  early  adoption  is 
prohibited.  The  new  standard  is  required  to  be  applied  retrospectively  to  each  prior  reporting  period 
presented  or  retrospectively  with  the  cumulative  effect  of  initially  applying  it  recognized  at  the  date  of 
initial application. The Company has not yet selected a transition method nor has it determined the impact 
of the new standard on its consolidated financial statements.

Note 3—Net Income (Loss) per Share

The computations of basic and diluted net income (loss) per share for the Company were as follows 

(in thousands except per share amounts):

Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares used in net income (loss) per share computation:

$

Years Ended March 31,
2014
$ 74,304

2013
$(227,518)

2015
9,283

Weighted average shares outstanding—basic . . . . . . . . . . . . . .
Effect of potentially dilutive equivalent shares  . . . . . . . . . . . . . .
Weighted average shares outstanding—diluted  . . . . . . . . . .

163,536
2,638
166,174

160,619
1,907
162,526

158,468
—
158,468

Net income (loss) per share:

Basic  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$
$

0.06
0.06

$
$

0.46
0.46

$
$

(1.44)
(1.44)

During fiscal years 2015, 2014 and 2013, 9.0 million, 15.1 million and 22.9 million share equivalents 
attributable to outstanding stock options, RSUs and ESPP were excluded from the calculation of diluted 
net  income  (loss)  per  share  because  the  combined  exercise  price,  average  unamortized  fair  value 
and assumed tax benefits upon exercise of these options and ESPP or vesting of RSUs were greater 
than the average market price of the Company’s shares, and therefore their inclusion would have been 
anti-dilutive.

Note 4—Employee Benefit Plans

Employee Share Purchase Plans and Stock Incentive Plans

As of March 31, 2015, the Company offers the 2006 ESPP (2006 Employee Share Purchase Plan 
(Non-U.S.)), the 1996 ESPP (1996 Employee Share Purchase Plan (U.S.)), the 2006 Plan (2006 Stock 
Incentive Plan) and the 2012 Plan (2012 Stock Inducement Equity Plan). Shares issued to employees 
as  a  result  of  purchases  or  exercises  under  these  plans  are  generally  issued  from  shares  held  in 
treasury stock.

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LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 4—Employee Benefit Plans (Continued)

The  following  table  summarizes  share-based  compensation  expense  and  related  tax  benefit 

recognized for fiscal years 2015, 2014 and 2013 (in thousands):

Cost of goods sold  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Marketing and selling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Research and development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
General and administrative  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Total share-based compensation expense . . . . . . . . . . . . . . . . . 
Income tax benefit  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Total share-based compensation expense, net of income tax  . . . 

Years Ended March 31,
2014
$ 2,518
8,298
4,546
10,184
25,546
(4,902)
$20,644

2015
$ 2,473
9,094
3,224
11,034
25,825
(5,558)
$20,267

2013
$ 2,499
7,825
7,532
7,342
25,198
(5,356)
$19,842

During the years ended March 31, 2015, 2014 and 2013, the Company capitalized $0.5 million, $0.4 

million and $0.4 million, respectively, of stock-based compensation expenses as inventory.

The  following  table  summarizes  total  unamortized  share-based  compensation  expense  and  the 
remaining months over which such expense is expected to be recognized, on a weighted-average basis 
by type of grant (in thousands, except number of months):

Stock options and ESPP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Premium-priced stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Time-based RSUs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Market-based and performance-based RSUs  . . . . . . . . . . . . . . . . . . . . . . . .

March 31, 2015

Unamortized
Expense
$ 1,509
224
23,545
6,383
$31,661

Remaining
Months
7
12
21
23

Under the 1996 ESPP and 2006 ESPP plans, eligible employees may purchase shares at the lower 
of 85% of the fair market value at the beginning or the end of each offering period, which is generally 
six  months.  Subject  to  continued  participation  in  these  plans,  purchase  agreements  are  automatically 
executed at the end of each offering period. An aggregate of 29 million shares was reserved for issuance 
under the 1996 and 2006 ESPP plans. As of March 31, 2015, a total of 8.3 million shares were available 
for issuance under these plans. The Company was not current with its periodic reports required to be 
filed with the SEC and was therefore unable to issue any shares under its Registration Statements on 
Form S-8 from July 31, 2014 to November 26, 2014. Given the proximity of the unavailability of those 
registration  statements  and  the  end  of  the  then-current  ESPP  offering  period,  on  July  31,  2014,  the 
Compensation  Committee  authorized  the  termination  of  the  then-current  ESPP  offering  period  and  a 
one-time payment to each participant in an amount equal to the fifteen percent (15%) discount at which 
shares would otherwise have been repurchased pursuant to the then-current period of the ESPPs. This 
one-time payment aggregating to $1.1 million was accounted for as a repurchase of equity awards that 
reduced  additional  paid-in  capital,  resulting  in  no  additional  compensation  cost.  A  new  ESPP  offering 
period of seven months was initiated on January 1, 2015, which ends on July 31, 2015.

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LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 4—Employee Benefit Plans (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
Fiscal Years Ended
March 31,
2014

2013

Stock Option Plans
Fiscal Years Ended
March 31,

Premium Priced 
Options
Fiscal Years Ended
March 31,

Market-based Stock
Option Plan
Fiscal Years Ended
March 31,

2015 2014
Dividend yield  . . . . . 1.97% 0.43% —% n/a n/a
Risk-free 

2015

interest rate  . . . . 0.14% 0.07% 0.09% n/a n/a
47% n/a n/a

30%

36%

Expected volatility . . .
Expected 

2013

2015 2014
—% n/a n/a

2013

2015 2014
—% n/a n/a

2013

—%

1.20% n/a n/a
46% n/a n/a

2.00% n/a n/a
46% n/a n/a

1.93%
44%

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

88

89

LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 4—Employee Benefit Plans (Continued)

Market-based RSUs

Dividend yield  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Risk-free interest rate  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Expected volatility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Expected life (years) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

2015

Years Ended March 31,
2014

2013
—%
1.86% 0.75%
0.83% 1.09% 0.31%
47%
46%
3.0
2.9

46%
3.0

The dividend yield assumption is based on the Company’s future expectations of dividend payouts. 
The  unvested  RSUs  or  unexercised  options  are  not  eligible  for  these  dividends.  The  expected  life  is 
based  on  historical  settlement  rates,  which  the  Company  believes  are  most  representative  of  future 
exercise and post-vesting termination behaviors, or the purchase offerings periods expected to remain 
outstanding, or the derived period based on the expected stock performance for market-based awards. 
Expected volatility is based on historical volatility using the Company’s daily closing prices, or including 
the volatility of components of the NASDAQ 100 index for market-based RSUs, over the expected life. The 
Company considers the historical price volatility of its shares as most representative of future volatility. 
The risk-free interest rate assumptions are based upon the implied yield of U.S. Treasury zero-coupon 
issues appropriate for the expected life of the Company’s share-based awards.

The  Company  estimates  awards  forfeitures  at  the  time  of  grant  and  revises  those  estimates  in 
subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to 
estimate pre-vesting option and RSU forfeitures and records share-based compensation expense only 
for those awards that are expected to vest.

A summary of the Company’s stock option activities under all stock plans for fiscal years 2015, 2014 

and 2013 is as follows:

Outstanding, March 31, 2012 . . . . . . . . . . . . 
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . 
Exercised. . . . . . . . . . . . . . . . . . . . . . . . . 
Cancelled or expired . . . . . . . . . . . . . . . . 
Outstanding, March 31, 2013 . . . . . . . . . . . . 
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . 
Exercised. . . . . . . . . . . . . . . . . . . . . . . . . 
Cancelled or expired . . . . . . . . . . . . . . . . 
Outstanding, March 31, 2014 . . . . . . . . . . . . 
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . 
Exercised. . . . . . . . . . . . . . . . . . . . . . . . . 
Cancelled or expired . . . . . . . . . . . . . . . . 
Outstanding, March 31, 2015 . . . . . . . . . . . . 
Vested and expected to vest, 

March 31, 2015  . . . . . . . . . . . . . . . . . . . . 
Vested and exercisable, March 31, 2015  . . . 

Weighted- 
Average 
Exercise 
Price

Weighted- 
Average 
Remaining 
Contractual Term
(Years)

Aggregate 
Intrinsic Value
(In thousands)

$ 1,121

$ 2,045

$ 1,505

$10,177

$ 7,308
$ 6,028

$16
$ —
$11
$16
$18

$18
$19

4.2

3.6
3.5

Number of
Shares
(In thousands)
13,034
3,718
(389)
(2,679)
13,684
—
(551)
(3,317)
9,816
—
(390)
(1,550)
7,876

6,546
6,296

90

91

LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 4—Employee Benefit Plans (Continued)

The options outstanding as of March 31, 2015 above includes 1.3 million shares of unvested market-
based awards. The number of shares expected to vest for market-based awards is calculated assuming 
March 31, 2015 was the end of the performance contingency period. 

As of March 31, 2015, the exercise price of outstanding options ranged from $1 to $39 per option.

The tax benefit realized for the tax deduction from options exercised during the fiscal years 2015, 

2014 and 2013 was $0.5 million, $0.5 million and $0.3 million, respectively. 

A summary of the Company’s time-based, market-based, and performance-based RSU activities 
for fiscal years 2015, 2014 and 2013 is as follows (in thousands, except per share values; grant-date fair 
values are weighted averages):

Outstanding, March 31, 2012 . . . . . . . . . . . . .
Granted—time-based . . . . . . . . . . . . . . . .
Granted—market-based . . . . . . . . . . . . . .
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cancelled or expired . . . . . . . . . . . . . . . . .
Outstanding, March 31, 2013 . . . . . . . . . . . . .
Granted—time-based . . . . . . . . . . . . . . . .
Granted—market-based . . . . . . . . . . . . . .
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cancelled or expired . . . . . . . . . . . . . . . . .
Outstanding, March 31, 2014 . . . . . . . . . . . . .
Granted—time-based . . . . . . . . . . . . . . . .
Granted—market-based . . . . . . . . . . . . . .
Granted—performance-based  . . . . . . . . .
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cancelled or expired . . . . . . . . . . . . . . . . .
Outstanding, March 31, 2015 . . . . . . . . . . . . .
Expected to vest, March 31, 2015  . . . . . . . . .

Number of 
Shares
(In thousands)
4,125
2,219
101
(1,097)
(706)
4,642
3,104
1,060
(1,560)
(1,158)
6,088
1,332
523
55
(1,949)
(1,110)
4,939
3,466

Weighted-
Average 
Grant Date 
Fair Value

Weighted- 
Average 
Remaining 
Vesting Period
(Years)

Aggregate 
Intrinsic Value
(In thousands)

$ 7
$ 6

$11
$ 8

$10
$13
$13
$12
$10
$11
$11
$10

$ 8,329

$17,810

$27,844

$64,944
$45,580

1.5
1.3

The  RSU  outstanding  as  of  March  31,  2015  above  includes  1.2  million  shares  of  market-based 
and performance-based shares. The number of shares expected to vest for these awards is calculated 
assuming  March  31,  2015  is  the  end  of  the  performance  contingency  period.  The  number  of  shares 
of  common  stock  for  market-based  awards  to  be  received  at  vesting  will  range  from  zero  percent  to 
150 percent of the target number of stock units based on our total stockholder return (“TSR”) relative to 
the performance of companies in the NASDAQ-100 Index for each measurement period, generally over 
a three year period. We present shares granted at 100 percent of target of the number of stock units that 
may potentially vest. 

90

91

LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 4—Employee Benefit Plans (Continued)

The tax benefit realized for the tax deduction from RSUs that vested during the fiscal years 2015, 

2014 and 2013 was $6.9 million, $4.7 million and $1.9 million, respectively.

Defined Contribution Plans

Certain of the Company’s subsidiaries have defined contribution employee benefit plans covering all 
or a portion of their employees. Contributions to these plans are discretionary for certain plans and are 
based on specified or statutory requirements for others. The charges to expense for these plans for fiscal 
years 2015, 2014 and 2013, were $5.8 million, $6.6 million and $6.9 million, respectively.

Defined Benefit Plans

Certain  of  the  Company’s  subsidiaries  sponsor  defined  benefit  pension  plans  or  non-retirement 
post-employment benefits covering substantially all of their employees. Benefits are provided based on 
employees’ years of service and earnings, or in accordance with applicable employee benefit regulations. 
The Company’s practice is to fund amounts sufficient to meet the requirements set forth in the applicable 
employee benefit and tax regulations.

The Company recognizes the overfunded or underfunded status of defined benefit pension plans 
and  non-retirement  post-employment  benefit  obligations  as  an  asset  or  liability  in  its  consolidated 
balance  sheets,  and  recognizes  changes  in  the  funded  status  of  defined  benefit  pension  plans  in  the 
year in which the changes occur through accumulated other comprehensive income (loss), which is a 
component  of  shareholders’  equity.  Each  plan’s  assets  and  benefit  obligations  are  remeasured  as  of 
March 31 each year.

The  net  periodic  benefit  cost  of  the  defined  benefit  pension  plans  and  the  non-retirement 
post-employment benefit obligations for fiscal years 2015, 2014 and 2013 was as follows (in thousands):

Service costs  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest costs  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected return on plan assets  . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization:

Net transition obligation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net prior service costs (credit) recognized  . . . . . . . . . . . . . . . . .
Net actuarial loss recognized  . . . . . . . . . . . . . . . . . . . . . . . . . . .
Settlement and curtailment  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Years Ended March 31,
2014
$ 8,591
1,794
(1,727)

2013
$ 7,842
1,852
(1,710)

2015
$ 7,646
1,970
(2,084)

4
(45)
301
(13)
$ 7,779

4
210
592
769
$10,233

5
712
846
2,658
$12,205

92

93

LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 4—Employee Benefit Plans (Continued)

The  changes  in  projected  benefit  obligations  for  fiscal  years  2015  and  2014  were  as  follows 

(in thousands):

Projected benefit obligations, beginning of the year  . . . . . . . . . . . . . . . . . . . .
Service costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plan participant contributions  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actuarial (gains) losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plan amendment related to statutory change . . . . . . . . . . . . . . . . . . . . . . .
Settlement and curtailment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Administrative expense paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Currency exchange rate changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Projected benefit obligations, end of the year  . . . . . . . . . . . . . . . . . . . . . . . . .

Years Ended March 31,

2015
$102,383
7,646
1,970
2,914
16,768
(5,307)
(3,936)
(157)
(160)
(8,798)
$113,323

2014
$ 90,234
8,591
1,794
2,726
(2,942)
(1,841)
—
(1,261)
(174)
5,256
$102,383

The accumulated benefit obligation for all defined benefit pension plans as of March 31, 2015 and 

2014 was $92.0 million and $83.2 million, respectively.

The following table presents the changes in the fair value of defined benefit pension plan assets for 

fiscal years 2015 and 2014 (in thousands):

Fair value of plan assets, beginning of the year . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on plan assets  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employer contributions  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plan participant contributions  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Settlement and curtailment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Administrative expenses paid  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Currency exchange rate changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value of plan assets, end of the year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Years Ended March 31,

2015
$63,384
136
5,731
2,914
(5,307)
(157)
(160)
(5,631)
$60,910

2014
$48,689
5,334
5,390
2,726
(1,841)
(500)
(174)
3,760
$63,384

The Company’s investment objectives are to ensure that the assets of its defined benefit plans are 
invested to provide an optimal rate of investment return on the total investment portfolio, consistent with 
the assumption of a reasonable risk level, and to ensure that pension funds are available to meet the plans’ 
benefit obligations as they become due. The Company believes that a well-diversified investment portfolio 
will result in the highest attainable investment return with an acceptable level of overall risk. Investment 
strategies and allocation decisions are also governed by applicable governmental regulatory agencies. 
The Company’s investment strategy with respect to its largest defined benefit plan, which is available only 
to Swiss employees, is to invest in the following allocation ranges starting from January 2014: 20-55% 
for equities, 25-60% for bonds, and 0-10% for cash and cash equivalents. The Company also can invest 
in  real  estate  funds,  commodity  funds,  and  hedge  funds  depend  upon  economic  conditions.  Prior  to 
January 2014, the Company followed the following allocation ranges: 28-43% for equities, 33-63% for 

92

93

LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 4—Employee Benefit Plans (Continued)

Swiss bonds, 5-15% for foreign bonds, 5-15% for hedge and investment funds, and 0-20% for cash and 
cash  equivalents.  The  Company’s  other  defined  benefit  plans,  which  comprise  7.2%  of  total  defined 
benefit plan assets as of March 31, 2015, have similar investment and allocation strategies.

The  following  tables  present  the  fair  value  of  the  defined  benefit  pension  plan  assets  by  major 

categories and by levels within the fair value hierarchy as of March 31, 2015 and 2014 (in thousands):

Level 1

2015
Level 2 Level 3

March 31,

2014

Total

Level 1

Level 2

Level 3

Total

Cash  . . . . . . . . . . . . . . . . . $ 7,958 $
Equity securities  . . . . . . . .
Debt securities. . . . . . . . . .
Swiss real estate funds . . .
Hedge funds  . . . . . . . . . . .
Insurance contracts . . . . . .
Other . . . . . . . . . . . . . . . . .

46
—
—
—
— 3,251
114
—
94
28
$57,405 $3,505

20,476
20,357
8,586

$— $ 8,004
— 20,476
— 20,357
8,586
—
3,251
—
114
—
122
—
$— $60,910

17,324
20,300
8,970

$10,339 $ — $ — $10,339
— 17,324
— 20,300
8,970
—
3,611
—
2,598
— 2,598
242
—
$56,976 $3,810 $2,598 $63,384

—
—
—
— 3,611
—
43

199

The funded status of the plans was as follows (in thousands):

Fair value of plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Less: Projected benefit obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Under funded status  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Years Ended March 31,

2015
$ 60,910
113,323
$ (52,413)

2014
$ 63,384
102,383
$ (38,999)

Amounts recognized on the balance sheet for the plans were as follows (in thousands):

Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Non-current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Net liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

March 31,

2015
$ (1,232)
(51,181)
$ (52,413)

2014
$ (1,100)
(37,899)
$ (38,999)

Amounts recognized in accumulated other comprehensive loss related to defined benefit pension 

plans were as follows (in thousands):

Net prior service costs (credits)  . . . . . . . . . . . . . . . . . . . . . . . . . . 
Net actuarial loss  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Net transition obligation  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Accumulated other comprehensive loss . . . . . . . . . . . . . . . . . 
Deferred tax benefit  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Accumulated other comprehensive loss, net of tax  . . . . . . . . 

2015
$ 1,672
(28,751)
(8)
(27,087)
123
$(26,964)

March 31,
2014
$ (2,149)
(12,319)
(12)
(14,480)
192
$(14,288)

2013
$ (2,307)
(19,850)
(14)
(22,171)
315
$(21,856)

94

95

LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 4—Employee Benefit Plans (Continued)

The following table presents the amounts included in accumulated other comprehensive loss as of 
March 31, 2015, which are expected to be recognized as a component of net periodic benefit cost in fiscal 
year 2016 (in thousands):

Amortization of net transition obligation  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of net prior service credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of net actuarial loss  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Year Ending
March 31, 2016

$

4
(121)
1,750
$1,633

The Company reassesses its benefit plan assumptions on a regular basis. The actuarial assumptions 

for the defined benefit plans for fiscal years 2015 and 2014 were as follows:

Benefit Obligations:
Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Estimated rate of compensation increase . . . . . . . . . . . . . . . . . . . . . . 
Periodic Costs:
Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Estimated rate of compensation increase . . . . . . . . . . . . . . . . . . . . . . 
Expected average rate of return on plan assets . . . . . . . . . . . . . . . . . 

Years Ended March 31,
2014
2015

0.75%-7.75% 1.50%-9.25%
2.50%-8.00% 3.00%-8.00%

1.50%-9.25% 1.50%-8.00%
2.50%-8.00% 3.00%-4.00%
0.75%-3.50% 0.75%-3.50%

The  discount  rate  is  estimated  based  on  corporate  bond  yields  or  securities  of  similar  quality  in 
the  respective  country,  with  a  duration  approximating  the  period  over  which  the  benefit  obligations 
are  expected  to  be  paid.  The  Company  bases  the  compensation  increase  assumptions  on  historical 
experience  and  future  expectations.  The  expected  average  rate  of  return  for  the  Company’s  defined 
benefit pension plans represents the average rate of return expected to be earned on plan assets over 
the period that the benefit obligations are expected to be paid, based on government bond notes in the 
respective country, adjusted for corporate risk premiums as appropriate.

The following table reflects the benefit payments that the Company expects the plans to pay in the 

periods noted (in thousands):

Years Ending March 31,
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
2020  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
2021-2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

$ 4,583
4,790
4,987
5,329
6,014
29,245
$54,948

The Company expects to contribute $4.7 million to its defined benefit pension plans during fiscal 

year 2016.

94

95

LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 4—Employee Benefit Plans (Continued)

Deferred Compensation Plan

One  of  the  Company’s  subsidiaries  offers  a  deferred  compensation  plan  that  permits  eligible 
employees to make 100% vested salary and incentive compensation deferrals within established limits. 
The Company does not make contributions to the plan.

The  fair  value  of  the  deferred  compensation  plan’s  assets  is  included  in  other  assets  on  the 
consolidated balance sheets. The marketable securities are classified as trading investments and were 
recorded at a fair value of $17.2 million and $16.6 million as of March 31, 2015 and 2014, respectively, based 
on quoted market prices. The Company also had $17.2 million and $16.6 million deferred compensation 
liability as of March 31, 2015 and 2014, respectively. Earnings, gains and losses on trading investments 
are included in other income (expense), net and corresponding changes in deferred compensation liability 
are included in operating expenses and cost of goods sold.

Note 5—Interest and Other Income (Expense), net

Interest income (expense), net comprises of the following (in thousands):

Interest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Interest income (expense), net  . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Years Ended March 31,
2014
$ 1,831
(2,228)
$ (397)

2013
$ 2,215
(1,308)
907

$

2015
$1,225
—
$1,225

Other income (expense), net comprises of the following (in thousands):

Investment income related to deferred compensation plan . . . . . . . . .
Gain on sale of securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impairment of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Currency exchange gain (loss), net  . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income (expense), net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Note 6—Income Taxes

$

2013

Years Ended March 31,
2014
$1,487
—
(624)
62
1,068
$1,993

2015
$ 1,055
—
(2,298)
(1,280)
(229)
$ (2,752)

933
831
(3,600)
104
(466)
$ (2,198)

The Company is incorporated in Switzerland but operates in various countries with differing tax laws 
and rates. Further, a portion of the Company’s income (loss) before taxes and the provision for (benefit 
from) income taxes is generated outside of Switzerland.

Income  (loss)  before  income  taxes  for  the  fiscal  years  2015,  2014  and  2013  is  summarized  as 

follows (in thousands):

Swiss  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Non-Swiss  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Income (loss) before taxes  . . . . . . . . . . . . . . . . . . . . . . . . . . . 

2015
$112,308
(98,535)
$ 13,773

Years Ended March 31,
2014
$49,503
28,079
$77,582

2013
$ (53,004)
(200,324)
$(253,328)

96

97

LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 6—Income Taxes (Continued)

The provision for (benefit from) income taxes is summarized as follows (in thousands):

Years Ended March 31,

2015

2014

2013

Current:

Swiss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Non-Swiss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

$1,228
1,188

$

127
8,580

$

672
(23,146)

Deferred:

Non-Swiss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Provision for (benefit from) income taxes. . . . . . . . . . . . . . . . . 

2,074
$4,490

(5,429)
$ 3,278

(3,336)
$(25,810)

The difference between the provision for (benefit from) income taxes and the expected tax provision 

(benefit) at the statutory income tax rate of 8.5% is reconciled below (in thousands):

Expected tax provision (benefit) at statutory income tax rates  . . . .
Income taxes at different rates. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Research and development tax credits  . . . . . . . . . . . . . . . . . . . . . .
Foreign tax credits  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Executive compensation  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock-based compensation  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Valuation allowance  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impairment of goodwill and other assets  . . . . . . . . . . . . . . . . . . . . .
Restructuring charges / (credits)  . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax reserves (releases), net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Audit settlement  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other, net  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision for (benefit from) income taxes  . . . . . . . . . . . . . . . . . .

Years Ended March 31,
2014
$ 6,594
497
(1,393)
—
—
1,608
182
—
1,174
(4,660)
(400)
(324)
$ 3,278

2013
$(21,533)
5,714
(3,302)
(1,535)
—
1,643
3,809
18,419
4,336
1,935
(35,608)
312
$(25,810)

2015
$ 1,171
(2,035)
(1,287)
—
1,557
2,261
764
10,432
(415)
(7,111)
(837)
(10)
$ 4,490

On December 19, 2014, the enactment of the Tax Increase Prevention Act of 2014 in the United 
States extended the federal research and development tax credit through December 31, 2014 which had 
previously expired on December 31, 2013. The provision for income taxes for fiscal year ended March 31, 
2015 reflected a $0.9 million tax benefit as a result of the extension of the tax credit.

96

97

LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 6—Income Taxes (Continued)

Deferred income tax assets and liabilities consist of the following (in thousands):

March 31,

2015

2014

Deferred tax assets:

Net operating loss carryforwards  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Tax credit carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Accruals  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Depreciation and amortization  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Share-based compensation  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Gross deferred tax assets  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Valuation allowance  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Gross deferred tax assets after valuation allowance . . . . . . . . . . . . . . . . . 

$ 8,372
2,739
44,363
4,396
14,183
74,053
(5,590)
68,463

$ 9,421
13,241
48,153
4,781
15,304
90,900
(4,872)
86,028

Deferred tax liabilities:

Acquired intangible assets and other  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Gross deferred tax liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Deferred tax assets, net  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

(3,299)
(3,299)
$65,164

(8,436)
(8,436)
$77,592

Management regularly assesses the ability to realize deferred tax assets recorded in the Company’s 
entities based upon the weight of available evidence, including such factors as recent earnings history 
and expected future taxable income. In the event that the Company changes its determination as to the 
amount of deferred tax assets that can be realized, the Company will adjust its valuation allowance with a 
corresponding impact to the provision for income taxes in the period in which such determination is made.

The  Company  had  a  valuation  allowance  of  $5.6  million  at  March  31,  2015,  increased  from 
$4.9 million at March 31, 2014 primarily due to $1.0 million increase in valuation allowance for deferred 
tax  assets  in  the  state  of  California  of  the  United  States.  The  Company  had  a  valuation  allowance  of 
$3.6 million as of March 31, 2015 against such deferred tax assets. The remaining valuation allowance 
primarily represents $1.5 million for capital loss carryforwards in the United States and $0.5 million for 
various tax credit carryforwards. The Company determined that it is more likely than not that the Company 
would not generate sufficient taxable income in the future to utilize such deferred tax assets.

Deferred tax assets relating to tax benefits of employee stock grants have been reduced to reflect 
settlement activity in fiscal years 2015 and 2014. Settlement activity of grants in fiscal years 2015 and 
2014 resulted in a “shortfall” in which tax deductions were less than previously recorded share-based 
compensation  expense.  The  Company  recorded  a  shortfall  to  equity  of  $1.8  million  and  $2.8  million, 
respectively, in fiscal years 2015 and 2014.

98

99

LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 6—Income Taxes (Continued)

As of March 31, 2015, the Company had foreign net operating loss and tax credit carryforwards for 
income tax purposes of $197.8 million and $40.1 million, respectively, of which $143.3 million of the net 
operating loss carryforwards and $26.4 million of the tax credit carryforwards, if realized, will be credited to 
equity since they have not met the applicable realization criteria. Unused net operating loss carryforwards 
will expire at various dates in fiscal years 2016 to 2035. Certain net operating loss carryforwards in the 
United States relate to acquisitions and, as a result, are limited in the amount that can be utilized in any 
one year. The tax credit carryforwards will begin to expire in fiscal year 2019.

As  of  March  31,  2015,  the  Company  had  capital  loss  carryforwards  of  $4.0  million.  The  loss  will 

begin to expire in fiscal year 2016.

Swiss income taxes and non-Swiss withholding taxes associated with the repatriation of earnings or 
for other temporary differences related to investments in non-Swiss subsidiaries have not been provided 
for, as the Company intends to reinvest the earnings of such subsidiaries indefinitely or the Company 
has  concluded  that  no  additional  tax  liability  would  arise  on  the  distribution  of  such  earnings.  If  these 
earnings  were  distributed  to  Switzerland  in  the  form  of  dividends  or  otherwise,  or  if  the  shares  of  the 
relevant  non-Swiss  subsidiaries  were  sold  or  otherwise  transferred,  the  Company  may  be  subject  to 
additional Swiss income taxes and non-Swiss withholding taxes. As of March 31, 2015, the cumulative 
amount of unremitted earnings of non-Swiss subsidiaries for which no income taxes have been provided 
is approximately $149.6 million. The amount of unrecognized deferred income tax liability related to these 
earnings is estimated to be approximately $5.0 million.

The Company follows a two-step approach in recognizing and measuring uncertain tax positions. 
The  first  step  is  to  evaluate  the  tax  position  for  recognition  by  determining  if  the  weight  of  available 
evidence  indicates  that  it  is  more  likely  than  not  that  the  position  will  be  sustained  on  audit,  including 
resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit 
as the largest amount that is more than 50% likely of being realized upon ultimate settlement.

As  of  March  31,  2015  and  March  31,  2014,  the  total  amount  of  unrecognized  tax  benefits  due  to 
uncertain  tax  positions  was  $79.0  million  and  $91.0  million,  respectively,  of  which  $79.0  million  and 
$86.1 million would affect the effective income tax rate if recognized, respectively.

As  of  March  31,  2015,  the  Company  had  $72.1  million  in  non-current  income  taxes  payable  and 
$0.1 million in current income taxes payable, including interest and penalties, related to our income tax 
liability for uncertain tax positions. As of March 31, 2014, the Company had $93.1 million in non-current 
income  taxes  payable  and  $0.3  million  in  current  income  taxes  payable.  Pursuant  to  ASU  2013-11, 
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax 
Loss,  or  a  Tax  Credit  Carryforward  Exists,  which  became  effective  in  the  first  quarter  of  fiscal  year 
2015,  the  Company  reclassified  $10.3  million  of  unrecognized  tax  benefits  previously  presented  as 
non-current  income  taxes  payable  to  a  reduction  in  non-current  deferred  tax  assets  primarily  for  tax 
credit carryforwards.

98

99

LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 6—Income Taxes (Continued)

The aggregate changes in gross unrecognized tax benefits in fiscal years 2015, 2014 and 2013 were 

as follows (in thousands):

March 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lapse of statute of limitations  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Settlements with tax authorities  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Decreases in balances related to tax positions taken during prior years  . . . . . . . . . . . . .
Increases in balances related to tax positions taken during the year . . . . . . . . . . . . . . . .
March 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lapse of statute of limitations  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Settlements with tax authorities  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Decreases in balances related to tax positions taken during prior years  . . . . . . . . . . . . .
Increases in balances related to tax positions taken during the year . . . . . . . . . . . . . . . .
March 31, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lapse of statute of limitations  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Settlements with tax authorities  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Decreases in balances related to tax positions taken during prior years  . . . . . . . . . . . . .
Increases in balances related to tax positions taken during the year . . . . . . . . . . . . . . . .
March 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$136,888
(6,490)
(42,770)
(1,500)
9,570
$ 95,698
(12,514)
(100)
(778)
8,740
$ 91,046
(14,071)
(2,160)
(3,544)
7,752
$ 79,023

The Company recognizes interest and penalties related to unrecognized tax positions in income tax 
expense. The Company recognized $0.8 million, $1.1 million and $1.0 million in interest and penalties in 
income tax expense during fiscal years 2015, 2014 and 2013, respectively. As of March 31, 2015, 2014 
and 2013, the Company had $4.9 million, $5.6 million and $6.6 million of accrued interest and penalties 
related to uncertain tax positions, respectively.

The  Company  files  Swiss  and  foreign  tax  returns.  The  Company  received  final  tax  assessments 
in  Switzerland  through  fiscal  year  2012.  For  other  foreign  jurisdictions  such  as  the  United  States,  the 
Company is generally not subject to tax examinations for years prior to fiscal year 2011. The Company is 
under examination and has received assessment notices in foreign tax jurisdictions. If the examinations 
are resolved unfavorably, there is a possibility they may have a material negative impact on its results 
of operations.

Although the Company has adequately provided for uncertain tax positions, the provisions on these 
positions may change as revised estimates are made or the underlying matters are settled or otherwise 
resolved. During fiscal year 2016, the Company will continue to review its tax positions and provide for or 
reverse unrecognized tax benefits as issues arise. During the next 12 months, it is reasonably possible 
that the amount of unrecognized tax benefits could increase or decrease significantly due to changes 
in tax law in various jurisdictions, new tax audits and changes in the U.S. Dollar as compared to other 
currencies. Excluding these factors, uncertain tax positions may decrease by as much as $17.0 million 
primarily from the lapse of the statutes of limitations in various jurisdictions during the next 12 months. 

100

101

LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 7—Balance Sheet Components

The  following  table  presents  the  components  of  certain  balance  sheet  asset  amounts  as  of 

March 31, 2015 and 2014 (in thousands):

Accounts receivable:

Accounts receivable  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for doubtful accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for sales returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for cooperative marketing arrangements. . . . . . . . . . . . . . . . .
Allowance for customer incentive programs . . . . . . . . . . . . . . . . . . . . . . .
Allowance for pricing programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Inventories:

Raw materials  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Work-in-process  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Finished goods  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other current assets:

Income tax and value-added tax receivables . . . . . . . . . . . . . . . . . . . . . .
Deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid expenses and other assets  . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Property, plant and equipment, net:

Plant, buildings and improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Computer equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Software  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Less accumulated depreciation and amortization . . . . . . . . . . . . . . . .

Construction-in-process  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Land  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other assets:

Deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading investments for deferred compensation plan . . . . . . . . . . . . . . . .
Other assets  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,

2015

2014

$ 344,455
(1,093)
(17,901)
(25,700)
(48,497)
(71,441)
$ 179,823

$ 36,376
—
234,354
$ 270,730

$ 19,403
27,790
17,236
$ 64,429

$ 63,049
138,772
37,835
77,792
317,448
(257,642)
59,806
29,040
2,747
$ 91,593

$ 338,194
(1,712)
(19,472)
(24,135)
(41,400)
(69,446)
$ 182,029

$ 24,031
42
198,329
$ 222,402

$ 18,252
27,013
13,892
$ 59,157

$ 69,897
134,975
40,610
81,179
326,661
(256,424)
70,237
15,362
2,792
$ 88,391

$ 39,310
17,237
6,441
$ 62,988

$ 52,883
16,611
4,966
$ 74,460

100

101

LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 7—Balance Sheet Components (Continued)

The  following  table  presents  the  components  of  certain  balance  sheet  liability  amounts  as  of 

March 31, 2015 and 2014 (in thousands):

Accrued and other current liabilities:

Accrued personnel expenses  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Indirect customer incentive programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Accrued restructuring  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Deferred revenue  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Accrued freight and duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Value-added taxes payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Accrued royalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Warranty accrual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Employee benefit plan obligation  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Other liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Non-current liabilities:

Warranty accrual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Obligation for deferred compensation plan . . . . . . . . . . . . . . . . . . . . . . . . . . 
Long term restructuring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Employee benefit plan obligation  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Deferred rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Deferred tax liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Long term deferred revenue  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Other liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

March 31,

2015

2014

$ 50,015
19,730
966
24,987
6,666
8,608
2,321
12,630
1,232
5,794
61,963
$194,912

$

9,080
17,237
73
51,181
11,519
1,936
9,109
1,397
$101,532

$ 55,165
31,737
2,121
22,529
6,276
9,354
2,653
13,905
1,100
7,701
59,431
$211,972

$ 10,475
16,611
5,440
37,899
15,555
2,304
9,350
1,715
$ 99,349

102

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LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 8—Fair Value Measurements

The Company considers fair value as the exchange price that would be received for an asset or paid 
to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in 
an orderly transaction between market participants at the measurement date. The Company utilizes the 
following three-level fair value hierarchy to establish the priorities of the inputs used to measure fair value:

•	 Level 1—Quoted prices in active markets for identical assets or liabilities.

•	 Level 2—Observable inputs other than quoted market prices included in Level 1, such as quoted 
prices for similar assets and liabilities in active markets; quoted prices for identical or similar 
assets and liabilities in markets that are not active; or other inputs that are observable or can be 
corroborated by observable market data.

•	 Level  3—Unobservable  inputs  that  are  supported  by  little  or  no  market  activity  and  that 
are  significant  to  the  fair  value  of  the  assets  or  liabilities.  This  includes  certain  pricing 
models,  discounted  cash  flow  methodologies  and  similar  techniques  that  use  significant 
unobservable inputs.

The  following  table  presents  the  Company’s  financial  assets  and  liabilities,  that  were  accounted 
for at fair value on a recurring basis, excluding assets related to the Company’s defined benefit pension 
plans, classified by the level within the fair value hierarchy (in thousands):

Cash equivalents:

Cash equivalents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Trading investments for deferred compensation plan:

Money market funds  . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Mutual funds  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Foreign exchange derivative assets. . . . . . . . . . . . . . . . . . 
Foreign exchange derivative liabilities  . . . . . . . . . . . . . . . . 

March 31, 2015

March 31, 2014

Level 1

Level 2

Level 1

Level 2

$264,647
$264,647

$ — $200,641
$ — $200,641

$ —
$ —

$

2,936
14,301
$ 17,237
$
$

$ — $
—

3,139
13,472
$ — $ 16,611
$
$

$ —
—
$ —
— $155
— $701

— $2,080
75
— $

There  were  no  material  level  3  financial  assets  held  by  the  Company  during  fiscal  years  2015 

or 2014.

Investment Securities

The  marketable  securities  for  the  Company’s  deferred  compensation  plan  are  recorded  at  a  fair 
value of $17.2 million and $16.6 million as of March 31, 2015 and 2014, respectively, based on quoted 
market prices. Quoted market prices are observable inputs that are classified as Level 1 within the fair 
value hierarchy. Unrealized trading gains related to trading securities for the fiscal years 2015, 2014 and 
2013 were not significant and are included in other income (expense), net.

Derivative Financial Instruments

 Under certain agreements with the respective counterparties to the Company’s derivative contracts, 
subject to applicable requirements, the Company is allowed to net settle transactions of the same type 
with a single net amount payable by one party to the other. However, the Company presents its derivative 
assets and derivative liabilities on a gross basis on the Consolidated Balance Sheets as of March 31, 
2015 and 2014.

102

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LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 8—Fair Value Measurements (Continued)

The following table presents the fair values of the Company’s derivative instruments as of March 31, 

2015 and 2014 (in thousands):

Derivatives

Asset
March 31,

Liability
March 31,

2015

2014

2015

2014

Designated as hedging instruments:

Cash flow hedges  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

$2,080

$

4

$ — $243

Not designated as hedging instruments:

Foreign exchange contracts  . . . . . . . . . . . . . . . . . . . . . . . . . . . 

—
$2,080

151
$155

75
$75

458
$701

The  following  table  presents  the  amounts  of  gains  and  losses  on  the  Company’s  derivative 
instruments for fiscal years 2015, 2014 and 2013 and their locations on its consolidated statements of 
operations and consolidated statements of comprehensive income (in thousands):

Amount of 
Gain (Loss) Deferred as 
a Component of 
Accumulated Other 
Comprehensive Loss After 
Reclassification to Costs of 
Goods Sold

Amount of Loss (Gain) 
Reclassified from 
Accumulated Other 
Comprehensive Loss 
to Costs of Goods Sold

Amount of 
Gain (Loss) 
Immediately Recognized 
in Other Income 
(Expense), Net

2015

2014

2013

2015

2014

2013

2015

2014

2013

Designated as 

hedging instruments:
Cash flow hedges  . . . .  $4,466 $(1,025) $566 $(4,505) $2,472 $1,756 $

20 $ (126) $275

Not designated as 

hedging instruments:
Foreign exchange 

contracts. . . . . . . . . 

—

—

—

—

—

— 2,479

824

328

$4,466 $(1,025) $566 $(4,505) $2,472 $1,756 $2,499 $ 698 $603

Cash  Flow  Hedges:  The  Company  enters  into  foreign  exchange  forward  contracts  to  hedge 
against exposure to changes in currency exchange rates related to its subsidiaries’ forecasted inventory 
purchases. The Company has one entity with a Euro functional currency that purchases inventory in U.S. 
Dollars. The primary risk managed by using derivative instruments is the currency exchange rate risk. 
The Company has designated these derivatives as cash flow hedges. These hedging contracts mature 
within four months, and are denominated in the same currency as the underlying transactions. Gains and 
losses in the fair value of the effective portion of the hedges are deferred as a component of accumulated 
other  comprehensive  loss  until  the  hedged  inventory  purchases  are  sold,  at  which  time  the  gains  or 
losses are reclassified to cost of goods sold. The Company assesses the effectiveness of the hedges 
by comparing changes in the spot rate of the currency underlying the forward contract with changes in 
the spot rate of the currency in which the forecasted transaction will be consummated. If the underlying 
transaction being hedged fails to occur or if a portion of the hedge does not generate offsetting changes 
in the currency exposure of forecasted inventory purchases, the Company immediately recognizes the 
gain or loss on the associated financial instrument in other income (expense), net. Such gains and losses 
were not material during fiscal years 2015, 2014 and 2013. Cash flows from such hedges are classified 

104

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LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 8—Fair Value Measurements (Continued)

as operating activities in the Consolidated Statements of Cash Flows. As of March 31, 2015, and 2014, 
the notional amounts of foreign exchange forward contracts outstanding related to forecasted inventory 
purchases were $43.5 million and $51.8 million, respectively. The Company estimates that $4.0 million of 
net  gains  related  to  its  cash  flow  hedges  included  in  accumulated  other  comprehensive  loss  as  of 
March 31, 2015 will be reclassified into earnings within the next 12 months.

Other Derivatives: The Company also enters into foreign exchange forward and swap contracts to 
reduce the short-term effects of currency fluctuations on certain foreign currency receivables or payables. 
These  forward  and  swap  contracts  generally  mature  within  one  month.  The  primary  risk  managed  by 
using  forward  and  swap  contracts  is  the  currency  exchange  rate  risk.  The  gains  or  losses  on  foreign 
exchange  forward  contracts  are  recognized  in  other  income  (expense),  net  based  on  the  changes  in 
fair value.

The notional amounts of foreign exchange forward and swap contracts outstanding as of March 31, 
2015 and 2014 relating to foreign currency receivables or payables were $61.7 million and $53.7 million, 
respectively. Open forward and swap contracts as of March 31, 2015 and 2014 consisted of contracts in 
Taiwanese Dollars, Australian Dollars, Mexican Pesos, Japanese Yen and British Pounds to be settled at 
future dates at pre-determined exchange rates.

The fair value of all foreign exchange forward and swap contracts is determined based on observable 
market  transactions  of  spot  currency  rates  and  forward  rates.  Cash  flows  from  these  contracts  are 
classified as operating activities in the Consolidated Statements of Cash Flows.

Non-Financial Assets Measured at Fair Value on a Nonrecurring Basis

The majority of the Company’s non-financial assets and liabilities, which include goodwill, intangible 
assets, inventories, and property, plant and equipment, are not required to be measured at fair value on a 
recurring basis. However, if certain triggering events occur (or tested at least annually for goodwill) such 
that a non-financial instrument is required to be evaluated for impairment and an impairment is recorded 
to  reduce  the  non-financial  instrument’s  carrying  value  to  the  fair  value  as  a  result  of  such  triggering 
events, the non-financial assets and liabilities are measured at fair value for the period such triggering 
events occur. See Note 2 herein, for additional information about how we test various asset classes for 
impairment.  During  fiscal  year  2015,  the  Company  recognized  $122.7  million  of  impairment  related  to 
goodwill of its Video Conferencing reporting unit and the carrying value of which was written down to zero 
based on Level 3 inputs.

Note 9—Goodwill and Other Intangible Assets

Annual Goodwill Impairment Testing

The Company conducts a goodwill impairment analysis annually at December 31 or more frequently 
if indicators of impairment exist or if a decision is made to sell or exit a business. A significant amount 
of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may 
include deterioration in general economic conditions, negative developments in equity and credit markets, 
adverse changes in the markets in which an entity operates, increases in input costs that have a negative 
effect  on  earnings  and  cash  flows,  a  trend  of  negative  or  declining  cash  flows,  a  decline  in  actual  or 
planned revenue or earnings compared with actual and projected results of relevant prior periods, or other 
relevant entity-specific events such as changes in management, key personnel, strategy, or customers, 
contemplation of bankruptcy, or litigation. The fair value that could be realized in an actual transaction 
may differ from that used to evaluate the impairment of goodwill.

104

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LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 9—Goodwill and Other Intangible Assets (Continued)

In reviewing goodwill for impairment, an entity has the option to first assess qualitative factors to 
determine  whether  the  existence  of  events  or  circumstances  leads  to  a  determination  that  it  is  more 
likely than not (greater than 50%) that the estimated fair value of a reporting unit is less than its carrying 
amount. If an entity elects to perform a qualitative assessment and determines that an impairment is more 
likely than not, the entity is then required to perform the two-step quantitative impairment test; otherwise, 
no further analysis is required. An entity also may elect not to perform the qualitative assessment and, 
instead,  proceed  directly  to  the  two-step  quantitative  impairment  test.  The  ultimate  outcome  of  the 
goodwill impairment review for a reporting unit should be the same whether an entity chooses to perform 
the qualitative assessment or proceeds directly to the two-step quantitative impairment test. Goodwill is 
allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating 
segment or one level below an operating segment. The Company has two reporting units, peripherals 
and video conferencing.

Peripherals

The Company performed its annual impairment analysis of the goodwill for its peripherals reporting 
unit at December 31, 2014 by performing a qualitative assessment and concluded that it was more likely 
than not that the fair value of its peripherals reporting unit exceeded its carrying amount. In assessing 
the qualitative factors, the Company considered the impact of these key factors: change in industry and 
competitive environment, growth in market capitalization of $2.3 billion as of December 31, 2014 from 
$2.2 billion a year ago, and budgeted-to-actual revenue performance from the prior year. The peripherals 
reporting unit has seen an improvement in operating income from $64.8 million and $117.8 million for the 
three and nine months ended December 31, 2013 to $76.1 million and $160.3 million for the three and nine 
months ended December 31, 2014, respectively. No recent events or changes in circumstances indicate 
that impairment existed as of March 31, 2015.

Video Conferencing

The  Company  proceeded  directly  to  the  two-step  quantitative  impairment  test  for  the  video 
conferencing reporting unit and performed a Step 1 assessment at December 31, 2014. The Company 
uses a third party valuation expert in the development of its market and income approach models. The 
annual Step 1 assessment performed as of December 31, 2014 resulted in the Company determining that 
the video conferencing reporting unit passed the Step 1 test because the estimated fair value of the video 
conferencing reporting unit from the Step 1 assessment exceeded its carrying value by approximately 
38.0%, thus not requiring a Step 2 assessment of this reporting unit. Therefore, the Company concluded 
it was more likely than not that the goodwill of the video conferencing reporting unit was not impaired as 
of December 31, 2014.

During  the  fourth  quarter  of  the  fiscal  year  ended  March  31,  2015,  the  net  sales  of  the  video 
conferencing reporting unit decreased to $24.9 million from $31.0 million in the fourth quarter of the fiscal 
year ended March 31, 2014 and from $29.9 million in the third quarter of fiscal year ended March 31, 2015. 
The sales decline was concentrated in the video conferencing infrastructure legacy business primarily 
due to faster shift of customer preference towards Cloud infrastructure conferencing versus on-premise 
infrastructure solutions and resource realignment, which was not anticipated during annual impairment 
assessment as of December 31, 2014. This quick shift towards Cloud-based offering resulted in the change 
in  business  strategy  to  de-emphasize  Lifesize’s  legacy  offerings  more  quickly  than  planned  to  enable 
maximum traction of the Lifesize Cloud, which would result in shrinking the legacy Lifesize business but 
could grow the Cloud opportunity faster. In the last nine months, the sales of Cloud-based offerings have 

106

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LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 9—Goodwill and Other Intangible Assets (Continued)

grown rapidly; however, they are not yet large enough to offset the combination of the short-term portfolio 
transition.  As  a  result  of  the  lower-than-expected  performance  in  the  legacy  infrastructure  sales,  the 
Company made a strategic decision to sharpen its focus on its new Cloud-based offering. The Company 
plans to realign its costs and operations to this new strategy as part of a restructuring plan announced 
during April 2015 and will explore various other options for its Lifesize business. The significant change in 
business strategy has adversely affected the near-term projections and the Company expects that it will 
shrink the Lifesize revenue for the next several years, including lowering the overall growth, pushing out 
the break-even point and increasing the operating loss as well as increasing uncertainty in the near term. 
In light of the aforementioned, the Company concluded it was appropriate to perform the Step 1 goodwill 
impairment assessment.

As  of  March  31,  2015,  taking  into  consideration  the  video  conferencing  reporting  unit’s  updated 
business outlook for fiscal year 2016 and onwards based on the factors discussed above, and the risk of 
execution of its refocused strategy, the Company updated the future cash flow assumptions for the video 
conferencing reporting unit and calculated updated estimates of fair value using the income approach. 
In particular, the Company lowered its December 31, 2014 goodwill impairment test projections of future 
revenue  and  operating  income  (loss)  growth  and  adjusted  other  factors  (such  as  working  capital  and 
capital  expenditure).  After  updating  the  assumptions  and  projections,  the  Company  then  calculated  a 
present  value  of  the  cash  flow  to  arrive  at  an  estimate  of  fair  value  under  the  income  approach  as  of 
March  31,  2015.  Key  assumptions  included  in  the  income  approach  were  significant  reduction  in  the 
revenue assumption for fiscal year 2016 through fiscal year 2021 compared with the revenue assumption 
used  in  the  Company’s  annual  goodwill  impairment  assessment  as  of  December  31,  2014,  CAGR  at 
7.2%,  discount  rate  at  14%,  and  terminal  growth  rate  at  4.0%.  Consistent  with  the  annual  impairment 
test on December 31, 2014, the Company also updated the estimates of fair value determined under the 
market approach. Based on the income approach and market approach, the estimated fair value of the 
video conferencing reporting unit under the Step 1 assessment was lower than the carrying amount of 
the net asset including goodwill.

The  video  conferencing  reporting  unit  failed  the  Step  1  test  as  prescribed  under  ASC  350,  thus 
requiring a Step 2 assessment of this reporting unit to determine the goodwill impairment. In determining 
the impairment amount, the fair value of the video conferencing reporting unit was allocated to its assets 
and  liabilities,  including  any  unrecognized  intangible  assets  not  on  the  balance  sheet,  based  on  their 
respective fair values. Assumptions used in measuring the value of these assets and liabilities included 
the  discount  rates,  working  capital,  and  technology  obsolescence  rates  used  in  valuing  the  intangible 
assets, and pricing of comparable transactions in the market in valuing the tangible assets. Based on 
this allocation, the implied value of intangible assets and tangible net assets fully absorbed the fair value 
of the business, leaving no implied fair value left to be allocated to the goodwill. The video conferencing 
reporting unit’s carrying value of goodwill exceeded the implied fair value of goodwill, resulting in a goodwill 
impairment charge of $122.7 million, which is recorded in the Consolidated Statement of Operations.

The current assessment represents the fair value of the video conferencing business as of March 31, 
2015. If the Company disposes all or any equity interest of the video conferencing reporting unit in the 
future, it may result in a gain. The gain will be recognized as a difference between the carrying amount of 
the video conferencing reporting unit and the proceeds, if any, received from such a disposal.

During  fiscal  year  2013,  the  Company’s  video  conferencing  reporting  unit  failed  the  Step  1  test 
because the estimated fair value was less than its carrying value, thus requiring Step 2 assessment of 
this  reporting  unit.  This  impairment  primarily  resulted  from  a  decrease  in  the  expected  CAGR  during 

106

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LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 9—Goodwill and Other Intangible Assets (Continued)

the assessment forecast period based on greater evidence of the overall enterprise video conferencing 
industry  experiencing  a  slowdown,  combined  with  lower  demand  related  to  new  product  launches, 
increased  competition  during  fiscal  year  2013,  and  other  market  data.  These  factors  had  an  adverse 
effect  on  the  Company’s  video  conferencing  operating  results  and  future  outlook.  During  fiscal  year 
2013, the Company recorded goodwill impairment and other charges of $214.5 million related to its video 
conferencing reporting unit.

Determining the fair value of a reporting unit is judgmental in nature and requires the use of significant 
estimates and assumptions, including revenue growth rates, operating margins, discount rates and future 
market conditions, among others. A goodwill impairment charge would have the effect of decreasing the 
Company’s earnings or increasing its losses in such period. If the Company is required to take further 
substantial impairment charges in future periods, its operating results would be materially and adversely 
affected in such period.

The following table summarizes the activity in the Company’s goodwill balance during fiscal years 

2015 and 2014 (in thousands):

Years Ended March 31,

2015
Video
Conferencing

Peripherals
Peripherals
Beginning of the period  . . . . . . . . . $219,415 $ 125,595 $ 345,010 $216,744
202
—

—
— (122,734)

988
(122,734)

Acquisitions . . . . . . . . . . . . . . . .
Impairment  . . . . . . . . . . . . . . . .
Currency exchange rate 

988

Total

2014
Video
Conferencing

Total

$124,613 $341,357
202
—

—
—

impact and other  . . . . . . . . .

(2,190)

(2,861)

(5,051)

—

982

982

Reclassified from assets 

held for sale(1) . . . . . . . . . . . .

—

End of the period  . . . . . . . . . . . . . . $218,213 $

2,469
—
—
— $ 218,213 $219,415

—

2,469
$125,595 $345,010

(1)  Represents  allocated  goodwill  related  to  the  Company’s  Retail—Home  Control  product  category 
which was classified as assets held for sale as of March 31, 2013. The allocated goodwill related to 
the Home Control product category was reclassified from assets held for sale as of March 31, 2014, 
as the Company updated its strategic plan and decided to retain its Home Control product category.

The  Company’s  acquired  other  intangible  assets  subject  to  amortization  were  as  follows 

(in thousands):

2015

Accumulated
Amortization

Gross

March 31,

Net

Gross

2014
Accumulated
Amortization

Net

Trademark and tradenames  . . . . . . . $ 13,049 $ (13,038) $
Technology  . . . . . . . . . . . . . . . . . . . .
Customer contracts/relationships . . .

11 $ 13,091 $ (11,949) $ 1,142
4,823
4,564
$133,028 $(131,162) $1,866 $135,022 $(124,493) $10,529

(78,257)
(34,287)

(79,716)
(38,408)

81,441
38,538

83,080
38,851

1,725
130

108

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LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 9—Goodwill and Other Intangible Assets (Continued)

For fiscal years 2015, 2014 and 2013, amortization expense for other intangible assets was $8.4 
million,  $17.8  million  and  $23.6  million,  respectively.  The  Company  expects  that  annual  amortization 
expense for the fiscal years 2016 and 2017 to be $1.7 million and $0.2 million, respectively.

Note 10—Financing Arrangements

The Company had several uncommitted, unsecured bank lines of credit aggregating $38.1 million as 
of March 31, 2015. There are no financial covenants under these lines of credit with which the Company 
must comply. As of March 31, 2015, the Company had outstanding bank guarantees of $5.1 million under 
these lines of credit. There was no borrowing outstanding under the line of credit as of March 31, 2015 or 
March 31, 2014.

Note 11—Commitments and Contingencies

Operating Leases

The Company leases facilities under operating leases, certain of which require it to pay property 
taxes, insurance and maintenance costs. Operating leases for facilities are generally renewable at the 
Company’s  option  and  usually  include  escalation  clauses  linked  to  inflation.  Future  minimum  annual 
rentals under non-cancelable operating leases at March 31, 2015 are as follows (in thousands):

Years Ending March 31,

2016. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2018. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2019. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2020  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thereafter  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 13,829
10,397
8,330
6,575
5,193
9,908
$ 54,232

Rent  expense  for  fiscal  years  2015,  2014  and  2013  was  $12.6  million,  $14.7  million  and 

$25.3 million, respectively.

In  connection  with  its  leased  facilities,  the  Company  recognized  a  liability  for  asset  retirement 
obligations  for  2015  and  2014  representing  the  present  value  of  estimated  remediation  costs  to  be 
incurred  at  lease  expiration.  The  liabilities  for  asset  retirement  obligations  were  not  material  as  of 
March 31, 2015 and 2014.

Product Warranties

All of the Company’s Peripherals products are covered by warranty to be free from defects in material 
and workmanship for periods ranging from one year to five years. At the time of sale, the Company accrues 
a warranty liability for estimated costs to provide products, parts or services to repair or replace products 
in satisfaction of the warranty obligation. The Company’s estimate of costs to fulfill its warranty obligations 
is based on historical experience and expectations of future conditions. When the Company experiences 
changes in warranty claim activity or costs associated with fulfilling those claims, the warranty liability is 
adjusted accordingly.

108

109

LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 11—Commitments and Contingencies (Continued)

Changes  in  the  Company’s  warranty  liability  for  fiscal  years  2015  and  2014  were  as  follows 

(in thousands):

Beginning of the period  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Currency translation(1)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjustment(2)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
End of the period  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Years Ended March 31,

2015
$ 24,380
10,958
(12,027)
(1,601)
—
$ 21,710

2014
$ 21,442
15,473
(15,206)
344
2,327
$ 24,380

(1)  The currency translation during fiscal year 2014 is presented separately to conform to the current 

year presentation. 

(2)  During  fiscal  year  2014,  the  warranty  liability  allocated  to  the  Company’s  Home  Control  product 

category was reclassified from liabilities held for sale.

Deferred Services Revenue

The  Company’s  video  conferencing  reporting  unit  offers  maintenance  contracts  with  the  sale  of 
a majority of its products which allow customers to receive service and support extended beyond the 
expiration of the product warranty contractual term. The Company recognizes these contracts over the 
life of the service period.

Changes in the Company’s deferred services revenue during fiscal years 2015 and 2014 were as 

follows (in thousands):

Beginning of the period  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Extended warranties issued  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
End of the period  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Years Ended March 31,

2015
$ 30,160
30,256
(31,766)
$ 28,650

2014
$ 29,327
33,007
(32,174)
$ 30,160

Investment Commitments

During 2015, the Company entered into a limited partnership agreement for a private investment 
fund  specialized  in  early-stage  start-up  consumer  hardware  electronics  companies  and  committed  to 
a capital contribution of $4.0 million over the life of the fund. As of March 31, 2015, no capital has been 
called upon by the fund.

110

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LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 11—Commitments and Contingencies (Continued)

Other Contingencies

The  Company  is  subject  to  an  ongoing  formal  investigation  by  the  SEC’s  Enforcement  Division, 
relating to certain issues including the accounting for Revue inventory valuation reserves that resulted 
in  the  restatement  described  in  the  Fiscal  Year  2014  Annual  Report  on  Form  10-K,  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 has entered into an agreement with the SEC to extend the statute of limitations. The Company 
is cooperating with the investigation and recently engaged in discussions to settle the matter with the 
SEC, including making offers of monetary amounts for a civil penalty. In accordance with U.S. GAAP, the 
Company has made an accrual in its financial statements. The Company cannot predict the timing, range 
of possible loss or final outcome of this matter.

Guarantees

Logitech  Europe  S.A.  guaranteed  payments  of  two  third-party  contract  manufacturers’  purchase 
obligations.  As  of  March  31,  2015,  the  maximum  amount  of  this  guarantee  was  $3.8  million,  of  which 
$1.7 million of guaranteed purchase obligations was outstanding.

Indemnifications

The  Company  indemnifies  certain  of  its  suppliers  and  customers  for  losses  arising  from  matters 
such  as  intellectual  property  disputes  and  product  safety  defects,  subject  to  certain  restrictions.  The 
scope  of  these  indemnities  varies,  but  in  some  instances,  includes  indemnification  for  damages  and 
expenses, including reasonable attorneys’ fees. As of March 31, 2015, no amounts have been accrued 
for these indemnification provisions. The Company does not believe, based on historical experience and 
information currently available, that it is probable that any material amounts will be required to be paid 
under its indemnification arrangements.

The Company also indemnifies its current and former directors and certain of its current and former 
officers.  Certain  costs  incurred  for  providing  such  indemnification  may  be  recoverable  under  various 
insurance  policies.  The  Company  is  unable  to  reasonably  estimate  the  maximum  amount  that  could 
be  payable  under  these  arrangements  because  these  exposures  are  not  limited,  the  obligations  are 
conditional in nature and the facts and circumstances involved in any situation that might arise are variable.

Legal Proceedings

From time to time the Company is involved in claims and legal proceedings which arise in the ordinary 
course of its business. The Company is currently subject to several such claims and a small number of 
legal proceedings. The Company believes that these matters lack merit and intends to vigorously defend 
against  them. Based  on  currently  available information, the Company does  not believe that resolution 
of pending matters will have a material adverse effect on its financial condition, cash flows or results of 
operations. However, litigation is subject to inherent uncertainties, and there can be no assurances that 
the Company’s defenses will be successful or that any such lawsuit or claim would not have a material 
adverse impact on the Company’s business, financial conditions, cash flows or results of operations in 
a  particular  period.  Any  claims  or  proceedings  against  the  Company,  whether  meritorious  or  not,  can 
have an adverse impact because of defense costs, diversion of management and operational resources, 
negative publicity and other factors. Any failure to obtain necessary license or other rights, or litigation 
arising out of intellectual property claims, could adversely affect the Company’s business.

110

111

LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 12—Shareholders’ Equity

Share Capital

The Company’s nominal share capital is CHF 43,276,655, consisting of 173,106,620 shares with a 
par value of CHF 0.25 each, all of which were issued and 8,624,821 of which were held in treasury shares 
as of March 31, 2015.

In September 2008, the Company’s shareholders approved an amendment to reserve conditional 
capital of 25,000,000 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  25,000,000  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.

Shares Outstanding

In September 2012, the Company’s shareholders approved the cancellation of the 18.5 million shares 
repurchased under the September 2008 amended share buyback program. These shares were legally 
cancelled during fiscal year 2013, which decreased the treasury shares outstanding by this amount and 
also decreased its shares issued and outstanding from 191.6 million to 173.1 million.

Dividends

Pursuant  to  Swiss  corporate  law,  Logitech  International  S.A.  may  only  pay  dividends  in  Swiss 
Francs.  The  payment  of  dividends  is  limited  to  certain  amounts  of  unappropriated  retained  earnings 
(CHF 444.9 million or $457.5 million based on the exchange rate at March 31, 2015) and is subject to 
shareholder approval. In March 2015, the Company announced a plan to pay $250.0 million in cumulative 
dividends for fiscal year 2015 through fiscal year 2017. The Board of Directors plans to request shareholder 
approval of the Swiss Franc equivalent of an $85 million dividend for fiscal year 2015 at the Company’s 
next  annual  general  meeting.  Based  on  the  exchange  rate  and  the  number  of  shares  outstanding  as 
of  March  31,  2015,  this  represents  approximately  CHF  0.51  per  share.  In  December  2014,  Logitech’s 
shareholders approved a cash dividend payment of CHF 43.1 million out of retained earnings to Logitech 
shareholders. Eligible shareholders were paid CHF 0.26 per share ($0.27 per share in U.S. Dollars), totaling 
$43.8 million in U.S. Dollars in December 2014. In September 2013, Logitech’s shareholders approved a 
cash dividend payment of CHF 33.7 million out of retained earnings to Logitech’s shareholders. Eligible 
shareholders were paid CHF 0.21 per share ($0.22 per share in U.S. Dollars), totaling $36.1 million in 
U.S.  Dollars  in  September  2013.  In  September  2012,  the  Company’s  shareholders  approved  a  cash 
dividend of CHF 125.7 million out of retained earnings to Logitech shareholders. Eligible shareholders 
were paid CHF 0.79 per share ($0.85 per share in U.S. Dollars), totaling $133.5 million in U.S. Dollars in 
September 2012. This dividend qualified as a distribution of qualifying additional paid-in capital and, as 
such, was not subject to Swiss Federal withholding tax.

Legal Reserves

Under Swiss corporate law, a minimum of 5% of the Company’s annual net income must be retained 
in a legal reserve until this legal reserve equals 20% of the Company’s issued and outstanding aggregate 
par value per share capital. These legal reserves represent an appropriation of retained earnings that 
are not available for distribution and totaled $9.9 million at March 31, 2015 (based on the exchange rate 
at March 31, 2015).

112

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LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 12—Shareholders’ Equity (Continued)

Additionally, under Swiss corporate law, the Company is required to establish a reserve equal to 
the cost of repurchased treasury shares owned as of year end. The reserve for treasury shares, which 
is not available for distribution, totaled $77.4 million at March 31, 2015 (based on the exchange rate at 
March 31, 2015).

Share Repurchases

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.

In September 2008, the Company’s Board of Directors approved the September 2008 share buyback 
program for $250.0 million. In November 2011, an amendment to the September 2008 share buyback 
program (“September 2008—amended”) was approved by the Company’s Board of Directors to enable 
future  purchases  of  shares  for  cancellation.  In  August  2013,  the  September  2008  share  buyback  and 
September 2008—amended share buyback programs expired.

A summary of the approved share buyback programs are shown in the following table (in thousands, 

excluding transaction costs):

Share Buyback Program
March 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
September 2008—amended(1)  . . . . . . . . . . . . . . . . . . . . . 
September 2008(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Approved

Repurchased

Shares
17,311
28,465
8,344
54,120

Amounts
$250,000
177,030
250,000
$677,030

Shares
115
18,500
7,609
26,224

Amounts
1,663
$
170,714
73,134
$245,511

(1)  Expired in August 2013

During  fiscal  years  2015  and  2013,  0.1  million  and  8.6  million  shares  were  repurchased  for  $1.7 
million and $87.8 million, respectively. There were no share repurchases during fiscal year 2014. During 
fiscal year 2013, 18.5 million of the repurchased shares were cancelled.

Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) were as follows (in thousands):

March 31, 2014  . . . . . . . . . . . . . . . . . . . . . . 
Other comprehensive income (loss) . . . . . . 
March 31, 2015  . . . . . . . . . . . . . . . . . . . . . . 

Accumulated Other Comprehensive Income (Loss)

Cumulative
Translation
Adjustment(1)
$(70,999)
(19,225)
$(90,224)

Defined
Benefit
Plans(1)
$(14,288)
(12,676)
$(26,964)

Deferred
Hedging
Gains (Losses)
$ (515)
4,466
$3,951

Total
$ (85,802)
(27,435)
$(113,237)

(1)  Tax effect was not significant as of March 31, 2015 or 2014.

112

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LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 13—Segment Information

The Company has two reporting segments, peripherals and video conferencing, based on product 
markets  and  internal  organizational  structure.  The  peripherals  segment  encompasses  the  design, 
manufacturing  and  marketing  of  peripherals  for  PCs,  tablets  and  other  digital  platforms.  The  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’s reporting segments do not record revenue on sales 
between segments.

Operating performance measures for the peripherals segment and the video conferencing segment 
are  reported  separately  to  Logitech’s  Chief  Executive  Officer  (“CEO”),  who  is  considered  to  be  the 
Company’s Chief Operating Decision Maker (“CODM”). The CEO periodically reviews information such 
as net sales and operating income (loss) for each operating segment to make business decisions. These 
operating performance measures do not include share-based compensation expense and amortization 
of  intangible  assets.  Share-based  compensation  expense  and  amortization  of  intangible  assets  are 
presented in the following financial information by operating segment as “other income (expense).” Assets 
by operating segment are not presented since the Company does not present such data to the CODM.

Net  sales  and  operating  income  (loss)  for  the  Company’s  operating  segments  were  as  follows 

(in thousands):

Net sales:

Peripherals  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Video conferencing . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Segment operating income (loss):

Peripherals(1)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Video conferencing(1) . . . . . . . . . . . . . . . . . . . . . . . . . . .

Years Ended March 31,
2014

2013

2015

$2,004,908
109,039
$2,113,947

$2,008,028
120,685
$2,128,713

$1,962,237
137,040
$2,099,277

$ 179,136
(129,650)
49,486

$ 131,326
(12,023)
119,303

$

25,829
(229,097)
(203,268)

Other income (expense):

Share-based compensation  . . . . . . . . . . . . . . . . . . . . .
Amortization of intangibles  . . . . . . . . . . . . . . . . . . . . . .
Interest income (expense), net  . . . . . . . . . . . . . . . . . . .
Other income (expense), net . . . . . . . . . . . . . . . . . . . . .
Income (loss) before income taxes  . . . . . . . . . . . . . . . . . .

(25,825)
(8,361)
1,225
(2,752)
13,773

$

(25,546)
(17,771)
(397)
1,993
77,582

(25,198)
(23,571)
907
(2,198)
$ (253,328)

$

(1)  Peripherals  operating  results  include  $4.8  million  of  restructuring  credit,  $8.0  million  and 
$39.5  million  of  restructuring  charges  during  fiscal  year  2015,  2014  and  2013,  respectively,  and 
$2.2  million  of  impairment  of  other  assets  during  fiscal  year  2013.  Video  Conferencing  operating 
results  include  $0.1  million  of  restructuring  credit,  $5.8  million  and  $4.2  million  of  restructuring 
charges for fiscal year 2015, 2014 and 2013, respectively, and $122.7 million of $214.5 million of 
impairment charges for goodwill and other assets for fiscal years 2015 and 2013, respectively.

114

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LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 13—Segment Information (Continued)

Net sales by product categories and sales channels, excluding intercompany transactions, were as 

follows (in thousands):

Peripherals:

Mobile Speakers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Gaming  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Video Collaboration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Tablet & Other Accessories. . . . . . . . . . . . . . . . . . . . . . . 
Growth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Pointing Devices  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Keyboards & Combos . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Audio-PC & Wearables . . . . . . . . . . . . . . . . . . . . . . . . . . 
PC Webcams  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Home Control  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Profit Maximization  . . . . . . . . . . . . . . . . . . . . . . . . . 
Retail Strategic Sales(1). . . . . . . . . . . . . . . . . . . . 
Non-Strategic  . . . . . . . . . . . . . . . . . . . . . . . . . . . 
OEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Video Conferencing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Years Ended March 31,
2014

2015

2013

$ 178,038
211,911
62,215
140,994
593,158
487,210
426,117
213,496
96,680
68,060
1,291,563
1,884,721
2,725
117,462
2,004,908
109,039
$2,113,947

$

87,414
186,926
29,058
172,484
475,882
506,884
415,314
250,037
113,791
67,371
1,353,397
1,829,279
37,000
141,749
2,008,028
120,685
$2,128,713

$

33,408
144,512
18,700
119,856
316,476
521,083
399,144
289,313
137,292
71,641
1,418,473
1,734,949
86,102
141,186
1,962,237
137,040
$2,099,277

(1)  Certain products within the retail product families presented in prior years have been reclassified to 

conform to the current year presentation. There is no impact over total net retail sales.

Net sales to unaffiliated customers by geographic region for fiscal years 2015, 2014 and 2013 (based 

on the customers’ location) were as follows (in thousands):

Americas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EMEA  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asia Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2015
$ 915,478
710,966
487,503
$2,113,947

Years Ended March 31,
2014
$ 859,893
767,017
501,803
$2,128,713

2013
$ 808,618
799,075
491,584
$2,099,277

The United States represented 36%, 35% and 33% of net sales for the fiscal years 2015, 2014 and 
2013, respectively. No other single country represented more than 10% of net sales during these periods. 
Revenues from net sales to customers in Switzerland, the Company’s home domicile, represented 2% of 
net sales for each of fiscal years 2015, 2014 and 2013, respectively.

114

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LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 13—Segment Information (Continued)

Geographic long-lived assets information, primarily fixed assets, are reported below based on the 

location of the asset (in thousands):

Americas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EMEA  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asia Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,

2015
$48,527
3,584
39,482
$91,593

2014
$45,166
5,154
38,071
$88,391

Long-lived assets in the United States and China were $48.3 million and $34.0 million at March 31, 
2015, respectively, and $44.9 million and $31.9 million at March 31, 2014, respectively. No other countries 
represented more than 10% of the Company’s total consolidated long-lived assets at March 31, 2015 or 
2014. Long-lived assets in Switzerland, the Company’s home domicile, were $1.5 million and $1.6 million 
at March 31, 2015 and 2014, respectively.

Note 14—Restructuring

The  following  table  summarizes  restructuring  related  activities  during  fiscal  year  2015  and  2014 

(in thousands):

Accrual balance at March 31, 2013  . . . . . . . . . . . . . . . . . . . . . 
Charges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Adjustment for deferred rent . . . . . . . . . . . . . . . . . . . . . . . . 
Cash payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Currency exchange impact . . . . . . . . . . . . . . . . . . . . . . . . . 
Accrual balance at March 31, 2014  . . . . . . . . . . . . . . . . . . . . . 
Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Cash payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Accrual balance at March 31, 2015  . . . . . . . . . . . . . . . . . . . . . 

Termination
Benefits
$ 13,383
6,463
—
(19,534)
(170)
142
(86)
(56)
—

$

Restructuring

Lease 
Exit Costs
75
$
7,348
1,450
(1,454)
—
7,419
(4,802)
(1,578)
$ 1,039

Total
$ 13,458
13,811
1,450
(20,988)
(170)
7,561
(4,888)
(1,634)
$ 1,039

During the second quarter of fiscal year 2014, the Company implemented a restructuring plan solely 
affecting  its  video  conferencing  operating  segment  to  align  its  organization  to  its  strategic  priorities  of 
increasing focus on a tighter range of products and improving profitability. Restructuring charges under 
this plan primarily consist of severance and other one-time termination benefits. During fiscal year 2014, 
restructuring charges under this plan included $5.0 million in termination benefits and $0.6 million in lease 
exit costs. The Company substantially completed this restructuring plan by March 31, 2014.

During the fourth quarter of fiscal year 2013, the Company implemented a restructuring plan to align 
its organization to its strategic priorities of increasing focus on mobility products, improving profitability 
in PC-related products and enhancing global operational efficiencies. As part of this restructuring plan, 
the Company reduced its worldwide non-direct labor workforce. Restructuring charges under this plan 
primarily consisted of severance and other one-time termination benefits. During fiscal year 2015, the 
Company  recorded  a  $4.9  million  restructuring  credit  primarily  as  a  result  of  partial  termination  of  its 
lease agreement for the Silicon Valley campus, which was previously vacated and under the restructuring 
plan  during  fiscal  year  2014.  During  fiscal  year  2014,  restructuring  charges  under  this  plan  included 
$1.5 million in termination benefits and $6.7 million in lease exit costs, $5.4 million of which pertains to 

116

117

LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015Note 14—Restructuring (Continued)

the  consolidation  of  the  Company’s  Silicon  Valley  campus  from  two  buildings  down  to  one  during  the 
quarter ended March 31, 2014. The Company substantially completed this restructuring plan by the fourth 
quarter of fiscal year 2014. 

Termination  benefits  were  calculated  based  on  regional  benefit  practices  and  local  statutory 
requirements. Lease exit costs primarily relate to costs associated with the closure of existing facilities. 
Other charges primarily consist of legal, consulting and other costs related to employee terminations.

Note 15—Subsequent Events

On  April  22,  2015,  the  Company  announced  its  intent  to  exit  the  OEM  business  and  reorganize 
Lifesize to sharpen its focus on its Cloud-based offerings, and streamline its overall cost structure through 
product,  overhead  and  infrastructure  cost  reductions,  including  a  targeted  resource  realignment.  The 
Company expects to recognize restructuring charges of approximately $15 million to $20 million.

Note 16—Other Disclosure Required by Swiss Law

Balance Sheet Items

The amounts of certain balance sheet items were as follows (in thousands):

Prepayments and accrued income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pension liabilities, current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fire insurance value of property, plant and equipment . . . . . . . . . . . . . . . . . . . .

Statement of Income Items 

March 31,

2015
$ 12,922
$374,660
$
1,232
$207,688

2014
$ 11,681
$518,390
$
1,100
$214,020

Total personnel expenses amounted to $339.8 million, $345.6 million and $359.8 million in fiscal 

years 2015, 2014, and 2013.

Security Ownership of Board Members and Executive Officers 

In accordance with the Swiss Code of Obligations, the security ownership of members of the Board 
of  Directors  of  Logitech  International  S.A.  and  Logitech  executive  officers  are  presented  in  the  Swiss 
Statutory Financial Statements of Logitech International S.A. 

Risk Assessment 

At  a  company-wide  level,  Logitech’s  internal  audit  function  coordinates  management’s  risk 
assessment  process,  which  encompasses  financial  and  operational  risks,  and  reports  to  senior 
management  and  to  the  Audit  Committee  of  the  Board  of  Directors.  Material  risks  are  assessed  and 
discussed  by  the  Board  of  Directors,  as  appropriate.  Financial  risk  assessment  and  management  is 
integrated into the functions of the Company’s Treasury, Finance and Business group operations, with 
oversight  from  the  Audit  Committee.  Financial  reporting  risk  is  addressed  through  the  Company’s 
Corporate Accounting, Financial Reporting and SOX Compliance operations and processes. Operational 
risk assessment and management is integrated into the functions of the Company’s Business groups, 
with support from specialized departments such as Product Quality, Supply Chain, Legal and Finance. 
Material financial and financial reporting risks are reported to and reviewed with the Audit Committee and 
the Board of Directors, as appropriate, and material operational risks are reported to and reviewed with 
the Board of Directors.

116

117

LOGITECH INTERNATIONAL S.A.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015119

This page is intentionally left blank.Logitech internationaL S.a., appLeS

SWiSS StatUtorY
FinanciaL StateMentS

taBLe oF contentS

Report of the Statutory Auditor � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

Swiss Statutory Balance Sheets (unconsolidated) � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

Swiss Statutory Statements of Income (unconsolidated) � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

Notes to Swiss Statutory Financial Statements  � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

Proposal of the Board of Directors for Appropriation of Retained Earnings � � � � � � � � � � � � � � � � � �

page
120

122

123

124

131

119

Annual Report Fiscal Year 2015KPMG AG
Audit
Badenerstrasse 172 
CH-8004 Zurich 

P�O� Box 1872 
CH-8026 Zurich 

Telephone +41 58 249 31 31 
Fax +41 58 249 44 06 
Internet www�kpmg�ch

Report of the Statutory Auditor to the General Meeting of Shareholders of

Logitech international S.a., apples

report of the Statutory auditor on the Financial Statements

As  statutory  auditor,  we  have  audited  the  accompanying  financial  statements  of  Logitech 
International S�A�, which comprise the balance sheet, statement of income and notes for the year ended 
March 31, 2015�

Board of Directors’ Responsibility

The Board of Directors is responsible for the preparation of the financial statements in accordance 
with  the  requirements  of  Swiss  law  and  the  company’s  articles  of  incorporation�  This  responsibility 
includes designing, implementing and maintaining an internal control system relevant to the preparation 
of financial statements that are free from material misstatement, whether due to fraud or error� The Board 
of Directors is further responsible for selecting and applying appropriate accounting policies and making 
accounting estimates that are reasonable in the circumstances�

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit� We 
conducted our audit in accordance with Swiss law and Swiss Auditing Standards� Those standards require 
that we plan and perform the audit to obtain reasonable assurance whether the financial statements are 
free from material misstatement�

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures 
in  the  financial  statements�  The  procedures  selected  depend  on  the  auditor’s  judgment,  including  the 
assessment  of  the  risks  of  material  misstatement  of  the  financial  statements,  whether  due  to  fraud  or 
error� In making those risk assessments, the auditor considers the internal control system relevant to the 
entity’s preparation of the financial statements in order to design audit procedures that are appropriate 
in  the  circumstances,  but  not  for  the  purpose  of  expressing  an  opinion  on  the  effectiveness  of  the 
entity’s internal control system� An audit also includes evaluating the appropriateness of the accounting 
policies used and the reasonableness of accounting estimates made, as well as evaluating the overall 
presentation of the financial statements� We believe that the audit evidence we have obtained is sufficient 
and appropriate to provide a basis for our audit opinion�

Opinion

In our opinion, the financial statements for the year ended March 31, 2015 comply with Swiss law 

and the company’s articles of incorporation�

Other Matter

The  financial  statements  of  Logitech  International  S�A�  for  the  year  ended  March  31,  2014 
were  audited  by  another  auditor  who  expressed  an  unmodified  opinion  on  those  statements  on 
November 17, 2014�

120

121

Annual Report Fiscal Year 2015 
 
Logitech International S.A., Apples 
Report of the Statutory Auditor 
on the Financial Statements 
to the General Meeting of Shareholders

report on other Legal requirements

We  confirm  that  we  meet  the  legal  requirements  on  licensing  according  to  the  Auditor  Oversight 
Act (AOA) and independence (article 728 CO and article 11 AOA) and that there are no circumstances 
incompatible with our independence�

In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm 
that an internal control system exists, which has been designed for the preparation of financial statements 
according to the instructions of the Board of Directors�

We further confirm that the proposed appropriation of available earnings complies with Swiss law 
and the company’s articles of incorporation� We recommend that the financial statements submitted to 
you be approved�

KPMG AG

Rolf Hauenstein 
Licensed Audit Expert 
Auditor in Charge

Zurich, June 5, 2015

Christopher G� Meredith
Manager

120

121

Annual Report Fiscal Year 2015March 31,

2015

2014

Current assets:

aSSetS

Cash  � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Short-term bank deposits  � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Accrued interest and other receivables� � � � � � � � � � � � � � � � � � �
Advances to and receivables from group companies � � � � � � � �
Total current assets  � � � � � � � � � � � � � � � � � � � � � � � � � �

CHF 141,211
252,375
1,305
—
394,891

CHF

94,840
143,090
1,128
187
239,245

Long-term assets:

Investments in subsidiaries � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Loans to group companies  � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Treasury shares� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Provision on treasury shares� � � � � � � � � � � � � � � � � � � � � � � � � � �
Total long-term assets � � � � � � � � � � � � � � � � � � � � � � � �
Total assets  � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

509,082
229,440
75,299
—
813,821
CHF1,208,712

507,968
222,152
104,807
(16,927)
818,000
CHF1,057,245

LiaBiLitieS anD SharehoLDerS’ eQUitY

Current liabilities:

Payables to group companies � � � � � � � � � � � � � � � � � � � � � � � � � �
Accruals and other liabilities � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total current liabilities  � � � � � � � � � � � � � � � � � � � � � � � �

CHF

Long-term liabilities:

Deferred unrealized foreign currency exchange gains � � � � � � �
Payables to group companies � � � � � � � � � � � � � � � � � � � � � � � � � �
Total liabilities� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

Shareholders’ equity:

Share capital � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Legal reserves:

General reserve
- Reserve from capital contribution  � � � � � � � � � � � � � � � � � � �
- Other general reserves  � � � � � � � � � � � � � � � � � � � � � � � � � � �
Reserve for treasury shares
- Other general reserves for treasury shares� � � � � � � � � � � �
Total legal reserves � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Unappropriated retained earnings� � � � � � � � � � � � � � � � � � � � � � �
Profit for the period � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 
Total shareholders’ equity  � � � � � � � � � � � � � � � � � � � � �
Total liabilities and shareholders’ equity  � � � � � � � � � �

7,225
7,961
15,186

—
614,605
629,791

CHF

—
3,430
3,430

6,103
430,246
439,779

43,277

43,277

1,265
9,580

1,265
9,580

75,299
86,144
444,943
4,557
578,921
CHF1,208,712

104,807
115,652
388,473
70,064
617,466
CHF1,057,245

122

123

LOGITECH INTERNATIONAL S.A., APPLESSWISS STATUTORY BALANCE SHEETS (unconsolidated) (In thousands of Swiss francs)The accompanying notes are an integral part of these financial statements.Annual Report Fiscal Year 2015Year ended March 31,
2014

2015

Income:

Dividend income  � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Royalty fees� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Interest income from third parties � � � � � � � � � � � � � � � � � � � � � � � � � � �
Interest income from group companies� � � � � � � � � � � � � � � � � � � � � � �
Total income� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

CHF 42,181
21,735
631
9,292
73,839

CHF 70,063
21,408
258
9,847
101,576

Expenses:

Administrative expenses � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Brand development expenses� � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Interest paid to group companies  � � � � � � � � � � � � � � � � � � � � � � � � � � �
Income, capital and non-recoverable withholding taxes � � � � � � � � � �
Loss/(Gain) on treasury shares � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Loss on long-term investments � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Loss/(Gain) on foreign currency exchange � � � � � � � � � � � � � � � � � � � �
(Gain)/Loss on liquidation of investments � � � � � � � � � � � � � � � � � � � � �
Other expenses � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Total expenses � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Net income � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

23,272
16,237
14,621
1,084
11,940
2,072
392
(336)
—
69,282
CHF 4,557

5,684
15,977
11,794
(291)
(13,814)
343
(44)
9,973
1,890
31,512
CHF 70,064

122

123

LOGITECH INTERNATIONAL S.A., APPLESSWISS STATUTORY STATEMENTS OF INCOME (unconsolidated) (In thousands of Swiss francs)The accompanying notes are an integral part of these financial statements.Annual Report Fiscal Year 2015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
Logitech Europe S�A�  � � �

country
Switzerland

percentage 
of ownership currency Share capital
CHF

100%

purpose
100,000  Administration, 

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�

research, development, 
sales and distribution

124

125

Annual Report Fiscal Year 2015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:

Held by the Holding Company at March 31, 2013  � � � � � � � � � � � � � � � � 
Additions  � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 
Disposals� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 
Held by the Holding Company at March 31, 2014  � � � � � � � � � � � � � � � � 
Additions  � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 
Disposals� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 
Held by the Holding Company at March 31, 2015  � � � � � � � � � � � � � � � � 

number of 
shares
13,855,436
—
(3,648,986)
10,206,450
115,000
(1,696,629)
8,624,821

total cost 
(in thousands) 
CHF 172,391
—
(67,584)
104,807
1,535
(31,043)
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� 

124

125

LOGITECH INTERNATIONAL S.A., APPLESNOTES TO SWISS STATUTORY FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015note 7 — Significant Shareholders: 

The  Holding  Company’s  share  capital  consists  of  registered  shares�  To  the  knowledge  of  the 
Holding Company, the beneficial owners holding more than 3% of the voting rights of the Company as of 
March 31, 2015 were as follows:

name
Credit Suisse AG(3)  � � � � � � � � � � � � � � � � � � � � � � �
Daniel Borel(4)  � � � � � � � � � � � � � � � � � � � � � � � � � � �
JPMorgan Chase & Co�(5)  � � � � � � � � � � � � � � � � � �
Marathon Asset Management LLP(6) � � � � � � � � � �
Macquarie Group Limited(7) � � � � � � � � � � � � � � � � �
UBS Fund Management (Switzerland) AG(8) � � � �
Credit Suisse Funds AG(9) � � � � � � � � � � � � � � � � � �

number of 
Shares(1)
11,228,056
9,614,038
7,638,433
5,358,296
5,243,857
5,239,853
5,213,350

percentage of 
Voting rights(2)
6�5%
5�6%
4�4%
3�1%
3�0%
3�0%
3�0%

relevant Date
February 12, 2015
March 31, 2015
February 6, 2015
April 5, 2013
December 13, 2013
September 29, 2014
March 25, 2015

(1)   Financial instruments other than shares are not taken into consideration for the calculation of the 

relevant shareholdings�

(2)   Shareholdings are calculated based on the aggregate number of voting rights entered into the Swiss 

commercial register� This aggregate number was 173,106,620 voting rights as of March 31, 2015� 

(3)  The  number  of  shares  held  by  Credit  Suisse  AG  through  its  indirect  subsidiaries  is  based  on  a 
Schedule 13G filed with the U�S� Securities and Exchange Commission on February 19, 2015�
(4)  The  number  of  shares  held  includes  (a)  53,000  shares  held  by  a  charitable  foundation,  of  which 
Mr�  Borel  and  other  members  of  his  family  are  board  members,  and  (b)  6,500  shares  held  by 
Mr� Borel’s spouse� Mr� Borel has not entered into any written shareholders’ agreements�

(5)   The number of shares held by JPMorgan Chase & Co� through its indirect subsidiaries is based on 

a notification filed with the SIX Exchange Regulation on February 19, 2015�

(6)  The number of shares held by Marathon Asset Management LLP is based on a notification filed with 

the SIX Exchange Regulation on April 11, 2013�

(7)   The number of shares held by Macquarie Group Limited through its indirect subsidiaries is based on 

a notification filed with the SIX Exchange Regulation on December 28, 2013�

(8)  The number of shares held by UBS Fund Management (Switzerland) AG is based on a notification 

filed with the SIX Exchange Regulation on October 7, 2014�

(9)  The  number  of  shares  held  by  Credit  Suisse  Funds  AG  is  based  on  a  notification  filed  with  the 

SIX Exchange Regulation on April 2, 2015�

The Swiss Federal Act on Stock Exchanges and Securities Trading of March 24, 1995 (“SESTA”) 
requires  shareholders  who  own  voting  rights  exceeding  certain  percentage  thresholds  of  a  company 
incorporated  in  Switzerland  whose  shares  are  listed  on  a  stock  exchange  in  Switzerland  to  notify  the 
company  and  the  relevant  Swiss  exchange  of  such  holdings�  Following  receipt  of  this  notification,  the 
company is required to inform the public in Switzerland�

126

127

LOGITECH INTERNATIONAL S.A., APPLESNOTES TO SWISS STATUTORY FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015note 8 — Movements in retained earnings:

During fiscal years 2015 and 2014, movements in retained earnings were as follows (in thousands):

Retained earnings at the beginning of the year� � � � � � � � � � � � � � �
Net release from reserve for treasury shares � � � � � � � � � � � � � � � �
Dividend Paid  � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Net income for the year � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Retained earnings at the disposal of the Annual 

Year ended March 31,

2015
CHF 458,537
29,508
(43,102)
4,557

CHF

2014

354,602
67,584
(33,713)
70,064

General Assembly � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

CHF 449,500

CHF

458,537

note 9 — Share ownership of Board Members and executive officers:

The following tables set forth the shares and options held by each of the individual members of the 

Board of Directors and executive officers as of March 31, 2015 and 2014:

as of March 31, 2015

options, 
prSUs 
and rSUs 
held(1)

Shares held

exercise price

Fiscal Years 
of expiration

Non-Group Management Team Members of 

the Board of Directors:
Daniel Borel(2)  � � � � � � � � � � � � � � � � � � � � � � �
Matthew Bousquette � � � � � � � � � � � � � � � � � �
Kee-Lock Chua � � � � � � � � � � � � � � � � � � � � � �
Sally Davis(3)  � � � � � � � � � � � � � � � � � � � � � � � �
Guerrino De Luca(4) � � � � � � � � � � � � � � � � � � �
Didier Hirsch(5) � � � � � � � � � � � � � � � � � � � � � � �
Neil Hunt  � � � � � � � � � � � � � � � � � � � � � � � � � � �
Dimitri Panayotopoulos(6)� � � � � � � � � � � � � � �
Monika Ribar(7)  � � � � � � � � � � � � � � � � � � � � � �

Total Non-Group Management Team 

9,614,038 
51,148 
82,487 
79,798 
243,812 
25,230 
42,128 
—
60,540 

n/a 

$19�43 
$35�42 

n/a
11,000 
86,000  $15�41 - $23�29 2016 - 2019
2016
26,000 
41,000 
2018
$7�83 - $27�95 2016 - 2023
712,680 
n/a
n/a 
20,066 
n/a
n/a 
11,000 
n/a 
11,000 
n/a
2018
$35�42 
26,000 

Members of  the Board of Directors: � � � � � � 10,199,181 

944,746 

Members of the Group Management Team

Bracken Darrell(8) � � � � � � � � � � � � � � � � � � � � �
Vincent Pilette � � � � � � � � � � � � � � � � � � � � � � �
Marcel Stolk(9)  � � � � � � � � � � � � � � � � � � � � � � �
L� Joseph Sullivan � � � � � � � � � � � � � � � � � � � �
Total Group Management Team:� � � � � � � � �

114,513  2,489,850 
337,086 
286,950 
434,395 
37,474 
618,975 
61,768 
500,705  3,880,306 

$8�03-20�08
n/a
$7�46 

2023
n/a
2023
$7�83 - $30�09 2016 - 2023

(1)  Each option provides the right to purchase one share at the exercise price� For executive officers 
(including members of the Group Management Team and Mr� Guerrino De Luca), the options became 
exercisable over four years in equal annual installments from the date of grant� For non-executive 
Directors, the options became exercisable over three years in equal annual installments from the 

126

127

LOGITECH INTERNATIONAL S.A., APPLESNOTES TO SWISS STATUTORY FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015note 9 — Share ownership of Board Members and executive officers: (continued)

date  of  grant�  Market-based  options  granted  under  the  Company’s  2006  Stock  Incentive  Plan 
became or may become exercisable at the later of two years from the grant date or upon meeting 
certain minimum share price performance criteria� Premium-priced stock options granted under the 
Company’s 2012 Stock Inducement Equity Plan vested or vest if and only when Logitech’s average 
closing share price, over a consecutive ninety-day trading period, meets or exceeds the exercise 
price  of  the  applicable  tranche  of  the  three  tranches  of  the  grant�  PRSUs  granted  to  executive 
officers are market-based restricted stock units that may vest upon meeting certain minimum share 
price performance criteria measured against market conditions at the end of three years from the 
grant date or performance-based restricted stock units that may vest upon the later of one to three 
years from the grant date or upon meeting certain operating performance criteria� RSUs granted to 
executive officers are time-based restricted stock units that vest in four equal annual installments 
from the date of grant, except for some RSUs awarded to Mr� Guerrino De Luca and Mr� Vincent 
Pilette that vest two years and three years from the date of grant, respectively� RSUs granted to non-
executive Directors vest in one annual installment�

(2)  The  number  of  shares  held  includes  (a)  53,000  shares  held  by  a  charitable  foundation,  of  which 
Mr� Daniel Borel and other members of his family are board members and (b) 6,500 shares held by 
Mr� Borel’s spouse� Mr� Borel has not entered into any written shareholders’ agreements�

(3)  The exercise price of the option as granted to Ms� Sally Davis is CHF 34�45� The U�S� Dollar exercise 
price shown is based on the Swiss Franc to U�S� Dollar conversion rate as of March 31, 2015� The 
U�S� Dollar exercise price as of March 31, 2015 was $35�42�

(4)  Mr� Guerrino De Luca, Logitech’s Chairman, is an executive member of the Board of Directors and 
his  compensation,  including  equity  awards,  is  structured  similarly  to  the  members  of  the  Group 
Management Team� The exercise price of one the options granted to Mr� Guerrino De Luca is CHF 
18�85� The U�S� Dollar exercise price was based on the Swiss Franc to U�S� Dollar conversion rate 
as of March 31, 2015� The U�S� Dollar exercise price as of March 31, 2015 was $19�07�

(5)  Mr� Didier Hirsch was first elected as a director at the Annual General Meeting in September 2012� 
(6)  Mr�  Dimitri  Panayotopoulos  was  first  elected  as  a  director  at  the  Annual  General  Meeting  in 

December 2014�

(7)  The exercise price of the option granted to Ms� Monika Ribar is CHF 34�45� The U�S� Dollar exercise 
price is based on the Swiss Franc to U�S� Dollar conversion rate as of March 31, 2015� The U�S� 
Dollar exercise price as of March 31, 2015 was $35�42�

(8)  Mr� Bracken Darrell, Logitech’s President and Chief Executive Officer, is also a member of the Board 

of Directors� 

(9)  The exercise price of the option granted to Mr� Marcel Stolk is CHF 7�25� The U�S� Dollar exercise 
price is based on the Swiss Franc to U�S� Dollar conversion rate as of March 31, 2015� The U�S� 
Dollar exercise price as of March 31, 2015 was $7�46�

128

129

LOGITECH INTERNATIONAL S.A., APPLESNOTES TO SWISS STATUTORY FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015note 9 — Share ownership of Board Members and executive officers: (continued)

as of March 31, 2014

options, 
prSUs 
and rSUs 
held(1)

Shares held

exercise price

Fiscal Years 
of expiration

Non-Group Management Team Members of 

the Board of Directors:
Daniel Borel(2)  � � � � � � � � � � � � � � � � � � � � � � � �
Matthew Bousquette � � � � � � � � � � � � � � � � � � �
Erh-Hsun Chang(3)� � � � � � � � � � � � � � � � � � � � �
Kee-Lock Chua � � � � � � � � � � � � � � � � � � � � � � �
Sally Davis(4)  � � � � � � � � � � � � � � � � � � � � � � � � �
Guerrino De Luca(5) � � � � � � � � � � � � � � � � � � � �
Didier Hirsch(6) � � � � � � � � � � � � � � � � � � � � � � � �
Neil Hunt  � � � � � � � � � � � � � � � � � � � � � � � � � � � �
Monika Ribar(7)  � � � � � � � � � � � � � � � � � � � � � � �

Total Non-Group Management Team 

n/a

 9,801,343 
 38,453 
 185,979 
 69,792 
 67,103 

—
 33,400 
 48,400 
 164,018  1,040,000 
 36,532 
 18,400 

n/a
 18,400 
 93,400  $15�41 - $23�29 2016 - 2019
n/a
2016
2018
$7�83 - $27�95 2015 - 2023
n/a
n/a
 113,400  $16�58 - $38�93 2015 - 2018

n/a
$19�43 
$38�92 

 6,228 
 29,433 
 43,245 

n/a
n/a

Members of the Board of Directors:  � � � � � � � 10,405,594  1,401,932 

 Members of the Group Management Team

Bracken Darrell(8) � � � � � � � � � � � � � � � � � � � � � �
Vincent Pilette � � � � � � � � � � � � � � � � � � � � � � � �
Erik Bardman(9)  � � � � � � � � � � � � � � � � � � � � � � �
Marcel Stolk  � � � � � � � � � � � � � � � � � � � � � � � � �
L� Joseph Sullivan � � � � � � � � � � � � � � � � � � � � �
Total Group Management Team:� � � � � � � � � �

71,288  2,222,000 
 370,000 
 165,806 
—
 7,439 
 397,000 
 22,506 
 35,107 
 630,750 
302,146  3,619,750 

2023
n/a
n/a
2013
$7�83 - $30�09 2016 - 2023

$8�03
n/a
n/a
$7�83 

(1)  Each option provides the right to purchase one share at the exercise price� For executive officers 
(including members of the Group Management Team and Mr� Guerrino De Luca), the options became 
exercisable over four years in equal annual installments from the date of grant� For non-executive 
Directors, the options became exercisable over three years in equal annual installments from the 
date of grant� Market-based options granted under the Company’s 2006 Stock Incentive Plan may 
become exercisable at the later of two years from the grant date or upon meeting certain minimum 
share price performance criteria� Premium-priced stock options granted under the Company’s 2012 
Stock Inducement Equity Plan vested or vest if and only when Logitech's average closing share price, 
over a consecutive ninety-day trading period, meets or exceeds the exercise price of the applicable 
tranche of the three tranches of the grant� PRSUs granted to executive officers are market-based 
restricted stock units that may vest upon meeting certain minimum share price performance criteria 
measured against market conditions at the end of three years from the grant date� RSUs granted to 
executive officers are time-based restricted stock units that vest in four equal annual installments 
from the date of grant, except for some RSUs awarded to Mr� Guerrino De Luca and Mr� Vincent 
Pilette that vest two years and one or three years from the date of grant, respectively� RSUs granted 
to non-executive Directors vest in one annual installment�

128

129

LOGITECH INTERNATIONAL S.A., APPLESNOTES TO SWISS STATUTORY FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015note 9 — Share ownership of Board Members and executive officers: (continued)

(2)  The  number  of  shares  held  includes  (a)  53,000  shares  held  by  a  charitable  foundation,  of  which 
Mr� Daniel Borel and other members of his family are board members and (b) 6,500 shares held by 
Mr� Borel’s spouse� Mr� Borel has not entered into any written shareholders’ agreements�

(3)  Mr� Chang did not stand for re-election as a director at the Annual General Meeting in September 
2013� Shares held are as of August 15, 2014, the last date as of which the Company had information 
with respect to shares held by Mr� Chang�

(4)  The exercise price of the option as granted to Ms� Sally Davis is CHF 34�45� The U�S� dollar exercise 
price shown is based on the Swiss Franc to U�S� Dollar conversion rate as of March 31, 2014� The 
U�S� Dollar exercise price as of March 31, 2014 was $38�93�

(5)  Mr� Guerrino De Luca, Logitech’s Chairman, is an executive member of the Board of Directors and 
his  compensation,  including  equity  awards,  is  structured  similarly  to  the  members  of  the  Group 
Management  Team�  Two  options  granted  to  Mr�  Guerrino  De  Luca  have  exercise  prices  of  CHF 
15�21 and CHF 18�85� The U�S� Dollar exercise prices are based on the Swiss Franc to U�S� Dollar 
conversion rate as of March 31, 2014� The U�S� Dollar exercise prices as of March 31, 2014 were 
$17�20 and $20�97�

(6)  Mr� Didier Hirsch was first elected as a director at the Annual General Meeting in September 2012�
(7)  The  two  option  grants  to  Ms�  Monika  Ribar  have  exercise  prices  of  CHF  14�68  and  CHF  34�45� 
The U�S� Dollar exercise prices are based on the Swiss Franc to U�S� Dollar conversion rate as of 
March 31, 2014� The U�S� Dollar exercise prices as of March 31, 2014 were $16�58 and $38�93�
(8)  Mr� Bracken Darrell, Logitech’s President and Chief Executive Officer, is also a member of the Board 

of Directors� 

(9)  Mr� Erik Bardman resigned as an executive officer of the Company in April 2013�

note 10 — risk assessment:

At  a  company-wide  level,  Logitech’s  internal  audit  function  coordinates  management’s  risk 
assessment  process,  which  encompasses  financial  and  operational  risks,  and  reports  to  senior 
management  and  to  the  Audit  Committee  of  the  Board  of  Directors�  Material  risks  are  assessed  and 
discussed  by  the  Board  of  Directors,  as  appropriate�  Financial  risk  assessment  and  management  is 
integrated into the functions of the Company’s Treasury, Finance and Business group operations, with 
oversight  from  the  Audit  Committee�  Financial  reporting  risk  is  addressed  through  the  Company’s 
Corporate Accounting, Financial Reporting and SOX Compliance operations and processes� Operational 
risk assessment and management is integrated into the functions of the Company’s Business groups, 
with support from specialized departments such as Product Quality, Supply Chain, Legal and Finance� 
Material financial and financial reporting risks are reported to and reviewed with the Audit Committee and 
the Board of Directors, as appropriate, and material operational risks are reported to and reviewed with 
the Board of Directors�

********************************

130

131

LOGITECH INTERNATIONAL S.A., APPLESNOTES TO SWISS STATUTORY FINANCIAL STATEMENTS (Continued)Annual Report Fiscal Year 2015propoSaL oF the BoarD oF DirectorS For appropriation oF retaineD earningS 

Proposal of the Board of Directors for appropriation of retained earnings was as follows for the fiscal 

year 2015 (in thousands):

Retained earnings available at end of fiscal year 2015  � � � � � � � � � � � � � � � � � � � � � � � 
Proposed dividend(1)  � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 
Balance of retained earnings to be carried forward � � � � � � � � � � � � � � � � � � � � � � � � � � 

CHF

CHF

449,500 
(82,661)
366,839 

Year ended 
March 31, 2015

(1)  The  Board  of  Directors  proposes  distribution  of  a  gross  aggregrate  dividend  of  USD  85,000,000 
(approximately  CHF  82,661,493  based  on  the  exchange  rate  of  USD1=CHF  1�0283  as  of 
March  31,  2015),  or  approximately  USD  0�5167  per  share  (approximately  CHF  0�5025  per  share 
based on the exchange rate as of March 31, 2015), subject to a maximum gross aggregate dividend 
equal to the retained earnings available at the end of fiscal year 2015� The per share approximations 
are based on 164,481,799 shares outstanding, net of treasury shares, as of March 31, 2015� Subject 
to  the  maximum  gross  aggregate  dividend,  the  proposed  dividends  in  Swiss  Francs  presented 
at  Logitech's  2015  Annual  General  Meeting  will  be  based  on  USD  85,000,000  and  the  currency 
exchange rate effective on the date of Logitech’s 2015 Annual General Meeting�

130

131

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