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Form 8-K

sec.gov

8-K — LOGITECH INTERNATIONAL S.A.

Accession: 0001032975-26-000014

Filed: 2026-05-05

Period: 2026-05-05

CIK: 0001032975

SIC: 3577 (COMPUTER PERIPHERAL EQUIPMENT, NEC)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — logi-20260505.htm (Primary)

EX-99.1 (exhibit991q4fy26.htm)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K

8-K (Primary)

Filename: logi-20260505.htm · Sequence: 1

logi-20260505

0001032975false00010329752026-05-052026-05-05

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report  (Date of earliest event reported): May 5, 2026

LOGITECH INTERNATIONAL S.A.

(Exact name of registrant as specified in its charter)

Canton of Vaud, Switzerland 0-29174 None

(State or other jurisdiction

of incorporation or organization)

(Commission File Number)

(I.R.S. Employer

Identification No.)

Logitech International S.A.

EPFL - Quartier de l'Innovation

1015 Lausanne, Switzerland

c/o Logitech Inc.

3930 North First Street

San Jose,

California

95134

(Address of principal executive offices and zip code)

(510) 795-8500

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐             Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐        Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered

Registered Shares

LOGN

SIX Swiss Exchange

Registered Shares

LOGI

Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On May 5, 2026, Logitech International S.A. (“Logitech”) issued a press release regarding its financial results for the quarter and fiscal year ended March 31, 2026.  A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.

The information in Item 2.02 and Item 9.01 of this Current Report, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits

Exhibit Description

99.1

Press release issued on May 5, 2026, including financial results for the quarter and fiscal year ended March 31, 2026.

104 Cover Page Interactive Data File (Cover page XBRL tags are embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Logitech International S.A.

/s/ Johanna (Hanneke) Faber

Johanna (Hanneke) Faber

Chief Executive Officer

/s/ Matteo Anversa

Matteo Anversa

Chief Financial Officer

May 5, 2026

EX-99.1

EX-99.1

Filename: exhibit991q4fy26.htm · Sequence: 2

Document

Exhibit 99.1

Editorial Contacts:

Kate Beerkens, Director of Investor Relations - ir@logitech.com

Bruno Rodriguez, Head of Corporate Communications - mediarelations@logitech.com

Logitech Announces Q4 and Full Fiscal Year 2026 Results

Strong FY 2026 Demonstrates

Strategy and Operating Principles Are Delivering

LAUSANNE, Switzerland, and SAN JOSE, Calif., May 5, 2026 — SIX Swiss Exchange Ad hoc announcement pursuant to Art. 53 LR — Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the fourth quarter and full Fiscal Year 2026.

For Fiscal Year 2026:

•Sales were $4.84 billion, up 6 percent in US dollars and 4 percent in constant currency compared to the prior year.

•GAAP operating income was $775 million, up 18 percent compared to the prior year. Non-GAAP operating income was $911 million, up 18 percent compared to the prior year.

•GAAP earnings per share was $4.80, up 16 percent compared to the prior year. Non-GAAP EPS was $5.78, up 19 percent compared to the prior year.

•Cash flow from operations was $1.04 billion. The year-ending cash balance was $1.7 billion. The Company returned $768 million of cash to shareholders through its annual dividend payment and share repurchases.

For Q4 Fiscal Year 2026:

•Sales were $1.09 billion, up 7 percent in US dollars and 3 percent in constant currency compared to Q4 of the prior year.

•GAAP operating income was $136 million, up 28 percent compared to Q4 of the prior year. Non-GAAP operating income was $167 million, up 25 percent compared to Q4 of the prior year.

•GAAP EPS was $0.98, up 2 percent compared to Q4 of the prior year. Non-GAAP EPS was $1.13, up 22 percent compared to Q4 of the prior year.

•Cash flow from operations was $203 million.

“Our strong Fiscal Year 2026 performance demonstrates that our strategy and operating principles of playing offense, cost discipline and agility are working,” said Hanneke Faber, Logitech chief executive officer. “We closed the year with a strong Q4, and were pleased to see a solid return to growth in the Americas, and accelerated growth in Gaming. As we transition into FY27, we are amplifying our focus on future growth. Rapid AI advancements make it a unique period for us to innovate and invest for a future in which both Work and Play will look different.”

“FY 2026 showcased what our teams and business model are capable of,” said Matteo Anversa, Logitech chief financial officer. “Operating income grew 18% year over year, and our annual non-GAAP gross margin of 43.6% and operating margin of 18.8% were the highest ever, outside of pandemic peaks. We also delivered substantial shareholder returns of $768 million in dividends and share repurchases. While the operating environment remains volatile, we see good momentum in the business going into Q1.”

Outlook

Our financial outlook for the first quarter of Fiscal Year 2027 is:

Q1 FY27 outlook

Sales

$1,190 - $1,215 million

Sales growth (in US dollars, year over year)

4% - 6%

Sales growth (in constant currency, year over year)

2% - 4%

Non-GAAP operating income

$195 - $215 million

Financial Results Videoconference and Webcast

Logitech will hold a financial results videoconference to discuss the results for the fourth quarter and full Fiscal Year 2026 on Tuesday, May 5, 2026 at 1:30 p.m. Pacific Daylight Time (PDT) and 10:30 p.m. Central European Summer Time (CEST).

A livestream of the event will be available on the Logitech corporate website at https://ir.logitech.com. This press release and the Q4 Fiscal Year 2026 Shareholder Letter are also available there.

Use of Non-GAAP Financial Information and Constant Currency

To facilitate comparisons to Logitech’s historical results, Logitech has included non-GAAP adjusted measures in this press release, which exclude share-based compensation expense, amortization of intangible assets, acquisition-related costs, restructuring charges (credits), net, loss (gain) on investments, non-GAAP income tax adjustment, and other items detailed under “Supplemental Financial Information” after the tables below and posted to our website at https://ir.logitech.com. Logitech also presents percentage sales growth in constant currency (“cc”), a non-GAAP measure, to show performance unaffected by fluctuations in currency exchange rates. Percentage sales growth in constant currency is calculated by translating prior period sales in each local currency at the current period’s average exchange rate for that currency and comparing that to current period sales. Logitech believes this information, used together with the GAAP financial information, will help investors to evaluate its current period performance, outlook and trends in its business. With respect to the Company’s outlook for non-GAAP operating income, most of the excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy. Therefore, no reconciliation to the GAAP amounts has been provided for the first quarter of Fiscal Year 2027 non-GAAP outlook.

Public Dissemination of Certain Information

Recordings of Logitech’s earnings videoconferences and certain events Logitech participates in or hosts, with members of the investment community are posted on the company’s investor relations website at https://ir.logitech.com. Additionally, Logitech provides notifications of news or announcements regarding its operations and financial performance, including its filings with the Securities and Exchange Commission (SEC), investor events, and press and earnings releases as part of its investor relations website. Logitech intends to use its investor relations website as means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Logitech’s corporate governance information also is available on its investor relations website.

About Logitech

Logitech designs software-enabled hardware solutions that help businesses thrive and bring people together when working, creating and gaming. As the point of connection between people and the digital world, our mission is to extend human potential in work and play, in a way that is good for people and the planet. Founded in 1981, Logitech International is a Swiss public company listed on the SIX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI). Find Logitech and its other brands, including Logitech G, at www.logitech.com or company blog.

# # #

This press release contains forward-looking statements within the meaning of the U.S. federal securities laws, including, without limitation, statements regarding: our preliminary financial results for the three months and fiscal year ended March 31, 2026; Q1 FY27 outlook, including for sales and non-GAAP operating income, our strategy, investments, growth expectations, and related assumptions. The forward-looking statements in this press release are subject to risks and uncertainties that could cause actual results and events to differ materially from those anticipated in these forward-looking statements, including, without limitation: macroeconomic and geopolitical conditions and other factors and their impact, for example the resilience of overall consumer demand, B2B and IT spending levels, changes in inflation levels and monetary policies, governments’ fiscal policies, government shutdowns, geopolitical conflicts and warfare, and energy and transportation costs; our expectations regarding our expense discipline efforts, including the timing thereof; changes in secular trends that impact our business; if our product offerings, marketing activities and investment prioritization decisions do not result in the sales, profitability or profitability growth we expect, or when we expect it; if we fail to innovate and develop new products in a timely and cost-effective manner for our new and existing product categories; issues relating to development and use of artificial intelligence; if we do not successfully execute on our growth opportunities or our growth opportunities are more limited than we expect; the effect of demand variability, production costs, supply shortages and other supply chain challenges; the effect of logistics challenges, including disruptions in logistics; the effect of pricing, product, marketing and other initiatives by our competitors, and our reaction to them, on our sales, gross margins and profitability; if we are not able to maintain and enhance our brands; if our products and marketing strategies fail to separate our products from competitors’ products; if we do not efficiently manage our spending; our expectations regarding our restructuring efforts, including the timing thereof; if there is a deterioration of business and economic conditions in one or more of our sales regions or product categories, or significant fluctuations in exchange rates; changes in trade regulations, policies and agreements and the imposition of tariffs or other trade restrictions that affect our products or operations and our ability to mitigate; if we do not successfully execute on strategic acquisitions and investments; risks associated with acquisitions; and the effect of changes to our effective income tax rates. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in Logitech’s periodic filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2025, our quarterly report on Form 10-Q for the quarter ended December 31, 2025, and other reports filed with the SEC, available at www.sec.gov, under the caption Risk Factors and elsewhere. Logitech does not undertake any obligation to update any forward-looking statements to reflect new information or events or circumstances occurring after the date of this press release.

Note that unless noted otherwise, comparisons are year over year.

Logitech and other Logitech marks are trademarks or registered trademarks of Logitech Europe S.A. and/or its affiliates in the U.S. and other countries. All other trademarks are the property of their respective owners. For more information about Logitech and its products, visit the company’s website at www.logitech.com.

(LOGIIR)

LOGITECH INTERNATIONAL S.A.

PRELIMINARY RESULTS*

(In thousands, except per share amounts) - unaudited

Three Months Ended

March 31,

Fiscal Years Ended

March 31,

GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 2026 2025 2026 2025

Net sales $ 1,085,523  $ 1,010,355  $ 4,840,761  $ 4,554,900

Cost of goods sold 601,130  572,334  2,742,407  2,582,745

Amortization of intangible assets 1,113  2,210  7,017  9,554

Gross profit 483,280  435,811  2,091,337  1,962,601

Operating expenses:

Marketing and selling 214,940  198,598  816,604  814,414

Research and development 87,072  79,523  316,221  309,008

General and administrative 41,640  40,266  167,160  164,014

Amortization of intangible assets and acquisition-related costs 919  2,630  6,298  10,695

Restructuring charges, net 2,914  8,890  9,860  9,615

Total operating expenses 347,485  329,907  1,316,143  1,307,746

Operating income 135,795  105,904  775,194  654,855

Interest income 14,204  12,394  48,246  54,997

Other income (expense), net (150) (91) 3,079  (2,980)

Income before income taxes 149,849  118,207  826,519  706,872

Provision for (benefit from) income taxes

6,386  (25,859) 115,332  75,343

Net income $ 143,463  $ 144,066  $ 711,187  $ 631,529

Net income per share:

Basic $ 0.99  $ 0.97  $ 4.85  $ 4.17

Diluted $ 0.98  $ 0.96  $ 4.80  $ 4.13

Weighted average shares used to compute net income per share:

Basic 145,384  148,999  146,775  151,322

Diluted 147,002  150,709  148,208  152,784

LOGITECH INTERNATIONAL S.A.

PRELIMINARY RESULTS*

(In thousands, except per share amounts) - unaudited

March 31,

March 31,

CONDENSED CONSOLIDATED BALANCE SHEETS

2026 2025

Current assets:

Cash and cash equivalents $ 1,741,546  $ 1,503,205

Accounts receivable, net 505,867  454,546

Inventories 489,948  503,747

Other current assets 177,895  131,211

Total current assets 2,915,256  2,592,709

Non-current assets:

Property, plant and equipment, net 116,454  113,858

Goodwill 465,417  463,230

Other intangible assets, net 12,386  24,630

Other assets 339,075  344,077

Total assets 3,848,588  3,538,504

Current liabilities:

Accounts payable $ 530,983  $ 414,586

Accrued and other current liabilities 781,990  686,503

Total current liabilities 1,312,973  1,101,089

Non-current liabilities:

Income taxes payable 86,322  88,483

Other non-current liabilities

237,899  221,512

Total liabilities 1,637,194  1,411,084

Shareholders’ equity:

Registered shares, CHF 0.25 par value

Issued shares: 160,784 and 168,994 at March 31, 2026 and 2025, respectively

28,001  29,432

Additional paid-in capital 123,386  82,591

Shares in treasury, at cost

Treasury shares: 17,282 and 20,485 at March 31, 2026 and 2025, respectively

(1,207,454) (1,464,912)

Retained earnings 3,381,278  3,627,261

Accumulated other comprehensive loss (113,817) (146,952)

Total shareholders’ equity 2,211,394  2,127,420

Total liabilities and shareholders’ equity $ 3,848,588  $ 3,538,504

LOGITECH INTERNATIONAL S.A.

PRELIMINARY RESULTS*

(In thousands) - unaudited

Three Months Ended

March 31,

Fiscal Years Ended

March 31,

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 2026 2025 2026 2025

Cash flows from operating activities:

Net income $ 143,463  $ 144,066  $ 711,187  $ 631,529

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation 16,517  15,486  64,139  59,664

Amortization of intangible assets 2,032  4,840  13,315  20,098

Loss on investments

321  311  612  2,029

Share-based compensation expense 25,817  13,846  112,392  89,913

Deferred income taxes 23,526  37,891  29,822  56,543

Other (37) (10) 28  120

Changes in assets and liabilities:

Accounts receivable, net 174,379  197,913  (39,436) 69,979

Inventories (44,039) (12,947) 22,882  (80,501)

Other assets (6,136) 14,554  (36,559) 23,970

Accounts payable (62,793) (168,475) 109,174  (31,627)

Accrued and other liabilities (70,257) (117,819) 49,651  840

Net cash provided by operating activities 202,793  129,656  1,037,207  842,557

Cash flows from investing activities:

Purchases of property, plant and equipment (13,839) (12,788) (61,562) (56,128)

Purchases of deferred compensation investments (4,922) (798) (10,479) (6,600)

Proceeds from sales of deferred compensation investments 5,590  2,121  11,308  7,079

Other investing activities (458) (446) (1,654) (1,619)

Net cash used in investing activities (13,629) (11,911) (62,387) (57,268)

Cash flows from financing activities:

Payment of cash dividends —  —  (233,059) (207,853)

Payment of contingent consideration for business acquisition —  —  —  (1,245)

Purchases of registered shares (279,559) (125,516) (534,939) (588,838)

Proceeds from exercises of stock options and purchase rights 14,148  16,170  38,320  36,405

Tax withholdings related to net share settlements of restricted stock units (2,032) (10,234) (21,438) (32,485)

Other financing activities —  (1,681) —  (3,344)

Net cash used in financing activities (267,443) (121,261) (751,116) (797,360)

Effect of exchange rate changes on cash and cash equivalents 2,005  3,889  14,637  (5,566)

Net increase (decrease) in cash and cash equivalents (76,274) 373  238,341  (17,637)

Cash and cash equivalents, beginning of the period 1,817,820  1,502,832  1,503,205  1,520,842

Cash and cash equivalents, end of the period $ 1,741,546  $ 1,503,205  $ 1,741,546  $ 1,503,205

LOGITECH INTERNATIONAL S.A.

PRELIMINARY RESULTS*

(In thousands) - unaudited

SUPPLEMENTAL FINANCIAL INFORMATION

Three Months Ended

March 31,

Fiscal Years Ended

March 31,

NET SALES 2026 2025 Change 2026 2025 Change

Net sales by product category:

Gaming (1)

$ 292,312  $ 261,807  12  % $ 1,414,206  $ 1,338,467  6  %

Keyboards & Combos 224,577  220,626  2  937,551  882,643  6

Pointing Devices 200,870  185,857  8  858,904  788,784  9

Video Collaboration 161,395  143,245  13  689,040  626,000  10

Webcams 76,228  77,948  (2) 326,172  315,520  3

Tablet Accessories 66,334  57,954  14  336,189  299,540  12

Headsets 44,866  42,672  5  179,825  179,710  —

Other (2)

18,941  20,246  (6) 98,874  124,236  (20)

Total Net Sales $ 1,085,523  $ 1,010,355  7  % $ 4,840,761  $ 4,554,900  6  %

(1) Gaming includes streaming services revenue generated by Streamlabs.

(2) Other primarily consists of mobile speakers and PC speakers.

LOGITECH INTERNATIONAL S.A.

PRELIMINARY RESULTS*

(In thousands, except per share amounts) - unaudited

SUPPLEMENTAL FINANCIAL INFORMATION

Three Months Ended

March 31,

Fiscal Years Ended

March 31,

GAAP TO NON-GAAP RECONCILIATION (A)

2026 2025 2026 2025

Gross profit - GAAP $ 483,280 $ 435,811 $ 2,091,337 $ 1,962,601

Share-based compensation expense 2,256 1,348 10,631 10,021

Amortization of intangible assets 1,113 2,210 7,017 9,554

Gross profit - Non-GAAP $ 486,649 $ 439,369 $ 2,108,985 $ 1,982,176

Gross margin - GAAP 44.5  % 43.1  % 43.2  % 43.1  %

Gross margin - Non-GAAP 44.8  % 43.5  % 43.6  % 43.5  %

Operating expenses - GAAP $ 347,485 $ 329,907 $ 1,316,143 $ 1,307,746

Less: Share-based compensation expense 23,561 12,498 101,761 79,892

Less: Amortization of intangible assets and acquisition-related costs 919 2,630 6,298 10,695

Less: Restructuring charges, net 2,914 8,890 9,860 9,615

Operating expenses - Non-GAAP $ 320,091 $ 305,889 $ 1,198,224 $ 1,207,544

% of net sales - GAAP 32.0  % 32.7  % 27.2  % 28.7  %

% of net sales - Non-GAAP 29.5  % 30.3  % 24.8  % 26.5  %

Operating income - GAAP $ 135,795 $ 105,904 $ 775,194 $ 654,855

Share-based compensation expense 25,817 13,846 112,392 89,913

Amortization of intangible assets and acquisition-related costs 2,032 4,840 13,315 20,249

Restructuring charges, net 2,914 8,890 9,860 9,615

Operating income - Non-GAAP $ 166,558 $ 133,480 $ 910,761 $ 774,632

% of net sales - GAAP 12.5  % 10.5  % 16.0  % 14.4  %

% of net sales - Non-GAAP 15.3  % 13.2  % 18.8  % 17.0  %

Net income - GAAP $ 143,463 $ 144,066 $ 711,187 $ 631,529

Share-based compensation expense 25,817 13,846 112,392 89,913

Amortization of intangible assets and acquisition-related costs 2,032 4,840 13,315 20,249

Restructuring charges, net 2,914 8,890 9,860 9,615

Loss on investments

321 311 612 2,029

Non-GAAP income tax adjustment (8,868) (32,225) 9,076 (13,405)

Net income - Non-GAAP

$ 165,679 $ 139,728 $ 856,442 $ 739,930

Net income per share:

Diluted - GAAP $ 0.98 $ 0.96 $ 4.80 $ 4.13

Diluted - Non-GAAP $ 1.13 $ 0.93 $ 5.78 $ 4.84

Shares used to compute net income per share:

Diluted - GAAP and Non-GAAP 147,002 150,709 148,208 152,784

LOGITECH INTERNATIONAL S.A.

PRELIMINARY RESULTS*

(In thousands) - unaudited

SUPPLEMENTAL FINANCIAL INFORMATION

Three Months Ended

March 31,

Fiscal Years Ended

March 31,

SHARE-BASED COMPENSATION EXPENSE 2026 2025 2026 2025

Share-based Compensation Expense

Cost of goods sold $ 2,256  $ 1,348  $ 10,631  $ 10,021

Marketing and selling 10,524  6,245  42,506  40,378

Research and development 5,492  4,331  22,904  20,180

General and administrative 7,545  1,922  36,351  19,334

Total share-based compensation expense 25,817  13,846  112,392  89,913

Income tax benefit (5,101) (3,247) (20,721) (20,148)

Total share-based compensation expense, net of income tax benefit $ 20,716  $ 10,599  $ 91,671  $ 69,765

*Note: These preliminary results for the three months and fiscal year ended March 31, 2026 are subject to adjustments, including subsequent events that may occur through the date of filing our Annual Report on Form 10-K.

(A) Non-GAAP Financial Measures

To supplement our condensed consolidated financial results prepared in accordance with GAAP, we use a number of financial measures, both GAAP and non-GAAP, in analyzing and assessing our overall business performance, for making operating decisions and for forecasting and planning future periods. We consider the use of non-GAAP financial measures helpful in assessing our current financial performance, ongoing operations and prospects for the future as well as understanding financial and business trends relating to our financial condition and results of operations.

While we use non-GAAP financial measures as a tool to enhance our understanding of certain aspects of our financial performance and to provide incremental insight into the underlying factors and trends affecting both our performance and our cash-generating potential, we do not consider these measures to be a substitute for, or superior to, the information provided by GAAP financial measures. Consistent with this approach, we believe that disclosing non-GAAP financial measures to the readers of our financial statements provides useful supplemental data that, while not a substitute for GAAP financial measures, can offer insight in the review of our financial and operational performance and enable investors to more fully understand trends in our current and future performance. In assessing our business during the quarter and fiscal year ended March 31, 2026 and prior periods presented, we excluded items in the following general categories, each of which are described below:

Share-based compensation expense. We believe that providing non-GAAP measures excluding share-based compensation expense, in addition to the GAAP measures, allows for a more transparent comparison of our financial results from period to period. We prepare and maintain our budgets and forecasts for future periods on a basis consistent with this non-GAAP financial measure. Further, companies use a variety of types of equity awards as well as a variety of methodologies, assumptions and estimates to determine share-based compensation expense. We believe that excluding share-based compensation expense enhances our ability and the ability of investors to understand the impact of non-cash share-based compensation on our operating results and to compare our results against the results of other companies.

Amortization of intangible assets. We incur intangible asset amortization expense, primarily in connection with our acquisitions of various businesses and technologies. The amortization of purchased intangibles varies depending on the level of acquisition activity. We exclude these various charges in budgeting, planning and forecasting future periods and we believe that providing the non-GAAP measures excluding these various non-cash charges, as well as the GAAP measures, provides additional insight when comparing our gross profit, operating expenses, and financial results from period to period.

Acquisition-related costs. We incurred expenses in connection with our acquisitions which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Acquisition-related costs include certain incremental expenses incurred to effect a business combination. We believe that providing the non-GAAP measures excluding these costs, as well as the GAAP measures, assists our investors because such costs are not reflective of our ongoing operating results.

Restructuring charges (credits), net. These charges (credits) are associated with restructuring plans and will vary based on the initiatives in place during any given period. Restructuring charges may include costs related to employee terminations, facility closures and early cancellation of certain contracts as well as other costs resulting from our restructuring initiatives. We believe that providing the non-GAAP measures excluding these items, as well as the GAAP measures, assists our investors because such charges (credits) are not reflective of our ongoing operating results.

Loss (gain) on investments. We recognize losses (gains) related to our investments in various companies, which vary depending on the operational and financial performance of the companies in which we invest. These amounts include our losses (earnings) on equity method investments as well as investment impairments and losses (gains) resulting from sales or other events related to our investments. We believe that providing the non-GAAP measures excluding these items, as well as the GAAP measures, assists our investors because such losses (gains) are not reflective of our ongoing operations.

Non-GAAP income tax adjustment. Non-GAAP income tax adjustment primarily measures the income tax effect of non-GAAP adjustments excluded above as well as the income tax impact of non-recurring deferred taxes, tax settlements, and other non-routine tax events, the determination of which is based upon the nature of the underlying items.

Each of the non-GAAP financial measures described above, and used in this press release, should not be considered in isolation from, or as a substitute for, a measure of financial performance prepared in accordance with GAAP. Further, investors are cautioned that there are inherent limitations associated with the use of each of these non-GAAP financial measures as an analytical tool. In particular, these non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and many of the adjustments to the GAAP financial measures reflect the exclusion of items that are recurring and may be reflected in the Company’s financial results for the foreseeable future. We compensate for these limitations by providing specific information in the reconciliation included in this press release regarding the GAAP amounts excluded from the non-GAAP financial measures. In addition, as noted above, we evaluate the non-GAAP financial measures together with the most directly comparable GAAP financial information.

Additional Supplemental Financial Information - Constant Currency

In addition, Logitech presents percentage sales growth in constant currency to show performance unaffected by fluctuations in currency exchange rates. Percentage sales growth in constant currency is calculated by translating prior period sales in each local currency at the current period’s average exchange rate for that currency and comparing that to current period sales.

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