Logitech 2007 Annual Report Download - page 21

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Share-based Compensation Expense for
Employee Stock Options and Employee Stock Purchases
Twelve Months Ended
March 31, 2007
Cost of goods sold .......................................................... $ 2,077
Marketing and selling ........................................................ 7,167
Research and development .................................................... 3,151
General and administrative .................................................... 7,069
Income tax benefit .......................................................... (4,526)
Total share-based compensation expense after income taxes $14,938
We sometimes use information derived from consolidated financial information but not presented in our
financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”).
Certain of these data are considered “non-GAAP financial measures” under rules of the U.S. Securities and
Exchange Commission. The adjustments between the GAAP and non-GAAP financial measures presented above
consist of share-based compensation expense for employee stock options and employee stock purchases, and the
related income tax effect, as recognized in accordance with Statement of Financial Accounting Standards
No. 123 (revised 2004), “Share-Based Payments” (“SFAS 123R”). Because we implemented SFAS 123R
effective April 1, 2006, our financial results for prior periods do not include the effect of share-based
compensation expense. Our management uses these non-GAAP measures in its financial and operational
decision-making. Our management believes these non-GAAP measures, when considered in conjunction with the
corresponding GAAP measures, facilitate the comparison by our investors of results for periods subsequent to
our adoption of SFAS 123R, with corresponding prior periods for which SFAS 123R was not effective.