What changed in this filing

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Item 1. Financial Statements

2025-01-29 compared with 2024-10-24 · 138 added, 109 removed, 446 unchanged (36% of the section changed)

3 unchanged sentences

(In thousands, except per share amounts)

Three months ended September 30, Six months ended September 30,

Three months ended December 31, Nine months ended December 31,

2024 2023 2024 2023

8 unchanged sentences

Amortization of intangible assets and acquisition-related costs 2,637 2,276 8,065 8,279

Restructuring charges (credits), net 229 ( 1,788 ) 615 1,723

Restructuring charges, net 110 839 725 2,562

Total operating expenses 339,885 304,705 977,839 883,925

3 unchanged sentences

Income before income taxes 245,208 235,090 588,665 477,800

Provision for income taxes 30,583 30,334 56,141 42,866

Provision for (benefit from) income taxes 45,061 ( 9,594 ) 101,202 33,272

Net income $ 200,147 $ 244,684 $ 487,463 $ 444,528

9 unchanged sentences

(In thousands)

Three months ended September 30, Six months ended September 30,

Three months ended December 31, Nine months ended December 31,

2024 2023 2024 2023

3 unchanged sentences

Currency translation gain (loss), net of taxes ( 39,568 ) 25,319 ( 23,998 ) 13,168

20,789 ( 10,622 ) 15,570 ( 12,151 )

Defined benefit plans:

9 unchanged sentences

(In thousands, except per share amounts)

September 30, 2024 March 31, 2024

December 31, 2024 March 31, 2024

Current assets:

23 unchanged sentences

Registered shares, CHF 0.25 par value

Issued shares:

168,994 and 173,106 at December 31, 2024

and March 31, 2024, respectively

29,432 30,148

Issued shares — 173,106 at September 30, 2024 and March 31, 2024

Additional shares that may be issued out of conditional capital — 50,000 at September 30, 2024 and March 31, 2024

Additional shares that may be issued out of the capital band — 17,311 at September 30, 2024 and March 31, 2024

Additional paid-in capital 95,162 63,524

Shares in treasury, at cost — 21,270 at September 30, 2024 and 19,243 at March 31, 2024

Shares in treasury, at cost — 19,555 and 19,243 at December 31, 2024 and March 31, 2024, respectively

( 1,381,949 ) ( 1,351,336 )

7 unchanged sentences

(In thousands)

Six months ended September 30,

Nine months ended December 31,

Cash flows from operating activities:

6 unchanged sentences

Deferred income taxes 18,652 ( 9,515 )

Other 130 336

Changes in assets and liabilities, net of acquisitions:

35 unchanged sentences

(In thousands, except per share amounts)

Three Months Ended September 30, 2024

Three Months Ended December 31, 2024

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

1 unchanged sentence

Shares Amount Shares Amount

June 30, 2024 173,106 $ 30,148 $ 57,036 20,090 $ ( 1,418,051 ) $ 3,695,574 $ ( 115,772 ) $ 2,248,935

September 30, 2024 173,106 $ 30,148 $ 72,268 21,270 $ ( 1,518,149 ) $ 3,626,999 $ ( 99,372 ) $ 2,111,894

Total comprehensive income — — — — — 200,147 ( 34,950 ) 165,197

Purchases of registered shares — — — 2,428 ( 199,283 ) — — ( 199,283 )

Sales of shares upon exercise of stock options and purchase rights — — ( 4,526 ) ( 216 ) 23,410 ( 3,267 ) — 15,617

Issuance of shares upon vesting of restricted stock units — — ( 3,124 ) ( 31 ) 3,395 ( 1,279 ) — ( 1,008 )

Cancellation of treasury shares ( 4,112 ) ( 716 ) ( 4,112 ) 332,088 ( 331,372 ) — —

Share-based compensation — — 26,018 — — — — 26,018

Cash dividends ($ 1.37 per share)

— — — — — ( 207,981 ) — ( 207,981 )

September 30, 2024 173,106 $ 30,148 $ 72,268 21,270 $ ( 1,518,149 ) $ 3,626,999 $ ( 99,372 ) $ 2,111,894

Six Months Ended September 30, 2024

December 31, 2024 168,994 $ 29,432 $ 95,162 19,555 $ ( 1,381,949 ) $ 3,494,495 $ ( 134,322 ) $ 2,102,818

Nine Months Ended December 31, 2024

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

6 unchanged sentences

Issuance of shares upon vesting of restricted stock units — — ( 38,518 ) ( 631 ) 69,134 ( 52,867 ) — ( 22,251 )

Cancellation of treasury shares ( 4,112 ) ( 716 ) — ( 4,112 ) 332,088 ( 331,372 ) — —

Share-based compensation — — 76,221 — — — — 76,221

1 unchanged sentence

— — — — — ( 207,981 ) — ( 207,981 )

September 30, 2024 173,106 $ 30,148 $ 72,268 21,270 $ ( 1,518,149 ) $ 3,626,999 $ ( 99,372 ) $ 2,111,894

Three Months Ended September 30, 2023

December 31, 2024 168,994 $ 29,432 $ 95,162 19,555 $ ( 1,381,949 ) $ 3,494,495 $ ( 134,322 ) $ 2,102,818

Three Months Ended December 31, 2023

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

1 unchanged sentence

Shares Amount Shares Amount

June 30, 2023 173,106 $ 30,148 $ 49,734 14,484 $ ( 994,581 ) $ 3,240,302 $ ( 99,528 ) $ 2,226,075

September 30, 2023 173,106 $ 30,148 $ 47,311 16,029 $ ( 1,083,468 ) $ 3,190,220 $ ( 106,946 ) $ 2,077,265

Total comprehensive income — — — — — 244,684 22,417 267,101

Purchases of registered shares — — — 2,126 ( 172,422 ) — — ( 172,422 )

Sales of shares upon exercise of stock options and purchase rights — — ( 13,888 ) ( 267 ) 27,094 — — 13,206

Issuance of shares upon vesting of restricted stock units — — ( 6,948 ) ( 47 ) 4,576 — — ( 2,372 )

Share-based compensation — — 20,529 — — — — 20,529

Cash dividends ($ 1.19 per share)

— — — — — ( 187,199 ) — ( 187,199 )

September 30, 2023 173,106 $ 30,148 $ 47,311 16,029 $ ( 1,083,468 ) $ 3,190,220 $ ( 106,946 ) $ 2,077,265

Six Months Ended September 30, 2023

December 31, 2023 173,106 $ 30,148 $ 60,892 18,108 $ ( 1,251,314 ) $ 3,434,904 $ ( 84,529 ) $ 2,190,101

Nine Months Ended December 31, 2023

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

9 unchanged sentences

— — — — — ( 187,199 ) — ( 187,199 )

September 30, 2023 173,106 $ 30,148 $ 47,311 16,029 $ ( 1,083,468 ) $ 3,190,220 $ ( 106,946 ) $ 2,077,265

December 31, 2023 173,106 $ 30,148 $ 60,892 18,108 $ ( 1,251,314 ) $ 3,434,904 $ ( 84,529 ) $ 2,190,101

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

3 unchanged sentences

Logitech International S.A., together with its consolidated subsidiaries ("Logitech" or the "Company"), designs 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.

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.

13 unchanged sentences

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

Operating results for the three and six months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2025, or any future periods.

Operating results for the three and nine months ended December 31, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2025, or any future periods.

Changes in Significant Accounting Policies

There have bee n no material changes in the Company’s significant accounting policies during the three and six months ended September 30, 2024 compared with the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended March 31, 2024.

There have bee n no material changes in the Company’s significant accounting policies during the three and nine months ended December 31, 2024 compared with the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended March 31, 2024.

Use of Estimates

8 unchanged sentences

These conditions include inflation, interest rate and foreign currency fluctuations, changes in fiscal policies, geopolitical conflicts, low economic growth in certain regions, and uncertainty in consumer and enterprise demand.

In addition, the Company's business may be adversely impacted by the potential expansion of tariffs on goods imported into the U.S., as well as responsive or related policies enacted in other countries.

The global and regional economic and political conditions have caused and may continue to cause volatility in demand for the Company's products as well as 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.

16 unchanged sentences

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

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses .

ASU 2024-03 requires all public entities to disclose in the notes to the financial statements the amounts of purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each expense caption of the income statement.

ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027.

ASU 2024-03 can be applied either prospectively or retrospectively.

Early adoption is permitted.

The Company is currently evaluating the impact of ASU 2024-03 on its consolidated financial statements and related disclosures.

Note 2 — Net Income Per Share

The following table summarizes the computations of basic and diluted net income per share for the three and six months ended September 30, 2024 and 2023 (in thousands, except per share amounts):

Three months ended September 30, Six months ended September 30,

The following table summarizes the computations of basic and diluted net income per share for the three and nine months ended December 31, 2024 and 2023 (in thousands, except per share amounts):

Three months ended December 31, Nine months ended December 31,

2024 2023 2024 2023

7 unchanged sentences

Diluted $ 1.32 $ 1.55 $ 3.18 $ 2.80

Share equivalents attributable to outstanding stock options, restricted stock units and employee share purchase plans totaling 0.9 million and 1.1 million for the three months ended September 30, 2024 and 2023,

respectively, and 1.0 million and 1.6 million for the six months ended September 30, 2024 and 2023, respectively, were excluded from the calculation of diluted net income per share because their effect would have been anti-dilutive.

Share equivalents attributable to outstanding stock options, restricted stock units and employee share purchase plans totaling 0.8 million for each of the three months ended December 31, 2024 and 2023, and 0.9 million and 1.3 million for the nine months ended December 31, 2024 and 2023, respectively, were excluded from the calculation of diluted net income per share because their effect would have been antidilutive.

A small number of performance-based restricted stock units 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.

1 unchanged sentence

Employee Share Purchase Plans and Stock Incentive Plans

As of September 30, 2024, the Company offers the 2006 Employee Share Purchase Plan (Non-U.S.), as amended and restated, the 1996 Employee Share Purchase Plan (U.S.), as amended and restated, and the 2006 Stock Incentive Plan, as amended and restated.

As of December 31, 2024, the Company offers the 2006 Employee Share Purchase Plan (Non-U.S.), as amended and restated, the 1996 Employee Share Purchase Plan (U.S.), as amended and restated, and the 2006 Stock Incentive Plan, as amended and restated.

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

The following table summarizes the share-based compensation expense and total income tax benefit recognized for share-based awards for the three and six months ended September 30, 2024 and 2023 (in thousands):

Three months ended September 30, Six months ended September 30,

The following table summarizes the share-based compensation expense and total income tax benefit recognized for share-based awards for the three and nine months ended December 31, 2024 and 2023 (in thousands):

Three months ended December 31, Nine months ended December 31,

2024 2023 2024 2023

7 unchanged sentences

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.

Share-based compensation costs capitalized as part of inventory were $ 1.8 million and $ 1.5 million for the three months ended September 30, 2024 and 2023, respectively, and $ 4.3 million and $ 3.4 million for the six months ended September 30, 2024 and 2023, respectively.

Share-based compensation costs capitalized as part of inventory were $ 1.6 million and $ 1.4 million for the three months ended December 31, 2024 and 2023, respectively, and $ 5.9 million and $ 4.8 million for the nine months ended December 31, 2024 and 2023, respectively.

Defined Benefit Plans

2 unchanged sentences

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

The costs of $ 1.8 million and $ 1.9 million recorded for the three months ended September 30, 2024 and 2023, respectively, and $ 3.5 million and $ 3.8 million recorded for the six months ended September 30, 2024 and 2023, respectively, were primarily related to service costs.

The costs of $ 1.8 million and $ 1.9 million recorded for the three months ended December 31, 2024 and 2023, respectively, and $ 5.3 million and $ 5.7 million recorded for the nine months ended December 31, 2024 and 2023, respectively, were primarily related to service costs.

Note 4 — Income Taxes

1 unchanged sentence

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

The income tax provision for the three and six months ended September 30, 2024 was $ 30.6 million and $ 56.1 million based on an effective income tax rate of 17.4 % and 16.3 % of pre-tax income, respectively.

The income tax

provision for the same periods ended September 30, 2023 was $ 30.3 million and $ 42.9 million based on an effective income tax rate of 18.1 % and 17.7 % of pre-tax income, respectively.

The change in the effective income tax rate for the three and six months ended September 30, 2024, compared with the same periods ended September 30, 2023, was primarily due to the change in the mix of income and losses in the various tax jurisdictions in which the Company operates, the favorable tax impacts from share-based compensation and unrecognized tax benefits due to uncertain tax positions.

The income tax provision for the three and nine months ended December 31, 2024 was $ 45.1 million and $ 101.2 million based on an effective income tax rate of 18.4 % and 17.2 % of pre-tax income, respectively.

The income tax provision (benefit) for the same periods ended December 31, 2023 was a benefit of $ 9.6 million and a provision of $ 33.3 million based on an effective income tax rate of ( 4.1 )% and 7.0 % of pre-tax income, respectively.

The change in the effective income tax rate for the three and nine months ended December 31, 2024, compared with the same periods ended December 31, 2023, was primarily due to the change in the mix of income and losses in the various tax jurisdictions in which the Company operates and unrecognized tax benefits due to uncertain tax positions compared with the discrete tax benefits recognized in the prior period for the remeasurement of the tax basis of goodwill under the Swiss Federal Act on Tax Reform and AHV Financing ("TRAF"), remeasurement of the Company's Swiss deferred tax assets due to a change in tax rate, and Foreign Derived Intangible Income ("FDII") incentive provided by the Tax Cuts and Jobs Act.

The canton of Vaud completed the legislative process to enact TRAF, a reform to better align the Swiss tax system to international tax standards, on March 10, 2020 to take effect as of January 1, 2020.

In March 2020, the Company increased the tax basis of goodwill, as a transition measure under TRAF, to be amortized over ten years beginning on January 1, 2020.

During the three months ended December 31, 2023, the Company remeasured the tax basis of goodwill under TRAF, which resulted in an income tax benefit of $ 25.1 million, net of assessment of 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 then 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 quarter ended December 31, 2023.

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

The application of this tax incentive is inherently complex.

During the three months ended December 31, 2023, the Company analyzed the applicability of FDII and determined that this tax incentive applies to fiscal years 2021, 2022 and 2023.

As a result, the Company realized a tax benefit of $ 17.9 million related to FDII.

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

The Base Erosion and Profit Shifting Project (the “BEPS Project”) undertaken by the Organization for Economic Co-operation and Development (the "OECD") recommended changes to numerous long-standing tax principles, including a proposal to reallocate profits among tax jurisdictions in which companies do business (“Pillar One”) and establishing a minimum tax on global income (“Pillar Two”).

Some jurisdictions, including Switzerland, where the Company operates are implementing Pillar Two laws to effectuate a 15 % minimum tax.

The minimum tax effective beginning in fiscal year 2025 for the Company, is treated as a current cost and does not have a material impact on the Company's effective tax rate.

The minimum tax

effective beginning in fiscal year 2025 for the Company is treated as a current cost and does not have a material impact on the Company's effective tax rate.

The OECD and participating countries continue to issue underlying rules and administrative guidance related to Pillar Two, and the Company continues to monitor the relevant developments.

1 unchanged sentence

The following table presents the components of certain balance sheet asset amounts (in thousands):

September 30, 2024 March 31, 2024

December 31, 2024 March 31, 2024

Accounts receivable, net:

Accounts receivable $ 966,878 $ 744,836

Allowance for sales returns ( 13,521 ) ( 10,180 )

Allowance for cooperative marketing arrangements ( 52,861 ) ( 41,634 )

1 unchanged sentence

Allowance for pricing programs ( 125,627 ) ( 91,280 )

Other allowances

( 30,561 ) ( 10,180 )

$ 648,230 $ 541,715

Raw materials $ 43,106 $ 65,209

17 unchanged sentences

The following table presents the components of certain balance sheet liability amounts (in thousands):

September 30, 2024 March 31, 2024

December 31, 2024 March 31, 2024

Accrued and other current liabilities:

2 unchanged sentences

Income taxes payable 63,264 24,196

Warranty liabilities 32,100 30,270

VAT payable 35,625 28,253

Warranty liabilities 33,755 30,270

Accrued sales return liability 28,397 30,098

8 unchanged sentences

Employee benefit plan obligations 40,834 42,707

Obligation for deferred compensation plan 31,929 29,174

Deferred revenue (1)

35,492 21,097

Obligation for deferred compensation plan

31,037 29,174

Warranty liabilities 15,306 14,384

6 unchanged sentences

The Company considers fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date.

The Company utilizes the following three-level fair value hierarchy to establish the priorities of the inputs used to measure fair value:

The Company utilizes the following three-level fair value hierarchy to establish the priority of the inputs used to measure fair value:

• Level 1 — Quoted prices in active markets for identical assets or liabilities.

5 unchanged sentences

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

September 30, 2024 March 31, 2024

December 31, 2024 March 31, 2024

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

12 unchanged sentences

Investments for Deferred Compensation Plan

The marketable securities for the Company's deferred compensation plan were recorded at a fair value of $ 31.9 million and $ 29.2 million, as of September 30, 2024 and March 31, 2024, respectively, based on quoted market prices.

The marketable securities for the Company's deferred compensation plan were recorded at a fair value of $ 31.0 million and $ 29.2 million, as of December 31, 2024 and March 31, 2024, 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 the three and six months ended September 30, 2024 and 2023 were not material and were included in other income (expense), net, and corresponding changes in the deferred compensation liability were included in operating expenses and cost of goods sold, in the Company's condensed consolidated statements of operations.

Unrealized gains (losses) related to marketable securities for the three and nine months ended December 31, 2024 and 2023 were not material and were included in other income (expense), net, and corresponding changes in the deferred compensation liability were included in operating expenses and cost of goods sold, in the Company's condensed 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 $ 18.6 million and $ 18.0 million as of September 30, 2024 and March 31, 2024, respectively.

Gains (losses) related to equity method investments for the three and six months ended September 30, 2024 and 2023 were not material and are included in other income (expense), net, in the Company's condensed consolidated statements of operations.

There was no impairment of equity method investments during the three and six months ended September 30, 2024 and 2023.

The Company has certain non-marketable investments included in other assets that are accounted for as equity method investments, with a carrying value of $ 18.7 million and $ 18.0 million as of December 31, 2024 and March 31, 2024, respectively.

Gains (losses) related to equity method investments for the three and nine months ended December 31, 2024 and 2023 were not material and are included in other income (expense), net, in the Company's condensed consolidated statements of operations.

There was no impairment of equity method investments during the three and nine months ended December 31, 2024 and 2023.

Assets Measured at Fair Value on a Nonrecurring Basis

3 unchanged sentences

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

The amount of these equity investments without readily determinable fair value included in other assets was $ 8.8 million and $ 10.1 million as of September 30, 2024 and March 31, 2024, respectively.

The impairment charges related to these equity investments were not material during the three and six

months ended September 30, 2024.

There were no impairment charges related to these equity investments during the three and six months ended September 30, 2023.

During the six months ended September 30, 2023, 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.

The amount of these equity investments without readily determinable fair value included in other assets was $ 8.8 million and $ 10.1 million as of December 31, 2024 and March 31, 2024, respectively.

The impairment charges related to these equity investments were not material during the three and nine months ended December 31, 2024 and 2023.

During the nine months ended December 31, 2023, 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 condensed consolidated statement of operations for the six months ended September 30, 2023.

The impairment loss is included in other income (expense), net, in the Company's condensed consolidated statement of operations for the nine months ended December 31, 2023.

Non-Financial Assets

1 unchanged sentence

However, if the Company is required to evaluate these non-financial assets for impairment, whether due to certain triggering events or because of the required annual impairment test, and a resulting impairment is recorded to reduce the carrying value to the fair value, the non-financial assets are measured at fair value during such period.

There was no impairment of non-financial assets during the three and six months ended September 30, 2024 and 2023.

There was no impairment of non-financial assets during the three and nine months ended December 31, 2024 and 2023.

Note 7 — Derivative Financial Instruments

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

However, the Company presents its derivative assets and derivative liabilities on a gross basis in other current assets and accrued and other current liabilities, respectively, on the condensed consolidated balance sheets as of September 30, 2024 and March 31, 2024.

See Note 6 for the fair values of the Company’s derivative instruments as of September 30, 2024 and March 31, 2024.

See Note 6 for the fair values of the Company’s derivative instruments as of December 31, 2024 and March 31, 2024.

Cash Flow Hedges

5 unchanged sentences

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 inventory purchases were $ 144.4 million and $ 90.5 million as of September 30, 2024 and March 31, 2024, respectively.

The Company had $ 1.8 million of net loss related to its cash flow hedges included in accumulated other comprehensive loss as of September 30, 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 the three and six months ended September 30, 2024 and 2023 and their locations on its condensed consolidated statements of operations and condensed consolidated statements of comprehensive income (in thousands):

Three months ended September 30,

The notional amounts of foreign currency exchange forward contracts outstanding related to forecasted inventory purchases were $ 124.3 million and $ 90.5 million as of December 31, 2024 and March 31, 2024, respectively.

The Company had $ 2.5 million of net gain related to its cash flow hedges included in accumulated other comprehensive loss as of December 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 the three and nine months ended December 31, 2024 and 2023 and their locations on its condensed consolidated statements of operations and condensed consolidated statements of comprehensive income (in thousands):

Three months ended December 31,

Amount of Gain (Loss)

5 unchanged sentences

Cash flow hedges $ 3,577 $ ( 2,539 ) $ 790 $ ( 863 )

Six months ended September 30,

Nine months ended December 31,

Amount of Gain (Loss)

11 unchanged sentences

The gains or losses on these contracts are not material and included in other income (expense), net, in the condensed consolidated statements of operations based on the changes in fair value.

The notional amounts of these contracts outstanding as of September 30, 2024 and March 31, 2024 were $ 121.4 million and $ 79.4 million, respectively.

The notional amounts of these contracts outstanding as of December 31, 2024 and March 31, 2024 were $ 113.3 million and $ 79.4 million, respectively.

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

2 unchanged sentences

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

There have been no triggering events identified affecting the valuation of goodwill and intangible assets during the three and six months ended September 30, 2024 and 2023.

The Company conducted its annual impairment analysis of goodwill as of December 31, 2024 by performing a qualitative assessment and concluded that it was more likely than not that the fair value of its reporting unit exceeds its carrying amount.

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

1 unchanged sentence

Effects of foreign currency translation ( 795 )

As of September 30, 2024 $ 463,712

As of December 31, 2024 $ 461,183

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

September 30, 2024 March 31, 2024

December 31, 2024 March 31, 2024

Gross Carrying Amount Accumulated

7 unchanged sentences

Note 9 — Financing Arrangements

The Company had several uncommitted, unsecured bank lines of credit and letters of credit aggregating $ 178.7 million and $ 172.5 million as of September 30, 2024 and March 31, 2024, respectively.

The Company had several uncommitted, unsecured bank lines of credit and letters of credit aggregating $ 171.3 million and $ 172.5 million as of December 31, 2024 and March 31, 2024, 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 credit as of September 30, 2024 or March 31, 2024.

As of September 30, 2024 and March 31, 2024, the Company had outstanding bank guarantees of $ 29.5 million and $ 14.3 million, respectively.

There was no borrowing outstanding under the lines of credit as of December 31, 2024 or March 31, 2024.

As of December 31, 2024 and March 31, 2024, the Company had outstanding bank guarantees of $ 27.7 million and $ 14.3 million, respectively.

On January 27, 2025, the Company entered into an unsecured revolving credit facility with a syndicate of banks (the "Credit Agreement").

The Credit Agreement provides a revolving line of credit of up to $ 750 million to the Company including the issuance of letters of credit of up to $ 100 million.

The Credit Agreement terminates on January 27, 2030 unless extended in accordance with its terms.

The Credit Agreement contains (1) an increase option allowing the Company to secure up to $ 250 million of additional commitments and (2) an extension option to extend the term by one-year which may be exercised no more than two times, subject to certain requirements.

Loans under the Credit Agreement are available in U.S.

Dollars, Euro, Sterling, Yen, Swiss Francs, Canadian Dollars, Australian Dollars and any other currency agreed to by each lender.

Proceeds of loans made under the Credit Agreement may be used for general corporate purposes.

The Credit Agreement contains a maximum net debt to adjusted EBITDA ratio, compliance with which is a condition to the Company's ability to borrow.

Borrowings under the Credit Agreement will bear interest at a rate determined by reference to benchmark rates plus an applicable spread (ranging from 0 % to 1.5 %) based on the Company's net leverage ratio or credit rating at the time of the borrowing.

Undrawn balances available under the Credit Agreement are subject to commitment fees at the applicable rate determined by reference to the Company's net leverage ratio or credit rating.

There has been no borrowing outstanding under the Credit Agreement as of January 29, 2025.

Note 10 — Commitments and Contingencies

Product Warranties

Changes in the Company’s warranty liabilities for the three and six months ended September 30, 2024 and 2023 were as follows (in thousands):

Three months ended September 30, Six months ended September 30,

Changes in the Company’s warranty liabilities for the three and nine months ended December 31, 2024 and 2023 were as follows (in thousands):

Three months ended December 31, Nine months ended December 31,

2024 2023 2024 2023

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

As of September 30, 2024, no material amounts have been accrued for indemnification provisions.

As of December 31, 2024, no material amounts have been accrued for indemnification provisions.

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

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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.

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

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, and results of operations.

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Note 11 — Shareholders’ Equity

Share Capital

As of December 31, 2024, the Company's nominal share capital is CHF 42.2 million, consisting of 168,994,142 issued shares with a par value of CHF 0.25 each, of which 19,555,027 were held in treasury shares.

The capital band under Swiss law allows a company's board of directors to adjust the company's share capital within a predefined range based on a general authority granted by the company's shareholders.

At the 2023 Annual General Meeting ("AGM"), the Company's shareholders approved an amendment to the Company’s Articles of Incorporation to introduce a capital band provision authorizing the Board of Directors to adjust the Company's share capital, without additional shareholder approval, within a range of 155,795,958 registered shares to 190,417,282 registered shares for the five-year period ending on September 13, 2028.

In addition, the Company has reserved conditional capital (1) up to 25,000,000 shares for potential issuance for the exercise of rights granted under the Company's employee equity incentive plans, and (2) up to 25,000,000 shares for issuance to cover any conversion rights under any potential future convertible bond issuance.

In September 2024, the Company's Board of Directors approved the cancellation of 4.1 million treasury shares, which were repurchased in fiscal year 2024 for an aggregate cost of $ 332.1 million under the 2023 share repurchase program.

The cancellation became effective in the quarter ended December 31, 2024, and as a result both the number of registered shares issued and the number of treasury shares outstanding decreased by 4.1 million shares.

Upon cancellation of these shares, the Company deducted the par value from registered shares and reflected the excess of share repurchase cost over par value as a reduction to retained earnings.

Share Repurchases

In June 2023, the Company's Board of Directors approved a 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 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 six months ended September 30, 2024, the Company repurchased 2.9 million shares for an aggregate cost of $ 262.1 million under the 2023 share repurchase program for cancellation, of which $ 18.4 million of the aggregate cost was not paid yet as of September 30, 2024.

As of September 30, 2024 , $ 373.9 m illion was available for repurchase under the 2023 share repurchase program.

During the six months ended September 30, 2023, the Company repurchased 0.9 million shares for an aggregate cost of $ 60.1 million under the 2023 share repurchase program for cancellation.

In addition, the Company repurchased 2.6 million shares for an aggregate cost of $ 159.1 million under the previous share repurchase program during the six months ended September 30, 2023.

During the nine months ended December 31, 2024, the Company repurchased 5.3 million shares for an aggregate cost of $ 461.4 million under the 2023 share repurchase program for cancellation, of which $ 17.6 million of the aggregate cost was not paid yet as of December 31, 2024.

As of December 31, 2024 , $ 174.8 m illion was available for repurchase under the 2023 share repurchase program.

During the nine months ended December 31, 2023, the Company repurchased 3.0 million shares for an aggregate cost of $ 232.5 million under the 2023 share repurchase program for cancellation, of which $ 14.8 million of the aggregate cost was not paid yet as of December 31, 2023.

In addition, the Company repurchased 2.6 million shares for an aggregate cost of $ 159.1 million under the previous share repurchase program during the nine months ended December 31, 2023.

This previous share repurchase program was initially approved by the Company's Board of Directors in May 2020, to purchase Logitech shares to support equity incentive plans or potential acquisitions, and expired on July 27, 2023.

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 September 30, 2024, the Company had a total of 21.3 million shares held in treasury stock, which includes 7.0 million shares that have been repurchased for cancellation and 14.3 million shares that have been purchased to support equity incentive plans or potential acquisitions.

The aggregate par value of all shares held in treasury by the Company and its subsidiaries may not exceed 10 % of the issued share capital of the Company, which for the Company corresponds to approximately 16.9 million registered shares as of December 31, 2024.

As of December 31, 2024, the Company had a total of 19.6 million shares held in treasury stock, which includes 5.3 million shares that have been repurchased for cancellation and 14.3 million shares that have been purchased to support equity incentive plans or potential acquisitions.

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”).

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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.

Share Cancellation

The cancellation became effective in October 2024, and as a result both the number of registered shares issued and the number of treasury shares outstanding decreased by 4.1 million shares.

Upon cancellation of these shares, the Company deducted the par value from registered shares and reflected the excess of share repurchase cost over par value as a reduction to retained earnings.

During the three and six months ended September 30, 2024, the Company declared cash dividends of CHF 1.16 (USD equivalent of $ 1.37 based on the exchange rate on the date of declaration) per share and paid a total of $ 207.9 million on the Company's outstanding shares.

During the three and six months ended September 30, 2023, the Company declared cash dividends of CHF 1.06 (USD equivalent of $ 1.19 based on the exchange rate on the date of declaration) per share and paid a total of $ 182.3 million on the Company's outstanding shares.

During the nine months ended December 31, 2024, the Company declared cash dividends of CHF 1.16 (USD equivalent of $ 1.37 based on the exchange rate on the date of declaration) per share and paid a total of $ 207.9 million on the Company's outstanding shares.

During the nine months ended December 31, 2023, the Company declared cash dividends of CHF 1.06 (USD equivalent of $ 1.19 based on the exchange rate on the date of declaration) per share and paid a total of $ 182.3 million on the Company's outstanding shares.

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

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Currency Translation Adjustment

Defined Benefit Plans Deferred Hedging Gains (Losses)

Defined Benefit Plans Deferred Hedging Gains

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

Other comprehensive income (loss) ( 23,998 ) ( 501 ) 1,379 ( 23,120 )

September 30, 2024 $ ( 88,377 ) $ ( 9,147 ) $ ( 1,848 ) $ ( 99,372 )

December 31, 2024 $ ( 127,945 ) $ ( 8,896 ) $ 2,519 $ ( 134,322 )

Note 12 — Segment Information

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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 category for the three and six months ended September 30, 2024 and 2023 were as follows (in thousands):

Three months ended September 30, Six months ended September 30,

Sales by product category for the three and nine months ended December 31, 2024 and 2023 were as follows (in thousands):

Three months ended December 31, Nine months ended December 31,

2024 2023 2024 2023

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

Sales by geographic region (based on the customers’ locations) for the three and six months ended September 30, 2024 and 2023 were as follows (in thousands):

Three months ended September 30, Six months ended September 30,

Sales by geographic region (based on the customers’ locations) for the three and nine months ended December 31, 2024 and 2023 were as follows (in thousands):

Three months ended December 31, Nine months ended December 31,

2024 2023 2024 2023

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

Switzerland, the Company’s country of domicile, represented 3 % of the Company's total consolidated sales for each of the three months ended September 30, 2024 and 2023, and 3 % and 2 % of the Company's total consolidated sales for the six months ended September 30, 2024 and 2023, respectively.

Three customers of the Company each represented 10% or more of the total consolidated gross sales for each of the three and six months ended September 30, 2024 and 2023.

Switzerland, the Company’s country of domicile, represented 3 % of the Company's total consolidated sales for each of the three months ended December 31, 2024 and 2023, and 3 % and 2 % of the Company's total consolidated sales for the nine months ended December 31, 2024 and 2023, respectively.

Three customers of the Company each represented 10% or more of the total consolidated gross sales for each of the three and nine months ended December 31, 2024 and 2023.

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

September 30, 2024 March 31, 2024

December 31, 2024 March 31, 2024

Americas $ 62,920 $ 67,762

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Total $ 167,345 $ 157,482

Property, plant and equipment, net (excluding software) and right-of-use assets in the United States, China and Ireland, were $ 62.9 million, $ 40.0 million, and $ 15.9 million, respectively, as of September 30, 2024.

Property, plant and equipment, net (excluding software) and right-of-use assets in the United States, China and Ireland, were $ 61.3 million, $ 39.9 million, and $ 14.4 million, respectively, as of December 31, 2024.

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 Switzerland, the Company’s country of domicile, were $ 26.2 million and $ 9.0 million as of September 30, 2024 and March 31, 2024, respectively.

No other countries represented more than 10% of the Company’s total property, plant and equipment, net (excluding software) and right-of-use assets as of September 30, 2024 or March 31, 2024.

Property, plant and equipment, net (excluding software) and right-of-use assets in Switzerland, the Company’s country of domicile, were $ 23.5 million and $ 9.0 million as of December 31, 2024 and March 31, 2024, respectively.

No other countries represented more than 10% of the Company’s total property, plant and equipment, net (excluding software) and right-of-use assets as of December 31, 2024 or March 31, 2024.

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

What changed 10-Q

Item 1. Financial Statements