Background on Events: https://github.com/ethereum/wiki/wiki/Solidity-Features
Events allow the convenient usage of the EVM logging facilities. Events are inheritable members of contracts. When they are called, they cause the arguments to be stored in the transaction's log. Up to three parameters can receive the attribute indexed which will cause the respective arguments to be treated as log topics instead of data. The hash of the signature of the event is always one of the topics. All non-indexed arguments will be stored in the data part of the log.
If not inside the smart contract container, where does the Log data reside?