What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2021-07-29 compared with 2021-01-21 · 144 added, 199 removed, 382 unchanged (47% of the section changed)

4 unchanged sentences

Three Months Ended

December 31, Nine Months Ended

2020 2019 2020 2019

Net sales $ 1,312,058 $ 791,894

8 unchanged sentences

Change in fair value of contingent consideration for business acquisition ( 1,474 ) 5,716

Restructuring charges (credits), net — ( 45 ) ( 54 ) 69

Restructuring credits, net — ( 53 )

Total operating expenses 365,845 222,306

16 unchanged sentences

Three Months Ended

December 31, Nine Months Ended

2020 2019 2020 2019

Net income $ 186,841 $ 72,073

Other comprehensive income (loss):

Currency translation gain (loss), net of taxes 19,500 1,736 23,944 ( 2,639 )

Reclassification of currency translation loss included in other income, net — — ( 1,738 ) —

Currency translation gain, net of taxes 804 1,239

Reclassification of cumulative translation adjustment to other income, net 1,046 —

Defined benefit plans:

Net loss and prior service costs, net of taxes ( 863 ) ( 231 ) ( 319 ) ( 274 )

Net gain (loss) and prior service costs, net of taxes ( 500 ) 978

Amortization included in other income, net 211 169

1 unchanged sentence

Deferred hedging gain (loss), net of taxes 530 ( 2,367 )

Reclassification of hedging loss included in cost of goods sold 3,446 ( 739 ) 5,085 ( 1,097 )

Reclassification of net hedging impact into cost of goods sold ( 594 ) ( 330 )

Total other comprehensive income (loss) 1,497 ( 311 )

4 unchanged sentences

(In thousands, except per share amounts)

December 31, 2020 March 31, 2020

June 30, 2021 March 31, 2021

Current assets:

24 unchanged sentences

30,148 30,148

Issued shares — 173,106 at December 31 and March 31, 2020

Additional shares that may be issued out of conditional capitals — 50,000 at December 31 and March 31, 2020

Additional shares that may be issued out of authorized capital — 17,311 at December 31 and 34,621 at March 31, 2020

Issued shares — 173,106 at June 30 and March 31, 2021

Additional shares that may be issued out of conditional capitals — 50,000 at June 30 and March 31, 2021

Additional shares that may be issued out of authorized capital — 17,311 at June 30 and March 31, 2021

Additional paid-in capital 74,948 129,519

Shares in treasury, at cost — 4,243 at December 31, 2020 and 6,210 at March 31, 2020

Shares in treasury, at cost — 4,407 at June 30, 2021 and 4,799 at March 31, 2021

( 302,606 ) ( 279,541 )

7 unchanged sentences

(In thousands)

Nine Months Ended

Three Months Ended

Cash flows from operating activities:

Net income $ 186,841 $ 72,073

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

Adjustments to reconcile net income to net cash provided by/ (used in) operating activities:

Depreciation 20,462 11,747

Amortization of intangible assets 8,843 8,132

Loss on investments 4,692 772

Gain on investments ( 1,071 ) ( 174 )

Share-based compensation expense 23,651 20,115

8 unchanged sentences

Accrued and other liabilities ( 160,835 ) ( 12,459 )

Net cash provided by operating activities 928,419 324,154

Net cash provided by / (used in) operating activities ( 114,970 ) 118,847

Cash flows from investing activities:

1 unchanged sentence

Investment in privately held companies ( 501 ) ( 30 )

Acquisitions, net of cash acquired ( 360 ) ( 91,569 )

Proceeds from the sale of property, plant and equipment — 1,037

Proceeds from return of strategic investments 2,934 —

Acquisition, net of cash acquired ( 15,586 ) —

Purchases of trading investments ( 1,091 ) ( 2,424 )

2 unchanged sentences

Cash flows from financing activities:

Payment of cash dividends ( 146,705 ) ( 124,180 )

Purchases of registered shares ( 54,872 ) —

3 unchanged sentences

Effect of exchange rate changes on cash and cash equivalents 5,244 511

Net increase in cash and cash equivalents 673,177 51,530

Net increase / (decrease) in cash and cash equivalents ( 252,606 ) 93,829

Cash and cash equivalents, beginning of the period 1,750,327 715,566

4 unchanged sentences

Non-cash contingent consideration for acquisition $ 9,973 $ —

Supplemental cash flow information:

Income taxes paid, net $ 134,766 $ —

The accompanying notes are an integral part of these condensed consolidated financial statements.

2 unchanged sentences

(In thousands)

Three Months Ended December 31, 2019

Additional Paid-in Capital Accumulated Other Comprehensive Loss Total Shareholders’ Equity

Registered Shares Treasury Shares Retained Earnings

Shares Amount Shares Amount

September 30, 2019 173,106 $ 30,148 $ 50,913 6,203 $ ( 163,728 ) $ 1,359,134 $ ( 108,930 ) $ 1,167,537

Total comprehensive income — — — — — 117,525 ( 562 ) 116,963

Sales of shares upon exercise of stock options and purchase rights — — ( 1,551 ) ( 213 ) 3,191 — — 1,640

Issuance of shares upon vesting of restricted stock units — — ( 3,535 ) ( 89 ) 1,347 — — ( 2,188 )

Share-based compensation — — 13,841 — — — — 13,841

December 31, 2019 173,106 $ 30,148 $ 59,668 5,901 $ ( 159,190 ) $ 1,476,659 $ ( 109,492 ) $ 1,297,793

Nine Months Ended December 31, 2019

Three Months Ended June 30, 2020

Additional Paid-in Capital Accumulated Other Comprehensive Loss Total Shareholders’ Equity

3 unchanged sentences

Total comprehensive income — — — — — 72,073 ( 311 ) 71,762

Purchases of registered shares — — — 389 ( 15,127 ) — — ( 15,127 )

Sales of shares upon exercise of stock options and purchase rights — — 2,607 ( 604 ) 8,933 — — 11,540

Issuance of shares upon vesting of restricted stock units — — ( 39,902 ) ( 1,128 ) 16,806 — — ( 23,096 )

Share-based compensation — — 40,308 — — — — 40,308

Cash dividends ($ 0.74 per share)

— — — — — ( 124,180 ) — ( 124,180 )

December 31, 2019 173,106 $ 30,148 $ 59,668 5,901 $ ( 159,190 ) $ 1,476,659 $ ( 109,492 ) $ 1,297,793

Three Months Ended December 31, 2020

Additional Paid-in Capital Accumulated Other Comprehensive Loss Total Shareholders’ Equity

Registered Shares Treasury Shares Retained Earnings

Shares Amount Shares Amount

September 30, 2020 173,106 $ 30,148 $ 78,617 4,357 $ ( 166,258 ) $ 1,882,308 $ ( 118,852 ) $ 1,705,963

Total comprehensive income — — — — — 382,523 15,935 398,458

Purchases of registered shares — — — 603 ( 50,271 ) — — ( 50,271 )

Cumulative effect of adoption of new accounting standard — — — — — ( 553 ) — ( 553 )

Sales of shares upon exercise of stock options and purchase rights — — ( 1,890 ) ( 643 ) 11,882 — — 9,992

Issuance of shares upon vesting of restricted stock units — — ( 38,672 ) ( 878 ) 15,551 — — ( 23,121 )

Issuance of shares for contingent consideration — — 18,847 ( 390 ) 9,616 — — 28,463

Share-based compensation — — 20,133 — — — — 20,133

December 31, 2020 173,106 $ 30,148 $ 108,140 4,243 $ ( 198,435 ) $ 2,264,831 $ ( 102,917 ) $ 2,101,767

Nine Months Ended December 31, 2020

June 30, 2020 173,106 $ 30,148 $ 54,668 4,689 $ ( 158,463 ) $ 1,762,099 $ ( 120,971 ) $ 1,567,481

Three Months Ended June 30, 2021

Additional Paid-in Capital Accumulated Other Comprehensive Loss Total Shareholders’ Equity

3 unchanged sentences

Total comprehensive income — — — — — 186,841 1,497 188,338

Cumulative effect of adoption of new accounting standard (Note 1) — — — — — ( 553 ) — ( 553 )

Purchases of registered shares — — — 505 ( 54,872 ) — — ( 54,872 )

1 unchanged sentence

Issuance of shares upon vesting of restricted stock units — — ( 79,689 ) ( 826 ) 29,278 — — ( 50,411 )

Issuance of shares for contingent consideration — — 18,847 ( 390 ) 9,616 — — 28,463

Share-based compensation — — 24,897 — — — — 24,897

Cash dividends ($ 0.87 per share)

— — — — — ( 146,705 ) — ( 146,705 )

December 31, 2020 173,106 $ 30,148 $ 108,140 4,243 $ ( 198,435 ) $ 2,264,831 $ ( 102,917 ) $ 2,101,767

June 30, 2021 173,106 $ 30,148 $ 74,948 4,407 $ ( 302,606 ) $ 2,677,419 $ ( 107,418 ) $ 2,372,491

The accompanying notes are an integral part of these condensed consolidated financial statements.

3 unchanged sentences

Logitech International S.A, together with its consolidated subsidiaries ("Logitech" or the "Company"), designs, manufactures and markets products that have an everyday place in people's lives, connecting them to the digital experiences they care about.

Almost 40 years ago, Logitech created products to improve experiences around the personal PC platform, and today it is a multi-brand, multi-category company designing products that enable better experiences consuming, sharing and creating any digital content such as computing, gaming, video and music, whether it is on a computer, mobile device or in the cloud.

Forty years ago, Logitech created products to improve experiences around the personal PC platform, and today it is a multi-brand, multi-category company designing products that enable better experiences consuming, sharing and creating any digital content such as computing, gaming, video, and music, whether it is on a computer, mobile device or in the cloud.

The Company sells its products to a broad network of domestic and international customers, including direct sales to retailers and e-tailers, and indirect sales through distributors.

8 unchanged sentences

All intercompany balances and transactions have been eliminated.

The condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and therefore do not include all the information required by GAAP for complete financial statements.

The condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America ("U.S.

GAAP") for interim financial information and therefore do not include all the information required by U.S.

GAAP for complete financial statements.

The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year ended March 31, 2021, included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on May 12, 2021.

In the opinion of management, these condensed consolidated financial statements include all adjustments, consisting of only normal and recurring adjustments, necessary and in all material aspects, for a fair statement of the results of operations, comprehensive income, financial position, cash flows and changes in shareholders' equity for the periods presented.

Operating results for the three and nine months ended December 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2021, or any future periods.

Operating results for the three months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2022, or any future periods.

Changes in Significant Accounting Policies

Other than the recent accounting pronouncements adopted and discussed below under Recent Accounting Pronouncements Adopted , there have been no material changes in the Company’s significant accounting policies during the nine months ended December 31, 2020 compared with the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended March 31, 2020.

Other than the recent accounting pronouncements adopted and discussed below under Recent Accounting Pronouncements Adopted , there have been no material changes in the Company’s significant accounting policies during the three months ended June 30, 2021 compared with the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended March 31, 2021.

Use of Estimates

2 unchanged sentences

Management bases its estimates on historical experience and various other assumptions believed to be reasonable.

Significant estimates and assumptions made by management involve fair value of goodwill and intangible assets acquired from business acquisitions, valuation of right-of-use assets, valuation of investment in privately held companies classified under Level 3 of the fair value hierarchy, pensions obligations, warranty liabilities, accruals for customer incentives, cooperative marketing, and pricing programs (Customer Programs) and related breakage when appropriate, accrued sales return liability, inventory valuation, share-based compensation expense, uncertain tax positions, and valuation allowances for deferred tax assets.

Although these estimates are based on management’s best knowledge of current events and actions that may impact the Company in the future, actual results could differ materially from these estimates.

Significant estimates and assumptions made by management involve the fair value of goodwill and intangible assets acquired from business acquisitions, contingent consideration for a business acquisition and periodic reassessment of its fair value, valuation of investment in privately held companies classified under Level 3 fair value hierarchy, pension obligations, accruals for customer incentives, cooperative marketing, and pricing programs and related breakage when appropriate, inventory valuation, share-based compensation expense, uncertain tax positions, and valuation allowances for deferred tax assets.

Risks and Uncertainties

1 unchanged sentence

Capital markets and economies worldwide have been negatively impacted by COVID-19 and it is still unclear how lasting and deep the economic impacts will be.

During the three and nine months ended December 31, 2020, the COVID-19 pandemic had mixed effects on the Company’s results of operations, and it may continue to have mixed or adverse effects.

While there was high demand for and consumption of certain of our products that led to increased sales and operating income during the three and nine months ended December 31, 2020, at the same time the Company experienced disruptions and higher costs in our manufacturing, supply chain and logistics operations and outsourced services.

The ongoing and full extent of the impact of the COVID-19 pandemic on the Company's business and operational and financial performance and condition, including the sustainability of its effect on trends positive to the Company, is uncertain and will depend on many factors outside the Company's control, including but not limited to the timing, extent, duration and effects of the virus and any of its mutations, the availability of vaccines and their global deployment, the development of effective treatments, the imposition of effective public safety and other protective measures and the public's response to such measures, the impact of COVID-19 on the global economy and demand for the Company's products and services.

During the first quarter of fiscal year 2022, the COVID-19 pandemic had mixed effects on the Company’s results of operations.

While we experienced increased sales and operating income compared to the first quarter of fiscal year 2021, we also experienced supply and demand volatility, as the COVID-19 pandemic and related safety measures and restrictions have evolved differently across the world.

The ongoing and full extent of the impact of the COVID-19 pandemic on the Company's business and operational and financial performance and condition, including the sustainability of its effect on trends positive to the Company, is uncertain and will depend on many factors outside the Company's control, including but not limited to the timing, extent, duration and effects of the virus and any of its mutations, the vaccination rates, the development of effective treatments, the imposition of effective public safety and other protective measures and the public's response to such measures, the impact of COVID-19 on the global economy and demand for the Company's products and services.

Should the COVID-19 pandemic or global economic slowdown not improve or worsen, or if the Company's attempt to mitigate its impact on its operations and costs is not successful, the Company's business, results of operations, financial condition and prospects may be adversely affected.

Recent Accounting Pronouncements Adopted

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Instruments" (ASU 2016-13), which was further updated and clarified by the FASB through issuance of additional related ASUs, replaces the incurred-loss impairment methodology and requires immediate recognition of estimated credit losses expected to occur for most financial assets, including trade receivables.

The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.

The Company adopted this standard effective April 1, 2020, using a modified retrospective approach.

Upon adoption, the Company updated its credit loss models to utilize a forward-looking current expected credit losses (CECL) model in place of the incurred loss methodology for financial instruments measured at amortized cost, including accounts receivable.

The cumulative effect adjustment from adoption was not material to the Company's condensed consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820):

Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements" (ASU 2018-13), which eliminates, adds and modifies certain disclosure requirements for fair value measurements, including eliminating the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and requiring the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements.

Some of these disclosure changes must be applied prospectively while others retrospectively depending on requirement.

The Company adopted this standard effective April 1, 2020.

The adoption of ASU 2018-13 did not have a material impact on the Company's condensed consolidated financial statements.

In August 2018, the FASB issued ASU 2018-14, "Compensation - Retirement Benefits - Defined Benefits Plans - General (Subtopic 715-20):

Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans" (ASU 2018-14), which requires that the Company remove various disclosures that no longer are considered cost-beneficial, namely amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year.

Further, ASU 2018-14 requires disclosure or clarification of the reasons for significant gains or losses related to changes in the benefit obligation for the period.

The Company adopted this standard effective April 1, 2020 using a retrospective approach and the updated disclosures will be included in the Company's Form 10-K for the fiscal year ending March 31, 2021.

The adoption of ASU 2018-14 did not have an impact on the Company's condensed consolidated financial statements.

Recent Accounting Pronouncements To Be Adopted

In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740):

3 unchanged sentences

Early adoption is permitted.

The Company is currently assessing the impact of ASU 2019-12 on its consolidated financial statements and plans to adopt the standard effective April 1, 2021.

The Company adopted this standard effective April 1, 2021.

The adoption of ASU 2019-12 did not have a material impact on the Company's condensed consolidated financial statements.

Note 2 — Net Income Per Share

The following table summarizes the computations of basic and diluted net income per share for the three and nine months ended December 31, 2020 and December 31, 2019 (in thousands, except per share amounts):

The following table summarizes the computations of basic and diluted net income per share for the three months ended June 30, 2021 and June 30, 2020 (in thousands, except per share amounts):

Three Months Ended

December 31, Nine Months Ended

2020 2019 2020 2019

Net income $ 186,841 $ 72,073

6 unchanged sentences

Diluted $ 1.09 $ 0.42

Share equivalents attributable to outstanding stock options, restricted stock units ("RSUs") and employee share purchase plan ("ESPP") rights totaling 0.3 million and 1.8 million for the three months ended December 31, 2020 and 2019, respectively, and 0.4 million and 1.8 million for the nine months ended December 31, 2020 and 2019, respectively, were excluded from the calculation of diluted net income per share because the combined exercise price and average unamortized grant date fair value upon exercise of these options and ESPP rights or vesting of RSUs were greater than the average market price of the Company's shares during the periods presented herein, and therefore their inclusion would have been anti-dilutive.

Share equivalents attributable to outstanding stock options, restricted stock units ("RSUs") and employee share purchase plans ("ESPP") totaling 0.5 million and 1.4 million for the three months ended June 30, 2021 and 2020, respectively, were excluded from the calculation of diluted net income per share because the combined exercise price and average unamortized grant date fair value upon exercise of these options and ESPP rights or vesting of RSUs were greater than the average market price of the Company's shares during the periods presented herein, and therefore their inclusion would have been anti-dilutive.

A small number of performance-based awards were not included in the calculation because all necessary conditions had not been satisfied by the end of the respective period, and those shares were not issuable if the end of the reporting period were the end of the performance contingency period.

1 unchanged sentence

Employee Share Purchase Plans and Stock Incentive Plans

As of December 31, 2020, the Company offers the 2006 Employee Share Purchase Plan, as amended and restated (Non-U.S.) (2006 ESPP), the 1996 Employee Share Purchase Plan (U.S.), as amended and restated (1996 ESPP), the 2006 Stock Incentive Plan, as amended and restated (2006 Plan), and the 2012 Stock Inducement Equity Plan (2012 Plan).

The following table summarizes the share-based compensation expense and total income tax benefit recognized for share-based awards for the three and nine months ended December 31, 2020 and 2019 (in thousands):

As of June 30, 2021, the Company offers the 2006 Employee Share Purchase Plan (Non-U.S.), as amended and restated, the 1996 Employee Share Purchase Plan (U.S.), as amended and restated, the 2006 Stock Incentive Plan, as amended and restated, and the 2012 Stock Inducement Equity Plan.

Shares issued to employees as a result of purchases or exercises under these plans are generally issued from shares held in treasury stock.

The following table summarizes the share-based compensation expense and total income tax benefit recognized for share-based awards for the three months ended June 30, 2021 and 2020 (in thousands):

Three Months Ended

December 31, Nine Months Ended

2020 2019 2020 2019

Cost of goods sold $ 1,369 $ 1,400

5 unchanged sentences

Total share-based compensation expense, net of income tax benefit $ 7,057 $ 12,004

The income tax benefit in the respective period primarily consists of tax benefit related to the share-based compensation expense for the period and direct tax benefit realized, including net excess tax benefits recognized from share-based awards vested or exercised during the period.

As of December 31, 2020 and 2019, the balance of capitalized share-based compensation included in inventory was $ 1.0 million and $ 0.9 million, respectively.

The income tax benefit in the respective periods primarily consisted of tax benefits related to the share-based compensation expense for the period and direct tax benefit realized, including net excess tax benefits recognized from share-based awards vested or exercised during the period.

As of June 30, 2021 and 2020, the balance of capitalized share-based compensation included in inventory was $ 1.7 million and $ 0.9 million, respectively.

Defined Benefit Plans

2 unchanged sentences

The Company’s practice is to fund amounts sufficient to meet the requirements set forth in the applicable employee benefit and tax regulations.

The costs recorded of $ 2.9 million and $ 2.3 million for the three months ended December 31, 2020 and 2019, respectively, and $ 8.3 million and $ 7.1 million for the nine months ended December 31, 2020 and 2019, respectively, were primarily related to service costs.

The costs recorded of $ 3.3 million and $ 2.7 million for the three months ended June 30, 2021 and 2020, respectively, were primarily related to service costs.

Note 4 — Income Taxes

1 unchanged sentence

Further, a portion of the Company’s income before taxes and the provision for (benefit from) income taxes are generated outside of Switzerland.

The canton of Vaud enacted the Federal Act on Tax Reform and AHV Financing ("TRAF"), a major reform to better align the Swiss tax system with international tax standards, on March 10, 2020 that took effect as of January 1, 2020.

The longstanding tax ruling from the canton of Vaud was applicable through December 31, 2019.

The income tax provision for the three months ended December 31, 2020 was $ 72.3 million based on an effective income tax rate of 15.9 % of pre-tax income, compared to an income tax provision of $ 14.5 million based on an effective income tax rate of 11.0 % of pre-tax income for the three months ended December 31, 2019.

The income tax provision for the nine months ended December 31, 2020 was $ 142.6 million based on an effective income tax rate of 16.5 % of pre-tax income, compared to an income tax provision of $ 18.4 million based on an effective income tax rate of 7.2 % of pre-tax income for the nine months ended December 31, 2019.

The change in the effective income tax rate for the three and nine months ended December 31, 2020, compared to the same periods ended December 31, 2019 was primarily due to the mix of income and losses in the various tax jurisdictions in which the Company operates.

The Swiss income tax provision in the three and nine months ended December 31, 2020 represents the income tax provision at the full statutory income tax rate of 13.63 %.

In the same periods ended December 31, 2019 when TRAF was yet to be enacted at the federal and cantonal levels, the transition income tax provision reflects the application of the longstanding tax ruling through December 31, 2019.

Furthermore, there was a discrete tax benefit of $ 1.7 million from adjusting deferred tax assets and liabilities in Switzerland in the nine months ended December 31, 2019.

There were discrete tax benefits of $ 7.2 million and $ 2.9 million from the recognition of excess tax benefits in the United States and reversal of uncertain tax positions from the expiration of statutes of limitations, respectively, in the nine-month period ended December 31, 2020, compared with $ 6.0 million and $ 2.7 million, respectively, in the nine-month period ended December 31, 2019.

As of December 31, 2020 and March 31, 2020, the total amount of unrecognized tax benefits due to uncertain tax positions was $ 158.8 million and $ 140.8 million, respectively, all of which would affect the effective income tax rate if recognized.

As of December 31, 2020 and March 31, 2020, the Company had $ 60.8 million and $ 40.8 million, respectively, in non-current income taxes payable including interest and penalties, related to the Company's income tax liability for uncertain tax positions.

The income tax provision for the three months ended June 30, 2021 was $ 25.0 million based on an effective income tax rate of 11.8 % of pre-tax income, compared to an income tax provision of $ 14.0 million based on an effective income tax rate of 16.3 % of pre-tax income for the three months ended June 30, 2020.

The change in the effective income tax rate for the three months ended June 30, 2021, compared to the same period ended June 30, 2020 was primarily due to the mix of income and losses in the various tax jurisdictions in which the Company operates.

There were discrete tax benefits of $ 13.7 million and $ 1.0 million from the recognition of excess tax benefits in the United States and reversal of uncertain tax positions from the expiration of statutes of limitations, respectively, in the three-month period ended June 30, 2021, compared with $ 5.0 million and $ 1.0 million, respectively, in the three-month period ended June 30, 2020.

As of June 30, 2021 and March 31, 2021, the total amount of unrecognized tax benefits due to uncertain tax positions was $ 165.5 million and $ 160.3 million, respectively, all of which would affect the effective income tax rate if recognized.

As of June 30, 2021 and March 31, 2021, the Company had $ 63.0 million and $ 59.2 million, respectively, in non-current income taxes payable including interest and penalties, related to the Company's income tax liability for uncertain tax positions.

The Company recognizes interest and penalties related to unrecognized tax positions in the income tax provision.

As of December 31, 2020 and March 31, 2020, the Company had $ 4.7 million and $ 4.5 million, respectively, of accrued interest and penalties related to uncertain tax positions in non-current income taxes payable.

As of June 30, 2021 and March 31, 2021, the Company had $ 5.1 million and $ 4.9 million, respectively, of accrued interest and penalties related to uncertain tax positions in non-current income taxes payable.

Although the Company has adequately provided for uncertain tax positions, the provisions related to these positions may change as revised estimates are made or the underlying matters are settled or otherwise resolved.

4 unchanged sentences

Note 5 — Balance Sheet Components

The following table presents the components of certain balance sheet asset amounts as of December 31 and March 31, 2020 (in thousands):

December 31, 2020 March 31, 2020

The following table presents the components of certain balance sheet asset amounts as of June 30 and March 31, 2021 (in thousands):

June 30, 2021 March 31, 2021

Accounts receivable, net:

24 unchanged sentences

$ 338,485 $ 324,248

The following table presents the components of certain balance sheet liability amounts as of December 31 and March 31, 2020 (in thousands):

December 31, 2020 March 31, 2020

The following table presents the components of certain balance sheet liability amounts as of June 30 and March 31, 2021 (in thousands):

June 30, 2021 March 31, 2021

Accrued and other current liabilities:

Accrued customer marketing, pricing and incentive programs $ 181,423 $ 185,394

Accrued personnel expenses 123,427 173,360

VAT payable 55,350 50,620

Accrued sales return liability 51,122 43,178

Accrued customer marketing, pricing and incentive programs 163,335 130,220

Operating lease liability 12,620 10,945

Accrued freight and duty 43,477 13,284

Accrued payables - non-inventory 43,394 52,392

Warranty accrual 33,981 33,228

Income taxes payable 27,078 131,408

Operating lease liability 14,681 13,101

Contingent consideration 11,495 6,967

2 unchanged sentences

Other non-current liabilities:

Warranty accrual $ 15,464 $ 14,134

Obligation for deferred compensation plan 24,056 20,085

Employee benefit plan obligations $ 73,726 $ 72,321

Obligation for deferred compensation plan 29,092 24,809

Operating lease liability 21,310 21,319

Warranty accrual 15,112 15,604

Contingent consideration 3,971 —

Deferred tax liability 1,679 1,679

13 unchanged sentences

The following table presents the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis, excluding assets related to the Company’s defined benefit pension plans, classified by the level within the fair value hierarchy (in thousands):

December 31, 2020 March 31, 2020

June 30, 2021 March 31, 2021

Level 1 Level 2 Level 3 Level 1 Level 2 Level 3

9 unchanged sentences

Contingent consideration for business acquisition included in accrued and other current liabilities $ — $ — $ 10,957 $ — $ — $ 6,430

Contingent consideration for business acquisition included in other non-current liabilities $ — $ — $ 3,971 $ — $ — $ —

Currency exchange derivative liabilities

included in accrued and other current liabilities $ — $ 229 $ — $ — $ 100 $ —

The following table summarizes the change in the fair value of the Company's contingent consideration balance during the nine months ended December 31, 2020 (in thousands):

Nine Months Ended

December 31, 2020

The following table summarizes the change in the fair value of the Company's contingent consideration balance during the three months ended June 30, 2021 and 2020 (in thousands):

Three Months Ended

Beginning of the period $ 6,967 $ 23,284

Fair value of contingent consideration upon acquisition (1)

Change in fair value of contingent consideration ( 1,474 ) 5,716

Settlement of contingent consideration ( 28,463 )

End of the period (2)

(1) As of June 30, 2020, the earn-out period was completed in connection with our acquisition of Streamlabs (defined below).

The earn-out payment of $ 29.0 million is based on the actual net sales of Streamlabs services during the earn-out period and is no longer subject to fair value measurement and was accordingly transferred out of Level 3.

During the third quarter of 2021, the fair value of $ 28.5 million of the contingent consideration was transferred from other current liabilities to equity upon settlement of the contingent consideration through the issuance of shares out of treasury stock.

The remaining amount of $ 0.5 million is held back in escrow for claims made against the escrow and for the payment of taxes.

$ 15,466 $ 29,000

(1) Fair value of contingent consideration includes the earn-out of the immaterial technology acquisition.

See Contingent Consideration for Business Acquisitions section below for details.

(2) As of June 30, 2020, the earn-out period was completed in connection with our acquisition of General Workings, Inc.

("Streamlabs") (discussed below).

The earn-out payment of $ 29.0 million was based on the actual net sales of Streamlabs services during the earn-out period and is no longer subject to fair value measurement and was accordingly transferred out of Level 3.

During the third quarter of fiscal year 2021, the fair value of $ 28.5 million of the contingent consideration was transferred from other current liabilities to equity upon settlement of the contingent consideration through the issuance of shares out of treasury stock.

The remaining $ 0.5 million is held back in escrow for claims made against the escrow and for the payment of taxes.

Investment Securities

The marketable securities for the Company's deferred compensation plan were recorded at a fair value of $ 24.1 million and $ 20.1 million, as of December 31, 2020 and March 31, 2020, respectively, based on quoted market prices.

The marketable securities for the Company's deferred compensation plan were recorded at a fair value of $ 29.1 million and $ 24.8 million, as of June 30, 2021 and March 31, 2021, respectively, based on quoted market prices.

Quoted market prices are observable inputs that are classified as Level 1 within the fair value hierarchy.

Unrealized gains (losses) related to trading securities for the three and nine months ended December 31, 2020 and 2019 were not material and are included in other income, net in the Company's condensed consolidated statements of operations.

Contingent Consideration for Business Acquisition

On October 31, 2019 (the "Streamlabs Acquisition Date"), the Company acquired all of the equity interests of General Workings, Inc.

Unrealized gains (losses) related to trading securities for the three months ended June 30, 2021 and 2020 were not material and are included in other income, net in the Company's condensed consolidated statements of operations.

Contingent Consideration for Business Acquisitions

On May 19, 2021, the Company made an immaterial technology acquisition.

The contingent consideration for business acquisition arising from the immaterial technology acquisition represents the future potential earn-out payments of up to $ 10.0 million payable in cash only upon the achievement of three technical development milestones required to be completed for periods ending December 31, 2021, June 30, 2022, and June 30, 2023.

The fair value of the contingent amount was determined using a probability-weighted expected payment model and discounted at the estimated cost of debt.

On February 17, 2021 (the "Mevo Acquisition Date"), the Company acquired all of the equity interests of Mevo Inc.

In connection with the acquisition of Mevo, the Company agreed to pay a total earn out payment of up to $ 17.0 million payable in cash only upon the achievement of certain net sales for the period beginning on December 26, 2020 and ending on December 31, 2021.

The fair value of the earn-out as of the Mevo Acquisition Date was $ 3.4 million which was determined by using a Black-Scholes-Merton valuation model to calculate the probability of the earn-out threshold being met, times the value of the earn-out payment, and discounted at the risk-free rate.

The valuation includes significant assumptions and unobservable inputs such as the projected sales of Mevo over the earn-out period, risk-free rate, and the net sales volatility.

Projected sales are based on the Company's internal projections, including analysis of the target market and historical sales of Mevo products.

The fair value of the contingent consideration decreased to $ 1.9 million as of June 30, 2021 from $ 3.4 million as of March 31, 2021.

On January 4, 2021, the Company made an immaterial technology acquisition.

The contingent consideration for business acquisition arising from the immaterial technology acquisition represents the future potential earn-out payments of up to $ 3.0 million payable in cash upon the achievement of two technical development milestones required to be completed for periods ending December 31, 2021 and March 31, 2022.

The fair value of the contingent amount was determined using a probability-weighted expected payment model and discounted at the estimated cost of debt.

On October 31, 2019, the Company acquired all of the equity interests of General Workings, Inc.

(Streamlabs).

In connection with the acquisition of Streamlabs, the Company agreed to pay a total earn out payment of $ 29.0 million, payable in stock, only upon the achievement of certain net revenues for the period beginning on January 1, 2020 and ending on June 30, 2020.

The fair value of the earn-out as of the Streamlabs Acquisition Date was $ 0.04 million, and increased to $ 23.3 million as of March 31, 2020, which was determined by using a Black-Scholes-Merton valuation model to calculate the probability of the earn-out threshold being met and times the value of the earn-out payment, and discounted at the risk-free rate.

In connection with the acquisition of Streamlabs, the Company agreed to pay a total earn-out payment of up to $ 29.0 million, payable in stock, only upon the achievement of certain net revenues for the period beginning on January 1, 2020 and ending on June 30, 2020.

The fair value was increased by $ 5.7 million to $ 29.0 million as of June 30, 2020, based on actual sales.

The fair value of the contingent consideration no longer needs to be remeasured after June 30, 2020, as the earn-out period has been completed.

During the third quarter of fiscal 2021, Logitech issued 390,397 shares out of treasury shares to former security holders of Streamlabs, in satisfaction of payment of the contingent consideration that was earned during the earn-out period of January 1, 2020 through June 30, 2020.

The issuances of such shares were deemed to be exempt from registration under the Securities Act of 1933 (the "Securities Act"), in reliance on Regulation D of the Securities Act as transactions by an issuer not involving a public offering.

As of June 30, 2020, the earn-out period was completed, and was no longer subject to fair value measurement.

The remaining amount of $ 0.5 million is held back in escrow for claims made against the escrow and for the payment of taxes.

Although these estimates are based on management’s best knowledge of current events, the estimates could change significantly from period to period.

Actual results that differ from the assumptions used and any changes to the significant assumptions and unobservable inputs used could have a material impact on future results of operations.

Equity Method Investments

The Company has certain non-marketable investments included in other assets that are accounted for under the equity method of accounting, with a carrying value of $ 39.9 million and $ 42.1 million as of December 31, 2020 and March 31, 2020, respectively.

Unrealized gains (losses) related to equity investments for the three and nine months ended December 31, 2020 and 2019 were not material and are included in other income, net in the Company's condensed consolidated statements of operations.

There was no impairment of these assets during the three and nine months ended December 31, 2020 or 2019.

The Company has certain non-marketable investments included in other assets that are accounted for under the equity method of accounting, with a carrying value of $ 42.3 million and $ 40.7 million as of June 30, 2021 and March 31, 2021, respectively.

Unrealized gains (losses) related to equity investments for the three months ended June 30, 2021 and 2020 were not material and are included in other income, net in the Company's condensed consolidated statements of operations.

There was no impairment of these assets during the three months ended June 30, 2021 or 2020.

Other Assets Measured at Fair Value on a Nonrecurring Basis

3 unchanged sentences

The carrying value is also adjusted for observable price changes with a same or similar security from the same issuer.

The amount of these investments included in other assets was immaterial as of December 31, 2020 and March 31, 2020.

There was no impairment of these assets during the three and nine months ended December 31, 2020 or 2019.

The amount of these investments included in other assets was immaterial as of June 30, 2021 and March 31, 2021.

There was no impairment of these assets during the three months ended June 30, 2021 or 2020.

Non-Financial Assets.

1 unchanged sentence

However, if certain triggering events occur (or tested at least annually for goodwill) such that a non-financial instrument is required to be evaluated for impairment and an impairment is recorded to reduce the non-financial instrument's carrying value to the fair value as a result of such triggering events, the non-financial assets and liabilities are measured at fair value for the period such triggering events occur.

There was no impairment of these assets during the three and nine months ended December 31, 2020 or 2019.

There was no impairment of these assets during the three months ended June 30, 2021 or 2020.

Note 7 — Derivative Financial Instruments

Under certain agreements with the respective counterparties to the Company’s derivative contracts, subject to applicable requirements, the Company is allowed to net settle transactions of the same type with a single net amount payable by one party to the other.

However, the Company presents its derivative assets and derivative liabilities on a gross basis on the condensed consolidated balance sheets as of December 31, 2020 and March 31, 2020.

The fair value of the Company’s derivative instruments was not material as of December 31, 2020 or March 31, 2020.

However, the Company presents its derivative assets and derivative liabilities on a gross basis on the condensed consolidated balance sheets as of June 30, 2021 and March 31, 2021.

The fair value of the Company’s derivative instruments was not material as of June 30, 2021 or March 31, 2021.

The amount of gain (loss) recognized on derivatives not designated as hedging instruments was not material in all periods presented herein.

The following table presents the amounts of gains (losses) on the Company’s derivative instruments designated as hedging instruments and their locations on its condensed consolidated statements of operations and condensed consolidated statements of comprehensive income for the three and nine months ended December 31, 2020 and 2019 (in thousands):

The following table presents the amounts of gains (losses) on the Company’s derivative instruments designated as hedging instruments and their locations on its condensed consolidated statements of operations and condensed consolidated statements of comprehensive income for the three months ended June 30, 2021 and 2020 (in thousands):

Three Months Ended

6 unchanged sentences

Cash flow hedges $ 530 $ ( 2,367 ) $ ( 594 ) $ ( 330 )

Nine Months Ended

Amount of Gain (Loss)

Deferred as a Component of Accumulated

Other Comprehensive Loss Amount of Loss (Gain)

Reclassified from Accumulated Other Comprehensive Loss to

Costs of Goods Sold

2020 2019 2020 2019

Cash Flow Hedges

The Company enters into cash flow hedge contracts to protect against exchange rate exposure of forecasted inventory purchases.

5 unchanged sentences

In all periods presented herein, there have been no forecasted inventory purchases that were probable to not occur by the end of the originally specified time period or within an additional two-month period of time thereafter.

The notional amounts of foreign currency exchange forward contracts outstanding related to forecasted inventory purchases were $ 166.1 million as of December 31, 2020 and $ 48.0 million as of March 31, 2020.

The Company had $ 4.9 million of net losses related to its cash flow hedges included in accumulated other comprehensive loss as of December 31, 2020, which will be reclassified into earnings within the next 12 months.

The notional amounts of foreign currency exchange forward contracts outstanding related to forecasted inventory purchases were $ 138.5 million as of June 30, 2021 and $ 164.5 million as of March 31, 2021.

The Company had $ 3.7 million of net losses related to its cash flow hedges included in accumulated other comprehensive loss as of June 30, 2021, which will be reclassified into earnings within the next 12 months.

Other Derivatives

3 unchanged sentences

The gains or losses on these contracts are recognized in other income, net in the condensed consolidated statements of operations based on the changes in fair value.

The notional amounts of these contracts outstanding as of December 31, 2020 and March 31, 2020 were $ 157.2 million and $ 64.7 million, respectively.

Open forward and swap contracts outstanding as of December 31, 2020 and March 31, 2020 consisted of contracts in Mexican Pesos, Japanese Yen, Canadian Dollars, Taiwan New Dollars and Australian Dollars to be settled at future dates at pre-determined exchange rates.

The notional amounts of these contracts outstanding as of June 30, 2021 and March 31, 2021 were $ 240.2 million and $ 123.8 million, respectively.

Open forward and swap contracts outstanding as of June 30, 2021 and March 31, 2021 consisted of contracts in Mexican Pesos, Japanese Yen, Canadian Dollars, Taiwanese Dollars, and Australian Dollars to be settled at future dates at pre-determined exchange rates.

Open forward and swap contracts outstanding as of June 30, 2021 additionally consisted of contracts in Chinese Renminbi and Brazilian Real to be settled at future dates at pre-determined exchange rates, which were primarily attributable to the increase in the notional amounts outstanding as of June 30, 2021 compared to March 31, 2021.

The fair value of all foreign currency exchange forward and swap contracts is determined based on observable market transactions of spot currency rates and forward rates.

2 unchanged sentences

The Company conducts its impairment analysis of goodwill annually at December 31 and as necessary, if changes in facts and circumstances indicate that it is more likely than not that the fair value of the Company’s reporting unit may be less than its carrying amount.

The Company conducted its annual impairment analysis of goodwill as of December 31, 2020 by performing a qualitative assessment and concluded that it was more likely than not that the fair value of its reporting unit exceeds its carrying amount.

In assessing the qualitative factors, the Company considered the impact of change in industry and competitive environment, growth in the Company's market capitalization and budgeted-to-actual revenue performance for the last twelve months.

The following table summarizes the activities in the Company’s goodwill balance during the nine months ended December 31, 2020 (in thousands):

There have been no events or circumstances during the three months ended June 30, 2021 that have required the Company to perform an interim assessment of goodwill.

The following table summarizes the activities in the Company’s goodwill balance during the three months ended June 30, 2021 (in thousands):

As of March 31, 2021 $ 429,604

Acquisition 20,721

Currency translation ( 593 )

As of December 31, 2020 $ 400,993

As of June 30, 2021 $ 449,732

On May 19, 2021, the Company made an immaterial technology acquisition for a total cash consideration of $ 25.6 million, including up to $ 10.0 million earn-out payable in cash upon the achievement of three technical development milestones required to be completed for periods ending December 31, 2021, June 30, 2022, and June 30, 2023, which was accounted for using the acquisition method.

The Company retained 6 % of the total consideration for the purpose of ensuring seller's representations and warranties.

The Company's acquired intangible assets subject to amortization were as follows (in thousands):

December 31, 2020 March 31, 2020

June 30, 2021 March 31, 2021

Gross Carrying Amount Accumulated

4 unchanged sentences

Customer contracts/relationships 91,012 ( 47,449 ) 43,563 91,010 ( 44,261 ) 46,749

In-process R&D 3,526 — 3,526 3,526 — 3,526

Total $ 280,936 $ ( 168,707 ) $ 112,229 $ 275,012 $ ( 159,864 ) $ 115,148

Note 9 — Financing Arrangements

The Company had several uncommitted, unsecured bank lines of credit aggregating $ 82.6 million as of December 31, 2020.

The Company had several uncommitted, unsecured bank lines of credit aggregating $ 191.6 million as of June 30, 2021.

There are no financial covenants under these lines of credit with which the Company must comply.

As of December 31, 2020, the Company had outstanding bank guarantees of $ 37.8 million under these lines of credit.

There was no borrowing outstanding under these lines of credit as of December 31, 2020 or March 31, 2020.

As of June 30, 2021, the Company had outstanding bank guarantees of $ 24.7 million under these lines of credit.

There was no borrowing outstanding under these lines of credit as of June 30, 2021 or March 31, 2021.

Note 10 — Commitments and Contingencies

Product Warranties

Changes in the Company’s warranty liability for the three and nine months ended December 31, 2020 and 2019 were as follows (in thousands):

Changes in the Company’s warranty liability for the three months ended June 30, 2021 and 2020 were as follows (in thousands):

Three Months Ended

December 31, Nine Months Ended

2020 2019 2020 2019

Beginning of the period $ 48,832 $ 40,039

5 unchanged sentences

The Company indemnifies certain of its suppliers and customers for losses arising from matters such as intellectual property disputes and product safety defects, subject to certain restrictions.

The scope of these

indemnities varies, but in some instances, includes indemnification for damages and expenses, including reasonable attorneys’ fees.

As of December 31, 2020, no amounts have been accrued for these indemnification provisions.

The scope of these indemnities varies, but in some instances, includes indemnification for damages and expenses, including reasonable attorneys’ fees.

As of June 30, 2021, no amounts have been accrued for these indemnification provisions.

The Company does not believe, based on historical experience and information currently available, that it is probable that any material amounts will be required to be paid under its indemnification arrangements.

3 unchanged sentences

Legal Proceedings

From time to time the Company is involved in claims and legal proceedings that arise in the ordinary course of its business.

From time to time the Company is involved in claims and legal proceedings which arise in the ordinary course of its business.

The Company is currently subject to several such claims and a small number of legal proceedings.

The Company believes that these matters lack merit and intends to vigorously defend against them.

Based on currently available information, the Company does not believe that resolution of pending matters will have a material adverse effect on its financial condition, cash flows or results of operations.

However, litigation is subject to inherent uncertainties, and there can be no assurances that the Company’s defenses will be successful or that any such lawsuit or claim would not have a material adverse impact on the Company’s business, financial condition, cash flows or results of operations in a particular period.

Based on currently available information, the Company does not believe that resolution of pending matters will have a material adverse effect on its financial position, cash flows or results of operations.

However, litigation is subject to inherent uncertainties, and there can be no assurances that the Company's defenses will be successful or that any such lawsuit or claim would not have a material adverse impact on the Company's business, financial position, cash flows or results of operations in a particular period.

Any claims or proceedings against the Company, whether meritorious or not, can have an adverse impact because of defense costs, diversion of management and operational resources, negative publicity and other factors.

2 unchanged sentences

Share Repurchase Program

In March 2017, the Company's Board of Directors approved the 2017 share buyback program, which authorized the Company to use up to $ 250.0 million to purchase up to 17.3 million shares of Logitech shares.

This share buyback program expired in April 2020.

The Company did not repurchase any of its registered shares during April 2020.

In May 2020, the Company's Board of Directors approved the 2020 share buyback program, which authorized the Company to use up to $ 250.0 million to purchase up to 17.3 million of Logitech shares.

The Company's share buyback program is expected to remain in effect for a period of three years .

In March 2017, the Company's Board of Directors approved the 2017 share repurchase program, which authorized the Company to use up to $ 250.0 million to purchase up to 17.3 million shares of Logitech shares.

This share repurchase program expired in April 2020.

In May 2020, the Company's Board of Directors approved the 2020 share repurchase program, which authorized the Company to use up to $ 250.0 million to purchase up to 17.3 million of Logitech shares.

Company's share repurchase program is expected to remain in effect for a period of three years .

Shares may be repurchased from time to time on the open market, through block trades or otherwise.

Purchases may be started or stopped at any time without prior notice depending on market conditions and other factors.

As of December 31, 2020, $ 177.6 million is still available for repurchase under the 2020 buyback program.

During the three and nine months ended December 31, 2020, the Company declared and paid cash dividends of CHF 0.79 (USD equivalent of $ 0.87 ) per share, totaling $ 146.7 million on the Company's outstanding shares.

During the three and nine months ended December 31, 2019, the Company declared and paid cash dividends of CHF 0.73 (USD equivalent of $ 0.74 ) per share, totaling $ 124.2 million on the Company's outstanding shares.

Any future dividends will be subject to approval of the Company's shareholders.

Additional Authorized and Conditional Shares

The Company has reserved conditional capital of 25,000,000 shares for potential issuance on the exercise of rights granted under the Company's employee equity incentive plans and additional conditional capital for financing purposes, representing the issuance of up to 25,000,000 shares to cover any conversion rights under a future convertible bond issuance.

At the 2018 Annual General Meeting, the shareholders of the Company authorized the Board of Directors to issue up to an additional 34,621,324 shares of the Company until September 5, 2020, which authority expired on that date.

At the 2020 Annual General Meeting, the shareholders of the Company authorized the Board of Directors to issue up to an additional 17,310,662 shares of the Company until September 9, 2022.

In April 2021, the Company's Board of Directors approved an increase of $ 750.0 million of the 2020 share repurchase program, to an aggregate amount of $ 1.0 billion.

The Swiss Takeover Board approved this increase and it became effective on May 21, 2021.

As of June 30, 2021, $ 780.4 million is still available for repurchase under the 2020 repurchase program.

Accumulated Other Comprehensive Income (Loss)

5 unchanged sentences

Other comprehensive income (loss) 1,850 ( 289 ) ( 64 ) 1,497

December 31, 2020 $ ( 78,212 ) $ ( 19,812 ) $ ( 4,893 ) $ ( 102,917 )

June 30, 2021 $ ( 87,611 ) $ ( 23,489 ) $ 3,682 $ ( 107,418 )

Note 12 — Segment Information

The Company has determined that it operates in a single operating segment that encompasses the design, manufacturing and marketing of peripherals for PCs, tablets and other digital platforms.

The Company operates in a single operating segment that encompasses the design, manufacturing and marketing of peripherals for PCs, tablets and other digital platforms.

Operating performance measures are provided directly to the Company's CEO, who is considered to be the Company’s Chief Operating Decision Maker.

1 unchanged sentence

These operating performance measures do not include restructuring charges (credits), net, share-based compensation expense, amortization of intangible assets, charges from the purchase accounting effect on inventory, acquisition-related costs, or change in fair value of contingent consideration from business acquisition.

Sales by product categories and sales channels, excluding intercompany transactions, for the three and nine months ended December 31, 2020 and 2019 were as follows (in thousands):

Sales by product categories and sales channels, excluding intercompany transactions, for the three months ended June 30, 2021 and 2020 were as follows (in thousands):

Three Months Ended

December 31, Nine Months Ended

2020 2019 2020 2019

Pointing Devices $ 182,878 $ 120,469

7 unchanged sentences

Smart Home 6,172 6,810

606 — 632 279

Total Sales $ 1,312,058 $ 791,894

1 unchanged sentence

(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.

Sales by geographic region (based on the customers’ locations) for the three and nine months ended December 31, 2020 and 2019 were as follows (in thousands):

Sales by geographic region (based on the customers’ locations) for the three months ended June 30, 2021 and 2020 were as follows (in thousands):

Three Months Ended

December 31, Nine Months Ended

2020 2019 2020 2019

Americas $ 612,566 $ 356,184

3 unchanged sentences

Sales are attributed to countries on the basis of the customers’ locations.

The United States and Germany each represented 10% or more of the total consolidated sales for each of the periods presented herein.

The United States, Germany and China each represented 10% or more of the total consolidated sales for each of the periods presented herein.

No other countries represented 10% or more of the Company’s total consolidated sales for the periods presented herein.

Switzerland, the Company’s home domicile, represented 3 % of the Company's total consolidated sales for the three and nine months ended December 31, 2020, respectively, and represented 4 % of the Company's total consolidated sales for the three and nine months ended December 31, 2019, respectively.

Switzerland, the Company’s home domicile, represented 3 % of the Company's total consolidated sales for the three months ended June 30, 2021 and represented 2 % of the Company's total consolidated sales for the three months ended June 30, 2020.

Two customers of the Company each represented 10% or more of the total consolidated sales for each of the periods presented herein.

Property, plant and equipment, net by geographic region were as follows (in thousands):

December 31, 2020 March 31, 2020

June 30, 2021 March 31, 2021

Americas $ 20,068 $ 20,810

2 unchanged sentences

Total property, plant and equipment, net $ 114,693 $ 114,060

Property, plant and equipment, net in the United States and China were $ 21.6 million and $ 59.6 million, respectively, as of December 31, 2020, and $ 26.5 million and $ 36.6 million, respectively, as of March 31, 2020.

No other countries represented 10% or more of the Company’s total consolidated property, plant and equipment, net as of December 31, 2020 or March 31, 2020.

Property, plant and equipment, net in Switzerland, the Company’s home domicile, were $ 4.6 million and $ 2.3 million as of December 31, 2020 and March 31, 2020, respectively.

Property, plant and equipment, net in the United States and China were $ 19.7 million and $ 73.1 million, respectively, as of June 30, 2021, and $ 20.5 million and $ 74.0 million, respectively, as of March 31, 2021.

No other countries represented 10% or more of the Company’s total consolidated property, plant and equipment, net as of June 30, 2021 or March 31, 2021.

Property, plant and equipment, net in Switzerland, the Company’s home domicile, were $ 6.8 million and $ 5.7 million as of June 30, 2021 and March 31, 2021, respectively.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements