Logitech International S.A. Form 10-K: Student Help Case 2.3 Logitech
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The following are excerpts from the 2010 Logitech International S.A. Form 10-K:
LOGITECH INTERNATIONAL S.A.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
Cash and cash equivalents $ 319,944 $ 492,759
Short-term investments — 1,637
Accounts receivable 195,247 213,929
Inventories 219,593 233,467
Other current assets 58,877 56,884
Total current assets 793,661 998,676
Property, plant, and equipment 91,229 104,132
Goodwill 553,462 242,909
Other intangible assets 95,396 32,109
Other assets 65,930 43,704
Total assets $ 1,599,678 $ 1,421,530
Liabilities and shareholders’ equity
Accounts payable $ 257,955 $ 157,798
Accrued liabilities 182,336 131,496
Total current liabilities 440,291 289,294
Other liabilities 159,672 134,528
Total liabilities 599,963 423,822
Commitments and contingencies
Share, par value CHF 0.25 – 191,606,620 issued and
authorized and 50,000,000 conditionally authorized
at March 31, 2010 and 2009 33,370 33,370
Additional paid-in capital 14,880 45,012
Shares in treasury, at cost, 16,435,528 at March 31, 2010
and 12,124,078 at March 31, 2009 (382,512) (341,454)
Retained earnings 1,406,618 1,341,661
Accumulated other comprehensive loss (72,641) (80,881)
Total shareholders’ equity 999,715 997,708
Total liabilities and shareholders’ equity $ 1,599,678 $ 1,421,530
The accompanying notes are an integral part of these consolidated financial statements.
Logitech International S.A.
Notes to Consolidated Financial Statements
Note 1 – The Company
Logitech is a world leader in personal peripherals for computers and other digital platforms. We develop and market innovative products in PC navigation, Internet communications, digital music, home-entertainment control, gaming and wireless devices. For the PC, our products include mice, trackballs, keyboards, interactive gaming controllers, multimedia speakers, headsets, webcams, 3D control devices, and lapdesks. Our Internet communications products include webcams, headsets, video communications services, and digital video security systems for a home or small business. Our LifeSize division offers scalable high-definition video communications products, support, and services. Our digital music products include speakers, earphones, and custom in-ear monitors. For home entertainment systems, we offer the Harmony line of advanced remote controls and the Squeezebox and Transporter wireless music solutions for the home. For gaming consoles, we offer a range of gaming controllers, including racing wheels, wireless guitar and drum controllers, and microphones, as well as other accessories.
Note 2 – Summary of Significant Accounting Policies
Concentrations 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.
The Company sells to large OEMs, distributors and key retailers and, as a result, maintains individually significant receivable balances with such customers. As of March 31, 2010, one customer represented 14% of total accounts receivable. As of March 31, 2009, two customers represented 18% and 10% of total accounts receivable. 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 general does not require collateral from its customers.
Allowances for Doubtful Accounts
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