8-K

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: May 2, 2022

 (Date of earliest event reported)

LOGITECH INTERNATIONAL S.A.

(Exact name of registrant as specified in its charter)

Commission File Number: 0-29174

Canton of Vaud,	Switzerland	None
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

Logitech International S.A.
EPFL - Quartier de l'Innovation
Daniel Borel Innovation Center
1015 Lausanne, Switzerland
c/o Logitech Inc.
7700 Gateway Boulevard
Newark	California	94560
(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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). 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. o  

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

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On May 2, 2022, Logitech International S.A. (“Logitech”) issued a press release regarding its financial results for the quarter and year ended March 31, 2022.  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 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.

The following exhibit is furnished with this Current Report on Form 8-K:

99.1                      Press release issued on May 2, 2022 including financial results for the quarter and year ended March 31, 2022.

 SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed by the undersigned, thereunto duly authorized.

	Logitech International S.A.
	/s/ Bracken Darrell
	Bracken Darrell
	President and Chief Executive Officer
	/s/ Nate Olmstead
	Nate Olmstead
	Chief Financial Officer
May 2, 2022

EXHIBIT INDEX

99.1                      Press release issued on May 2, 2022 including financial results for the quarter and year ended March 31, 2022.

EX-99.1

Exhibit 99.1

Editorial Contacts:

Nate Melihercik, Head of Global Investor Relations - lir@logitech.com

Nicole Kenyon, Head of Global Corporate & Employee Communications - USA +1 (510) 988-8553

Ben Starkie, Corporate Communications - Europe +41 (0) 79-292-3499

Logitech Delivers Record FY 2022 Sales

Company Reports Ninth Consecutive Year of Growth;

Profits Exceed FY22 Outlook

LAUSANNE, Switzerland, May 3, 2022 and NEWARK, Calif., May 2, 2022 — 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 2022, ended March 31, 2022.

For Fiscal Year 2022:

•Sales were Logitech’s highest ever at $5.48 billion, up 4 percent in US dollars and 4 percent in constant currency compared to the prior year. This growth is on top of last year’s record sales which grew 76 percent in US dollars and 74 percent in constant currency. The Company’s sales have more than doubled in the past four years.

•GAAP operating income declined 33 percent to $774 million, compared to $1.15 billion a year ago. Non-GAAP operating income declined 29 percent to $904 million, compared to $1.27 billion a year ago. This reflects the Company’s planned, strategic investments in marketing and product development to drive future growth, and significantly exceeds its original Fiscal Year 2022 non-GAAP operating income outlook. The Company has more than doubled its non-GAAP operating income versus two years ago.

•GAAP earnings per share (EPS) declined 31 percent to $3.78, compared to $5.51 a year ago. Non-GAAP EPS declined 28 percent to $4.63, compared to $6.42 a year ago.

For Q4 Fiscal Year 2022:

•Sales were $1.23 billion, down 20 percent in US dollars and 17 percent in constant currency compared to Q4 of the prior year.

•GAAP operating income declined 56 percent to $129 million, compared to Q4 of the prior year. Non-GAAP operating income declined 52 percent to $156 million, compared to Q4 of the prior year.

“This year, we sustained our scale, delivering record sales on top of last year’s 74% sales growth,” said Bracken Darrell, Logitech president and chief executive officer. “We grew for the ninth straight year and grew market share across the portfolio. We also beat our original profit target by over $100 million.

Despite strong year-over-year results, our focus is the long term. We’re riding secular growth trends in hybrid work, video collaboration, esports and digital content creation. We’ll continue to deliver against those with agility, operational excellence and a diverse, innovative portfolio. I’m excited for the future.”

Outlook

Logitech reduced its Fiscal Year 2023 outlook, removing the estimate of annual sales and profits that would have been generated in Ukraine and Russia. This reflects the current, uncertain environment in which the war in Ukraine continues without sign of resolution in the near term.

Sales growth in constant currency is now expected to be between 2 and 4 percent, and non-GAAP operating income is expected to be between $875 million and $925 million. Previously, sales growth in constant currency was expected to be in the mid single digits, and non-GAAP operating income was expected to be between $900 million and $950 million.

Prepared Remarks Available Online

Logitech has made its prepared written remarks for the financial results videoconference available online on the Logitech corporate website at http://ir.logitech.com.

Financial Results Videoconference and Webcast

Logitech will hold a financial results videoconference to discuss the results for Q4 and the full Fiscal Year 2022 on Tuesday, May 3, 2022 at 8:30 a.m. Eastern Daylight Time and 2:30 p.m. Central European Summer Time. A livestream of the event will be available on the Logitech corporate website at http://ir.logitech.com.

Use of Non-GAAP Financial Information and Constant Currency

To facilitate comparisons to Logitech’s historical results, Logitech has included non-GAAP adjusted measures, which exclude share-based compensation expense, amortization of intangible assets, impairment of intangible assets, acquisition-related costs, change in fair value of contingent consideration for business acquisition, restructuring charges (credits), loss (gain) on investments, non-GAAP income tax adjustment, and other items detailed under “Supplemental Financial Information” after the tables below. Logitech also presents percentage sales growth in constant currency, 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 and trends in its business. With respect to the Company’s outlook for non-GAAP operating income, most of these 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 Fiscal Year 2023 outlook.

About Logitech

Logitech helps all people pursue their passions by designing experiences so everyone can create, achieve, and enjoy more. Logitech designs and creates products that bring people together through computing, gaming, video, streaming and creating, and music. Brands of Logitech include Logitech, Logitech G, ASTRO Gaming, Streamlabs, Blue Microphones and Ultimate Ears. Founded in 1981, and headquartered in Lausanne, Switzerland, Logitech International is a Swiss public company listed on the SIX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI). Find Logitech at www.logitech.com, the company blog or @Logitech.

# # #

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, 2022, long-term trends, future performance, and outlook for Fiscal Year 2023 sales growth and non-GAAP operating income, and related assumptions. The forward-looking statements in this press release involve risks and uncertainties that could cause Logitech’s actual results and events to differ materially from those anticipated in these forward-looking statements, including, without limitation: 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; 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, supply shortages and other supply chain challenges; 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; the impact of global events, such as COVID-19 pandemic and Russia’s military operations in Ukraine, and any associated economic downturn and political instability; changes in inflation levels and in the Federal Reserve's monetary policy; if we do not successfully execute on strategic acquisitions and investments; if we do not efficiently manage our spending; 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 that affect our products or operations and our ability to mitigate; 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, 2021, our Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2021, and our subsequent 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				Fiscal Years Ended
	March 31,				March 31,
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS	2022		2021		2022		2021
Net sales	$	1,229,994	$	1,535,925	$	5,481,101	$	5,252,279
Cost of goods sold	733,092		821,127		3,204,072		2,903,215
Amortization of intangible assets	2,995		3,529		14,023		13,329
Gross profit	493,907		711,269		2,263,006		2,335,735
Operating expenses:
Marketing and selling	247,017		273,764		1,025,899		770,284
Research and development	78,408		69,009		291,844		226,023
General and administrative	36,357		68,236		148,648		166,577
Amortization of intangible assets and acquisition-related costs	2,961		5,178		16,947		19,064
Impairment of intangible assets	—		—		7,000		—
Change in fair value of contingent consideration for business acquisition	—		—		(3,509)		5,716
Restructuring charges (credits), net	395		—		2,165		(54)
Total operating expenses	365,138		416,187		1,488,994		1,187,610
Operating income	128,769		295,082		774,012		1,148,125
Interest income	451		340		1,246		1,784
Other income (expense), net	2,501		(11,450)		560		(1,789)
Income before income taxes	131,721		283,972		775,818		1,148,120
Provision for income taxes	23,516		58,225		131,305		200,863
Net income	$	108,205	$	225,747	$	644,513	$	947,257
Net income per share:
Basic	$	0.65	$	1.34	$	3.85	$	5.62
Diluted	$	0.64	$	1.31	$	3.78	$	5.51
Weighted average shares used to compute net income per share:
Basic	165,898		168,734		167,447		168,523
Diluted	168,546		172,954		170,414		171,775

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share amounts) - unaudited
	March 31,		March 31,
CONDENSED CONSOLIDATED BALANCE SHEETS	2022		2021
Current assets:
Cash and cash equivalents	$	1,328,716	$	1,750,327
Accounts receivable, net	675,604		612,225
Inventories	933,124		661,116
Other current assets	135,478		135,650
Total current assets	3,072,922		3,159,318
Non-current assets:
Property, plant and equipment, net	109,807		114,060
Goodwill	448,175		429,604
Other intangible assets, net	83,779		115,148
Other assets	320,722		324,248
Total assets	$	4,035,405	$	4,142,378
Current liabilities:
Accounts payable	$	636,306	$	823,233
Accrued and other current liabilities	784,848		858,617
Total current liabilities	1,421,154		1,681,850
Non-current liabilities:
Income taxes payable	83,380		59,237
Other non-current liabilities	132,133		139,502
Total liabilities	1,636,667		1,880,589
Shareholders' equity:
Registered shares, CHF 0.25 par value:	30,148		30,148
Issued shares —173,106 at March 31, 2022 and 2021
Additional shares that may be issued out of conditional capitals — 50,000 at March 31, 2022 and 2021
Additional shares that may be issued out of authorized capital — 17,311 at March 31, 2022 and 2021
Additional paid-in capital	129,925		129,519
Shares in treasury, at cost — 7,855 and 4,799 shares at March 31, 2022 and 2021, respectively	(632,893)		(279,541)
Retained earnings	2,975,681		2,490,578
Accumulated other comprehensive loss	(104,123)		(108,915)
Total shareholders' equity	2,398,738		2,261,789
Total liabilities and shareholders' equity	$	4,035,405	$	4,142,378

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
	Three Months Ended				Fiscal Years Ended
	March 31,				March 31,
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS	2022		2021		2022		2021
Cash flows from operating activities:
Net income	$	108,205	$	225,747	$	644,513	$	947,257
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	22,974		14,742		88,361		50,752
Amortization of intangible assets	5,956		8,191		30,179		31,818
Impairment of intangible assets	—		—		7,000		—
Investment impairment	—		2,011		—		2,011
Loss (gain) on investments	262		(793)		1,683		3,899
Share-based compensation expense	21,014		21,305		93,479		86,019
Deferred income taxes	(35)		(3,199)		27,334		34,484
Change in fair value of contingent consideration for business acquisition	—		—		(3,509)		5,716
Other	72		(114)		1,140		(1,784)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable, net	164,848		275,584		(71,510)		(201,220)
Inventories	(98,812)		(188,123)		(276,640)		(427,501)
Other assets	2,400		(14,427)		(18,169)		(67,708)
Accounts payable	(100,666)		12,936		(181,303)		553,960
Accrued and other liabilities	(26,628)		176,359		(44,240)		440,935
Net cash provided by operating activities	99,590		530,219		298,318		1,458,638
Cash flows from investing activities:
Purchases of property, plant and equipment	(25,426)		(30,026)		(89,152)		(76,189)
Investment in privately held companies	(203)		(590)		(1,463)		(4,115)
Acquisitions, net of cash acquired	(350)		(43,163)		(16,236)		(43,523)
Proceeds from return of strategic investments	—		—		—		2,934
Purchases of short-term investments	—		—		(10,000)		—
Proceeds from the sale of short-term investments	7,035		—		8,260		—
Purchases of deferred compensation investments	(1,414)		(1,664)		(5,058)		(12,336)
Proceeds from sales of deferred compensation investments	1,501		1,915		5,786		13,247
Net cash used in investing activities	(18,857)		(73,528)		(107,863)		(119,982)
Cash flows from financing activities:
Payment of cash dividends	—		—		(159,410)		(146,705)
Payment of contingent consideration for business acquisition	—		—		(880)		—
Purchases of registered shares	(121,397)		(92,227)		(412,022)		(164,952)
Proceeds from exercises of stock options and purchase rights	13,005		14,101		29,649		43,810
Tax withholdings related to net share settlements of restricted stock units	(5,628)		(2,607)		(64,156)		(32,082)
Net cash used in financing activities	(114,020)		(80,733)		(606,819)		(299,929)
Effect of exchange rate changes on cash and cash equivalents	(2,408)		(14,374)		(5,247)		(3,966)
Net increase (decrease) in cash and cash equivalents	(35,695)		361,584		(421,611)		1,034,761
Cash and cash equivalents at beginning of the period	1,364,411		1,388,743		1,750,327		715,566
Cash and cash equivalents at end of the period	$	1,328,716	$	1,750,327	$	1,328,716	$	1,750,327

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
SUPPLEMENTAL FINANCIAL INFORMATION	Three Months Ended						Fiscal Years Ended
	March 31,						March 31,
NET SALES	2022		2021		Change		2022		2021		Change
Net sales by product category:
Pointing Devices	$	178,126	$	177,679	—	%	$	781,108	$	680,907	15	%
Keyboards & Combos	231,064		219,242		5		967,301		784,488		23
PC Webcams	84,147		144,845		(42)		403,651		439,865		(8)
Tablet & Other Accessories	67,191		117,115		(43)		310,123		384,301		(19)
Gaming (1)	316,427		322,965		(2)		1,451,883		1,239,005		17
Video Collaboration	243,439		385,657		(37)		997,164		1,044,935		(5)
Mobile Speakers	25,058		29,739		(16)		149,782		174,895		(14)
Audio & Wearables	82,459		130,184		(37)		401,424		468,776		(14)
Smart Home	2,083		8,418		(75)		18,463		34,394		(46)
Other (2)	—		81		(100)		202		713		(72)
Total net retail sales	$	1,229,994	$	1,535,925	(20)	%	$	5,481,101	$	5,252,279	4	%
__________________

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

(2) Other includes products that the Company currently intends to phase out, or has already phased out, because they are no longer strategic to the Company's business.

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands, except per share amounts) - Unaudited
SUPPLEMENTAL FINANCIAL INFORMATION	Three Months Ended						Fiscal Years Ended
	March 31,						March 31,
GAAP TO NON GAAP RECONCILIATION (A)	2022			2021			2022			2021
Gross profit - GAAP	$	493,907		$	711,269		$	2,263,006		$	2,335,735
Share-based compensation expense	1,442			1,519			6,695			6,438
Amortization of intangible assets	2,995			3,529			14,023			13,329
Gross profit - Non-GAAP	$	498,344		$	716,317		$	2,283,724		$	2,355,502
Gross margin - GAAP	40.2		%	46.3		%	41.3		%	44.5		%
Gross margin - Non-GAAP	40.5		%	46.6		%	41.7		%	44.8		%
Operating expenses - GAAP	$	365,138		$	416,187		$	1,488,994		$	1,187,610
Less: Share-based compensation expense	19,572			19,786			86,784			79,581
Less: Amortization of intangible assets and acquisition-related costs	2,961			5,178			16,947			19,064
Less: Impairment of intangible assets	—			—			7,000			—
Less: Change in fair value of contingent consideration for business acquisition	—			—			(3,509)			5,716
Less: Restructuring charges (credits), net	395			—			2,165			(54)
Operating expenses - Non-GAAP	$	342,210		$	391,223		$	1,379,607		$	1,083,303
% of net sales - GAAP	29.7		%	27.1		%	27.2		%	22.6		%
% of net sales - Non - GAAP	27.8		%	25.5		%	25.2		%	20.6		%
Operating income - GAAP	$	128,769		$	295,082		$	774,012		$	1,148,125
Share-based compensation expense	21,014			21,305			93,479			86,019
Amortization of intangible assets and acquisition-related costs	5,956			8,707			30,970			32,393
Impairment of intangible assets	—			—			7,000			—
Change in fair value of contingent consideration for business acquisition	—			—			(3,509)			5,716
Restructuring charges (credits), net	395			—			2,165			(54)
Operating income - Non - GAAP	$	156,134		$	325,094		$	904,117		$	1,272,199
% of net sales - GAAP	10.5		%	19.2		%	14.1		%	21.9		%
% of net sales - Non - GAAP	12.7		%	21.2		%	16.5		%	24.2		%
Net income - GAAP	$	108,205		$	225,747		$	644,513		$	947,257
Share-based compensation expense	21,014			21,305			93,479			86,019
Amortization of intangible assets and acquisition-related costs	5,956			8,707			30,970			32,393
Impairment of intangible assets	—			—			7,000			—
Change in fair value of contingent consideration for business acquisition	—			—			(3,509)			5,716
Restructuring charges (credits), net	395			—			2,165			(54)
Loss on investments	262			1,218			1,683			5,910
Non-GAAP income tax adjustment	(99)			(5,776)			12,364			25,788
Net income - Non - GAAP	$	135,733		$	251,201		$	788,665		$	1,103,029
Net income per share:
Diluted - GAAP	$	0.64		$	1.31		$	3.78		$	5.51
Diluted - Non - GAAP	$	0.81		$	1.45		$	4.63		$	6.42
Shares used to compute net income per share:
Diluted - GAAP and Non - GAAP	168,546			172,954			170,414			171,775

LOGITECH INTERNATIONAL S.A.
PRELIMINARY RESULTS*
(In thousands) - unaudited
SUPPLEMENTAL FINANCIAL INFORMATION	Three Months Ended				Fiscal Years Ended
	March 31,				March 31,
SHARE-BASED COMPENSATION EXPENSE	2022		2021		2022		2021
Share-based Compensation Expense
Cost of goods sold	$	1,442	$	1,519	$	6,695	$	6,438
Marketing and selling	8,809		9,229		37,796		36,788
Research and development	4,061		3,831		18,356		14,179
General and administrative	6,702		6,726		30,632		28,614
Total share-based compensation expense	21,014		21,305		93,479		86,019
Income tax benefit	(3,527)		(3,932)		(26,987)		(19,472)
Total share-based compensation expense, net of income tax benefit	$	17,487	$	17,373	$	66,492	$	66,547

*Note: These preliminary results for the three months and fiscal year ended March 31, 2022 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 enables 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, 2022 and previous periods, 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.

Impairment of intangible assets. We may incur impairment of intangible assets expense, primarily in connection with our past business or asset acquisitions. We believe that providing the non-GAAP measures excluding these items, as well as the GAAP measures, assists our investors because such expenses are not reflective of our ongoing operating results.

Acquisition-related costs and change in fair value of contingent consideration for business acquisition. We incurred expenses and credits 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 all incremental expenses incurred to effect a business combination. Fair value of contingent consideration is associated with our estimates of the value of earn-outs in connection with certain acquisitions. We believe that providing the non-GAAP measures excluding these costs and credits, as well as the GAAP measures, assists our investors because such costs are not reflective of our ongoing operating results.

Restructuring charges (credits). These expenses are associated with re-aligning our business strategies based on current economic conditions. We have undertaken several restructuring plans in recent years. In connection with our restructuring initiatives, we incurred restructuring charges related to employee terminations, facility closures and early cancellation of certain contracts. 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 in the current period.

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, 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 and other events; the determination of which is based upon the nature of the underlying items, the mix of income and losses in jurisdictions and the relevant tax rates in which we operate. 

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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COVER PAGE COVER PAGE	May 02, 2022
Cover [Abstract]
Document Type	8-K
Document Period End Date	May 02, 2022
Entity Registrant Name	LOGITECH INTERNATIONAL S.A.
Entity File Number	0-29174
Entity Incorporation, State or Country Code	V8
Entity Address, Address Line One	1015 Lausanne, Switzerland
Entity Address, Address Line Two	c/o Logitech Inc.
Entity Address, Address Line Three	7700 Gateway Boulevard
Entity Address, City or Town	Newark
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94560
City Area Code	510
Local Phone Number	795-8500
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Registered Shares
Trading Symbol	LOGI
Security Exchange Name	NASDAQ
Entity Central Index Key	0001032975
Amendment Flag	false