What changed in this filing

/stocks — the workspaceLOADING

Item 9A. Controls and Procedures

2024-05-16 compared with 2023-05-17 · 325 added, 241 removed, 1279 unchanged (31% of the section changed)

21 unchanged sentences

The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

Over time, controls may become inadequate because of changes in conditions

Logitech International S.A.

| Fiscal 2024 Form 10-K | 54

or deterioration in the degree of compliance with policies or procedures.

Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

OTHER INFORMATION

Securities Trading Plans of Directors and Executive Officers

During the fourth quarter of fiscal year 2024, the following officer, as defined in Rule 16a-1(f), adopted a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” each as defined in Regulation S-K Item 408.

On March 7, 2024 , Prakash Arunkundrum , our Chief Operating Officer , adopted a Rule 10b5-1 trading arrangement providing for the sale of an aggregate of up to 16,000 shares of our common stock acquired by Mr.

Arunkundrum under our equity plans.

The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c).

The first date that sales of any shares are permitted to be sold under the trading arrangement will be July 31, 2024.

The trading arrangement terminates on December 15, 2024, or upon the earlier completion of all transactions thereunder.

No other officers or directors, as defined in Rule 16a-1(f), adopted and/or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as defined in Item 408 of Regulation S-K, during the last fiscal quarter.

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

3 unchanged sentences

Information regarding our executive officers is incorporated herein by reference to Part I, Item 1, above.

Other information required by this Item may be found in the definitive Proxy Statement for the 2023 Annual Meeting of Shareholders and is incorporated herein by reference.

The Company's code of ethics policy entitled, "Logitech Code of Conduct" covers members of the Company's board of directors, the principal executive officer, principal financial and accounting officer and other executive officers as well as all other employees.

Any amendments or waivers of the code of ethics for members of the Company's board of directors or executive officers will be disclosed in the investor relations section of the Company's website within four business days following the date of the amendment or waiver.

During fiscal year 2020, the Company updated and revised its code of ethics.

The new code was posted to the investor relations section of the Company's website.

Logitech's code of ethics is available on the Company's website at www.logitech.com, and for no charge, a copy of the Company's code of ethics can be requested through the following address or phone number:

Investor Relations

7700 Gateway Boulevard

Newark, CA 94560 USA

3930 North First Street

San Jose, CA 95134 USA

Main (510) 795-8500

We have adopted an Insider Trading Policy which applies to our executive officers, directors and employees, filed as Exhibit 19.1 to this Annual Report on Form 10-K.

Other information required by this Item may be found in the definitive Proxy Statement for the 2024 Annual Meeting of Shareholders and is incorporated herein by reference.

EXECUTIVE COMPENSATION

28 unchanged sentences

3.1 Articles of Incorporation of Logitech International S.A., as amended

10-Q 0-29174 10/26/2023 3.1

3.2 Organizational Regulations of Logitech International S.A., as amended

7 unchanged sentences

10.3 ** Logitech Inc.

Management Deferred Compensation Plan

Management Deferred Compensation Plan, as amended and restated

10-Q 0-29174 11/4/2008 10.1

** Logitech Inc.

Amended and Restated Deferred Compensation Plan, effective January 1, 2017

10-Q 0-29174 7/27/2023 10.1

** Logitech Management Performance Bonus Plan, as amended and restated

DEFA14A 0-29174 7/23/2013 App.

** 1996 Employee Share Purchase Plan (U.S.), as amended and restated

2 unchanged sentences

DEFA14A 0-29174 7/23/2013 App.

10.6 ** Form of Director and Officer Indemnification Agreement with Logitech International S.A.

20-F 0-29174 5/21/2003 4.1

10.7 ** Form of Director and Officer Indemnification Agreement with Logitech Inc.

20-F 0-29174 5/21/2003 4.2

10.8 ** Logitech Management Performance Bonus Plan, as amended and restated

DEFA14A 0-29174 7/23/2013 App.

** Representative form of stock option agreement (employees) under the Logitech International S.A.

4 unchanged sentences

10-Q 0-29174 2/5/2013 10.2

10.11 ** Employment Agreement between Logitech Inc.

and Bracken Darrell, dated as of December 18, 2015

** Representative form of restricted stock unit agreement (non-executive board members) under the Logitech International S.A.

2006 Stock Incentive Plan

10-Q 0-29174 10/25/2018 10.1

** Representative form of restricted stock unit agreement (Leadership Team and other employees) under the Logitech International S.A.

2006 Stock Incentive Plan

10-Q 0-29174 7/28/2022 10.1

10.12 ** Representative form of restricted stock unit agreement (executives and other employees) under the Logitech International S.A.

1 unchanged sentence

10-K 0-29174 5/26/2017 10.33

** Representative form of performance share unit agreement (Group Management Team (executive officers), Leadership Team and other employees) under the Logitech International S.A.

2006 Stock Incentive Plan

10-Q 0-29174 7/28/2022 10.2

** Representative form of performance share unit agreement (executives and other employees) under the Logitech International S.A.

1 unchanged sentence

10-K 0-29174 5/26/2017 10.34

10.14 ** Representative form of restricted stock unit agreement (non-executive board members) under the Logitech International S.A.

2006 Stock Incentive Plan

** Employment Agreement between Logitech Europe S.A.

and Johanna W.

(Hanneke) Faber, dated October 29, 2023

8-K 0-29174 10/30/2023 10.1

Logitech International S.A.

| Fiscal 2024 Form 10-K | 58

Employment Agree ment between Logite ch Inc.

and Guy Gecht, Interim CEO, dated July 24, 2023

10-Q 0-29174 10/26/2023 10.1

** Employment Agreement between Logitech Inc.

and Nathan Olmstead, dated as of July 22, 2019

8-K 0-29174 7/23/2019 10.1

and Bracken Darrell, dated as of December 18, 2015

10-Q 0-29174 1/22/2016 10.1

** Employment Agreement between Logitech Inc.

1 unchanged sentence

10-Q 0-29174 7/23/2020 10.1

Logitech International S.A.

| Fiscal 2023 Form 10-K | 55

** Employment Agreement between Logitech Inc.

3 unchanged sentences

and Charles Boynton, dated as of February 6, 2023

10-K 0-29174 5/17/2023 10.18

** Offer Letter between Logitech Inc, and Charles Boynton, dated January 30, 2023

10.20 ** Representative form of restricted stock unit agreement (Leadership Team and other employees) under the Logitech International S.A.

2006 Stock Incentive Plan

10-Q 0-29174 7/28/2022 10.1

10.21 ** Representative form of performance share unit agreement (Group Management Team (executive officers), Leadership Team and other employees) under the Logitech International S.A.

2006 Stock Incentive Plan

10-Q 0-29174 7/28/2022 10.2

10-K 0-29174 5/17/2023 10.19

** Form of Director and Officer Indemnification Agreement with Logitech International S.A.

20-F 0-29174 5/21/2003 4.1

** Form of Director and Officer Indemnification Agreement with Logitech Inc.

20-F 0-29174 5/21/2003 4.2

Insider Trading Pol icy

21.1 List of Subsidiaries

4 unchanged sentences

32.1 Certification by Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Executive Clawback P olicy

101.INS XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document X

6 unchanged sentences

_______________________________________________________________________________

Logitech International S.A.

| Fiscal 2024 Form 10-K | 59

* This exhibit is furnished herewith, but not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under that section.

5 unchanged sentences

LOGITECH INTERNATIONAL S.A.

/s/ Bracken Darrell

Bracken Darrell

President and Chief Executive Officer

/s/ Johanna (Hanneke) Faber

Johanna (Hanneke) Faber

Chief Executive Officer

/s/ Charles Boynton

4 unchanged sentences

POWER OF ATTORNEY AND SIGNATURES

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Bracken Darrell and Charles Boynton, jointly and severally, his or her attorney-in-fact, with the power of substitution, for him or her in any and all capacities, to sign any amendments to this Annual Report on Form 10-K and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that each of said attorneys-in-fact, or his or her substitute or substitutes, may do or cause to be done by virtue hereof.

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Johanna (Hanneke) Faber and Charles Boynton, jointly and severally, his or her attorney-in-fact, with the power of substitution, for him or her in any and all capacities, to sign any amendments to this Annual Report on Form 10-K and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that each of said attorneys-in-fact, or his or her substitute or substitutes, may do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

2 unchanged sentences

Chairperson of the Board May 16, 2024

/s/ Bracken Darrell

Bracken Darrell

President, Chief Executive Officer and Director (Principal Executive Officer) May 17, 2023

/s/ Johanna (Hanneke) Faber

Johanna (Hanneke) Faber

Chief Executive Officer (Principal Executive Officer)

/s/ Charles Boynton

19 unchanged sentences

Director May 16, 2024

/s/ Michael Polk

Director May 17, 2023

/s/ Deborah Thomas

105 unchanged sentences

Change in fair value of contingent consideration for business acquisition ( 250 ) — ( 3,509 )

Restructuring charges (credits), net 34,573 2,165 ( 54 )

Restructuring charges, net 3,866 34,573 2,165

Total operating expenses 1,190,685 1,261,046 1,488,994

28 unchanged sentences

Hedging gain (loss):

Deferred hedging gain (loss), net of taxes 2,625 6,308 ( 4,071 )

Deferred hedging gain, net of taxes 1,109 2,625 6,308

Reclassification of hedging loss (gain) included in cost of goods sold 3,964 ( 8,391 ) ( 8,221 )

Total other comprehensive income 3,846 4,792 11,745

Total other comprehensive income (loss) ( 10,925 ) 3,846 4,792

Total comprehensive income $ 601,218 $ 368,421 $ 649,305

71 unchanged sentences

Acquisitions, net of cash acquired ( 14,424 ) ( 8,527 ) ( 16,236 )

Proceeds from return of strategic investments — — 2,934

Purchases of short-term investments — — ( 10,000 )

9 unchanged sentences

Tax withholdings related to net share settlements of restricted stock units ( 29,744 ) ( 29,163 ) ( 64,156 )

Other financing activities ( 1,116 ) — —

Net cash used in financing activities ( 690,173 ) ( 583,353 ) ( 606,819 )

Effect of exchange rate changes on cash and cash equivalents ( 12,789 ) ( 24,620 ) ( 5,247 )

Net (decrease) increase in cash and cash equivalents ( 179,693 ) ( 421,611 ) 1,034,761

Net increase (decrease) in cash and cash equivalents

371,819 ( 179,693 ) ( 421,611 )

Cash and cash equivalents at beginning of the period 1,149,023 1,328,716 1,750,327

3 unchanged sentences

Property, plant and equipment purchased during the period and included in period end liability accounts $ 11,451 $ 8,593 $ 11,890

Non-cash payment for contingent consideration for acquisition $ — $ 292 $ 28,463

Fair value of contingent consideration in accrued and other liabilities $ — $ 2,151 $ 9,013

13 unchanged sentences

March 31, 2021 173,106 $ 30,148 $ 129,519 4,799 $ ( 279,541 ) $ 2,490,578 $ ( 108,915 ) $ 2,261,789

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

Total comprehensive income — — — — — 644,513 4,792 649,305

11 unchanged sentences

Issuance of shares upon vesting of restricted stock units — — ( 68,710 ) ( 968 ) 39,547 — — ( 29,163 )

Issuance of shares from contingent consideration — — 116 ( 4 ) 176 — — 292

Share-based compensation — — 71,801 — — — — 71,801

6 unchanged sentences

Issuance of shares upon vesting of restricted stock units — — ( 118,771 ) ( 994 ) 89,027 — — ( 29,744 )

Issuance of shares from contingent consideration — — 102 ( 2 ) 143 — — 245

Share-based compensation — — 83,127 — — — 83,127

8 unchanged sentences

Note 1— The Company

Logitech International S.A, together with its consolidated subsidiaries ("Logitech" or the "Company"), designs, manufactures and sells products that help businesses thrive and bring people together when working, creating, gaming and streaming.

Logitech International S.A, together with its consolidated subsidiaries ("Logitech" or the "Company"), designs software-enabled hardware solutions that help businesses thrive and bring people together when working, creating, gaming and streaming.

As a point of connection between people and the digital world, the Company's mission is to extend human potential in work and play, in a way that is good for people and the planet.

The Company sells its products to a broad network of international customers, including direct sales to retailers, e-tailers, and end consumers through the Company's e-commerce platform, and indirect sales to end customers through distributors.

15 unchanged sentences

References to "sales" in the Notes to the consolidated financial statements means net sales, except as otherwise specified.

Change in Presentation of Sales by Product Category

During the first quarter of fiscal year 2024, the Company changed its presentation of Sales by Product Category, included in Note 15, to provide a simpler and clearer view of the Company's business.

The change in presentation did not have an impact on previously reported total sales.

These changes included reclassifications of sales between certain product categories resulting in the following:

• The Webcams category (previously PC Webcams) now includes PC webcams and VC webcams;

• Headsets is a new category which includes PC headsets and VC headsets;

• The Mobile Speakers category is no longer a separate category as sales have been reclassified into the Other category;

• The Audio & Wearables category is no longer a separate category as sales have been reclassified into other categories as discussed below.

Logitech International S.A.

| Fiscal 2024 Form 10-K | 72

As a result of these changes, certain prior-period amounts for the fiscal years ending March 31, 2023 and 2022 have been reclassified to conform to the current period presentation as follows (in thousands):

Year ended March 31, 2023

As previously reported Reclassifications As adjusted

Gaming $ 1,211,485 $ 76,828 (1)

Keyboards & Combos 836,432 — 836,432

Pointing Devices 728,357 — 728,357

Video Collaboration 887,517 ( 209,594 ) (2) (3)

227,692 150,996 (3)

Tablet Accessories 254,374 — 254,374

Headsets — 176,576 (2)

Other 7,081 191,074 (4) (5)

Mobile Speakers 111,649 ( 111,649 ) (4)

Audio & Wearables 274,231 ( 274,231 ) (1) (2) (5)

Total Sales $ 4,538,818 $ — $ 4,538,818

Year ended March 31, 2022

As previously reported Reclassifications As adjusted

Gaming $ 1,451,883 $ 125,312 (1)

Keyboards & Combos 967,301 — 967,301

Pointing Devices 781,108 — 781,108

Video Collaboration 997,164 ( 329,594 ) (2) (3)

403,651 272,465 (3)

Tablet Accessories 310,123 — 310,123

Headsets — 208,318 (2)

Other 18,665 274,705 (4) (5)

Mobile Speakers 149,782 ( 149,782 ) (4)

Audio & Wearables 401,424 ( 401,424 ) (1) (2) (5)

Total Sales $ 5,481,101 $ — $ 5,481,101

(1) Reclassification of Blue Microphones from "Audio & Wearables" to the Gaming category.

(2) Reclassification of VC headsets and PC headsets to the new Headsets category from "Video Collaboration" and "Audio & Wearables," respectively.

(3) The Webcams category includes amounts previously reported as "PC Webcams" as well as amounts from VC webcams reclassified from "Video Collaboration."

(4) Reclassification of all amounts previously reported in "Mobile Speakers" to the Other category.

(5) Reclassification of PC speakers previously reported in "Audio & Wearables" to the Other category.

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 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 ("Customer Programs") and related breakage when appropriate, inventory valuation, share-based compensation expense, uncertain tax positions, and valuation allowances for deferred tax assets.

Significant estimates and assumptions made by management involve the fair value of goodwill and intangible assets acquired from business acquisitions, 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 ("Customer Programs") and related breakage when appropriate,

Logitech International S.A.

| Fiscal 2024 Form 10-K | 73

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 those estimates.

1 unchanged sentence

Impacts of Macroeconomic and Geopolitical Conditions on the Company's Business

In fiscal year 2023, the Company's business was impacted by adverse macroeconomic and geopolitical conditions.

These conditions included inflation, foreign currency fluctuations, and slowdown of economic activity around the world, in part due to rising interest rates, and lower consumer and enterprise spending.

In addition, the war in Ukraine resulted in global supply chain, logistics, and inflationary challenges.

The Company had no revenue in Russia and Ukraine in fiscal year 2023 as it has indefinitely ceased all sales and shipments to Russia and sales in Ukraine have also been halted due to the ongoing military operations on the Ukrainian territory.

Logitech International S.A.

| Fiscal 2023 Form 10-K | 68

The global and regional economic and political conditions adversely affect demand for the Company's products.

These conditions also had an impact on the Company's suppliers, contract manufacturers, logistics providers, and distributors, causing volatility in cost of materials and shipping and transportation rates, and as a result impacting the pricing of the Company's products.

The Company's business has been impacted by adverse macroeconomic and geopolitical conditions.

These conditions include inflation, interest rate and foreign currency fluctuations, changes in fiscal policies, slowdown of economic activity around the world, and lower consumer and enterprise spending.

The global and regional economic and political conditions adversely affected demand for the Company's products.

In addition, these conditions have caused and may continue to cause volatility in the cost of materials and logistics, and transportation delays, and as a result may impact the pricing of the Company's products, product availability and the Company's results of operations.

The functional currency of the Company's operations is primarily the U.S.

15 unchanged sentences

The transaction price is allocated to two performance obligations in such contracts, based on a relative standalone selling price.

The transaction price allocated to PCS is recognized as revenue on a straight-line basis, which reflects the pattern of delivery of PCS, over the estimated term of the support that is between one to two years .

Deferred revenue associated with remaining PCS performance obligation as of March 31, 2023 and March 31, 2022 was not material.

The transaction price allocated to PCS is recognized as revenue on a straight-line basis, which reflects the pattern of delivery of PCS, over the estimated term of the support.

The Company also recognizes revenue from subscription services that provide professional streamers with access to streaming software and tools that represent a single stand-ready performance obligation.

6 unchanged sentences

The Company's contracts with customers do not include significant financing components as the period between the satisfaction of performance obligations and timing of payment are generally within one year.

Logitech International S.A.

| Fiscal 2024 Form 10-K | 74

The transaction price received by the Company from sales to its distributors, retail companies ("retailers"), and authorized resellers is calculated as selling price net of variable consideration which may include product returns and the Company’s payments for Customer Programs related to current period product revenue.

1 unchanged sentence

Customer Programs require management to estimate the percentage of those programs which will not be claimed in the current period or will not be earned by customers, which is commonly referred to as "breakage." Breakage is estimated based on historical claim experience, the period in which customer claims are expected to be submitted, specific terms and conditions with customers and other factors.

The Company accounts for breakage as part of variable consideration, subject to constraint, and records the estimated impact in the same

Logitech International S.A.

| Fiscal 2023 Form 10-K | 69

period when revenue is recognized at the expected value.

The Company accounts for breakage as part of variable consideration, subject to constraint, and records the estimated impact in the same period when revenue is recognized at the expected value.

Assessing the period in which claims are expected to be submitted and the relevance of the historical claim experience require significant management judgment to estimate the breakage of Customer Programs in any accounting period.

18 unchanged sentences

The Company regularly evaluates the adequacy of its estimates for Customer Programs and product returns.

Future market conditions and product transitions may require the Company to take action to change such programs and related estimates.

Future market conditions and product transitions may require the Company to take action to change such programs

Logitech International S.A.

| Fiscal 2024 Form 10-K | 75

and related estimates.

When the variables used to estimate these costs change, or if actual costs differ significantly from the estimates, the Company would be required to increase or reduce revenue or operating expenses to reflect the impact.

1 unchanged sentence

Sales taxes and value-added taxes (“VAT”) collected from customers, if applicable, which are remitted to governmental authorities are not included in revenue, and are reflected as a liability on the consolidated balance sheets.

Logitech International S.A.

| Fiscal 2023 Form 10-K | 70

Shipping and Handling Costs

The Company's shipping and handling costs are included in the cost of goods sold in the consolidated statements of operations for all periods presented.

The Company's shipping and handling costs are included in the cost of goods sold in the consolidated statements of operations.

Contract Balances

2 unchanged sentences

Contract liabilities are included in accrued and other current liabilities and other non-current liabilities on the consolidated balance sheets.

As of March 31, 2023 and 2022, the Company did not have any material contract liabilities balances or changes.

Contract Costs

11 unchanged sentences

Cash Equivalents

The Company classifies all highly liquid instruments purchased, such as bank time deposits, with an original maturity of three months or less at the date of purchase, to be cash equivalents.

The Company classifies all highly liquid instruments purchased, such as bank demand deposits, short-term time deposits, and U.S.

Treasury securities, with an original maturity of three months or less at the date of purchase, to be cash equivalents.

Cash equivalents are carried at cost, which approximates their fair value.

4 unchanged sentences

The Company sells to large distributors, retailers, and e-tailers and, as a result, maintains individually significant receivable balances with such customers.

The Company had the following customers that individually comprised 10% or more of its gross sales:

Logitech International S.A.

| Fiscal 2024 Form 10-K | 76

The Company had the following customers that individually comprised 10% or more of its gross sales:

Years Ended March 31,

2 unchanged sentences

Customer B 18 % 19 % 17 %

Customer C (1)

15 % 14 % N/A (1)

(1) The Company's two customers merged during fiscal year 2022 and the percentages for fiscal year 2023 and 2022 reflect the gross sales to the combined company.

The percentage for fiscal year 2021 is not disclosed as gross sales to each customer accounted for less than 10% of the Company's gross sales.

14 % 15 % 14 %

The Company had the following customers that individually comprised 10% or more of its accounts receivable:

25 unchanged sentences

| Fiscal 2024 Form 10-K | 77

software over useful lives from three to ten years , tooling over useful lives from six months to one year , and leasehold improvements over the lesser of the term of the lease or ten years .

software over useful lives from three to seven years , tooling over useful lives from six months to one year , and leasehold improvements over the lesser of the term of the lease or ten years .

When property and equipment is retired or otherwise disposed of, the cost and accumulated depreciation are relieved from the accounts and the net gain or loss is included in cost of goods sold or operating expenses, depending on the nature of the property and equipment.

8 unchanged sentences

The Company's incremental borrowing rate is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms.

Because the Company does not generally borrow in a collateralized basis, it uses its understanding of what its collateralized credit rating would be as an input to deriving an appropriate incremental borrowing rate.

Because the Company does not generally borrow on a collateralized basis, it uses its understanding of what its collateralized credit rating would be as an input to deriving an appropriate incremental borrowing rate.

The operating lease ROU assets include prepaid lease payments and exclude lease incentives.

Intangible Assets

The Company's intangible assets principally include goodwill, acquired technology, trademarks, and customer contracts and related relationships.

Intangible assets with finite lives, which include acquired technology, trademarks, customer contracts and related relationships, and others are carried at cost and amortized using the straight-line method over their useful lives ranging from one to ten years .

Intangible assets with indefinite lives, which include only goodwill and i n-process research and development ("IPR&D") , are recorded at cost and evaluated at least annually for impairment.

IPR&D is reclassified as intangible assets with finite lives and amortized over its estimated useful life upon completion of the underlying projects.

The Company's intangible assets include goodwill and intangible assets with finite lives, which primarily include acquired technology and customer contracts and related relationships.

Intangible assets with finite lives are carried at cost and amortized using the straight-line method over their useful lives ranging from one to ten years .

Impairment of Long-Lived Assets

10 unchanged sentences

In reviewing goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (greater than 50%) that the estimated fair value of a reporting unit is less than its carrying amount.

The Company also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative

Logitech International S.A.

| Fiscal 2023 Form 10-K | 73

impairment test.

The Company also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test.

The ultimate outcome of the goodwill impairment review for a reporting unit should be the same whether the Company chooses to perform the qualitative assessment or proceeds directly to the quantitative impairment test.

The Company operates as one reporting unit.

For the year ended March 31, 2023, the Company elected to perform a qualitative assessment and concluded that it was more likely than not that the fair value of its reporting unit exceeds its carrying amount.

For the year ended March 31, 2024, the Company

Logitech International S.A.

| Fiscal 2024 Form 10-K | 78

elected to perform a qualitative assessment and concluded that it was more likely than not that the fair value of its reporting unit exceeds its carrying amount.

The Company provides for income taxes using the asset and liability method, which requires that deferred tax assets and liabilities be recognized for the expected future tax consequences of temporary differences resulting from differing treatment of items for tax and financial reporting purposes, and for operating losses and tax credit carryforwards.

6 unchanged sentences

The carrying value of certain of the Company's financial instruments, including cash equivalents, accounts receivable and accounts payable approximates their fair value due to their short maturities.

The Company's investment securities portfolio consists of bank time deposits with an original maturity of three months or less and marketable securities (money market and mutual funds) related to a deferred compensation plan.

The Company's investment securities portfolio consists of bank demand deposits, short-term time deposits, and U.S.

Treasury securities with an original maturity of three months or less and marketable securities (money market and mutual funds) related to a deferred compensation plan.

The Company's investments related to the deferred compensation plan are reported at fair value based on quoted market prices.

14 unchanged sentences

The grant date fair value for stock options and stock purchase rights is estimated using the Black-Scholes-Merton option-pricing valuation model.

The grant date fair value of service-based restricted stock units ("RSUs") is calculated based on the market price on the date of grant, reduced by estimated dividend yield

The grant date fair value of service-based restricted stock units ("RSUs") is calculated based on the market price on the date of grant, reduced by estimated dividend yield prior to vesting.

The grant date fair value of restricted stock units which vest upon meeting certain market- and performance-based conditions ("PSUs") is estimated using the Monte-Carlo simulation method including the effect of the market condition.

Stock-based compensation expense is recognized ratably over the respective requisite

Logitech International S.A.

| Fiscal 2024 Form 10-K | 79

prior to vesting.

Stock-based compensation expense is recognized ratably over the respective requisite service periods of the awards and forfeitures are accounted for when they occur.

service periods of the awards and forfeitures are accounted for when they occur.

For PSUs, the Company recognizes compensation expense using its estimate of probable outcome at the end of the performance period (i.e., the estimated performance against the performance targets).

34 unchanged sentences

Termination benefits are calculated based on regional benefit practices and local statutory requirements.

Recent Accounting Pronouncements Adopted

In October 2021, the Financial Accounting Standard Board issued Accounting Standards Update 2021-08, "Business Combinations (Topic 805):

Accounting for Contract Assets and Contract Liabilities from Contracts with Customers " ("ASU 2021-08").

The update requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers , as if it had originated the contracts.

The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022.

The Company early adopted the standard effective April 1, 2022 and applied the standard prospectively to business combinations that occurred on or after April 1, 2022.

The adoption of ASU 2021-08 did not have a material impact on the Company's consolidated financial statements.

New Accounting Pronouncements Not Yet Adopted

In November 2023, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures .

ASU 2023-07 improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker.

In addition, ASU 2023-07 requires that all existing annual disclosures about segment profit or loss must be provided on an interim basis and clarifies that single reportable segment entities are subject to the disclosure requirement under Topic 280 in its entirety.

ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within those fiscal years beginning after December 15, 2024.

A public entity should apply ASU 2023-07 retrospectively to all prior periods presented in the financial statements.

Early adoption is permitted.

The Company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures .

ASU 2023-09 requires additional disclosures related to rate reconciliation, income taxes paid, and other disclosures.

Under ASU 2023-09, for each annual period presented, public entities are required to (1) disclose specific categories in the tabular rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold.

In addition, ASU 2023-09 requires all reporting entities to disclose on an annual basis the amount of income taxes paid disaggregated by federal, state, and foreign taxes as well as the amount of income taxes paid by individual jurisdiction.

ASU 2023-09 is effective for public business entities for annual periods beginning after December 15, 2024 and can be applied on a prospective basis with an option to apply the standard retrospectively.

Early adoption is permitted.

The Company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements and related disclosures.

Note 3— Net Income Per Share

10 unchanged sentences

Diluted $ 3.87 $ 2.23 $ 3.78

Share equivalents attributable to outstanding stock options, RSUs, PSUs and employee share purchase plans ("ESPP") totaling 2.0 million , 2.0 million, and 0.1 million shares during fiscal years 2023, 2022 and 2021, respectively, were excluded from the calculation of diluted net income per share because their effect would have been anti-dilutive.

For fiscal years 2023 and 2022, a small number of performance-based awards were not included in the dilutive net income per share 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.

Share equivalents attributable to outstanding stock options, restricted stock units and employee share purchase plans ("ESPP") totaling 1.1 million, 2.0 million, and 2.0 million shares during fiscal years 2024, 2023 and 2022, respectively, were excluded from the calculation of diluted net income per share because their effect would have been anti-dilutive.

A small number of PSUs were not included in the dilutive net income per share calculation

Logitech International S.A.

| Fiscal 2024 Form 10-K | 81

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.

Note 4— Employee Stock-Based Compensation

1 unchanged sentence

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

Logitech International S.A.

| Fiscal 2023 Form 10-K | 76

Under the 1996 ESPP and 2006 ESPP plans, eligible employees may purchase shares at the lower of 85 % of the fair market value at the beginning or the end of each offering period, which is generally six months .

10 unchanged sentences

Service-based restricted stock units ("RSUs") granted to employees under the 2006 Plan generally vest in four equal annual installments on the grant date anniversary.

RSUs granted to non-executive board members under the 2006 Plan vest on the grant date anniversary, or if earlier and only if the non-executive board member is not re-elected as a director at such annual general meeting, the date of the next annual general meeting following the grant date.

Restricted stock units with certain market- and performance-based conditions ("PSUs") granted to employees under the 2006 Plan vest at the end of the three-year performance period upon meeting predetermined financial metrics over three years , with the number of shares to be received upon vesting determined based on weighted average constant currency revenue growth rate and the Company's total shareholder return ("TSR") relative to the performance of companies in the Russell 3000 Index over the same three years period.

RSUs granted to non-executive board members under the 2006 Plan vest on the grant date anniversary, or if earlier and only if the non-executive board member is not re-elected as a director at the annual general meeting, the date of the next annual general meeting following the grant date.

Restricted stock units with certain market- and performance-based conditions ("PSUs") granted to employees under the 2006 Plan generally vest at the end of the three-year performance period upon meeting predetermined financial metrics over three years , with the number of shares to be received upon vesting determined based on constant currency revenue growth rate, adjusted operating income (loss) and the Company's total shareholder return ("TSR") relative to the performance of companies in the Russell 3000 Index over the same three years period.

The following table summarizes share-based compensation expense and total income tax benefit recognized for fiscal years 2024, 2023 and 2022 (in thousands):

8 unchanged sentences

Total share-based compensation expense, net of income tax benefit $ 67,584 $ 61,032 $ 66,492

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.

Share-based compensation costs capitalized as part of inventory were $ 6.3 million, $ 5.6 million, and $ 5.2 million for the fiscal year ended March 31, 2024, 2023 and 2022, respectively.

As of March 31, 2023, there was $ 125.2 million of total future stock-based compensation cost to be recognized over a weighted-average period of 2.4 years.

The estimates of share-based compensation expense require a number of complex and subjective assumptions including stock price volatility, employee exercise patterns, probability of achievement of the set performance condition, dividend yield, related tax effects and the selection of an appropriate fair value model.

The grant date fair value of the stock options and ESPP using the Black-Scholes-Merton option-pricing valuation model and the grant date fair value of the PSUs using the Monte-Carlo simulation method are determined with the following assumptions and values:

Logitech International S.A.

| Fiscal 2024 Form 10-K | 82

As of March 31, 2024, there was $ 137.7 million of total future stock-based compensation cost to be recognized over a weighted-average period of 2.3 years.

Stock Options (1)

22 unchanged sentences

The risk-free interest rate assumptions are based upon the implied yield of U.S.

Treasury zero-coupon issues appropriate for the expected term of the Company's share-based awards.

Treasury zero-coupon issues or Switzerland government bonds appropriate for the expected term of the Company's share-based awards.

For PSUs, the Company estimates the probability and timing of the achievement of the set performance condition at the time of the grant based on the historical financial performance and the financial forecast in the remaining performance period and reassesses the probability in subsequent periods when actual results or new information become available.

Logitech International S.A.

| Fiscal 2024 Form 10-K | 83

A summary of the Company's stock option activities under all stock plans for fiscal years 2024, 2023 and 2022 is as follows:

5 unchanged sentences

Exercised ( 155 ) $ 6,482

Forfeited ( 118 )

Outstanding, March 31, 2023

1,120 $ 66 7.6 $ 7,491

Exercised ( 181 ) $ 43 $ 6,160

1 unchanged sentence

Outstanding, March 31, 2024

763 $ 68 7.0 $ 16,243

Vested and exercisable, March 31, 2024

Logitech International S.A.

| Fiscal 2023 Form 10-K | 78

The tax benefit realized for the tax deduction from options exercised during fiscal years 2023, 2022 and 2021 was $ 0.1 million, $ 1.2 million and $ 0.6 million, respectively.

489 $ 61 6.5 $ 13,960

A summary of the Company's RSU and PSU activities for fiscal years 2024, 2023 and 2022 is as follows:

18 unchanged sentences

The shares outstanding as of March 31, 2024 above include 0.7 million shares of PSUs.

The Company presents the number of PSUs at 100 percent of the performance target;

however, the aggregate fair value of shares vested during the year is based on the actual number of stock units vested based on the achievement of the financial metrics over the performance period.

The tax benefit realized for the tax deduction from RSUs and PSUs that vested during fiscal years 2023, 2022 and 2021 was $ 11.1 million, $ 25.2 million and $ 16.3 million, respectively.

The Company presents the number of PSUs and weighted-average grant date fair value at 100 percent of the performance target;

however, the aggregate fair value of shares vested is based on the actual number of PSUs vested according to achievement of the financial metrics over the performance period.

Note 5— Employee Benefit Plans

1 unchanged sentence

Certain of the Company's subsidiaries sponsor defined benefit pension plans or non-retirement post-employment benefits covering substantially all of their employees.

Benefits are provided based on employees' years of service and earnings, or in accordance with applicable employee benefit regulations.

Benefits are provided based on employees' years

Logitech International S.A.

| Fiscal 2024 Form 10-K | 84

of service and earnings, or in accordance with applicable employee benefit regulations.

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

1 unchanged sentence

Each plan's assets and benefit obligations are generally remeasured as of March 31 each year.

Logitech International S.A.

| Fiscal 2023 Form 10-K | 79

The net periodic benefit cost of the defined benefit pension plans and the non-retirement post-employment benefit obligations for fiscal years 2024, 2023 and 2022 was as follows (in thousands):

6 unchanged sentences

Net prior service credit recognized ( 500 ) ( 458 ) ( 465 )

Net actuarial loss (gain) recognized ( 3,047 ) ( 2,158 ) 2,144

Net actuarial gain recognized ( 179 ) ( 3,047 ) ( 2,158 )

Curtailment gain — ( 4,225 ) —

Settlement gain ( 339 ) — —

Settlement loss (gain)

922 ( 339 ) —

Total net periodic benefit cost $ 8,616 $ 3,780 $ 10,060

6 unchanged sentences

Plan participant contributions 6,731 6,870

Actuarial gain ( 22,965 ) ( 31,198 )

Actuarial loss (gain)

13,737 ( 22,965 )

Benefits paid ( 2,405 ) ( 2,646 )

Transfer of prior vested benefits 6,775 11,579

Plan amendments 380 —

Settlement ( 22,522 ) ( 15,348 )

4 unchanged sentences

The accumulated benefit obligation for all defined benefit pension plans as of March 31, 2024 and 2023 was $ 184.8 million and $ 170.3 million, respectively.

Actuarial gains related to the change in the benefit obligation for the Company's pension plans for fiscal years 2023 and 2022 w ere primarily due to an increase in discount rate.

Actuarial loss (gain) related to the change in the benefit obligation for the Company's pension plans for fiscal years 2024 and 2023 w ere primarily due to changes in discount rate.

Logitech International S.A.

| Fiscal 2024 Form 10-K | 85

The following table presents the changes in the fair value of defined benefit pension plan assets for fiscal years 2023 and 2022 (in thousands):

The changes in the fair value of plan assets for fiscal years 2024 and 2023 were as follows (in thousands):

Years Ended March 31,

87 unchanged sentences

The Company also had deferred compensation liability of $ 29.2 million and $ 28.2 million, which are included in other non-current liabilities on the consolidated balance sheets as of March 31, 2024 and 2023, respectively.

Earnings, gains and losses on deferred compensation investments are included in other income (expense), net and corresponding changes in deferred compensation liability are included in operating expenses and cost of goods sold in the consolidated statements of operations (see Note 6).

Earnings, gains and losses on deferred compensation investments are included in other income (expense), net (see Note 6) and corresponding changes in deferred compensation liability are included in operating expenses and cost of goods sold in the consolidated statements of operations.

Note 6— Other Income (Expense), Net

2 unchanged sentences

2024 2023 2022

Investment (loss) gain related to the deferred compensation plan $ ( 1,961 ) $ 1,231 $ 5,916

Investment gain (loss) related to the deferred compensation plan $ 4,320 $ ( 1,961 ) $ 1,231

Currency exchange loss, net ( 8,770 ) ( 7,337 ) ( 4,604 )

1 unchanged sentence

( 14,674 ) ( 14,073 ) ( 1,683 )

Non-service cost net pension income (expense) and other (2)

Non-service cost net pension income and other (2)

2,748 10,093 5,616

21 unchanged sentences

Provision for income taxes $ 9,453 $ 98,947 $ 131,305

The difference between the provision for (benefit from) income taxes and the expected tax provision (tax benefit) at the statutory income tax rate of 8.5 % is reconciled below (in thousands):

The difference between the provision for (benefit from) income taxes and the expected tax provision (tax benefit) at the Swiss statutory income tax rate of 8.5 % is reconciled below (in thousands):

Years Ended March 31,

3 unchanged sentences

Research and development tax credits ( 9,738 ) ( 152 ) ( 5,957 )

Swiss Tax Ruling

( 50,051 ) — —

Executive compensation 407 749 4,683

6 unchanged sentences

Audit settlement — — ( 3,655 )

FDII deduction ( 18,675 ) — —

Other, net 671 439 670

2 unchanged sentences

| Fiscal 2024 Form 10-K | 89

The canton of Vaud completed the legislative process to enact the Swiss Federal Act on Tax Reform and AHV Financing (“TRAF”) , a reform to better align the Swiss tax system to international tax standards on March 20, 2020 that took effect as of January 1, 2020.

In March 2020, the Company reached an agreement with the Vaud Tax Administration that would allow for an increase in the tax basis of goodwill, as a transition measure under TRAF, to be amortized over ten years beginning on January 1, 2020.

During the fiscal year ended March 31, 2024, the Company reached an agreement to remeasure the tax basis of goodwill under TRAF with the canton of Vaud, which resulted in an income tax benefit of $ 25.1 million, net of assessment for uncertain tax positions.

The remeasurement of the step-up will be amortized over the remaining ten-year amortization period.

On December 29, 2023, a change to the cantonal tax legislation was published.

According to the law approved by the Vaud parliament, a progressive scale will be applicable for cantonal tax purposes resulting in an increase from the current tax rate of 13.61 % to 14.28 % effective fiscal year 2025.

The increase in tax rate resulted in a tax benefit of $ 5.1 million due to a remeasurement of the Company's Swiss deferred tax assets in the fiscal year ended March 31, 2024.

On March 28, 2024, the Company executed a Swiss Tax Ruling with the canton of Vaud that provides future tax benefit for ten years.

The Swiss Tax Ruling resulted in an income tax benefit of $ 50.1 million, which will be utilized over a ten-year period.

The Tax Cuts and Jobs Act enacted Section 250, which provides for a deduction with respect to Global Intangible Low-Taxed Income ("GILTI") and Foreign-Derived Intangible Income ("FDII") in the US.

The application of this tax incentive is inherently complex.

During the fiscal year ended March 31, 2024, the Company analyzed the applicability of FDII and determined that this tax incentive applies in fiscal 2021 to 2023 tax years.

As a result, the Company realized a tax benefit of $ 18.7 million related to FDII.

The Company has also concluded that any GILTI tax since the enactment of Tax Cuts and Jobs Act is immaterial.

Deferred income tax assets and liabilities consist of the following (in thousands):

1 unchanged sentence

Tax attributes carryforward $ 43,846 $ 36,700

Future tax deduction from Swiss Tax Ruling 49,755 —

Accruals 77,181 85,786

9 unchanged sentences

Deferred tax assets, net $ 224,126 $ 169,186

Included in tax attributes carryforward above are net operating loss and tax credit carryforwards.

Management regularly assesses the ability to realize deferred tax assets recorded in the Company's entities based upon the weight of available evidence, including such factors as recent earnings history and expected future taxable income.

1 unchanged sentence

The Company had a valuation allowance against deferred tax assets of $ 35.5 million at March 31, 2024, compared to $ 30.8 million at March 31, 2023.

The Company had a valuation allowance of $ 30.8 million as of March 31, 2023 against deferred tax assets in the state of California, an increase from $ 29.7 million as of March 31, 2022 from activities during the year.

The Company had a valuation allowance of $ 35.3 million as of March 31, 2024 against deferred tax assets in the state of California, an increase from $ 30.8 million as of March 31,

Logitech International S.A.

| Fiscal 2024 Form 10-K | 90

2023 from activities during the year.

The Company determined that it is more likely than not that the Company would not generate sufficient taxable income in the future to utilize such deferred tax assets.

As of March 31, 2024, the Company had net operating loss carryforwards in Switzerland for income tax purposes of $ 15.0 million which will begin to expire in fiscal year 2028.

The Company had net operating loss and tax credit carryforwards in the United States for income tax purposes of $ 60.2 million and $ 74.6 million, respectively.

The Company had net operating loss and tax credit carryforwards in the United States for income tax purposes of $ 55.0 million and $ 79.7 million, respectively, as of March 31, 2024.

Unused net operating loss carryforwards will expire at various dates beginning in fiscal year 2030.

9 unchanged sentences

As of March 31, 2024 and 2023, the total amount of unrecognized tax benefits due to uncertain tax positions was $ 192.7 million and $ 186.8 million, respectively, all of which would affect the effective income tax rate if recognized.

Logitech International S.A.

| Fiscal 2023 Form 10-K | 85

As of March 31, 2024 and 2023, the Company had $ 112.6 million and $ 106.4 million, respectively, in non-current income taxes payable, including interest and penalties, related to the Company's income tax liability for uncertain tax positions.

2 unchanged sentences

Lapse of statute of limitations ( 4,232 )

Settlements with taxing authorities

Increases in balances related to tax positions taken during the year 22,366

1 unchanged sentence

Lapse of statute of limitations ( 3,586 )

Settlements with taxing authorities ( 2,015 )

Increases in balances related to tax positions taken during the year 15,214

1 unchanged sentence

Lapse of statute of limitations ( 3,863 )

Settlements with taxing authorities 41

Increases in balances related to tax positions taken during prior years

Increases in balances related to tax positions taken during the year 22,332

March 31, 2024 $ 210,215

Fiscal year 2020 includes gross unrecognized tax benefits recorded as a result of the enactment of the Tax Reform and AHV Financing ("TRAF") in Switzerland.

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

The Company recognized $ 2.7 million, $ 1.5 million, and $ 1.1 million in interest and penalties in income tax expense during fiscal years 2023, 2022 and 2021, respectively.

The Company recognized $ 1.7 million and $ 2.7 million, in interest and penalties related to unrecognized tax positions in income tax expense during fiscal years 2024 and 2023, respectively.

As of March 31, 2024 and 2023, the Company had $ 7.8 million, and $ 6.1 million, respectively, of accrued interest and penalties related to uncertain tax positions.

Logitech International S.A.

| Fiscal 2024 Form 10-K | 91

The Company files Swiss and foreign tax returns.

4 unchanged sentences

If the examinations are resolved unfavorably, there is a possibility they may have a material negative impact on its results of operations.

In fiscal year 2022, uncertain tax positions decreased by $ 4.2 million from an effective settlement of an income tax audit in a foreign jurisdiction.

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

During the next 12 months, it is reasonably possible that the amount of unrecognized tax benefits could increase or decrease significantly due to changes in tax law in various jurisdictions, new tax audits and changes in the U.S.

Dollar as compared to other currencies.

Excluding these factors, uncertain tax positions may decrease by as much as $ 5.0 million primarily from the lapse of the statutes of limitations in various jurisdictions during the next 12 months.

Logitech International S.A.

46 unchanged sentences

Income taxes payable 24,196 18,788

Deferred revenue (1)

19,262 11,017

Operating lease liabilities 15,107 12,655

6 unchanged sentences

Obligation for deferred compensation plan 29,174 28,213

Deferred revenue (1)

Warranty liabilities 14,384 12,025

Deferred tax liabilities 705 2,803

Contingent consideration — 4,217

Other non-current liabilities 2,603 4,595

$ 172,590 $ 146,695

(1) Includes deferred revenue for PCS and other services.

Note 9— Fair Value Measurements

19 unchanged sentences

Mutual funds 20,160 — — 17,578 — —

Total of investments for deferred compensation plan $ 28,213 $ — $ — $ 28,431 $ — $ —

Total investments for deferred compensation plan $ 29,174 $ — $ — $ 28,213 $ — $ —

Currency derivative assets included in other current assets $ — $ 913 $ — $ — $ 107 $ —

Contingent consideration included in accrued and other current liabilities $ — $ — $ 1,215 $ — $ — $ 6,629

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

Currency derivative liabilities included in accrued and other current liabilities $ — $ 573 $ — $ — $ 2,187 $ —

6 unchanged sentences

Settlements of contingent consideration

( 5,247 ) ( 5,954 )

Effect of foreign currency exchange rate changes 83 ( 1,827 )

End of the period $ 1,215 $ 6,629

On May 19, 2021, the Company made a technology acquisition for a total cash consideration of $ 25.6 million, which included contingent consideration of $ 10.0 million payable in cash upon the achievement of three technical development milestones to be completed as of December 31, 2021, June 30, 2022, and June 30, 2023.

The fair value of the contingent consideration was $ 10.0 million at the acquisition date, which was determined using a probability-weighted expected payment model and discounted at the estimated cost of debt.

During fiscal year 2022, the Company paid $ 0.9 million for the contingent consideration related to the first technical development milestone.

During fiscal year 2023, the Company paid $ 4.0 million for the contingent consideration related to the second technical development milestone.

The Company expects to pay the contingent consideration for the third technical development milestone within the next twelve months.

On February 17, 2021, the Company acquired all equity interests of Mevo Inc.

("Mevo") for a total cash consideration of $ 33.2 million, plus additional contingent consideration of up to $ 17.0 million payable in cash only upon the achievement of certain net revenues for the period from December 26, 2020 to December 31, 2021.

The fair value of the contingent consideration as of the 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

Logitech International S.A.

| Fiscal 2023 Form 10-K | 89

value of the earn-out payment, and discounted at the risk-free rate.

The valuation included 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 were based on the Company's internal projections, including analysis of the target market and historical sales of Mevo products.

As of March 31, 2021 the fair value of the contingent consideration remained as $ 3.4 million.

As of December 31, 2021, the fair value of the contingent consideration was released from other current liabilities as the net sales milestone was not achieved upon completion of the earn-out period.

On January 4, 2021, the Company made a technology acquisition for a total cash consideration of $ 11.0 million, which included contingent consideration of $ 3.0 million payable in cash upon the achievement of two technical development milestones to be completed as of December 31, 2021 and March 31, 2022.

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

During fiscal year 2023, the Company paid $ 2.0 million for the contingent consideration related to the first technical development milestone.

The Company expects to pay the remaining $ 1.0 million for the second technical development milestone within the next twelve months.

In connection with the acquisition of Streamlabs on October 31, 2019, 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 from January 1, 2020 to June 30, 2020.

During fiscal year 2021 and 2022, the Company issued 390,397 and 4,010 shares, respectively, out of treasury stock to former security holders of Streamlabs, in satisfaction of payment of the contingent consideration that was earned during the earn-out period.

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.

Although the estimate of contingent consideration is based on management’s best knowledge of current events, the estimate 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 an impact on future results of operations.

Investments for Deferred Compensation Plan

The marketable securities for the Company's deferred compensation plan are recorded at a fair value of $ 28.2 million and $ 28.4 million as of March 31, 2023 and 2022, respectively, based on quoted market prices.

The marketable securities for the Company's deferred compensation plan were recorded at a fair value of $ 29.2 million and $ 28.2 million as of March 31, 2024 and 2023, 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 marketable securities for fiscal years 2023, 2022 and 2021 are included in other income (expense), net in the consolidated statements of operations (see Note 6).

Unrealized gains (losses) related to marketable securities for fiscal years 2024, 2023 and 2022 were not material and were included in other income (expense), net (see Note 6) and corresponding changes in the deferred compensation liability were included in operating expenses and cost of goods sold, in the Company's consolidated statements of operations.

Equity Method Investments

The Company has certain non-marketable investments included in other assets that are accounted for as equity method investments, with a carrying value of $ 18.0 million and $ 20.5 million as of March 31, 2024 and 2023, respectively.

G ains (losses) related to equity method investments for fiscal years 2023, 2022 and 2021 were not material and are included in other income (expense), net in the Company's consolidated statements of operations (see Note 6).

G ains (losses) related to equity method investments for fiscal years 2024, 2023 and 2022 were not material a nd are included in other income (expense), net in the Company's consolidated statements of operations (see Note 6).

Logitech International S.A.

| Fiscal 2024 Form 10-K | 95

During fiscal year 2023, the Company recorded an impairment charge, before tax, of $ 21.4 million for one of its equity method investments as it was determined that the carrying value of the investment was not recoverable.

7 unchanged sentences

The amount of these equity investments without readily determinable fair value included in other assets was $ 10.1 million and $ 12.6 million as of March 31, 2024 and 2023, respectively.

During fiscal year 2023, the Company recorded an unrealized gain, before tax, of $ 6.9 million for its investment in a private company as a result of observable price changes for similar securities issued by this

Logitech International S.A.

| Fiscal 2023 Form 10-K | 90

company (level 2 fair value measurement).

There was no impairment of these investments during fiscal year 2022 and the impairment charges related to these investments were not material during fiscal years 2023 and 2024.

During fiscal year 2024, the Company recorded an impairment loss, before tax, of $ 9.6 million as a result of the write-off of a note receivable which has been deemed no longer recoverable.

This note receivable was previously obtained in conjunction with an exchange transaction related to the Company's investment in a privately held company.

The impairment loss is included in other income (expense), net, in the Company's consolidated statement of operations for the fiscal year 2024.

Non-Financial Assets.

2 unchanged sentences

See Note 2 for additional information about how the Company tests various asset classes for impairment.

There was no impairment of non-financial assets during the fiscal years of 2023 and 2021.

During fiscal year 2022, the Company recorded impairment charges of $ 7.0 million for the Jaybird-related intangible assets (see Note 11).

During fiscal year 2024 and fiscal year 2022, the Company recorded impairment charges of $ 3.5 million and $ 7.0 million, respectively, related to intangible as sets.

There was no impairment of non-financial assets during the fiscal year of 2023.

Note 10— 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 in other current assets and accrued and other current liabilities on the consolidated balance sheets as of March 31, 2023 and 2022.

However, the Company presents its derivative assets and derivative liabilities on a gross basis in other current assets and accrued and other current liabilities, respectively, on the consolidated balance sheets as of March 31, 2024 and 2023.

See Note 9 for the fair values of the Company’s derivative instruments as of March 31, 2024 and 2023.

4 unchanged sentences

Cash flows from such hedges are classified as operating activities in the consolidated statements of cash flows.

Hedging relationships are discontinued when hedging contract is no longer eligible for hedge accounting, or is sold, terminated or exercised, or when the Company removes hedge designation for the contract.

Hedging relationships are discontinued when the hedging contract is no longer eligible for hedge accounting, or is sold, terminated or exercised, or when the Company removes hedge designation for the contract.

Gains and losses in the fair value of the effective portion of the discontinued hedges continue to be reported in accumulated other comprehensive loss until the hedged inventory purchases are sold, unless it is probable that the forecasted inventory purchases will 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 invento ry purch ases were $ 90.5 million and $ 72.6 million as of March 31, 2024 and 2023, respectively.

The Company had $ 3.9 million of net losses related to its cash flow hedges included in accumulated other comprehensive loss as of March 31, 2023, which will be reclassified into earnings within the next twelve months.

Logitech International S.A.

| Fiscal 2024 Form 10-K | 96

Company had $ 1.1 million of net gain related to its cash flow hedges included in accumulated other comprehensive loss as of March 31, 2024, which will be reclassified into earnings within the next twelve months.

The following table presents the amounts of gain (loss) on the Company's derivative instruments designated as hedging instruments for fiscal years 2024, 2023 and 2022 and their locations on its consolidated statements of operations and consolidated statements of comprehensive income (in thousands):

11 unchanged sentences

cost of goods sold, for hedging forecasted inventory purchases and such amount is not material for all periods presented.

Logitech International S.A.

| Fiscal 2023 Form 10-K | 91

Other Derivatives

The Company also enters into foreign currency exchange forward and swap contracts to reduce the short-term effects of currency exchange rate fluctuations on certain receivables or payables denominated in currencies other than the functional currencies of its subsidiaries.

These contracts generally mature within approximately a month.

These contracts generally mature within approximately one month.

The primary risk managed by using forward and swap contracts is the currency exchange rate risk.

1 unchanged sentence

The notional amounts of these contracts outstanding as of March 31, 2024 and 2023 were $ 79.4 million and $ 111.2 million, respectively.

Foreign currency exchange forward and swap contracts outstanding as of March 31, 2023 primarily consisted of contracts in Brazilian Real, Japanese Yen, and Mexican Peso to be settled at future dates at pre-determined exchange rates.

Foreign currency exchange forward and swap contracts outstanding as of March 31, 2024 primarily consisted of contracts in New Taiwan Dollar, Canadian Dollar, and Brazilian Real to be settled at future dates at predetermined exchange rates.

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.

4 unchanged sentences

In assessing the qualitative factors, the Company considered the impact of change in industry and competitive environment, the Company's market capitalization and budgeted-to-actual revenue performance for the twelve months ended December 31, 2023.

There have been no triggering events identified affecting the valuation of goodwill subsequent to the annual impairment test.

There have bee n no trig gering events identified affecting the valuation of goodwill subsequent to the annual impairment test.

The following table summarizes the activities in the Company's goodwill balance (in thousands):

4 unchanged sentences

End of the period $ 461,978 $ 454,610

Logitech International S.A.

| Fiscal 2024 Form 10-K | 97

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

8 unchanged sentences

Total $ 207,879 $ ( 163,276 ) $ 44,603 $ 232,135 $ ( 168,962 ) $ 63,173

During fiscal year 2022, the Company recognized a pre-tax impairment charge of $ 7.0 million to Jaybird-related intangible assets, primarily related to customer contracts and relationships, as a result of its decision to discontinue Jaybird-branded products.

For fiscal years 2024, 2023 and 2022, amortization expense for intangible assets was $ 21.7 million , $ 24.4 million and $ 30.2 million , respectively.

The Company expects that annual amortization expense for fiscal years

Logitech International S.A.

| Fiscal 2023 Form 10-K | 92

2024, 2025, 2026, 2027 and 2028 will be $ 20.3 million, $ 18.2 million, $ 11.9 million, $ 4.9 million and $ 3.3 million, respectively, and $ 1.0 million thereafter.

The Company expects that annual amortization expense for fiscal years 2025, 2026, 2027, 2028 and 2029 will be $ 19.8 million, $ 12.9 million, $ 5.7 million, $ 4.1 million and $ 1.8 million, respectively, and $ 0.3 million thereafter.

Note 12— Financing Arrangements

The Company had several uncommitted, unsecured bank lines of credit aggregating $ 181.3 million and $ 195.0 million as of March 31, 2023 and 2022, respectively.

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

As of March 31, 2023 and 2022, the Company had outstanding bank guarantees of $ 13.6 million and $ 25.5 million, respectively, under these lines of credit.

There was no borrowing outstanding under these lines of cre dit as of March 31, 2023 and 2022.

The Company had several uncommitted, unsecured bank lines of credit and letters of credit aggregating $ 172.5 million and $ 181.3 million as of March 31, 2024 and 2023, respectively.

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

There was no borrowing outstanding under the lines of cre dit as of March 31, 2024 and 2023.

As of March 31, 2024 and 2023, the Company had outstanding bank guarantees of $ 14.3 million and $ 13.6 million, respectively .

Note 13— Commitments and Contingencies

15 unchanged sentences

The Company is unable to reasonably estimate the maximum amount that could be payable under these arrangements because these exposures are not limited, the obligations are conditional in nature and the facts and circumstances involved in any situation that might arise are variable.

Logitech International S.A.

| Fiscal 2024 Form 10-K | 98

Legal Proceedings

From time to time the Company is involved in claims and legal proceedings that 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.

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.

The Company is currently subject to several such claims and legal proceedings.

The Company intends to vigorously defend against them.

Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available.

The Company follows ASC ("Accounting Standards Codification") 450, Contingencies, in determining the accounting and disclosure for these contingencies.

Any claims or proceedings against the Company can have an adverse impact because of defense costs, diversion of management and operational resources, negative publicity and other factors.

Any failure to obtain a necessary license or other rights, or litigation arising out of intellectual property claims, could adversely affect the Company's business.

2 unchanged sentences

The Company's nominal share capital is CHF 43.3 million, consisting of 173,106,620 issued shares with a par value of CHF 0.25 each, of which 19,243,358 were held in treasury shares as of March 31, 2024.

Logitech International S.A.

| Fiscal 2023 Form 10-K | 93

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.

10 unchanged sentences

Share Repurchases

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.

2020 Share Repurchase Program

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 Logitech shares to support equity incentive plans

Logitech International S.A.

| Fiscal 2024 Form 10-K | 99

or potential acquisitions.

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.

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 beca me effective on May 21, 2021.

In July 2022, the Company’s Board of Directors approved an increase of $ 500 million to the 2020 share repurchase program, to an aggregate amount of up to $ 1.5 billion to purchase up to 17.3 million of Logitech shares.

In April 2021, the Company's Board of Directors approved an increase of $ 750.0 million to 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.

In July 2022, the Company’s Board of Directors approved an increase of $ 500 million to the 2020 share repurchase program, to an aggregate amount of up to $ 1.5 billion.

The Swiss Takeover Board approved this increase and it became effective on August 19, 2022.

The 2020 share repurchase program is expected to remain in effect for a period of three years through July 27, 2023.

As of March 31, 2023 , $ 505.8 million was available for repurchase under the 2020 repurchase program.

A summary of the approved and active share repurchase program in fiscal year 2023 is shown in the following table (in thousands, excluding transaction costs):

Approved Repurchased

Share Repurchase Program Shares (1)

Amounts Shares Amounts

May 2020 17,311 $ 1,500,000 14,014 $ 994,156

(1) The approval of the share repurchase program by the Swiss Takeover Board limits the number of shares that the Company may repurchase to no more than 10 % of its authorized share capital and voting rights.

Logitech International S.A.

| Fiscal 2023 Form 10-K | 94

The 2020 share repurchase program expired on July 27, 2023.

The Company repurchased 16.7 million shares for an aggregate cost of $ 1.2 billion under the 2020 share repurchase program, of which 2.6 million shares for an aggregate cost of $ 159.1 million were repurchased during fiscal year 2024 prior to the expiration of the program.

2023 Share Repurchase Program

In June 2023, the Company's Board of Directors approved a new, three-year share repurchase program, which allows the Company to use up to $ 1.0 billion to repurchase its shares.

The 2023 share repurchase program enables the Company to repurchase shares for cancellation, as well as to support equity incentive plans or potential acquisitions.

The Swiss Takeover Board approved the 2023 share repurchase program in July 2023 and the program became effective on July 28, 2023.

During the fiscal year ended 2024, the Company repurchased 4.5 million shares for an aggregate cost of $ 364.7 million under the 2023 share repurchase program, of which $ 19.5 million of the aggregate cost was not paid yet as of March 31, 2024.

4.1 million shares for an aggregate cost of $ 332.1 million were repurchased for cancellation and the remaining shares were repurchased to support equity incentive plans.

As of March 31, 2024, $ 635.8 million was available for repurchase under the 2023 share repurchase program.

Swiss law limits a company’s ability to hold or repurchase its own shares.

The aggregate par value of all shares held in treasury by the Company and its subsidiaries may not exceed 10 % of the share capital of the Company, which for the Company corresponds to approximately 17.3 million registered shares.

This limitation does not apply to shares repurchased for cancellation, due to the Board of Directors’ authority under the Company’s capital band set forth in the Company’s Articles of Incorporation to cancel shares up to a limit of 10 % of the Company's current share capital.

As of March 31, 2024, the Company had a total of 19.2 million shares held in treasury stock, which includes 4.1 million shares that have been repurchased for cancellation.

To the extent that the shares are repurchased to support equity incentive plans or potential acquisitions, the shares are repurchased on the ordinary trading line of SIX Swiss Exchange (“SIX”) and/or The Nasdaq Global Select Market (“Nasdaq”).

Shares repurchased for cancellation purposes are repurchased on a second trading line on SIX.

Shares may be repurchased from time to time on the open market or in privately negotiated transactions, including under plans complying with the provisions of Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended.

Purchases may be started or stopped at any time without prior notice depending on market conditions and other factors and the program does not require the purchase of any minimum number of shares.

Accumulated Other Comprehensive Loss

7 unchanged sentences

March 31, 2024 $ ( 103,947 ) $ ( 8,395 ) $ 1,140 $ ( 111,202 )

Logitech International S.A.

| Fiscal 2024 Form 10-K | 100

Note 15— Segment Information

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

The Company operates in a single operating segment that encompasses the design, manufacturing and marketing of peripherals for gaming, PCs, tablets, video conferencing, 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.

The CEO periodically reviews information such as sales and adjusted operating income (loss) to make business decisions.

These operating performance measures do not include restructuring charges (credits), net, share-based compensation expense, amortization and impairment of intangible assets, acquisition-related costs and change in fair value of contingent consideration from business acquisitions.

Sales by product categories were as follows (in thousands):

These operating performance measures do not include restructuring charges, net, share-based compensation expense, amortization and impairment of intangible assets, acquisition-related costs and change in fair value of contingent consideration from business acquisitions.

During fiscal year 2024, the Company changed its presentation of Sales by Product Category to provide a simpler and clearer view of the Company's business.

The change in presentation did not have an impact on previously reported total sales.

As a result of these changes, certain prior-period amounts for the fiscal years ended 2023 and 2022 have been reclassified to conform to the current period presentation.

See Note 2 for further information on the change in presentation.

Sales by product category in the current presentation were as follows (in thousands):

Years Ended March 31,

2024 2023 2022

Pointing Devices $ 728,357 $ 781,108 $ 680,907

Keyboards & Combos 836,432 967,301 784,488

PC Webcams 227,692 403,651 439,865

Tablet & Other Accessories 254,374 310,123 384,301

$ 1,231,063 $ 1,288,313 $ 1,577,195

Keyboards & Combos 821,441 836,432 967,301

Pointing Devices 742,987 728,357 781,108

Video Collaboration 609,361 677,923 667,570

Mobile Speakers 111,649 149,782 174,895

Audio & Wearables 274,231 401,424 468,776

Webcams 325,225 378,688 676,116

Tablet Accessories 254,060 254,374 310,123

Headsets 168,478 176,576 208,318

145,852 198,155 293,370

1 unchanged sentence

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

(2) Other includes Smart Home.

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

Sales by geographic region (based on the customers' locations) for fiscal years 2024, 2023 and 2022 were as follows (in thousands):

5 unchanged sentences

Total Sales $ 4,298,467 $ 4,538,818 $ 5,481,101

Revenues from sales to customers in the United States represented 35 %, 34 % and 35 % of sales in fiscal years 2023, 2022 and 2021, respectively.

Revenues from sales to customers in Germany represented 14 %, 15 % and 16 % of sales in fiscal years 2023 , 2022 and 2021, respectively.

Revenues from sales to customers in China represented 11 % and 10 % of sales in fiscal years 2023 and 2022, respectively.

No other country represented more

Revenue from sales to customers in the United States represented 36 %, 35 % and 34 % of sales in fiscal years 2024, 2023 and 2022, respectively.

Revenue from sales to customers in Germany represented 14 %, 14 % and 15 % of sales in fiscal years 2024 , 2023 and 2022, respectively.

Revenue from sales to customers in China represented 10 %, 11 % and 10 % of sales in fiscal years 2024, 2023 and 2022, respectively.

No other country represented more than 10% of sales during these periods presented herein.

Revenue from sales to customers in Switzerland, the Company's country of domicile, represented 2 % of sale s for fiscal year 2024, and 3 % of sales for each of fiscal years 2023 and 2022.

Logitech International S.A.

| Fiscal 2024 Form 10-K | 101

than 10% of sales during these periods presented herein.

Revenues from sales to customers in Switzerland, the Company's country of domicile, represented 3 % of sales in each of fiscal years 2023, 2022 and 2021.

Property, plant and equipment, net (excluding software) and right-of-use assets by geographic region were as follows (in thousands):

4 unchanged sentences

Property, plant and equipment, net (excluding software) and right-of-use assets in the United States, China, and Ireland were $ 66.5 million, $ 41.2 million, and $ 16.2 million, respectively, as of March 31, 2024.

Property, plant and equipment, net (excluding software) and right-of-use assets in the United States and China were $ 21.7 million and $ 66.8 million, respectively, as of March 31, 2022.

Property, plant and equipment, net (excluding software) and right-of-use assets in the United States, China, and Ireland were $ 58.7 million, $ 48.8 million, and $ 17.7 million, respectively, as of March 31, 2023.

Property, plant and equipment, net (excluding software) and right-of-use assets in Switzerland, the Company's country of domicile, were $ 9.0 million and $ 13.7 million as of March 31, 2024 and 2023, respectively.

1 unchanged sentence

Note 16— Restructuring

During the second quarter of fiscal year 2023, the Company initiated a restructuring plan to realign its business group and engineering structure with its go-to-market strategy to more effectively compete within the enterprise market and to better serve end-users.

During the fourth quarter of fiscal year 2023, the Company undertook further actions to remove organization layers as well as streamline its marketing organization to increase efficiency.

These actions resulted in charges related to employee severance and other termination benefits as well as contract termination and other costs.

These restructuring activities have been substantially completed during fiscal year 2024.

The following table summarizes restructuring-related activities during fiscal years 2024 and 2023 (in thousands):

11 unchanged sentences

(1) The accrual balances are included in accrued and other current liabilities on the Company’s consolidated balance sheets.

During the fourth quarter of fiscal year 2023, the Company undertook further actions to remove organization layers as well as streamline its marketing organization to increase efficiency.

These actions resulted in charges related to employee severance and other termination benefits as well as contract termination and other costs.

The Company recorded pre-tax charges totaling $ 34.6 million in restructuring charges, net in the consolidated statement of operations for the year ended March 31, 2023 .

The Company expects to substantially complete these restructuring activities within the next twelve months.

During the third quarter of fiscal year 2022, as part of the Company's strategic review, the Company decided to cease future product launches under the Jaybird brand within the Audio & Wearables product category.

As a result, the Company recorded $ 7.6 million in cost of goods sold related to write-offs for excess inventories, $ 7.0 million impairment to the intangible assets acquired as part of the Jaybird acquisition (see Note 11), and $ 2.2 million in restructuring charges, net, related to production cancellation costs and employee severance and other termination benefits, for the year ended March 31, 2022.

This restructuring plan has been substantially completed during fiscal year 2023.

Logitech International S.A.

| Fiscal 2023 Form 10-K | 96

Note 17 — Leases

The Company is a lessee in various noncancellable operating leases, primarily real estate facilities for office space.

As of March 31, 2023, t he Company's lease arrangements are comprised of operating leases with various expiration dates through November 30, 2033 .

The Company is a lessee in various non cancellable operating leases, primarily real estate facilities for office space.

As of March 31, 2024, t he Company's lease arrangements are comprised of operating leases with various expiration dates through December 31, 2033 .

The lease term for all of the Company’s leases includes the noncancellable period of the lease.

1 unchanged sentence

The Company's leases do not contain any material residual value guarantees.

The total operating lease costs including short-term lease costs were $ 21.2 million, $ 17.3 million and $ 15.0 million as of March 31, 2023, 2022, and 2021, respectively.

Total variable lease costs were not material during the year ended March 31, 2023, 2022 and 2021.

The total operating lease costs including short-term lease costs were $ 19.5 million, $ 21.2 million and $ 17.3 million for the years ended March 31, 2024, 2023, and 2022, respectively.

Total variable lease costs were not

Logitech International S.A.

| Fiscal 2024 Form 10-K | 102

material during the years ended March 31, 2024, 2023 and 2022.

The total operating and variable lease costs were included in cost of goods sold, marketing and selling, research and development, and general and administrative in the Company's consolidated statements of operations.

12 unchanged sentences

Present value of lease liabilities $ 77,027

(1) The operating leases for two real estate facilities in the Americas region provide for tenant improvement allowances, for which the lessors reimburse the Company for the costs of constructing leasehold improvements up to $ 11.6 million.

Weighted-average lease terms and discount rates were as follows:

42 unchanged sentences

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-K

Item 9A. Controls and Procedures