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.
The following excerpts are from the Logitech International S.A. Form 10-K.

Item 1. Business
Company Overview
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.
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 (including North and South America), EMEA (Europe, Middle East, Africa) and Asia Pacific (including, among other countries, China, Taiwan, Japan and Australia).
Logitech has two operating segments, peripherals and video conferencing. Our peripherals segment, which includes retail and OEM channels, encompasses the design, manufacturing and marketing of peripherals for PCs (personal computers), tablets and other digital platforms.
Our video conferencing segment encompasses the design, manufacturing and marketing of video conferencing products, infrastructure and services for the enterprise, public sector, and other business markets?

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LOGITECH INTERNATIONAL S.A. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Year ended March 31, 2012 2011 Net sales Cost of goods sold Gross profit Operating expenses: $2,099,883 2,316,203 2,362,886 614 1,526,380 707 302 776589 836,506 1,392,5811,539 6 431,598 153,922 113,824 216,688 43,704 959,736 (252,434) Marketing and selling Research and development General and administrative Impairment of goodwill and other assets 423,854 162,331 118,423 420,580 156,390 116,880 Total operating expenses Operating income (loss) Interest income, net Other income (expense), net Income (loss) before income taxes Provision for (benefit from) income taxes Net income (loss) Net income (loss) per share: 142,656 2,316 3,476 148,448 19,988 $ (228,137 S71458 128460 704,608 71,981 2,674 16,622 91,277 9819 (2,198) (253,725) Basic $1.44) $0.41 0.73 $1.44) $0.41 0.72 Diluted Shares used to compute net income (loss) per share: Basic Diluted 158,468 158,468 174,648 175,591 176,928 178,790 Cash dividends per share 0.85S