2010		2009
Assets	Amount	% of total asset	Amount	% of total asset
Current assets:
Cash and cash equivalents	$319,944.00	20.00%	$492,759.00	34.66%
Short-term investments	---		$1,637.00	0.12%
Accounts receivable	$195,247.00	12.21%	$213,929.00	15.05%
Inventories	$219,593.00	13.73%	$233,467.00	16.42%
Other current assets	$58,877.00	3.68%	$56,884.00	4.00%
Total current assets	$793,661.00	49.61%	$998,676.00	70.25%
Property, plant, and equipment	$91,229.00	5.70%	$104,132.00	7.33%
Goodwill	$553,462.00	34.60%	$242,909.00	17.09%
Other intangible assets	$95,396.00	5.96%	$32,109.00	2.26%
Other assets	$65,930.00	4.12%	$43,704.00	3.07%
Total assets	$1,599,678.00	100.00%	$1,421,530.00	100.00%
Liabilities and shareholders equity
Current liabilities:
Accounts payable	$257,955.00	16.13%	$157,798.00	11.10%
Accrued liabilities	$182,336.00	11.40%	$131,496.00	9.25%
Total current liabilities	$440,291.00	27.52%	$289,294.00	20.35%
Other liabilities	$159,672.00	9.98%	$134,528.00	9.46%
Total liabilities	$599,963.00	37.51%	$423,822.00	29.81%
Commitments and contingencies		0.00%		0.00%
Shareholders equity:		0.00%		0.00%
Share, par value CHF 0.25 191,606,620 issued and		0.00%		0.00%
authorized and 50,000,000 conditionally authorized		0.00%		0.00%
at March 31, 2010 and 2009	$33,370.00	2.09%	$33,370.00	2.35%
Additional paid-in capital	$14,880.00	0.93%	$45,012.00	3.17%
Shares in treasury, at cost, 16,435,528 at March 31, 2010		0.00%		0.00%
and 12,124,078 at March 31, 2009	$(382,512.00)	-23.91%	$(341,454.00)	-24.02%
Retained earnings	$1,406,618.00	87.93%	$1,341,661.00	94.38%
Accumulated other comprehensive loss	$(72,641.00)	-4.54%	$(80,881.00)	-5.69%
Total shareholders equity	$999,715.00	62.49%	$997,708.00	70.19%
Total liabilities and shareholders equity	$1,599,678.00	100.00%	$1,421,530.00	100.00%

Note 9 Financing Arrangements The Company had several uncommitted, unsecured bank lines of credit aggregating $151.9 million at March 31, 2010. There are no financial covenants under these lines of credit with which the Company must comply. At March 31, 2010, the Company had no outstanding borrowings under these lines of credit. Note 16 Commitments and Contingencies 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 Companys option and usually include escalation clauses linked to inflation. Future minimum annual rentals under non-cancelable operating leases at March 31, 2010 are as follows (in thousands):

Year ending March 31, 2011 $ 13,679

2012 9,666

2013 8,204

2014 4,171

2015 3,473

Thereafter 7,503 $ 46,696 Rent expense was $16.3 million, $15.5 million, and $13.8 million for the years ended March 31, 2010, 2009, and 2008. The Companys asset retirement obligations for its leased facilities as of March 31, 2010, were not material. At March 31, 2010, fixed purchase commitments for capital expenditures amounted to $12.9 million, and primarily related to commitments for manufacturing equipment, tooling, computer software, and computer hardware. Also, the Company has commitments for inventory purchases made in the normal course of business to original design manufacturers, contract manufacturers, and to other suppliers. At March 31, 2010, fixed purchase commitments for inventory amounted to $183.6 million, which are expected to be fulfilled by December 31, 2010. The Company also had other commitments totaling $33.3 million for consulting services, marketing arrangements, advertising, and other services. Although open purchase orders are considered enforceable and legally binding, the terms generally allow the Company the option to reschedule and adjust its requirements based on the business needs prior to delivery of good or performance of services. The Company has guaranteed the purchase obligations of some of its contract manufacturers and original design manufacturers to certain component suppliers. These guarantees generally have a term of one year and are automatically extended for one or more years as long as a liability exists. The amount of the purchase obligations of these manufacturers varies over time, and therefore the amounts subject to Logitechs guarantees similarly vary. At March 31, 2010, there were no outstanding guaranteed purchase obligations. The maximum total potential future payments under three of the five guarantee arrangements is limited to $30.8 million. The remaining two guarantees are limited to purchases of specified components from the named suppliers. The Company does not believe, based on historical experience and information currently available, that is probable, that any amounts will be required to be paid under these guarantee arrangements. Logitech International S.A., the parent holding company, has guaranteed certain contingent liabilities of various subsidiaries related to specific transactions occurring in the normal course of business. The maximum amount of the guarantees was $8.2 million as of March 31, 2010. As of March 31, 2010, $7.6 million was outstanding under these guarantees. The parent holding company has also guaranteed the purchases of one of its subsidiaries under two guarantee agreements. These guarantees do not specify a maximum amount. As of March 31, 2010, $8.7 million was outstanding under these guarantees. Logitech indemnifies some of its suppliers and customers for losses arising from matters such as intellectual property rights 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. No amounts have been accrued for indemnification provisions at March 31, 2010. The Company does not believe, based on historical experience and information currently available, that it is probable that any amounts will be required to be paid under its indemnification arrangements. The Company provides various third parties with irrevocable letters of credit in the normal course of business to secure its obligations to pay or perform pursuant to the requirements of an underlying agreement or the provision of goods and services. These standby letters of credit are cancelable only at the option of the beneficiary who is authorized to draw drafts on the issuing bank up to the face amount of the standby letter of credit in accordance with its terms. At March 31, 2010, the Company had $3.4 million of letters of credit in place, of which $0.3 million was outstanding. These letters of credit relate primarily to equipment purchases by a subsidiary in China, and expire between April and June 2010. At March 31, 2009, the Company had $0.4 million of letters of credit in place, with no balance outstanding. In November 2007, the Company acquired WiLife Inc., a privately held company offering PC-based video camera for self-monitoring a home or a small business. The purchase agreement provides for a possible performance-based payment, payable in the first calendar quarter of 2011. The performance-based payment is based on net revenues attributed to WiLife during calendar year 2010. No payment is due if the applicable net revenues total $40.0 million or less. The maximum performance-based payment is $64.0 million. The total performance-based payment amount, if any, will be recorded in goodwill and will not be known until the end of the calendar year 2010. As of March 31, 2010, no amounts were payable towards performance-based payments under the WiLife acquisition agreement. The Company is involved in a number of lawsuits and claims relating to commercial matters that arise in the normal course of business. The Company believes these lawsuits and claims are without merit and intends to vigorously defend against them. However, there can be no assurances that its defenses will be successful, or that any judgment or settlement in any of these lawsuits would not have a material adverse impact on the Companys business, financial condition, cash flows and results of operations. The Companys accruals for lawsuits and claims as of March 31, 2010, were not material. LOGITECH INTERNATIONAL S.A. VALUATION AND QUALIFYING ACCOUNTS For the Fiscal Years Ended March 31, 2010, 2009, and 2008 (in thousands) Balance at Charged Write-offs charged Balance Fiscal beginning (credited) to (recovered against) at end of Year Description of period to Income Statement allowance period

2010 Allowance for doubtful accounts $ 6,705 $ (72) $ (763) $5,870 2009

Allowance for doubtful accounts $2,497 $ 5,102 $ (894) $6,705 2008

Allowance for Doubtful accounts $3,322 $ 603 $ (1,428) $2,497

LOGITECH INTERNATIONAL S.A. INFORMATION FROM CONSOLIDATED INCOME STATEMENTS For the Fiscal Years Ended March 31, 2010, 2009, and 2008 (in thousands) 2010 2009 2008

Sales $1,966,748(2010) $2,208,832(2009) $2,370,496 (2008)

Net Income $ 64,957(2010) $ 107,032(2009) $ 231,026 (2008)

Required: 5. Discuss the commitments and contingencies of Logitech and the significance of these items.

6. Explain what has caused the change in the retained earnings account from March 31, 2009 to March 31, 2010.

9. What additional financial and nonfinancial information would investors and creditors need to make good investing and lending decisions for Logitech?