10-K – 2026-05-21 – logi-20260331.htm

The effective income tax rate in 2025 includes the tax effect of audit resolutions and the expiration of statutes of limitation of uncertain tax positions totaling $ 53.3  million, offset by the increase to unrecognized tax benefits in 2025 of $ 10.0  million. The effective tax rate in 2024 includes the discrete tax benefits recognized in fiscal year 2024 for the benefit of future Swiss tax deductions, the remeasurement of the tax basis of goodwill under TRAF (as defined below), FDII (as defined below) incentive provided by the Tax Cuts and Jobs Act and remeasurement of the Company's Swiss deferred tax assets due to a change in tax rate.
On March 28, 2024, the Swiss canton of Vaud confirmed a future tax benefit to be recognized for ten years . This resulted in the Company recording an income tax benefit of $ 50.1  million during the fiscal year ended March 31, 2024, which will be utilized over a ten-year period.
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 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 fiscal year ended March 31, 2024, the Company remeasured the tax basis of goodwill under TRAF, 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 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 year ended March 31, 2024.
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 U.S. 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 to fiscal years 2021, 2022 and 2023. 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.
Logitech International S.A. | Fiscal 2026 Form 10-K | 87

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On July 4, 2025, the One Big Beautiful Bill Act (the "OBBBA") was enacted into law in the United States and most relevant provisions will be effective for the Company beginning in fiscal year 2027. The OBBBA includes numerous provisions that affect corporate taxation, impacting areas such as R&D expensing, bonus depreciation, and international tax provisions. The Company has reviewed the provisions of the OBBBA to determine the potential impact on the Company's financial statements. Based on this review, and considering the Company's current tax position and operations, at this time the Company does not expect the OBBBA to have a material impact on its income taxes, including current and deferred tax balances and the effective tax rate.
For the fiscal year ended March 31, 2026, the Company assessed its exposure to the OECD Pillar Two global minimum tax rules. The Company has determined that, for the fiscal year 2026, most jurisdictions in which it operates should qualify for the transitional Country-by-Country Reporting ("CbCR") safe harbor, as outlined in the OECD Administrative Guidance and enacted domestic legislation. The Company's CbCR has been prepared in accordance with the requirements for a Qualified CbCR, using qualified financial statements. Based on this data, most jurisdictions continue to meet safe harbor qualifications at 16% tax rates, and therefore, the Company is only required to perform a detailed Pillar Two top-up tax calculation for limited jurisdictions. The estimated top up tax for fiscal year 2026 is de minimis.

On January 5, 2026, the OECD released an Administrative Guidance package. This package includes a “Side-by-Side” System designed to align the U.S. tax regime with Pillar Two for U.S.-parented multinational groups, effective for tax years beginning on or after January 1, 2026. As the Company is a non-U.S. headquartered multinational, the “Side-by-Side” System itself does not apply to the Company’s tax profile. However, the broader guidance package also introduces a new permanent safe harbor (to replace the transitional CbCR safe harbor for fiscal years beginning in 2027) and a one-year extension of the transitional CbCR safe harbor that may potentially impact the Company’s Pillar Two compliance and reporting. The Company continues to monitor these developments but does not expect a material change to its Pillar Two liability.
Deferred income tax assets and liabilities consist of the following (in thousands):
  March 31,
  2026 2025
Deferred tax assets:    
Tax attributes carryforward $ 42,408   $ 43,536  
Future tax deduction from Swiss Tax Benefits 50,630   48,267  
Accruals 67,963   72,114  
Tax step-up of goodwill from TRAF 73,512   86,519  
Share-based compensation 20,228   15,411  
Gross deferred tax assets 254,741   265,847  
Valuation allowance ( 36,922 ) ( 36,537 )
Deferred tax assets after valuation allowance $ 217,819   $ 229,310  
Deferred tax liabilities:    
Acquired intangible assets and other $ ( 23,975 ) $ ( 27,788 )
Deferred tax liabilities ( 23,975 ) ( 27,788 )
Deferred tax assets, net $ 193,844   $ 201,522  

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. In the event that the Company changes its determination as to the amount of deferred tax assets that can be realized, the Company will adjust its valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made.
The Company had a valuation allowance against deferred tax assets of $ 36.9  million at March 31, 2026, compared to $ 36.5  million at March 31, 2025. The Company had a valuation allowance of $ 36.8  million as of March 31, 2026 against deferred tax assets in the state of California, an increase from $ 36.4  million as of March 31, 2025 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.
Logitech International S.A. | Fiscal 2026 Form 10-K | 88

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As of March 31, 2026, the Company had net operating loss carryforwards in Switzerland for income tax purposes of $ 30.8  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 $ 0.4  million and $ 61.1  million, respectively, as of March 31, 2026. The net operating loss carryforwards in the United States relate to acquisitions and, as a result, are limited in the amount that can be utilized in any one year and have no expiration. The tax credit carryforwards will begin to expire in fiscal year 2027.
For the fiscal year ended March 31, 2026, individual jurisdictions are separately presented where the net amount of income taxes paid is equal to or greater than 5% of total income taxes paid. As the Company adopted ASU 2023-09 on a prospective basis, comparative jurisdictional information for prior periods is not presented.
The following table presents income taxes, including withholding taxes, paid, net of refunds received, disaggregated by federal, state, and foreign jurisdictions (in thousands):

Year Ended March 31,

2026
Switzerland - Federal $ 19,028  
Switzerland - Cantonal:
Vaud $ 21,851  
Zurich 116  
Total Cantonal $ 21,967  
Foreign:
United States $ 6,502  
China 9,466  
Japan 5,283  
Brazil 5,059  
Sweden 4,551  
Other 14,497  
Total Foreign $ 45,358  
Total $ 86,353  

For fiscal years ended March 31, 2025 and 2024, total income taxes paid, net of refunds received was $ 67.5  million and $ 50.9  million , respectively.
The Company has accumulated earnings in non-Swiss subsidiaries that are primarily intended to support operations outside of Switzerland. Deferred income taxes have not been recognized on a portion of these earnings with respect to Swiss income taxes and foreign withholding taxes, as such earnings are expected to be reinvested outside of Switzerland to fund local working capital requirements. If repatriated, the Company would generally be subject to foreign withholding taxes, which represent the primary source of incremental tax cost, and limited Swiss income tax, due to the Swiss participation exemption.
The Company follows a two-step approach in recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement.
As of March 31, 2026 and 2025, the total amount of unrecognized tax benefits due to uncertain tax positions was $ 131.4  million and $ 152.0  million, respectively, all of which would affect the effective income tax rate if recognized.
As of March 31, 2026 and 2025, the Company had $ 86.3  million and $ 88.5  million, respectively, in non-current income taxes payable, including interest and penalties, related to the Company's income tax liability for uncertain tax positions.
Logitech International S.A. | Fiscal 2026 Form 10-K | 89

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The aggregate changes in gross unrecognized tax benefits in fiscal years 2026, 2025 and 2024 were as follows (in thousands):

March 31, 2023 $ 191,000  
Lapse of statute of limitations ( 3,863 )
Settlements with taxing authorities
41  
Increases in balances related to tax positions taken during prior years 705  
Increases in balances related to tax positions taken during the year 22,332  
March 31, 2024 $ 210,215  
Lapse of statute of limitations ( 25,075 )
Settlements with taxing authorities ( 32,314 )
Increases (decreases) in balances related to tax positions taken during prior years
( 3,055 )
Increases in balances related to tax positions taken during the year 2,213  
March 31, 2025 $ 151,984  
Lapse of statute of limitations ( 23,176 )

Increases (decreases) in balances related to tax positions taken during prior years
( 1,120 )
Increases in balances related to tax positions taken during the year 3,673  
March 31, 2026 $ 131,361  

The Company recognizes interest and penalties related to unrecognized tax positions as income tax expense. The Company recognized $ 3.1  million and $( 0.6 ) million, in interest and penalties related to unrecognized tax positions in income tax expense during fiscal years 2026 and 2025, respectively. In 2025, the interest accrual was reduced in excess of the current year accrual build as a result of audit settlements and statute lapses. As of March 31, 2026 and 2025, the Company had $ 8.3  million and $ 7.2  million, respectively, of accrued interest and penalties related to uncertain tax positions.
The Company’s unrecognized tax benefits decreased by $ 20.6  million during the fiscal year ended March 31, 2026, primarily due to the expiration of the statutes of limitations for certain U.S. federal positions. In the United States, the federal and state tax agencies have the authority to examine periods prior to fiscal year 2022, to the extent allowed by law, but only to the extent tax attributes were generated, carried forward, and are being utilized in subsequent years. The statute of limitations in the United States otherwise lapsed for fiscal year 2022 in fiscal year 2026. The Company is under examination in several foreign tax jurisdictions. If the examinations are resolved unfavorably, there is a possibility they may have a negative impact on its results of operations. 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.
Logitech International S.A. | Fiscal 2026 Form 10-K | 90

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Note 8— Balance Sheet Components
The following table presents the components of certain balance sheet asset amounts as of March 31, 2026 and 2025 (in thousands):

  March 31,
  2026 2025
Accounts receivable, net:  
Accounts receivable $ 792,466   $ 708,693  

Allowance for cooperative marketing arrangements ( 49,964 ) ( 44,457 )
Allowance for customer incentive programs ( 73,999 ) ( 66,564 )
Allowance for pricing programs ( 144,800 ) ( 105,876 )
Other allowances ( 17,836 ) ( 37,250 )
$ 505,867   $ 454,546  
Inventories:    
Raw materials $ 62,484   $ 48,699  
Finished goods 427,464   455,048  
$ 489,948   $ 503,747  
Other current assets:    
Value-added tax ("VAT") receivables $ 58,600   $ 46,332  
Prepaid expenses and other assets 119,295   84,879  
$ 177,895   $ 131,211  
Property, plant and equipment, net:    
Plant, buildings and improvements $ 93,023   $ 88,041  
Equipment and tooling 350,869   324,007  
Computer equipment 28,108   26,881  
Software 103,961   95,829  
575,961   534,758  
Less: accumulated depreciation and amortization ( 470,964 ) ( 429,889 )
104,997   104,869  
Construction-in-process 8,750   6,337  
Land 2,707   2,652  
$ 116,454   $ 113,858  
Other assets:    
Deferred tax assets $ 192,083   $ 202,180  
Right-of-use assets 71,531   75,239  
Investments for deferred compensation plan 30,495   29,006  
Investments in privately held companies 28,871   27,980  
Other assets 16,095   9,672  
$ 339,075   $ 344,077  

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The following table presents the components of certain balance sheet liability amounts as of March 31, 2026 and 2025 (in thousands):

  March 31,
  2026 2025
Accrued and other current liabilities:    
Accrued customer marketing, pricing and incentive programs $ 211,915   $ 173,401  
Accrued personnel expenses 165,404   180,763  
Deferred revenue (1)
38,652   25,798  
Income taxes payable 37,843   26,841  
VAT payable 36,292   29,648  
Warranty liabilities 35,488   34,428  
Accrued sales return liability 27,635   27,913  
Accrued loss for inventory purchase commitments 18,167   19,614  
Operating lease liabilities 17,044   15,780  
Other current liabilities 193,550   152,317  
$ 781,990   $ 686,503  
Other non-current liabilities:    
Operating lease liabilities $ 71,111   $ 76,622  
Employee benefit plan obligations 61,066   57,338  
Deferred revenue (1)
53,624   38,216  
Obligation for deferred compensation plan 30,495   29,006  
Warranty liabilities 14,754   14,756  

Other non-current liabilities 6,849   5,574  
$ 237,899   $ 221,512  

(1) Includes deferred revenue for post-contract customer support and other services.

Note 9— Fair Value Measurements
Fair Value Measurements
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:
• Level 1—Quoted prices in active markets for identical assets or liabilities.

• Level 2—Observable inputs other than quoted market prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

• Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.
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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):

  March 31, 2026 March 31, 2025
  Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Assets:        
Cash equivalents $ 863,120   $ —   $ —   $ 852,467   $ —   $ —  
Investments for deferred compensation plan included in other assets:        
Cash $ 60   $ —   $ —   $ 90   $ —   $ —  
Common stock 902   —   —   540   —   —  
Money market funds 4,553   —   —   7,359   —   —  
Mutual funds 24,980   —   —   21,017   —   —  
Total investments for deferred compensation plan $ 30,495   $ —   $ —   $ 29,006   $ —   $ —  

Currency derivative assets $ —   $ 5,486   $ —   $ —   $ 90   $ —  

Liabilities:

Currency derivative liabilities $ —   $ 94   $ —   $ —   $ 2,849   $ —  

Investments for Deferred Compensation Plan
The marketable securities for the Company's deferred compensation plan were recorded at a fair value of $ 30.5 million and $ 29.0 million as of March 31, 2026 and 2025, 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 2026, 2025 and 2024 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 $ 19.1 million and $ 18.4 million as of March 31, 2026 and 2025, respectively. Income (loss) related to equity method investments for fiscal years 2026, 2025 and 2024 was not material a nd is included in other income (expense), net in the Company's consolidated statements of operations (see Note 6). There was no impairment of equity method investments during fiscal years 2026, 2025, and 2024.
Assets Measured at Fair Value on a Nonrecurring Basis
Financial Assets. The Company has certain equity investments without readily determinable fair values due to the absence of quoted market prices, the inherent lack of liquidity, and the fact that inputs used to measure fair value are unobservable and require management's judgment. When certain events or circumstances indicate that impairment may exist, the Company revalues the investments using various assumptions, including the financial metrics and ratios of comparable public companies. 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 as of March 31, 2026 and 2025. There was no impairment of these equity investments during fiscal year 2026. The impairment charges related to these investments were not material during fiscal years 2025 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 was 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.
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Non-Financial Assets. Goodwill, intangible assets, and property, plant and equipment, are not required to be measured at fair value on a recurring basis. 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. See Note 2 for additional information about how the Company tests various asset classes for impairment. During fiscal year 2024, the Company recorded impairment charges of $ 3.5  million related to intangible as sets. There was no impairment of non-financial assets during fiscal years 2026 and 2025.

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. Based on maturity, derivative assets are included in other current assets or other assets and derivative liabilities are included in accrued and other current liabilities or other non-current liabilities on the consolidated balance sheets. See Note 9 for the fair values of the Company’s derivative instruments as of March 31, 2026 and 2025.
Cash Flow Hedges
The Company enters into cash flow hedge contracts, including foreign currency forward contracts and foreign currency option contracts, to protect against exchange rate exposure of forecasted inventory purchases. Previously, the hedge contracts covered inventory purchases within four months. Beginning in fiscal year 2026, they cover inventory purchases up to sixteen months, with reduced coverage beyond four months. Gains and losses in the fair value of the effective portion of the hedges are deferred as a component of accumulated other comprehensive income (loss) until the hedged inventory purchases are sold, at which time the gains or losses are reclassified to cost of goods sold. Cash flows from such hedges are classified as operating activities in the consolidated statements of cash flows. 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 income (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 contracts outstanding related to forecasted invento ry purch ases were $ 447.9 million and $ 74.6 million as of March 31, 2026 and 2025, respectively. The Company had $ 1.9  million of net gain related to its cash flow hedges included in accumulated other comprehensive loss as of March 31, 2026, 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 2026, 2025 and 2024 and their locations on its consolidated statements of operations and consolidated statements of comprehensive income (in thousands):

  Amount of
Gain (Loss) Deferred as
a Component of
Accumulated Other
Comprehensive Loss Amount of Loss (Gain)
Reclassified from
Accumulated Other
Comprehensive Loss
to Cost of Goods Sold
  2026 2025 2024 2026 2025 2024

Cash flow hedges $ ( 8,214 ) $ ( 703 ) $ 1,109   $ 13,321   $ ( 3,461 ) $ 3,964  

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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 one month. The primary risk managed by using forward and swap contracts is the currency exchange rate risk. The gains or losses on these contracts are not material and are included in other income (expense), net in the consolidated statements of operations based on the changes in fair value. The notional amounts of these contracts outstanding as of March 31, 2026 and 2025 were $ 113.0 million and $ 131.8 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. Cash flows from these contracts are classified as operating activities in the consolidated statements of cash flows.

Note 11— Goodwill and Other Intangible Assets
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. The Company conducted its annual impairment analysis of goodwill as of December 31, 2025 by performing a qualitative assessment and concluded that it was more likely than not that the fair value of its reporting unit exceeded its carrying amount. 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):

  Years Ended March 31,
  2026 2025
Beginning of the period $ 463,230   $ 461,978  

Effects of foreign currency translation 2,187   1,252  
End of the period $ 465,417   $ 463,230  

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

  March 31,
  2026 2025
  Gross Carrying Amount Accumulated
Amortization Net Carrying Amount Gross Carrying Amount Accumulated
Amortization Net Carrying Amount
Trademarks and trade names $ 32,390   $ ( 30,569 ) $ 1,821   $ 32,390   $ ( 28,675 ) $ 3,715  
Developed technology 107,550   ( 103,307 ) 4,243   107,421   ( 96,464 ) 10,957  
Customer contracts/relationships 69,087   ( 63,021 ) 6,066   69,087   ( 58,646 ) 10,441  

Effects of foreign currency translation 1,218   ( 962 ) 256   ( 620 ) 137   ( 483 )
Total $ 210,245   $ ( 197,859 ) $ 12,386   $ 208,278   $ ( 183,648 ) $ 24,630  

For fiscal years 2026, 2025 and 2024, amortization expense for intangible assets was $ 13.3 million, $ 20.1 million and $ 21.7 million, respectively. The Company expects that annual amortization expense for fiscal years 2027, 2028, 2029 and 2030 will be $ 5.9 million, $ 4.3 million, $ 1.9 million, and $ 0.3 million, respectively. The remaining balance of the Company's intangible assets will be fully amortized by 2030.
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Note 12— Financing Arrangements
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 $ 750.0  million to the Company including the issuance of letters of credit of up to $ 100.0  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 $ 250.0  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 March 31, 2026.
In addition, the Company had several uncommitted, unsecured bank lines of credit and letters of credit aggregating to $ 149.0 million and $ 172.2 million as of March 31, 2026 and 2025, 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, 2026 and 2025. As of March 31, 2026 and 2025, the Company had outstanding bank guarantees of $ 2.1 million and $ 12.1 million, respectively .

Note 13— Commitments and Contingencies
Product Warranties
Changes in the Company's warranty liabilities for fiscal years 2026 and 2025 were as follows (in thousands):

  Years Ended March 31,
  2026 2025
Beginning of the period $ 49,184   $ 44,654  
Provision 37,617   44,876  
Settlements ( 37,411 ) ( 40,316 )
Effects of foreign currency translation 852   ( 30 )
End of the period $ 50,242   $ 49,184  

Indemnifications
The Company indemnifies certain of its suppliers and customers for losses arising from matters such as intellectual property disputes and product safety defects, subject to certain restrictions. The scope of these indemnities varies, but in some instances includes indemnification for damages and expenses, including reasonable attorneys' fees. As of March 31, 2026, no material amounts have been accrued for these indemnification provisions. The Company does not believe, based on historical experience and information currently available, that it is probable that any material amounts will be required to be paid under its indemnification arrangements.
The Company also indemnifies its current and former directors and certain of its current and former officers. Certain costs incurred for providing such indemnification may be recoverable under various insurance policies. 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.
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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 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. 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. 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 and results of operations in a particular period. 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.

Note 14— Shareholders' Equity
Share Capital
As of March 31, 2026, the Company's nominal share capital is CHF  40.2 million, consisting of 160,784,460 issued shares with a par value of CHF  0.25 each, of which 17,281,896 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 a five-year period ending on September 13, 2028. At the 2025 AGM, the Company's shareholders approved a renewal of the capital band, setting a new range of 144,706,014 registered shares to 176,862,906 registered shares for a five-year period ending on September 9, 2030. The amendment became effective on October 1, 2025.
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.
Share Cancellation

In June 2025, the Company's Board of Directors approved the cancellation of 8.2  million treasury shares, which were repurchased under the 2023 share repurchase program in fiscal year 2025 and the first quarter of fiscal year 2026, for an aggregate cost of $ 712.2  million. The cancellation became effective in the second quarter of fiscal year 2026, and as a result, both the number of registered shares issued and the number of treasury shares decreased by 8.2  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.

In September 2024, the Company's Board of Directors approved the cancellation of 4.1  million treasury shares, which were repurchased under the 2023 share repurchase program in fiscal year 2024 for an aggregate cost of $ 332.1  million. The cancellation became effective in the third quarter of fiscal year 2025, and as a result both the number of registered shares issued and the number of treasury shares 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.
Dividends
Pursuant to Swiss corporate law, the payment of dividends is limited to certain amounts of unappropriated retained earnings (approximately CHF  1,573.5 million, or USD equivalent of $ 1,966.6 million as of March 31, 2026) and is subject to shareholder approval.
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In May 2026, the Board of Directors recommended that the Company pay cash dividends for fiscal year 2026 of CHF 1.36 per share (USD equivalent of approximately $ 1.70 per share, which would result in a gross aggregate dividend of approximately $ 243.9 million, based on the exchange rate and shares outstanding, net of treasury shares, on March 31, 2026).
In September 2025, the Company paid gross cash dividends of CHF 1.26  (USD equivalent of $ 1.58 ) per common share, totaling $ 233.1 million on the Company's outstanding common shares. In September 2024, the Company paid cash dividends of CHF 1.16 (USD equivalent of $ 1.37 ) per common share, totaling $ 207.9 million on the Company’s outstanding common shares. In September 2023, the Company paid cash dividends of CHF 1.06 (USD equivalent of $ 1.16 ) per common share, totaling $ 182.3 million on the Company's outstanding common shares.
Any future dividends will be subject to the approval of the Company's shareholders.
Legal Reserves
Under Swiss corporate law, a minimum of 5 % of the Company's annual net income must be retained in a legal reserve until this legal reserve equals 20 % of the Company's issued and outstanding aggregate par value per share capital. These legal reserves represent an appropriation of retained earnings that are not available for distribution and totaled $ 12.0 million at March 31, 2026 (based on the exchange rate at March 31, 2026).
Share Repurchases
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 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 2021 and 2022, the Company's Board of Directors approved increases to the 2020 share repurchase program, to an aggregate amount of up to $ 1.5  billion. The 2020 share repurchase program expired on July 27, 2023.
2023 Share Repurchase Program
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 Swiss Takeover Board approved the 2023 share repurchase program in July 2023 and the program became effective on July 28, 2023. In March 2025, the Company's Board of Directors approved an increase of $ 600.0  million to the 2023 share repurchase program, to an aggregate amount of $ 1.6  billion. The Swiss Takeover Board approved this increase in April 2025 and it became effective on April 2, 2025. As of March 31, 2026, $ 91.8  million was available for repurchase under the 2023 share repurchase program.
2026 Share Repurchase Program
In March 2026, the Company's Board of Directors approved a new three-year share repurchase program to repurchase shares up to an aggregate amount of $ 1.4  billion, or a maximum of 16,078,446 shares. The 2026 share repurchase program enables the Company to repurchase shares for cancellation, as well as to support equity incentive plans or potential acquisitions. The program became effective on May 8, 2026, following approval from the Swiss Takeover Board and the completion of the 2023 share repurchase program.
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The following table summarizes the Company's share repurchase activities for fiscal years 2026, 2025 and 2024 (in thousands):

Years Ended March 31,
2026 2025 2024
2023 Share Repurchase Program:

  Number of shares repurchased (1)
6,167 6,679 4,459
  Aggregate cost of shares repurchased (1) (2)
$ 557,043   $ 588,028   $ 364,639  

2020 Share Repurchase Program:

  Number of shares repurchased (3)
— — 2,641
  Aggregate cost of shares repurchased
$ —   $ —   $ 159,112  

(1) In fiscal years 2026 and 2025, all shares were repurchased for cancellation. In fiscal year 2024, 4.1  million shares in an aggregate cost of $ 332.1  million were repurchased for cancellation and the remaining shares were repurchased to support equity incentive plans.
(2) Includes an aggregate cost of $ 40.8  million, $ 18.7  million, and $ 19.5  million, respectively, that was not yet paid as of March 31, 2026, 2025 and 2024.
(3) Shares were repurchased to support equity incentive plans.
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 16.1  million registered shares as of March 31, 2026. 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. As of March 31, 2026, the Company had a total of 17.3  million shares held in treasury stock, which includes 4.7  million shares that have been repurchased for cancellation and 12.6  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 the SIX Swiss Exchange and/or the Nasdaq Global Select Market. Shares repurchased for cancellation purposes are repurchased on a second trading line on the SIX Swiss Exchange. 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
The components of accumulated other comprehensive loss were as follows (in thousands):

 
  Currency Translation
Adjustment Defined
Benefit
Plans Deferred
Hedging
Gains (Losses) Total
March 31, 2025 $ ( 118,652 ) $ ( 25,276 ) $ ( 3,024 ) $ ( 146,952 )
Other comprehensive income (loss) 24,496   3,532   5,107   33,135  
March 31, 2026 $ ( 94,156 ) $ ( 21,744 ) $ 2,083   $ ( 113,817 )

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Note 15— Segment Information
The Company manages its business activities on a consolidated basis and operates as a single operating segment: Peripherals. The operating segment encompasses the design, manufacturing and sales of peripherals for gaming, PCs, tablets, video conferencing, and other digital platforms. The Company's Chief Operating Decision Maker (the “CODM”) is the Chief Executive Officer. The CODM periodically reviews information such as sales and net income to make business decisions and evaluate performance. The CODM uses net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the Peripherals segment or into other parts of the entity, such as for acquisitions, share repurchase or to pay dividends. The CODM also monitors budget versus actual net income results.
The following table presents segment revenue, gross profit, and net income for the periods presented:

Years Ended March 31,
2026 2025 2024
Net sales
$ 4,840,761   $ 4,554,900   $ 4,298,467  
Less: Significant segment expenses

Cost of goods sold (1)
2,731,776   2,572,724   2,501,414  
Marketing and selling (1)
774,098   774,036   694,530  
Research and development (1)
293,317   288,828   269,407  
General and administrative (1)
130,809   144,680   133,787  
Less: other segment items

  Share-based compensation expense 112,392   89,913   82,889  
  Amortization of intangible assets and acquisition-related costs 13,315   20,249   21,962  
  Interest income
( 48,246 ) ( 54,997 ) ( 50,636 )
  Other (2)
6,781   12,595   23,518  
  Provision for income taxes
115,332   75,343   9,453  
Net income
$ 711,187   $ 631,529   $ 612,143  

(1) The difference between the amounts included in the table above and the amounts included in the consolidated
statements of operations is related to share-based compensation expense (see Note 4).
(2) Includes restructuring charges, net, impairment of intangible assets, change in fair value of contingent
consideration for business acquisition, and other income (expense), net, as applicable.
Sales by product category for fiscal years 2026, 2025 and 2024 were as follows (in thousands):

  Years Ended March 31,
  2026 2025 2024
Gaming (1)
$ 1,414,206   $ 1,338,467   $ 1,231,063  
Keyboards & Combos 937,551   882,643   821,441  
Pointing Devices 858,904   788,784   742,987  
Video Collaboration 689,040   626,000   609,361  
Webcams 326,172   315,520   325,225  
Tablet Accessories 336,189   299,540   254,060  
Headsets 179,825   179,710   168,478  
Other (2)
98,874   124,236   145,852  
Total Sales $ 4,840,761   $ 4,554,900   $ 4,298,467  

(1) Gaming includes streaming services revenue generated by Streamlabs.
(2) Other primarily consists of mobile speakers and PC speakers.
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Sales by geographic region (based on the customers' locations) for fiscal years 2026, 2025 and 2024 were as follows (in thousands):

  Years Ended March 31,
  2026 2025 2024
Americas $ 1,955,191   $ 1,973,374   $ 1,896,258  
EMEA 1,539,065   1,413,855   1,301,515  
Asia Pacific 1,346,505   1,167,671   1,100,694  
Total Sales $ 4,840,761   $ 4,554,900   $ 4,298,467  

Revenue from sales to customers in the United States represented 33 %, 35 % and 36 % of sales in fiscal years 2026, 2025 and 2024, respectively. Revenue from sales to customers in Germany represented 12 %, 12 % and 14 % of sales in fiscal years 2026 , 2025 and 2024, respectively. Revenue from sales to customers in China represented 12 %, 10 % and 10 % of sales in fiscal years 2026, 2025 and 2024, 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 4 %, 3 %, and 2 % of sale s for fiscal year 2026, 2025 and 2024, respectively.
Property, plant and equipment, net (excluding software) and right-of-use assets by geographic region were as follows (in thousands):

  March 31,
  2026 2025
Americas $ 59,103   $ 61,521  
EMEA 48,119   47,874  
Asia Pacific 65,089   60,710  
Total $ 172,311   $ 170,105  

Property, plant and equipment, net (excluding software) and right-of-use assets in the United States and China were $ 57.6  million and $ 48.0  million, respectively, as of March 31, 2026. Property, plant and equipment, net (excluding software) and right-of-use assets in the United States and China were $ 60.0  million and $ 43.4  million, respectively, as of March 31, 2025. Property, plant and equipment, net (excluding software) and right-of-use assets in Switzerland, the Company's country of domicile, were $ 25.0  million and $ 24.1  million as of March 31, 2026 and 2025, respectively. No other countries represented more than 10% of the Company's total consolidated property, plant and equipment, net (excluding software) and right-of-use assets as of March 31, 2026 or 2025.

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 were substantially completed during fiscal year 2024.
During the fourth quarter of fiscal year 2025, the Company initiated a restructuring plan to reorganize certain functions to enable increased productivity and efficiency. This plan resulted in charges related to employee severance and other termination ben efits. The Company has substantially completed these restructuring activities as of March 31, 2026.
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The following table summarizes restructuring-related activities during fiscal years 2026, 2025 and 2024 (in thousands):

  Termination
Benefits Contract Termination and Other Total

Accrued restructuring liability at March 31, 2023 (1)
$ 14,177   $ 5,357   $ 19,534  
Charges, net 6,011   ( 2,145 ) 3,866  
Cash payments ( 18,375 ) ( 1,757 ) ( 20,132 )
Accrued restructuring liability at March 31, 2024 (1)
$ 1,813   $ 1,455   $ 3,268  
Charges, net 9,846   ( 231 ) 9,615  
Cash payments ( 2,562 ) ( 241 ) ( 2,803 )
Accrued restructuring liability at March 31, 2025 (1)
$ 9,097   $ 983   $ 10,080  
Charges, net 7,584   2,276   9,860  
Cash payments ( 13,558 ) ( 2,299 ) ( 15,857 )
Accrued restructuring liability at March 31, 2026 (1)
$ 3,123   $ 960   $ 4,083  

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

Note 17 — Leases
The Company is a lessee in various non-cancelable operating leases, primarily real estate facilities for office space. As of March 31, 2026, t he Company's lease arrangements are comprised of operating leases with various expiration dates through August 31, 2036 . The lease term for all of the Company’s leases includes the non-cancelable period of the lease. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into the Company's determination of the duration of the lease arrangement. The Company's leases do not contain any material residual value guarantees.
The total operating lease costs including short-term lease costs were $ 19.1 million, $ 19.3 million and $ 19.5 million for the years ended March 31, 2026, 2025, and 2024, respectively. Total variable lease costs were not material during the years ended March 31, 2026, 2025 and 2024. 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.
Supplemental cash flow information related to operating leases (in thousands):

Years Ended March 31,
2026 2025 2024
Cash paid for amounts included in the measurement of operating lease liabilities $ 18,056   $ 16,847   $ 13,489  
ROU assets obtained in exchange for operating lease liabilities $ 6,902   $ 26,767   $ 8,593  

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Future lease payments included in the measurement of operating lease liabilities as of March 31, 2026 for the following five fiscal years and thereafter are as follows (in thousands):

Years Ending March 31,
2027 $ 18,222  
2028 14,786  
2029 14,242  
2030 12,261  
2031 10,496  
Thereafter 29,549  
Total lease payments $ 99,556  
Less: imputed interest ( 11,401 )
Present value of lease liabilities $ 88,155  

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

Years Ended March 31,
2026 2025
Weighted-average remaining lease terms (in years) 6.9 7.6
Weighted-average discount rate 3.6   % 3.6   %

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Schedule II
LOGITECH INTERNATIONAL S.A.
VALUATION AND QUALIFYING ACCOUNTS
For the Fiscal Years Ended March 31, 2026, 2025 and 2024 (in thousands)
The Company's Schedule II includes valuation and qualifying accounts related to allowances for doubtful accounts, sales returns, cooperative marketing arrangements, customer incentive programs, and pricing programs, for direct customers and tax valuation allowances. The Company also has sales incentive programs for indirect customers with whom it does not have a direct sales and receivable relationship. These programs are recorded as accrued liabilities and are not considered valuation or qualifying accounts.

Balance at
Beginning of
Year Charged
(Credited) to
Statement of
Operations (1)
Claims and
Adjustments
Applied Against
Allowances (1)
Balance at
End of
Year

Allowance for cooperative marketing arrangements:        
2026 $ 44,457   $ 305,257   $ ( 299,750 ) $ 49,964  
2025 $ 41,634   $ 257,940   $ ( 255,117 ) $ 44,457  
2024 $ 40,495   $ 232,837   $ ( 231,698 ) $ 41,634  
Allowance for customer incentive programs:        
2026 $ 66,564   $ 368,668   $ ( 361,233 ) $ 73,999  
2025 $ 60,027   $ 337,039   $ ( 330,502 ) $ 66,564  
2024 $ 71,645   $ 299,351   $ ( 310,969 ) $ 60,027  
Allowance for pricing programs:        
2026 $ 105,876   $ 931,144   $ ( 892,220 ) $ 144,800  
2025 $ 91,280   $ 760,024   $ ( 745,428 ) $ 105,876  
2024 $ 98,822   $ 707,954   $ ( 715,496 ) $ 91,280  
Other allowances:

2026 $ 37,250   $ 148,558   $ ( 167,972 ) $ 17,836  
2025 $ 10,180   $ 170,495   $ ( 143,425 ) $ 37,250  
2024 $ 10,232   $ 141,909   $ ( 141,961 ) $ 10,180  
Tax valuation allowance:        
2026 $ 36,537   $ 385   $ —   $ 36,922  
2025 $ 35,536   $ 1,000   $ —   $ 36,537  
2024 $ 30,766   $ 4,770   $ —   $ 35,536  

(1) The amounts for fiscal year 2024 include immaterial impacts from the business acquisitions during the year.

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