Logitech International S.A. Consolidated Statements of Operations

(In thousands, except per share amounts)

Year ended March 31,

2013 2012 2011

Net sales $ 2,099,883 $ 2,316,203 $ 2,362,886

Cost of goods sold 1,392,581 1,539,614 1,526,380

Gross profit 707,302 776,589 836,506

Operating expenses:

Marketing and selling 431,598 423,854 420,580

Research and development 153,922 162,331 156,390

General and administrative 113,824 118,423 116,880

Impairment of goodwill and other assets 216,688

Restructuring charges 43,704

Total operating expenses 959,736 704,608 693,850

Operating income (loss) (252,434) 71,981 142,656

Interest income, net 907 2,674 2,316

Other income (expense), net (2,198) 16,622 3,476

Income (loss) before income taxes (253,725) 91,277 148,448

Provision for (benefit from) income taxes (25,588) 19,819 19,988

Net income (loss) $(228,137) $ 71,458 $128,460

Net income (loss) per share:

Basic $ (1.44) $ 0.41 $ 0.73

Diluted $ (1.44) $ 0.41 $ 0.72

Shares used to compute net income (loss) per share:

Basic 158,468 174,648 176,928

Diluted 158,468 175,591 178,790

Cash dividends per share $ 0.85 $ $

Required:

Using the Consolidated Statements of Operations and the excerpts from the Logitech International S.A. Form 10-K, analyze the profitability of Logitech. Your analysis should include the following calculations for all three years:

A. Common-size income statements.

B. Effective tax rates.

C. Growth rates of sales and total operating costs.

Your written analysis and interpretation should include explanations for why trends have occurred.