{"url_path":"/sec/logi/10-k/2026/item-15","section_key":"item-15","section_title":"Item 15 EXHIBITS AND FINANCIAL STATEMENT SCHEDULES","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-05-21","source_url":"https://www.sec.gov/Archives/edgar/data/1032975/0001032975-26-000021-index.html","accession_number":"0001032975-26-000021","cik":"0001032975","ticker":"LOGI","issuer_name":"LOGITECH INTERNATIONAL S.A.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1032975/0001032975-26-000021-index.html","primary_entity_key":"0001032975","primary_entity_name":"LOGITECH INTERNATIONAL S.A."},"word_count":20664,"has_tables":true,"body_markdown":"ITEM 15.    EXHIBITS AND FINANCIAL STATEMENT SCHEDULES\n\n(a)The following documents are filed as part of this Annual Report on Form 10-K:\n\n1. Financial Statements and Supplementary Data\n\nFinancial Statements:\n\n[Report of Independent Registered Public Accounting Firm](#ia8474fdb71f5495ead5de6bb79ad17f7_226)\n\n[Consolidated Statements of Operations—Years Ended March 31, 2026, 2025 and 2024](#ia8474fdb71f5495ead5de6bb79ad17f7_232)\n\n[Consolidated Statements of Comprehensive Income—Years Ended March 31, 2026, 2025 and 2024](#ia8474fdb71f5495ead5de6bb79ad17f7_235)\n\n[Consolidated Balance Sheets—March 31, 2026 and 2025](#ia8474fdb71f5495ead5de6bb79ad17f7_238)\n\n[Consolidated Statements of Cash Flows—Years Ended March 31, 2026, 2025 and 2024](#ia8474fdb71f5495ead5de6bb79ad17f7_244)\n\n[Consolidated Statements of Changes in Shareholders' Equity—Years Ended March 31, 2026, 2025 and 2024](#ia8474fdb71f5495ead5de6bb79ad17f7_247)\n\n[Notes to Consolidated Financial Statements](#ia8474fdb71f5495ead5de6bb79ad17f7_256)\n\n2. Financial Statement Schedule\n\n[Schedule II—Valuation and Qualifying Accounts](#ia8474fdb71f5495ead5de6bb79ad17f7_328)\n\n3. Exhibits\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 55\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nIndex to Exhibits\n\n   Incorporated by Reference \n\nExhibit No. ExhibitFormFile No.Filing DateExhibit No.Filed\nHerewith\n\n3.1\n[Articles of Incorporation of Logitech International S.A., as amended](https://www.sec.gov/Archives/edgar/data/1032975/000103297525000071/exhibit31lisaaoi-capitalba.htm)\n\n8-K\n0-2917410/2/20253.1\n\n3.2\n[Organizational Regulations of Logitech International S.A., as amended](https://www.sec.gov/Archives/edgar/data/1032975/000103297523000080/exhibit32amendedorganiza.htm)\n10-Q0-2917410/26/20233.2\n\n4.1\n[Description of the Registrant's Securities](exhibit41to2026form10-k.htm)\nX\n\n10.1**\n[1996 Stock Plan, as amended](https://www.sec.gov/Archives/edgar/data/1032975/000101287003002812/dex42.htm)\nS-8333-1008545/27/20034.2 \n\n10.2**\n[Logitech International S.A. 2006 Stock Incentive Plan, as amended and restated effective September 14, 2022](https://www.sec.gov/Archives/edgar/data/1032975/000103297522000029/logitechproxystatement2022.htm)\n\nDEF14A\n0-291747/26/2022App. A\n\n10.3**\n[Logitech Inc. Management Deferred Compensation Plan, as amended and restated](https://www.sec.gov/Archives/edgar/data/1032975/000119312508224188/dex101.htm)\n10-Q0-2917411/4/200810.1 \n\n10.4\n**\n[Logitech Inc. Amended and Restated Deferred Compensation Plan, effective January 1, 2017](https://www.sec.gov/Archives/edgar/data/1032975/000103297523000066/logitech-deferredcomppla.htm)\n10-Q0-291747/27/202310.1\n\n10.5\n**\n[Logitech Management Performance Bonus Plan, as amended and restated](https://www.sec.gov/Archives/edgar/data/1032975/000120677413002504/logitech_def14a.htm)\n\nDEF14A\n0-291747/23/2013App. C\n\n10.6\n**\n[1996 Employee Share Purchase Plan (U.S.), as amended and restated](https://www.sec.gov/Archives/edgar/data/1032975/000120677413002504/logitech_def14a.htm)\n\nDEF14A\n0-291747/23/2013App. A \n\n10.7\n**\n[2006 Employee Share Purchase Plan (Non-U.S.), as amended and restated](https://www.sec.gov/Archives/edgar/data/1032975/000120677413002504/logitech_def14a.htm)\n\nDEF14A\n0-291747/23/2013App. B\n\n10.8\n**\n[Representative form of stock option agreement (employees) under the Logitech International S.A. 2006 Stock Incentive Plan](https://www.sec.gov/Archives/edgar/data/1032975/000103297509000021/ex102.htm)\n10-Q0-2917411/4/200910.2\n\n10.9\n**\n[Representative form of performance stock option agreement (executives and other employees) under the Logitech International S.A. 2006 Stock Incentive Plan](https://www.sec.gov/Archives/edgar/data/1032975/000110465913007557/a12-29426_1ex10d2.htm)\n10-Q0-291742/5/201310.2\n\n10.10\n**\n[Representative form of restricted stock unit agreement (non-executive board members) under the Logitech International S.A. 2006 Stock Incentive Plan](representativeformofrestri.htm)\n\nX\n\n10.11\n**\n[Representative form of restricted stock unit agreement (Group Management Team, Leadership Team, executive officers, and other employees) under the Logitech International S.A. 2006 Stock Incentive Plan](representativeformofrestria.htm)\n\nX\n\n10.12**\n[Representative form of performance share unit agreement (Group Management Team (executive officers), Leadership Team, executives, and other employees) under the Logitech International S.A. 2006 Stock Incentive Plan](representativeformofperfor.htm)\n\nX\n\n10.13**\n[Employment Agreement between Logitech](https://www.sec.gov/Archives/edgar/data/1032975/000103297526000011/employmentagreementbetwe.htm)[Inc](https://www.sec.gov/Archives/edgar/data/1032975/000103297526000011/employmentagreementbetwe.htm)[. and Johanna W. (Hanneke) Faber, dated](https://www.sec.gov/Archives/edgar/data/1032975/000103297526000011/employmentagreementbetwe.htm)[December 3, 2025](https://www.sec.gov/Archives/edgar/data/1032975/000103297526000011/employmentagreementbetwe.htm)\n8-K0-291741/28/202610.1\n\n10.14**\n[Employment Agreement between Logitech Inc. and Prakash Arunkundrum, dated as of May 26, 2020](https://www.sec.gov/Archives/edgar/data/1032975/000103297520000033/exhibit101q1fy21.htm)\n10-Q0-291747/23/202010.1\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 56\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nIncorporated by Reference\n\nExhibit No.ExhibitFormFile No.Filing DateExhibit No.Filed\nHerewith\n\n10.15**\n[Employment Agreement between Logitech Inc. and Samantha Harnett, dated as of July 1, 2020](https://www.sec.gov/Archives/edgar/data/1032975/000103297520000033/exhibit102q1fy21.htm)\n10-Q0-291747/23/202010.2\n\n10.16\n**\n\n[Offer Letter between Logitech, Inc. and Matteo Anversa, dated August 5, 2024](https://www.sec.gov/Archives/edgar/data/1032975/000103297524000062/offerletterbetweenlogite.htm)\n\n8-K\n0-291748/6/202410.1\n\n10.17\n**\n\n[Employment Agreement between Logitech Inc. and Matteo Anversa, dated August 5, 2024](https://www.sec.gov/Archives/edgar/data/1032975/000103297524000062/employmentagreementbetwe.htm)\n\n8-K\n0-291748/6/202410.2\n\n10.18**\n[Form of Director and Officer Indemnification Agreement with Logitech International S.A.](https://www.sec.gov/Archives/edgar/data/1032975/000101287003002768/dex41.htm)\n20-F0-291745/21/20034.1\n\n10.19**\n[Form of Director and Officer Indemnification Agreement with Logitech Inc.](https://www.sec.gov/Archives/edgar/data/1032975/000101287003002768/dex42.htm)\n20-F0-291745/21/20034.2\n\n10.20\n**\n\n[Credit Agreement dated January 27, 2025, by and among Logitech Europe S.A., Logitech International S.A., the lenders from time to time party thereto, and PNC Bank, National Association, as Administrative Agent](https://www.sec.gov/Archives/edgar/data/1032975/000103297525000005/creditagreementdatedjanu.htm)\n\n8-K\n0-291741/28/202510.1\n\n10.21\n**\n\n[Guaranty Agreement, dated January 27, 2025, by and among Logitech Europe S.A. and Logitech International S.A. in favor of PNC Bank, National Association, as administrative Agent](https://www.sec.gov/Archives/edgar/data/1032975/000103297525000005/guarantyagreementdatedja.htm)\n\n8-K\n0-291741/28/202510.2\n\n19.1\n\n[Insider Trading Policy](https://www.sec.gov/Archives/edgar/data/1032975/000103297524000023/insidertradingpolicytrad.htm)\n10-K0-291745/16/202419.1\n\n21.1\n[List of Subsidiaries](exhibit21110k-2026.htm)\nX\n\n23.1 \n[Consent of Independent Registered Public Accounting Firm](exhibit23110k-2026.htm)\nX\n\n24.1\n[Power of Attorney (incorporated by reference to the signature page of this Annual Report on Form 10-K)](#ia8474fdb71f5495ead5de6bb79ad17f7_220)\n    X\n\n31.1\n[Certification by Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](exhibit31110k-2026.htm)\nX\n\n31.2\n[Certification by Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](exhibit31210k-2026.htm)\nX\n\n32.1\n*\n\n[Certification by Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](exhibit32110k-2026.htm)\nX\n\n97.1\n\n**\n\n[Executive Clawback Policy](https://www.sec.gov/Archives/edgar/data/1032975/000103297524000023/exhibit9712023clawbackpo.htm)\n10-K0-291745/16/202497.1\n\n101.INSXBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document    X\n\n101.SCHXBRL Taxonomy Extension Schema DocumentX\n\n101.CALXBRL Taxonomy Extension Calculation Linkbase DocumentX\n\n101.DEFXBRL Taxonomy Extension Definition Linkbase DocumentX\n\n101.LABXBRL Taxonomy Extension Label Linkbase DocumentX\n\n101.PREXBRL Taxonomy Extension Presentation Linkbase DocumentX\n\n104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)X\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 57\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\n* This exhibit is furnished herewith, but not deemed \"filed\" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that we explicitly incorporate it by reference.\n\n** Indicates management compensatory plan, contract or arrangement.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 58\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nSIGNATURES\n\nPursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.\n\n  LOGITECH INTERNATIONAL S.A.\n\n/s/ Johanna (Hanneke) Faber\n\n \nJohanna (Hanneke) Faber\n\nChief Executive Officer\n\n/s/ Matteo Anversa\n\n \nMatteo Anversa\n\nChief Financial Officer\n\nMay 21, 2026\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 59\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nPOWER OF ATTORNEY AND SIGNATURES\n\nKNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Johanna (Hanneke) Faber and Matteo Anversa, jointly and severally, his or her attorney-in-fact, with the power of substitution, for him or her in any and all capacities, to sign any amendments to this Annual Report on Form 10-K and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that each of said attorneys-in-fact, or his or her substitute or substitutes, may do or cause to be done by virtue hereof.\n\nPursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.\n\nSignatureTitle Date\n\n    \n\n/s/ Guy Gecht\n\nGuy Gecht\nChairperson of the Board May 21, 2026\n\n/s/ Johanna (Hanneke) Faber\n\nJohanna (Hanneke) Faber\n\nChief Executive Officer (Principal Executive Officer)\n May 21, 2026\n\n/s/ Matteo Anversa\n\nMatteo Anversa\nChief Financial Officer (Principal Financial Officer and Principal Accounting Officer) May 21, 2026\n\n/s/ Donald Allan, Jr.\n\nDonald Allan, Jr.\nDirectorMay 21, 2026\n\n/s/ Edouard Bugnion\n\nEdouard Bugnion\nDirector May 21, 2026\n\n/s/ Christopher Jones\n\nChristopher Jones\nDirectorMay 21, 2026\n\n/s/ Marjorie Lao\nMarjorie Lao\nDirector May 21, 2026\n\n/s/ Owen Mahoney\nOwen Mahoney\nDirectorMay 21, 2026\n\n/s/ Neela Montgomery\n\nNeela Montgomery\nDirectorMay 21, 2026\n\n/s/ Kwok Wang Ng\n\nKwok Wang Ng\nDirectorMay 21, 2026\n\n/s/ Deborah Thomas\n\nDeborah Thomas\nDirectorMay 21, 2026\n\n/s/ Sascha Zahnd\n\nSascha Zahnd\nDirectorMay 21, 2026\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 60\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nINDEX TO CONSOLIDATED FINANCIAL STATEMENTS\n\n Page\n\n[Report of Independent Registered Public Accounting Firm](#ia8474fdb71f5495ead5de6bb79ad17f7_226) (PCAOB ID: 185)\n\n[62](#ia8474fdb71f5495ead5de6bb79ad17f7_226)\n\n[Consolidated Statements of Operations—Years Ended March 31, 2026, 2025 and 2024](#ia8474fdb71f5495ead5de6bb79ad17f7_232)\n\n[64](#ia8474fdb71f5495ead5de6bb79ad17f7_232)\n\n[Consolidated Statements of Comprehensive Income—Years Ended March 31, 2026, 2025 and 2024](#ia8474fdb71f5495ead5de6bb79ad17f7_235)\n\n[65](#ia8474fdb71f5495ead5de6bb79ad17f7_235)\n\n[Consolidated Balance Sheets — March 31, 2026 and 2025](#ia8474fdb71f5495ead5de6bb79ad17f7_238)\n\n[66](#ia8474fdb71f5495ead5de6bb79ad17f7_238)\n\n[Consolidated Statements of Cash Flows —Years Ended March 31, 2026, 2025 and 2024](#ia8474fdb71f5495ead5de6bb79ad17f7_244)\n\n[67](#ia8474fdb71f5495ead5de6bb79ad17f7_244)\n\n[Consolidated Statements of Changes in Shareholders' Equity—Years Ended March 31, 2026, 2025 and 2024](#ia8474fdb71f5495ead5de6bb79ad17f7_247)\n\n[68](#ia8474fdb71f5495ead5de6bb79ad17f7_247)\n\n[Notes to Consolidated Financial Statements](#ia8474fdb71f5495ead5de6bb79ad17f7_253)\n\n[69](#ia8474fdb71f5495ead5de6bb79ad17f7_253)\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 61\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nReport of Independent Registered Public Accounting Firm\n\nTo the Shareholders and Board of Directors\n\nLogitech International S.A.:\n\nOpinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting\n\nWe have audited the accompanying consolidated balance sheets of Logitech International S.A. and subsidiaries (the Company) as of March 31, 2026 and 2025, the related consolidated statements of operations, comprehensive income, changes in shareholders’ equity, and cash flows for each of the years in the three-year period ended March 31, 2026, and the related notes and financial statement schedule II (collectively, the consolidated financial statements). We also have audited the Company’s internal control over financial reporting as of March 31, 2026, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.\n\nIn our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of March 31, 2026 and 2025, and the results of its operations and its cash flows for each of the years in the three-year period ended March 31, 2026, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of March 31, 2026 based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.\n\nBasis for Opinions\n\nThe Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\nWe conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.\n\nOur audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.\n\nDefinition and Limitations of Internal Control Over Financial Reporting\n\nA company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 62\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nwith generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.\n\nBecause of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.\n\nCritical Audit Matter\n\nThe critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.\n\nAssessment of the accruals for certain Customer Programs\n\nAs discussed in Notes 2 and 8 to the consolidated financial statements, the Company recorded accrued Customer Program liabilities of $211.9 million as of March 31, 2026 for customer incentives, cooperative marketing, and pricing programs (collectively, Customer Programs). The Company records these accruals as a reduction of revenue at the time of sale. For certain of these accruals, the Company estimated the amounts based on historical data or future commitments that are planned and controlled by the Company. The Company uses judgment in analyzing historical trends, inventories owned by and located at customers, products sold by direct customers to end customers or resellers, known product quality issues, negotiated terms, and other relevant customer and product information, such as stage of product life cycle, which are expected to experience unusually high discounting.\n\nWe identified the assessment of the accruals for certain Customer Programs as a critical audit matter. Historical experience being predictive of Customer Programs’ earned amounts is the significant assumption used to estimate the accruals for Customer Programs. Due to the inherent uncertainties related to the relevance of the predictive historical experience to the determination of the estimate, the testing required a high degree of auditor judgment.\n\nThe following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the critical audit matter. This included controls related to the Company’s assessment of whether historical experience is predictive of Customer Programs’ earned amounts and the Company’s validation of the underlying channel inventory data used to estimate the accruals for Customer Programs. We assessed the historical experience used in estimating the accruals for certain Customer Programs using a combination of the Company’s internal historical information of sales, Customer Programs’ earned amounts, and relevant and reliable third-party channel inventory and sell-through data. In addition, we evaluated the Company’s ability to estimate the accruals for certain Customer Programs by comparing recorded accruals from fiscal year 2025 to actual subsequent Customer Programs’ earned amounts in fiscal year 2026.\n\n/s/ KPMG LLP\n\nWe have served as the Company’s auditor since 2014.\n\nSan Francisco, California\n\nMay 21, 2026\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 63\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nLOGITECH INTERNATIONAL S.A.\n\nCONSOLIDATED STATEMENTS OF OPERATIONS\n\n(In thousands, except per share amounts)\n\n Years Ended March 31,\n\n 202620252024\n\nNet sales$4,840,761 $4,554,900 $4,298,467 \n\nCost of goods sold2,742,407 2,582,745 2,509,418 \n\nAmortization of intangible assets7,017 9,554 11,028 \n\nGross profit2,091,337 1,962,601 1,778,021 \n\nOperating expenses:   \n\nMarketing and selling816,604 814,414 730,310 \n\nResearch and development316,221 309,008 287,243 \n\nGeneral and administrative167,160 164,014 155,056 \n\nAmortization of intangible assets and acquisition-related costs6,298 10,695 10,934 \n\nImpairment of intangible assets— — 3,526 \n\nChange in fair value of contingent consideration for business acquisition— — (250)\n\nRestructuring charges, net9,860 9,615 3,866 \n\nTotal operating expenses1,316,143 1,307,746 1,190,685 \n\nOperating income775,194 654,855 587,336 \n\nInterest income48,246 54,997 50,636 \n\nOther income (expense), net3,079 (2,980)(16,376)\n\nIncome before income taxes826,519 706,872 621,596 \n\nProvision for income taxes115,332 75,343 9,453 \n\nNet income$711,187 $631,529 $612,143 \n\nNet income per share:   \n\nBasic $4.85 $4.17 $3.90 \n\nDiluted$4.80 $4.13 $3.87 \n\nWeighted average shares used to compute net income per share:   \n\nBasic146,775 151,322 156,776 \n\nDiluted148,208 152,784 158,171 \n\n The accompanying notes are an integral part of these consolidated financial statements.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 64\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nLOGITECH INTERNATIONAL S.A.\n\nCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME\n\n(In thousands)\n\n Years Ended March 31,\n\n 202620252024\n\nNet income$711,187 $631,529 $612,143 \n\nOther comprehensive income (loss):   \n\nCurrency translation gain (loss):   \n\nCurrency translation gain (loss)24,496 (14,705)(3,078)\n\nDefined benefit plans:   \n\nNet gain (loss) and prior service costs, net of taxes3,271 (17,640)(13,163)\n\nReclassification of amortization included in other income (expense), net261 759 243 \n\nHedging gain (loss):   \n\nDeferred hedging gain (loss), net of taxes(8,214)(703)1,109 \n\nReclassification of hedging loss (gain) included in cost of goods sold13,321 (3,461)3,964 \n\nTotal other comprehensive income (loss)33,135 (35,750)(10,925)\n\nTotal comprehensive income$744,322 $595,779 $601,218 \n\n The accompanying notes are an integral part of these consolidated financial statements.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 65\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nLOGITECH INTERNATIONAL S.A.\n\nCONSOLIDATED BALANCE SHEETS\n\n(In thousands, except per share amounts)\n\n March 31,\n\n 20262025\n\nAssets\n\nCurrent assets:\n\nCash and cash equivalents$1,741,546 $1,503,205 \n\nAccounts receivable, net505,867 454,546 \n\nInventories489,948 503,747 \n\nOther current assets177,895 131,211 \n\nTotal current assets2,915,256 2,592,709 \n\nNon-current assets:  \n\nProperty, plant and equipment, net116,454 113,858 \n\nGoodwill465,417 463,230 \n\nOther intangible assets, net12,386 24,630 \n\nOther assets339,075 344,077 \n\nTotal assets$3,848,588 $3,538,504 \n\nLiabilities and Shareholders' Equity \n\nCurrent liabilities: \n\nAccounts payable$530,983 $414,586 \n\nAccrued and other current liabilities781,990 686,503 \n\nTotal current liabilities1,312,973 1,101,089 \n\nNon-current liabilities:  \n\nIncome taxes payable86,322 88,483 \n\nOther non-current liabilities237,899 221,512 \n\nTotal liabilities1,637,194 1,411,084 \n\nCommitments and contingencies (Note 13)\n\nShareholders' equity: \n\nRegistered shares, CHF 0.25 par value\n\nIssued shares: 160,784 and 168,994 at March 31, 2026 and 2025, respectively\n28,001 29,432 \n\nAdditional paid-in capital123,386 82,591 \n\nShares in treasury, at cost\n\nTreasury shares: 17,282 and 20,485 shares at March 31, 2026 and\n\n2025, respectively\n(1,207,454)(1,464,912)\n\nRetained earnings3,381,278 3,627,261 \n\nAccumulated other comprehensive loss(113,817)(146,952)\n\nTotal shareholders' equity2,211,394 2,127,420 \n\nTotal liabilities and shareholders' equity$3,848,588 $3,538,504 \n\n The accompanying notes are an integral part of these consolidated financial statements.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 66\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nLOGITECH INTERNATIONAL S.A.\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS\n\n(In thousands)\n\n Years Ended March 31,\n\n 202620252024\n\nCash flows from operating activities:\n\nNet income$711,187 $631,529 $612,143 \n\nAdjustments to reconcile net income to net cash provided by operating activities:   \n\nDepreciation64,139 59,664 63,065 \n\nAmortization of intangible assets13,315 20,098 21,681 \n\nImpairment of intangible assets— — 3,526 \n\nLoss on investments612 2,029 14,674 \n\nShare-based compensation expense112,392 89,913 82,889 \n\nDeferred income taxes29,822 56,543 (42,424)\n\nChange in fair value of contingent consideration for business acquisition— — (250)\n\nOther28 120 379 \n\nChanges in assets and liabilities, net of acquisitions:   \n\nAccounts receivable, net(39,436)69,979 91,519 \n\nInventories22,882 (80,501)259,796 \n\nOther assets(36,559)23,970 10,760 \n\nAccounts payable109,174 (31,627)39,336 \n\nAccrued and other liabilities49,651 840 (11,978)\n\nNet cash provided by operating activities1,037,207 842,557 1,145,116 \n\nCash flows from investing activities:   \n\nPurchases of property, plant and equipment(61,562)(56,128)(55,897)\n\nAcquisitions, net of cash acquired— — (14,424)\n\nPurchases of deferred compensation investments(10,479)(6,600)(11,571)\n\nProceeds from sales of deferred compensation investments11,308 7,079 12,174 \n\nOther investing activities(1,654)(1,619)(617)\n\nNet cash used in investing activities(62,387)(57,268)(70,335)\n\nCash flows from financing activities:   \n\nPayment of cash dividends(233,059)(207,853)(182,305)\n\nPayment of contingent consideration for business acquisition— (1,245)(5,002)\n\nPurchases of registered shares(534,939)(588,838)(504,203)\n\nProceeds from exercises of stock options and purchase rights38,320 36,405 32,197 \n\nTax withholdings related to net share settlements of restricted stock units(21,438)(32,485)(29,744)\n\nOther financing activities— (3,344)(1,116)\n\nNet cash used in financing activities(751,116)(797,360)(690,173)\n\nEffect of exchange rate changes on cash and cash equivalents14,637 (5,566)(12,789)\n\nNet increase (decrease) in cash and cash equivalents\n238,341 (17,637)371,819 \n\nCash and cash equivalents at beginning of the period1,503,205 1,520,842 1,149,023 \n\nCash and cash equivalents at end of the period$1,741,546 $1,503,205 $1,520,842 \n\nSupplementary Cash Flow Disclosures:\n\nNon-cash investing and financing activities:   \n\nProperty, plant and equipment purchased during the period and included in period end liability accounts$13,573 $10,106 $11,451 \n\nSupplemental cash flow information:   \n\nIncome taxes paid, net$86,353 $67,484 $50,855 \n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 67\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nLOGITECH INTERNATIONAL S.A.\n\nCONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY\n\n(In thousands, except per share amounts)\n\n Registered sharesAdditional\npaid-in\ncapitalTreasury sharesRetained\nearningsAccumulated\nother\ncomprehensive\nloss\n\n SharesAmountSharesAmountTotal\n\nMarch 31, 2023173,106 $30,148 $127,380 13,763 $(977,266)$3,177,575 $(100,277)$2,257,560 \n\nTotal comprehensive income— — — — — 612,143 (10,925)601,218 \n\nPurchases of registered shares— — — 7,100 (523,751)— — (523,751)\n\nSale of shares upon exercise of stock options and purchase rights— — (28,314)(624)60,511 — — 32,197 \n\nIssuance of shares upon vesting of restricted stock units— — (118,771)(994)89,027 — — (29,744)\n\nIssuance of shares related to contingent consideration\n— — 102 (2)143 — — 245 \n\nShare-based compensation— — 83,127 — — — — 83,127 \n\nCash dividends ($1.19 per share)\n— — — — — (187,199)— (187,199)\n\nMarch 31, 2024173,106 $30,148 $63,524 19,243 $(1,351,336)$3,602,519 $(111,202)$2,233,653 \n\nTotal comprehensive income— — — — — 631,529 (35,750)595,779 \n\nPurchases of registered shares— — — 6,679 (588,028)— — (588,028)\n\nSale of shares upon exercise of stock options and purchase rights— — (10,588)(492)52,927 (5,934)— 36,405 \n\nIssuance of shares upon vesting of restricted stock units— — (60,422)(833)89,437 (61,500)— (32,485)\n\nCancellation of treasury shares(4,112)(716)— (4,112)332,088 (331,372)— — \n\nShare-based compensation— — 90,077 — — — — 90,077 \n\nCash dividends ($1.37 per share)\n— — — — — (207,981)— (207,981)\n\nMarch 31, 2025168,994 $29,432 $82,591 20,485 $(1,464,912)$3,627,261 $(146,952)$2,127,420 \n\nTotal comprehensive income— — — — — 711,187 33,135 744,322 \n\nPurchases of registered shares— — — 6,167 (557,043)— — (557,043)\n\nSale of shares upon exercise of stock options and purchase rights— — (5,256)(512)43,576 — — 38,320 \n\nIssuance of shares upon vesting of restricted stock units— — (66,491)(648)58,760 (13,707)— (21,438)\n\nCancellation of treasury shares(8,210)(1,431)— (8,210)712,165 (710,734)— — \n\nShare-based compensation— — 112,542 — — — — 112,542 \n\nCash dividends ($1.58 per share)\n— — — — — (232,729)— (232,729)\n\nMarch 31, 2026160,784 $28,001 $123,386 17,282 $(1,207,454)$3,381,278 $(113,817)$2,211,394 \n\n The accompanying notes are an integral part of these consolidated financial statements.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 68\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nLOGITECH INTERNATIONAL S.A.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nNote 1—The Company\n\nLogitech 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, and gaming. As the 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.\n\nThe Company sells its products to a broad range of international customers, including direct sales to retailers, e-tailers, businesses large and small and end consumers through the Company's e-commerce platform, and indirect sales to end customers through distributors.\n\nLogitech was founded in Switzerland in 1981 and Logitech International S.A. has been the parent holding company of Logitech since 1988. Logitech International S.A. is a Swiss holding company with its registered office in Hautemorges, Switzerland and headquarters in Lausanne, Switzerland, which conducts its business through subsidiaries in the Americas; Europe, the Middle East and Africa (\"EMEA\"); and Asia Pacific. Shares of Logitech International S.A. are listed on both the SIX Swiss Exchange under the trading symbol LOGN and the Nasdaq Global Select Market under the trading symbol LOGI.\n\nNote 2—Summary of Significant Accounting Policies\n\nBasis of Presentation\n\nThe consolidated financial statements include the accounts of Logitech and its subsidiaries. All intercompany balances and transactions have been eliminated. The consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States (\"U.S. GAAP\").\n\nFiscal Year\n\nThe Company's fiscal year ends on March 31. Interim quarters are generally thirteen-week periods, each ending on a Friday. For purposes of presentation, the Company has indicated its quarterly periods end on the last day of the calendar quarter.\n\nReference to Sales\n\nReferences to \"sales\" in the Notes to the consolidated financial statements means net sales, except as otherwise specified.\n\nUse of Estimates\n\nThe preparation of financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Significant estimates and assumptions made by management involve the fair value of goodwill and intangible assets acquired from business acquisitions, pension obligations, accruals for customer incentives, cooperative marketing, and pricing programs (\"Customer Programs\") and related breakage when appropriate, inventory valuation, share-based compensation expense, uncertain tax positions, and valuation allowances for deferred tax assets. Although these estimates are based on management’s best knowledge of current events and actions that may impact the Company in the future, actual results could differ materially from those estimates.\n\nRisks and Uncertainties\n\nImpacts of Macroeconomic, Geopolitical, and Other Factors on the Company's Business\n\nAs the Company conducts operations globally, its business has continued to be impacted by ongoing macroeconomic and geopolitical conditions. These conditions include changes in inflation, interest rate and foreign currency fluctuations, uncertainty in consumer and enterprise demand, tariff and trade policies, memory chip availability, volatile energy prices and increased geopolitical tensions, including the armed conflicts in the Middle East.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 69\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nIn 2025, the United States introduced trade policy actions that increased import tariffs across a wide range of countries at various rates, with certain exemptions. In February 2026, the U.S. Supreme Court issued a decision invalidating certain tariffs previously imposed under the International Emergency Economic Powers Act. In May 2026, some companies began receiving notification from the U.S. Customs and Border Protection (CBP) that tariff refunds would be issued; however, the extent and timing of these tariff refunds remain uncertain. Following the U.S. Supreme Court ruling, the U.S. government introduced new temporary tariffs for a 150-day period beginning February 24, 2026. In May 2026, the U.S. Court of International Trade invalidated these temporary tariffs but they remain in place, subject to appeal. The U.S. government may pursue alternative trade measures, including under Sections 301 and 302 of U.S. trade laws, which could result in additional or replacement tariffs. U.S. tariff policies and international trade arrangements continue to evolve and have had, and may continue to have, a significant impact on the Company's results of operations.\n\nThe Company has also been affected by the increases in demand for memory chips and other components caused by the build out of new AI technologies and data centers, leading to a rise in prices for such components and some suppliers transitioning capacity away from certain components utilized in some of the Company's Video Collaboration products.\n\nThe global and regional macroeconomic, political, and other conditions have caused and may continue to cause volatility in demand for the Company's products, component availability, transit times and cost of the Company's products including cost of tariffs, materials, and logistics, and as a result, have impacted and may continue to impact the pricing of the Company's products, product availability and the Company's results of operations.\n\nCurrencies\n\nThe functional currency of the Company's operations is primarily the U.S. Dollar. Certain operations use the Euro, Chinese Renminbi, Swiss Franc, or other local currencies as their functional currencies. The financial statements of the Company's subsidiaries whose functional currency is other than the U.S. Dollar are translated to U.S. Dollars using period-end rates of exchange for assets and liabilities and monthly average rates for sales, income and expenses. Cumulative translation gains and losses are included as a component of shareholders' equity in accumulated other comprehensive income (loss). Gains and losses arising from transactions denominated in currencies other than a subsidiary's functional currency are reported in other income (expense), net in the consolidated statements of operations.\n\nRevenue Recognition\n\nRevenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the transaction price the Company expects to receive in exchange for those goods or services.\n\n    \n\nSubstantially all revenue recognized by the Company relates to the contracts with customers to sell products that allow people to connect through gaming, video, computing, music and other digital platforms. These products are hardware devices, which may include embedded software that function together, and are considered as one performance obligation. Hardware devices are generally plug and play, requiring no configuration and little or no installation. Revenue is recognized at a point in time when control of the products is transferred to the customer which generally occurs upon shipment. The Company’s sales contracts with its customers have a one year or shorter term.\n\nThe Company also provides post-contract customer support (“PCS”) for certain products and related software, which includes unspecified software updates and upgrades, bug fixes and maintenance. The transaction price is allocated to two performance obligations in such contracts, based on a relative standalone selling price. The transaction price allocated to PCS is recognized as revenue on a straight-line basis, which reflects the pattern of delivery of PCS, over the estimated term of the support.\n\nThe Company also recognizes revenue from subscription services that provide professional streamers with access to streaming software and tools as well as from Video Collaboration support services. These services represent stand-ready performance obligations. Payments for these services are made at the time of or in advance of delivering the services. The proceeds received in advance from such arrangements are recognized as deferred revenue and then recognized as revenue ratably over the service period up to five years.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 70\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nSee Note 8 for the current and non-current deferred revenue associated with the Company’s remaining performance obligations to be recognized within the next 12 months and thereafter, respectively.\n\nThe Company normally requires payment from customers within thirty to sixty days from the invoice date. However, terms may vary by customer type, by country and by selling season. The Company generally does not modify payment terms on existing receivables. The Company's contracts with customers do not include significant financing components as the period between the satisfaction of performance obligations and timing of payment are generally within one year.\n\nThe transaction price received by the Company from sales to its distributors, retail companies (\"retailers\"), and authorized resellers is calculated as selling price net of variable consideration which may include product returns and the Company’s payments for Customer Programs related to current period product revenue. The estimated impact of these programs is recorded as a reduction of transaction price or as an operating expense if the Company receives a distinct good or service from the customer and can reasonably estimate the fair value of that good or service received. Customer Programs require management to estimate the percentage of those programs which will not be claimed in the current period or will not be earned by customers, which is commonly referred to as \"breakage.\" Breakage is estimated based on historical claim experience, the period in which customer claims are expected to be submitted, specific terms and conditions with customers and other factors. The Company accounts for breakage as part of variable consideration, subject to constraint, and records the estimated impact in the same period when revenue is recognized at the expected value. Assessing the period in which claims are expected to be submitted and the relevance of the historical claim experience require significant management judgment to estimate the breakage of Customer Programs in any accounting period.\n\nThe Company enters into cooperative marketing arrangements with many of its customers and with certain indirect partners, allowing customers to receive a credit equal to a set percentage of their purchases of the Company's products, or a fixed dollar amount for various marketing and incentive programs. The objective of these arrangements is to encourage advertising and promotional events to increase sales of the Company's products.\n\n    \n\nCustomer incentive programs include consumer rebates and performance-based incentives. Consumer rebates are offered to the Company's customers and indirect partners at the Company's discretion for the primary benefit of end-users. In addition, the Company offers performance-based incentives to many of its customers and indirect partners based on predetermined performance criteria. At management's discretion, the Company also offers special pricing discounts to certain customers. Special pricing discounts are usually offered only for limited time periods or for sales of selected products to specific indirect partners.\n\nCooperative marketing arrangements and customer incentive programs are considered variable consideration, which the Company estimates and records as a reduction to revenue at the time of sale based on negotiated terms, historical experiences, forecasted incentives, anticipated volume of future purchases, and inventory levels in the channel.\n\nThe Company has agreements with certain customers that contain terms allowing price protection credits to be issued in the event of a subsequent price reduction. Management's decision to make price reductions is influenced by product life cycle stage, market acceptance of products, the competitive environment, new product introductions and other factors.\n\nAccruals for estimated expected future pricing actions and Customer Programs are recognized at the time of sale based on analyses of historical pricing actions by customer and by product, inventories owned by and located at customers, current customer demand, current operating conditions, and other relevant customer and product information, such as stage of product life-cycle.\n\nProduct return rights vary by customer. Estimates of expected future product returns qualify as variable consideration and are recorded as a reduction of the transaction price of the contract at the time of sale based on an analysis of historical return trends by customer and by product, inventories owned by and located at customers, current customer demand, current operating conditions, and other relevant customer and product information. The Company assesses the estimated asset for recovery value for impairment and adjusts the value of the asset for any impairment. Return trends are influenced by product life cycle status, new product introductions, market acceptance of products, sales levels, product sell-through, the type of customer, seasonality, product quality issues, competitive\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 71\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\npressures, operational policies and procedures, and other factors. Return rates can fluctuate over time but are sufficiently predictable to allow the Company to estimate expected future product returns.\n\nTypically, variable consideration does not need to be constrained as estimates are based on predictive historical data or future commitments that are planned and controlled by the Company. However, the Company continues to assess variable consideration estimates such that it is probable that a significant reversal of revenue will not occur.\n\nThe Company regularly evaluates the adequacy of its estimates for Customer Programs and product returns. Future market conditions and product transitions may require the Company to take action to change such programs and related estimates. When the variables used to estimate these costs change, or if actual costs differ significantly from the estimates, the Company would be required to increase or reduce revenue or operating expenses to reflect the impact. During the year ended March 31, 2026, changes to these estimates related to performance obligations satisfied in prior periods were not material.\n\nSales taxes and value-added taxes (“VAT”) collected from customers, if applicable, which are remitted to governmental authorities are not included in revenue, and are reflected as a liability on the consolidated balance sheets.\n\nShipping and Handling Costs\n\nThe Company's shipping and handling costs are included in the cost of goods sold in the consolidated statements of operations.\n\nContract Balances\n\nThe Company records accounts receivable from contracts with customers when it has an unconditional right to consideration, as accounts receivable, net, on the consolidated balance sheets.\n\nThe Company records contract liabilities when cash payments are received or due in advance of performance, primarily for implied support and subscriptions. Contract liabilities are included in accrued and other current liabilities and other non-current liabilities on the consolidated balance sheets.\n\nContract Costs\n\nThe Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that otherwise would have been recognized is one year or less. These costs are included in marketing and selling expenses in the consolidated statements of operations. As of March 31, 2026 and 2025, the Company did not have any material deferred contract costs.\n\nResearch and Development Costs\n\nCosts related to research, design and development of products, which consist primarily of personnel, product design and infrastructure expenses, are charged to research and development expense as they are incurred.\n\nAdvertising Costs\n\nAdvertising costs are recorded as either a marketing and selling expense or a deduction from revenue as they are incurred. Advertising costs paid or reimbursed by the Company to direct or indirect customers must have an identifiable benefit and an estimable fair value in order to be classified as an operating expense. If these criteria are not met, the payment is classified as a reduction of revenue. Advertising costs recorded as marketing and selling expense are expensed as incurred. Total advertising costs including those characterized as revenue deductions during fiscal years 2026, 2025 and 2024 were $410.9 million, $355.1 million and $325.3 million, respectively, out of which $54.1 million, $53.1 million, and $46.6 million, respectively, were included as operating expense in the consolidated statements of operations.\n\nCash Equivalents\n\nThe Company classifies all highly liquid instruments purchased, such as bank demand deposits, short-term time deposits, and U.S. Treasury securities, with an original maturity of three months or less at the date of purchase, to be cash equivalents. Cash equivalents are carried at cost, which approximates their fair value.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 72\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nConcentration of Credit Risk\n\nFinancial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents with various creditworthy financial institutions and has a policy to limit exposure with any one financial institution, but is exposed to credit risk in the event of default by financial institutions to the extent that cash balances with individual financial institutions are in excess of amounts that are insured. The Company periodically assesses the credit risk associated with these financial institutions.\n\nThe Company sells to large distributors, retailers, and e-tailers and, as a result, maintains individually significant receivable balances with such customers.\n\nThe Company had the following customers that individually comprised 10% or more of its gross sales:\n\n Years Ended March 31,\n\n 202620252024\n\nCustomer A14 %14 %13 %\n\nCustomer B18 %19 %18 %\n\nCustomer C\n12 %12 %14 %\n\nThe Company had the following customers that individually comprised 10% or more of its accounts receivable:\n\n March 31,\n\n 20262025\n\nCustomer A16 %14 %\n\nCustomer B23 %21 %\n\nCustomer C13 %10 %\n\nThe Company manages its accounts receivable credit risk through ongoing credit evaluation of its customers' financial conditions. The Company generally does not require collateral from its customers.\n\nAllowances for Doubtful Accounts\n\nAllowances for doubtful accounts are maintained for expected credit losses resulting from the Company's customers' inability to make required payments. The allowances are based on the Company's regular assessment of various factors, including the credit-worthiness and financial condition of specific customers, historical experience with bad debts and customer deductions, receivables aging, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company's ability to collect from customers.\n\nInventories\n\nInventories are stated at the lower of cost and net realizable value. Costs are computed under the standard cost method, which approximates actual costs determined on the first-in, first-out basis. The Company records write-downs of inventories which are obsolete or in excess of anticipated demand or net realizable value based on a consideration of marketability and product life cycle stage, product development plans, component cost trends, historical sales and demand forecasts which consider the assumptions about future demand and market conditions. Inventory on hand which is not expected to be sold or utilized is considered excess, and the Company recognizes the write-down in cost of goods sold at the time of such determination. The write-down is determined by the excess of cost over net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. At the time of loss recognition, new cost basis per unit and lower-cost basis for that inventory are established and subsequent changes in facts and circumstances would not result in an increase in the cost basis.\n\nThe Company recorded liabilities arising from firm, non-cancelable, and unhedged inventory purchase commitments in excess of anticipated demand or net realizable value consistent with its valuation of excess and obsolete inventory. Such liability is included in accrued and other current liabilities on the consolidated balance sheets.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 73\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nProperty, Plant and Equipment\n\nProperty, plant and equipment are stated at cost. Additions and improvements are capitalized, and maintenance and repairs are expensed as incurred. The Company capitalizes the cost of software developed for internal use in connection with major projects. Costs incurred during the preliminary project stage and post implementation stage are expensed, whereas direct costs incurred during the application development stage are capitalized.\n\nDepreciation expense is recognized using the straight-line method. Plant and buildings are depreciated over estimated useful lives of twenty-five years, equipment over useful lives from three to five years, internal-use software over useful lives of three years, tooling over useful lives from six months to one year, and leasehold improvements over the lesser of the term of the lease or the estimated useful life of leasehold improvements.\n\nWhen property and equipment is retired or otherwise disposed of, the cost and accumulated depreciation are relieved from the accounts and the net gain or loss is included in cost of goods sold or operating expenses, depending on the nature of the property and equipment.\n\nLeases\n\nThe Company determines if an arrangement is a lease or contains a lease at contract inception. The Company determines if a lease is an operating or finance lease and recognizes right-of-use (\"ROU\") assets and lease liabilities upon lease commencement. Operating lease ROU assets are included in other assets, short-term lease liabilities are included in accrued and other current liabilities, and long-term lease liabilities are included in other non-current liabilities on the Company's consolidated balance sheets. Leases with an initial term of 12 months or less are not recorded on the balance sheet. For the Company's operating leases, the Company accounts for the lease component and related non-lease component as a single lease component. Lease expense is recognized on a straight-line basis over the lease term.\n\nFor operating leases, the lease liability is initially measured at the present value of the unpaid lease payments at lease commencement date. As most of the leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate as the discount rate for the leases. The Company's incremental borrowing rate is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Because the Company does not generally borrow on a collateralized basis, it uses its understanding of what its collateralized credit rating would be as an input to deriving an appropriate incremental borrowing rate. The operating lease ROU assets include prepaid lease payments and exclude lease incentives.\n\nIntangible Assets\n\nThe Company's intangible assets include goodwill and intangible assets with finite lives, which primarily include acquired technology and customer contracts and related relationships. Intangible assets with finite lives are carried at cost and amortized using the straight-line method over their useful lives ranging from one to ten years.\n\nImpairment of Long-Lived Assets\n\nThe Company reviews long-lived assets, such as property and equipment, and finite-lived intangible assets, for impairment whenever events indicate that the carrying amounts might not be recoverable. Recoverability of long-lived assets is measured by comparing the projected undiscounted net cash flows associated with those assets to their carrying values. If an asset is considered impaired, it is written down to its fair value, which is determined based on the asset's projected discounted cash flows or appraised value, depending on the nature of the asset. For purposes of recognition of impairment for assets held for use, the Company groups assets and liabilities at the lowest level for which cash flows are separately identifiable.\n\nImpairment of Goodwill\n\nGoodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. The Company conducts a goodwill impairment analysis annually at December 31 or more frequently if indicators of impairment exist or if a decision is made to sell or exit a business. Significant judgments are involved in determining if an indicator of impairment has occurred. Such indicators may include deterioration in general economic conditions, negative developments in equity and credit markets, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows, or a trend of negative or declining cash flows over multiple periods, among\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 74\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nothers. The fair value that could be realized in an actual transaction may differ from that used to evaluate the impairment of goodwill.\n\nIn reviewing goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (greater than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. The Company also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test. The ultimate outcome of the goodwill impairment review for a reporting unit should be the same whether the Company chooses to perform the qualitative assessment or proceeds directly to the quantitative impairment test. The Company operates as one reporting unit. For the year ended March 31, 2026, the Company elected to perform a qualitative assessment and concluded that it was more likely than not that the fair value of its reporting unit exceeds its carrying amount.\n\nIncome Taxes\n\nThe Company provides for income taxes using the asset and liability method, which requires that deferred tax assets and liabilities be recognized for the expected future tax consequences of temporary differences resulting from differing treatment of items for tax and financial reporting purposes, and for operating losses and tax credit carryforwards. In estimating future tax consequences, expected future events are taken into consideration, with the exception of potential tax law or tax rate changes. The Company records a valuation allowance to reduce deferred tax assets to amounts management believes are more likely than not to be realized.\n\nThe Company's assessment of uncertain tax positions requires that management makes estimates and judgments about the application of tax law, the expected resolution of uncertain tax positions and other matters. In the event that uncertain tax positions are resolved for amounts different than the Company's estimates, or the related statutes of limitations expire without the assessment of additional income taxes, the Company will be required to adjust the amounts of the related assets and liabilities in the period in which such events occur. Such adjustments may have an impact on the Company's income tax provision and its results of operations.\n\nFair Value of Financial Instruments\n\nThe carrying value of certain of the Company's financial instruments, including cash equivalents, accounts receivable and accounts payable approximates their fair value due to their short maturities.\n\nThe Company's investment securities portfolio consists of bank demand deposits, short-term time deposits, and U.S. Treasury securities with an original maturity of three months or less and marketable securities (money market and mutual funds) related to a deferred compensation plan.\n\nThe Company's investments related to the deferred compensation plan are reported at fair value based on quoted market prices. The marketable securities related to the deferred compensation plan are classified as non-current investments, as they are intended to fund the deferred compensation plan's long-term liability. Participants in the deferred compensation plan may select the mutual funds in which their compensation deferrals are invested within the confines of the Rabbi Trust which holds the marketable securities. These securities are recorded at fair value based on quoted market prices. Earnings, gains and losses on deferred compensation investments are included in other income (expense), net in the consolidated statements of operations.\n\nThe Company also holds certain non-marketable investments that are accounted for as equity method investments and included in other assets in the consolidated balance sheets. In addition, 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. The Company elected the measurement alternative to record these investments at cost and to adjust for impairments and observable price changes resulting from transactions with the same issuer within the statements of operations.\n\nNet Income per Share\n\nBasic net income per share is computed by dividing net income by the weighted average outstanding shares. Diluted net income per share is computed using the weighted average outstanding shares and dilutive share equivalents. Dilutive share equivalents consist of share-based awards, including stock options, purchase rights under employee share purchase plan, and restricted stock units.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 75\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nThe dilutive effect of in-the-money share-based compensation awards is calculated based on the average share price for each fiscal period using the treasury stock method.\n\nShare-Based Compensation Expense\n\nShare-based compensation expense includes compensation expense for share-based awards granted based on the grant date fair value. The grant date fair value for stock options and stock purchase rights is estimated using the Black-Scholes-Merton option-pricing valuation model. The grant date fair value of service-based restricted stock units (\"RSUs\") is calculated based on the market price on the date of grant, reduced by estimated dividend yield prior to vesting. The grant date fair value of restricted stock units which vest upon meeting certain market- and performance-based conditions (\"PSUs\") is estimated using the Monte-Carlo simulation method including the effect of the market condition. Share-based compensation expense is recognized ratably over the respective requisite service periods of the awards and forfeitures are accounted for when they occur. For PSUs, the Company recognizes compensation expense using its estimate of probable outcome at the end of the performance period (i.e., the estimated performance against the performance targets). The Company periodically adjusts the cumulative share-based compensation expense recorded when the probable outcome for the PSUs is updated based upon changes in actual and forecasted financial results.\n\nProduct Warranty\n\nAll of the Company's products are covered by standard warranty to be free from defects in material and workmanship for periods ranging from one year to three years. The warranty period varies by product and by region. The Company’s standard warranty does not provide a service beyond assuring that the product complies with agreed-upon specifications and is not sold separately. The standard warranty the Company provides qualifies as an assurance warranty and is not treated as a separate performance obligation. The Company estimates cost of product warranties at the time the related revenue is recognized based on historical warranty claim rates, historical costs, and knowledge of specific product failures that are outside of the Company's typical experience. The Company accrues a warranty liability for estimated costs to provide products, parts or services to repair or replace products in satisfaction of the warranty obligation. Each quarter, the Company re-evaluates its estimates to assess the adequacy of recorded warranty liabilities. When the Company experiences changes in warranty claim activity or costs associated with fulfilling those claims, the warranty liability is adjusted accordingly.\n\nComprehensive Income (Loss)\n\nComprehensive income (loss) is defined as the total change in shareholders' equity during the period other than from transactions with shareholders. Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) is comprised of currency translation adjustments from those entities not using the U.S. Dollar as their functional currency, net deferred gains and losses and prior service costs and credits for defined benefit pension plans, and net deferred gains and losses on hedging activity.\n\nTreasury Shares\n\nThe Company periodically repurchases shares in the market at fair value. Shares repurchased are recorded at cost as a reduction of total shareholders' equity. Treasury shares held may be reissued to satisfy the exercise of employee stock options and purchase rights, the vesting of restricted stock units, and acquisitions, or may be canceled with shareholder approval. Treasury shares that are reissued are accounted for using the first-in, first-out basis.\n\nWhen treasury shares are reissued, gains from re-issuance of treasury shares are credited to additional paid-in capital while losses from re-issuance of treasury shares are charged to additional paid-in capital to the extent that there are previously recorded gains to offset the losses, otherwise charged to retained earnings in the consolidated balance sheets. When treasury shares are canceled, the Company deducts the par value from registered shares and reflects the excess of share repurchase cost over par value as a reduction to retained earnings.\n\nDerivative Financial Instruments\n\nThe Company enters into foreign exchange forward and swap contracts to reduce the short-term effects of currency fluctuations on certain foreign currency receivables or payables denominated in currencies other than the functional currencies of its subsidiaries. Gains or losses from changes in the fair value of these contracts that offset transaction losses or gains on foreign currency receivables or payables are recognized immediately and included in other income (expense), net in the consolidated statements of operations.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 76\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nThe Company enters into cash flow hedge contracts, including foreign currency forward contracts and foreign currency option contracts, to hedge against exposure to changes in currency exchange rates related to its forecasted inventory purchases. Gains and losses for changes in the fair value of the effective portion of the Company's foreign exchange contracts related to forecasted inventory purchases are deferred as a component of accumulated other comprehensive gain (loss) until the hedged inventory purchases are sold, at which time the gains or losses are reclassified to cost of goods sold.\n\nRestructuring Charges\n\nThe Company's restructuring charges consist of employee severance, one-time termination benefits and ongoing benefits related to the reduction of its workforce, and other costs. Liabilities for costs associated with a restructuring activity are measured at fair value and are recognized when the liability is incurred, as opposed to when management commits to a restructuring plan. One-time termination benefits are expensed at the date the entity notifies the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period. Ongoing benefits are expensed when restructuring activities are probable and the benefit amounts are estimable. Other costs primarily consist of legal, consulting, and other costs related to employee terminations, and are expensed when incurred. Termination benefits are calculated based on regional benefit practices and local statutory requirements.\n\nRecent Accounting Pronouncements Adopted\n\nIn December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires additional disclosures related to rate reconciliation, income taxes paid, and other disclosures. Under ASU 2023-09, for each annual period presented, public entities are required to (1) disclose specific categories in the tabular rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. In addition, ASU 2023-09 requires all reporting entities to disclose on an annual basis the amount of income taxes paid disaggregated by federal, state, and foreign taxes as well as the amount of income taxes paid by individual jurisdiction. The Company adopted this ASU in its fiscal year 2026 annual financial statements and applied the standard prospectively. See Note 7 for additional information.\n\nNew Accounting Pronouncements Not Yet Adopted\n\nIn 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.\n\nIn July 2025, the FASB issued ASU No. 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. ASU 2025-05 provides a practical expedient that permits entities to assume that current conditions as of the balance sheet date will remain unchanged over the remaining life of current accounts receivable and current contract assets when estimating the expected credit losses. ASU 2025-05 is effective for annual periods beginning after December 15, 2025, and interim periods within those annual reporting periods. Early adoption is permitted. ASU 2025-05 should be applied on a prospective basis. The Company does not expect the adoption of ASU 2025-05 to have a material impact on its consolidated financial statements or related disclosures.\n\nIn September 2025, the FASB issued ASU No. 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. ASU 2025-06 updates the cost capitalization threshold for internal-use software development costs by removing all references to software project development stages and providing new guidance on how to evaluate whether the probable-to-complete recognition threshold has been met. ASU 2025-06 is effective for annual periods beginning after December 15, 2027, and interim periods within those annual reporting periods. Early adoption is permitted. ASU 2025-06 can be applied on a prospective basis, with retrospective or modified retrospective application permitted. The Company is currently evaluating the impact of ASU 2025-06 on its consolidated financial statements and related disclosures.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 77\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nNote 3—Net Income Per Share\n\nThe following table summarizes the computations of basic and diluted net income per share for fiscal years 2026, 2025 and 2024 (in thousands except per share amounts):\n\n Years Ended March 31,\n\n 202620252024\n\nNet income $711,187 $631,529 $612,143 \n\nShares used in net income per share computation:\n\nWeighted average shares outstanding - basic146,775 151,322 156,776 \n\nEffect of potentially dilutive equivalent shares1,433 1,462 1,395 \n\nWeighted average shares outstanding - diluted148,208 152,784 158,171 \n\n   \n\nNet income per share:\n\nBasic$4.85 $4.17 $3.90 \n\nDiluted$4.80 $4.13 $3.87 \n\nShare equivalents attributable to outstanding stock options, restricted stock units and employee share purchase plans (\"ESPP\") totaling 0.5 million, 0.7 million, and 1.1 million shares during fiscal years 2026, 2025 and 2024, respectively, were excluded from the calculation of diluted net income per share because their effect would have been antidilutive. A small number of PSUs were not included in the dilutive net income per share calculation in fiscal years 2025 and 2024 because all necessary conditions had not been satisfied, and those shares were not issuable if the end of the reporting period were the end of the performance contingency period.\n\nNote 4—Employee Stock-Based Compensation\n\nAs of March 31, 2026, the Company offers the 2006 Employee Share Purchase Plan (Non-U.S.), as amended and restated (\"2006 ESPP\"), the 1996 Employee Share Purchase Plan (U.S.), as amended and restated (\"1996 ESPP\"), and the 2006 Stock Incentive Plan (\"2006 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.\n\nUnder the 1996 ESPP and 2006 ESPP plans, eligible employees may purchase shares at the lower of 85% of the fair market value at the beginning or the end of each offering period, which is generally six months. Subject to continued participation in these plans, purchase agreements are automatically executed at the end of each offering period. An aggregate of 29.0 million shares were reserved for issuance under the 1996 and 2006 ESPP plans. As of March 31, 2026, a total of 2.4 million shares were available for new awards under these plans.\n\nThe 2006 Plan provides for the grant to eligible employees and non-employee directors of stock options, stock appreciation rights, and restricted stock units. Awards under the 2006 Plan may be conditioned on continued employment, the passage of time or the satisfaction of performance and market vesting criteria. The 2006 Plan, as amended, has no expiration date. On June 29, 2022, the Board authorized 3.3 million additional shares for issuance under the 2006 Plan. An aggregate of 33.8 million shares were reserved for issuance under the 2006 Plan. As of March 31, 2026, a total of 6.7 million shares were available for new awards under this plan.\n\nStock options granted to employees under the 2006 Plan have terms not exceeding ten years and are issued at exercise prices not less than the fair market value on the date of grant.\n\nService-based restricted stock units (\"RSUs\") granted to employees under the 2006 Plan generally vest in four equal annual installments on the grant date anniversary. RSUs granted to non-executive board members under the 2006 Plan vest on the grant date anniversary, or earlier on the date of the next annual general meeting following the grant date if the non-executive board member is not re-elected as a director at the annual general meeting.\n\nRestricted stock units with certain market- and performance-based conditions (\"PSUs\") granted to employees under the 2006 Plan generally vest at the end of the three-year performance period upon meeting predetermined financial metrics over three years, with the number of shares to be received upon vesting determined based on constant currency revenue growth rate, adjusted operating income (loss) and the Company's total shareholder return (\"TSR\") relative to the performance of companies in the Russell 3000 Index over the same three years period.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 78\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nThe following table summarizes share-based compensation expense and total income tax benefit recognized for fiscal years 2026, 2025 and 2024 (in thousands):\n\n Years Ended March 31,\n\n 202620252024\n\nCost of goods sold$10,631 $10,021 $8,004 \n\nMarketing and selling 42,506 40,378 35,780 \n\nResearch and development22,904 20,180 17,836 \n\nGeneral and administrative36,351 19,334 21,269 \n\nTotal share-based compensation expense112,392 89,913 82,889 \n\nIncome tax benefit(20,721)(20,148)(15,305)\n\nTotal share-based compensation expense, net of income tax benefit$91,671 $69,765 $67,584 \n\nThe income tax benefit in the respective periods primarily consisted of tax benefits related to the share-based compensation expense for the period and direct tax benefit realized, including net excess tax benefits recognized from share-based awards vested or exercised during the period.\n\nShare-based compensation costs capitalized as part of inventory were $8.4 million, $7.6 million, and $6.3 million for the fiscal year ended March 31, 2026, 2025 and 2024, respectively.\n\nAs of March 31, 2026, there was $151.6 million of total future stock-based compensation cost to be recognized over a weighted-average period of 2.3 years.\n\nThe estimates of share-based compensation expense require a number of complex and subjective assumptions including stock price volatility, employee exercise patterns, probability of achievement of the set performance condition, dividend yield, related tax effects and the selection of an appropriate fair value model.\n\nThe grant date fair value of the ESPP using the Black-Scholes-Merton option-pricing valuation model and the grant date fair value of the PSUs using the Monte-Carlo simulation method are determined with the following assumptions:\n\n Employee Stock Purchase Plans\n\nYears Ended March 31,\n\n 202620252024\n\nExpected dividend rate1.79%1.35%1.61%\n\nRisk-free interest rate3.90%4.71%5.36%\n\nExpected volatility38%29%33%\n\nExpected term (years)0.50.50.5\n\nWeighted average grant date fair value per share$23.10$21.74$19.02\n\nPSUsYears Ended March 31,\n\n 202620252024\n\nExpected dividend rate1.63%1.41%1.90%\n\nRisk-free interest rate3.90%4.55%3.83%\n\nExpected volatility37%38%41%\n\nExpected term (years)3.03.03.0\n\nThe expected dividend rate assumption is based on the Company's history and future expectations of dividend payouts. Unvested stock-awards are not eligible for these dividends. The expected term is based on the purchase offerings periods expected to remain outstanding for employee stock purchase plan or the performance period for PSUs. Expected volatility is based on historical volatility using the Company's daily closing prices, or including the volatility of components of the Russell 3000 Index for PSUs, over the expected term. The Company considers the historical price volatility of its shares as most representative of future volatility. The risk-free interest rate\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 79\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nassumptions are based upon the implied yield of U.S. Treasury zero-coupon issues for the expected term of the Company's share-based awards.\n\nFor PSUs, the Company estimates the probability and timing of the achievement of the set performance condition at the time of the grant based on the historical financial performance and the financial forecast in the remaining performance period and reassesses the probability in subsequent periods when actual results or new information become available.\n\nA summary of the Company's stock option activities under all stock plans for fiscal years 2026, 2025 and 2024 is as follows:\n\n Number of SharesWeighted-Average Exercise PriceWeighted-Average Remaining Contractual TermAggregate Intrinsic Value\n\n(In thousands)(Years)(In thousands)\n\nOutstanding, March 31, 2023\n1,120 \n\nExercised\n(181)$6,160 \n\nForfeited\n(176)\n\nOutstanding, March 31, 2024\n763 \n\nExercised(111)$1,483 \n\nForfeited(65)\n\nOutstanding, March 31, 2025\n587 $64 5.3$11,768 \n\nExercised(129)$67 $4,371 \n\nOutstanding, March 31, 2026\n458 $64 4.7$12,500 \n\nVested and exercisable, March 31, 2026\n458 $64 4.7$12,500 \n\nA summary of the Company's RSU and PSU activities for fiscal years 2026, 2025 and 2024 is as follows:\n\n Number of SharesWeighted-Average Grant Date Fair ValueAggregate\nFair Value\n\n(In thousands)(In thousands)\n\nOutstanding, March 31, 2023\n3,456 $66 \n\nGranted—RSUs1,396 $59 \n\nGranted—PSUs457 $67 \n\nVested(1,200)$92,340 \n\nForfeited(631)\n\nOutstanding, March 31, 2024\n3,478 $65 \n\nGranted—RSUs931 $93 \n\nGranted—PSUs281 $91 \n\nVested(1,172)$113,553 \n\nForfeited(462)\n\nOutstanding, March 31, 2025\n3,056 $73 \n\nGranted—RSUs1,017 $84 \n\nGranted—PSUs275 $90 \n\nVested(895)$72 $78,466 \n\nForfeited(512)$72 \n\nOutstanding, March 31, 2026\n2,941 $79 \n\nThe shares outstanding as of March 31, 2026 above include 0.7 million shares of PSUs. The Company presents the number of PSUs and weighted-average grant date fair value at 100 percent of the performance target; however, the aggregate fair value of shares vested is based on the actual number of PSUs vested according to achievement of the financial metrics over the performance period.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 80\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nNote 5—Employee Benefit Plans\n\nDefined Benefit Plans\n\nCertain subsidiaries of the Company sponsor defined benefit pension plans or non-retirement post-employment benefits covering substantially all of their employees. Benefits are provided based on employees' years of service and earnings, or in accordance with applicable employee benefit regulations. The Company's practice is to fund amounts sufficient to meet the requirements set forth in the applicable employee benefit and tax regulations.\n\nThe Company recognizes the overfunded or underfunded status of defined benefit pension plans and non-retirement post-employment benefit obligations as an asset or liability in its consolidated balance sheets and recognizes changes in the funded status of defined benefit pension plans in the year in which the changes occur through accumulated other comprehensive income (loss), which is a component of shareholders' equity. Each plan's assets and benefit obligations are generally remeasured as of March 31 each year.\n\nThe net periodic benefit cost of the defined benefit pension plans and the non-retirement post-employment benefit obligations for fiscal years 2026, 2025 and 2024 was as follows (in thousands):\n\n Years Ended March 31,\n\n 202620252024\n\nService costs$13,708 $11,875 $11,479 \n\nInterest costs3,564 3,298 3,844 \n\nExpected return on plan assets(9,674)(7,671)(6,950)\n\nAmortization:\n\nNet prior service cost (credit) recognized(658)309 (500)\n\nNet actuarial loss (gain) recognized919 450 (179)\n\nSettlement loss\n1,881 — 922 \n\nTotal net periodic benefit cost$9,740 $8,261 $8,616 \n\nThe components of net periodic benefit cost other than the service cost component are included in other income (expense), net, in the consolidated statements of operations.\n\nThe changes in projected benefit obligations for fiscal years 2026 and 2025 were as follows (in thousands):\n\n Years Ended March 31,\n\n 20262025\n\nProjected benefit obligations, beginning of the year$259,141 $213,477 \n\nService costs13,708 11,875 \n\nInterest costs3,564 3,298 \n\nPlan participant contributions7,088 6,676 \n\nActuarial loss\n2,216 13,691 \n\nBenefits paid (3,475)(10,578)\n\nTransfer of prior vested benefits7,416 15,301 \n\nPlan amendments— 909 \n\nSettlement(18,255)— \n\nAdministrative expense paid(174)(157)\n\nCurrency exchange rate changes24,415 4,649 \n\nProjected benefit obligations, end of the year$295,644 $259,141 \n\nThe accumulated benefit obligation for all defined benefit pension plans as of March 31, 2026 and 2025 was $262.6 million and $227.7 million, respectively.     \n\nActuarial loss for fiscal year 2025, related to changes in the Company’s pension benefit obligation, was primarily driven by fluctuations in the discount rate. In fiscal year 2026, actuarial loss was not material.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 81\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nThe changes in the fair value of plan assets for fiscal years 2026 and 2025 were as follows (in thousands):\n\n Years Ended March 31,\n\n 20262025\n\nFair value of plan assets, beginning of the year$201,459 $170,640 \n\nActual return on plan assets9,386 5,076 \n\nEmployer contributions10,544 10,351 \n\nPlan participant contributions7,088 6,676 \n\nBenefits paid\n(3,475)(10,578)\n\nTransfer of prior vested benefits7,416 15,301 \n\nSettlement(18,255)— \n\nAdministrative expenses paid(174)(157)\n\nCurrency exchange rate changes19,842 4,150 \n\nFair value of plan assets, end of the year$233,831 $201,459 \n\nThe Company's investment objectives are to ensure that the assets of its defined benefit plans are invested to provide an optimal rate of investment return on the total investment portfolio, consistent with the assumption of a reasonable risk level, and to ensure that pension funds are available to meet the plans' benefit obligations as they become due. The Company believes that a well-diversified investment portfolio will result in the highest attainable investment return with an acceptable level of overall risk. Investment strategies and allocation decisions are also governed by applicable governmental regulatory agencies. The Company's investment strategy with respect to its largest defined benefit plan, which is available only to Swiss employees, is to invest per the following allocation: 33% in equities, 28% in bonds, 28% in real estate, 4% in cash and cash equivalents and the remaining in other investments. The Company can invest in real estate funds, commodity funds, and hedge funds depending upon economic conditions.\n\nThe following tables present the fair value of the defined benefit pension plan assets by major categories and by levels within the fair value hierarchy as of March 31, 2026 and 2025 (in thousands):\n\n March 31,\n\n 20262025\n\n Level 1Level 2TotalLevel 1Level 2Total\n\nCash and cash equivalents$26,588 $— $26,588 $21,202 $— $21,202 \n\nEquity securities80,223 — 80,223 60,867 — 60,867 \n\nDebt securities52,819 — 52,819 50,178 — 50,178 \n\nReal estate funds31,979 19,443 51,422 44,906 6,833 51,739 \n\nHedge funds— 13,556 13,556 — 8,994 8,994 \n\nOther8,721 502 9,223 8,005 474 8,479 \n\n  Total fair value of plan assets$200,330 $33,501 $233,831 $185,158 $16,301 $201,459 \n\nThe funded status of the plans was as follows (in thousands):\n\n Years Ended March 31,\n\n 20262025\n\nFair value of plan assets$233,831 $201,459 \n\nLess: projected benefit obligations295,644 259,141 \n\nUnderfunded status $(61,813)$(57,682)\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 82\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nAmounts recognized on the balance sheets for the plans were as follows (in thousands):\n\n March 31,\n\n 20262025\n\nCurrent liabilities$2,036 $1,728 \n\nNon-current liabilities59,777 55,954 \n\n  Total liabilities$61,813 $57,682 \n\nAmounts recognized in accumulated other comprehensive income (loss) related to defined benefit pension plans were as follows (in thousands):\n\n March 31,\n\n 20262025\n\nNet prior service credits$218 $820 \n\nNet actuarial loss(22,709)(22,696)\n\n  Accumulated other comprehensive loss(22,491)(21,876)\n\nDeferred taxes747 (3,400)\n\n  Accumulated other comprehensive loss, net of tax$(21,744)$(25,276)\n\nThe actuarial assumptions for the defined benefit plans were as follows:\n\n Years Ended March 31,\n\n 20262025\n\nBenefit Obligations:\n\nDiscount rate\n1.10%- 6.75%\n\n1.20% - 6.50%\n\nEstimated rate of compensation increase\n2.00% - 10.00%\n\n2.00% - 10.00%\n\nCash balance interest credit rate\n0.75% - 1.75%\n\n0.75% - 1.75%\n\nYears Ended March 31,\n\n202620252024\n\nNet Periodic Costs:\n\nDiscount rate\n1.20% - 6.50%\n\n1.50% - 7.00%\n\n1.50% - 7.25%\n\nEstimated rate of compensation increase\n2.00% - 10.00%\n\n2.25% - 10.00%\n\n2.25% - 10.00%\n\nExpected average rate of return on plan assets\n1.00% - 4.50%\n\n1.00% - 5.25%\n\n0.50% - 4.50%\n\nCash balance interest credit rate\n0.75% - 1.75%\n\n0.50% - 1.75%\n\n0.50% - 1.75%\n\nThe discount rate is estimated based on corporate bond yields or securities of similar quality in the respective country, with a duration approximating the period over which the benefit obligations are expected to be paid. The Company bases the compensation increase assumptions on historical experience and future expectations. The expected average rate of return for the Company's defined benefit pension plans represents the average rate of return expected to be earned on plan assets over the period that the benefit obligations are expected to be paid, based on government bond notes in the respective country, adjusted for corporate risk premiums as appropriate.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 83\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nThe following table reflects the benefit payments that the Company expects the plans to pay in the periods noted (in thousands):\n\nYears Ending March 31,\n\n2027$20,309 \n\n2028$17,109 \n\n2029$16,841 \n\n2030$17,194 \n\n2031$16,247 \n\n2032-2036$89,012 \n\nThe Company expects to contribute $8.4 million to its defined benefit pension plans during fiscal year 2027.\n\nDefined Contribution Plans\n\nCertain of the Company's subsidiaries have defined contribution employee benefit plans covering all or a portion of their employees. Contributions to these plans are discretionary for certain plans and are based on specified or statutory requirements for others. The charges to expense for these plans for fiscal years 2026, 2025 and 2024, were $15.7 million, $13.7 million and $14.4 million, respectively.\n\nDeferred Compensation Plan\n\nOne of the Company's subsidiaries offers a deferred compensation plan that permits eligible employees to make 100% vested salary and incentive compensation deferrals within established limits. The Company does not make contributions to the plan.\n\nThe deferred compensation plan's assets consist of marketable securities and are included in other assets on the consolidated balance sheets. The marketable securities 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 (see Note 9). The Company also had deferred compensation liability of $30.5 million and $29.0 million, which are included in other non-current liabilities on the consolidated balance sheets as of March 31, 2026 and 2025, respectively. Earnings, gains and losses on deferred compensation investments are included in other income (expense), net (see Note 6) and corresponding changes in deferred compensation liability are included in operating expenses and cost of goods sold in the consolidated statements of operations.\n\nNote 6—Other Income (Expense), Net\n\nOther income (expense), net, comprises the following (in thousands):\n\n Years Ended March 31,\n\n 202620252024\n\nInvestment gain related to the deferred compensation plan$3,714 $2,131 $4,320 \n\nCurrency exchange loss, net(3,733)(6,401)(8,770)\n\nLoss on investments, net (1)\n(612)(2,029)(14,674)\n\nNon-service cost net pension income and other (2)\n3,710 3,319 2,748 \n\nOther income (expense), net$3,079 $(2,980)$(16,376)\n\n(1) Includes unrealized gain (loss) from the change in fair value of investments, income (loss) on equity-method investments, and impairment of investments during the periods presented, as applicable (see Note 9).\n\n(2) Includes the components of net periodic benefit cost of defined benefit plans other than the service cost component (see Note 5).\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 84\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nNote 7—Income Taxes\n\nThe Company is incorporated in Switzerland but operates in various countries with differing tax laws and rates. Further, a portion of the Company's income before taxes and the provision for income taxes is generated outside of Switzerland.\n\nIncome from continuing operations before income taxes for fiscal years 2026, 2025 and 2024 is summarized as follows (in thousands):\n\n Years Ended March 31,\n\n 202620252024\n\nSwiss$550,787 $492,941 $502,291 \n\nNon-Swiss275,732 213,931 119,305 \n\nIncome before taxes$826,519 $706,872 $621,596 \n\nThe provision for income taxes is summarized as follows (in thousands):\n\nYears Ended March 31,\n\n202620252024\n\nCurrent:\n\nSwiss$54,644 $(14,673)$26,833 \n\nNon-Swiss30,866 33,473 25,044 \n\nDeferred:\n\nSwiss38,192 45,283 (47,517)\n\nNon-Swiss(8,370)11,260 5,093 \n\nProvision for income taxes$115,332 $75,343 $9,453 \n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 85\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nThe following table is presented in accordance with ASU 2023-09, which the Company adopted in fiscal year 2026. The Company has adopted this standard prospectively. See Note 2 for additional information. The difference between the provision for income taxes and the expected tax provision at the Swiss statutory income tax rate of 8.5% for the current period is reconciled below (in thousands):\n\n \nYear Ended March 31,\n\n 2026\nAs a percent\n\nPretax book income at Statutory rate$70,250 8.5 %\n\nDomestic federal reconciling items:\n\nFederal Tax Deduction(4,436)(0.5)%\n\nParticipation Exemption(33,617)(4.1)%\n\nDomestic state and local income taxes:\n\nVaud43,812 5.3 %\n\nZurich415 0.1 %\n\nDomestic other, net4,213 0.5 %\n\nForeign reconciling items:\n\nU.S.:\n\nStatutory tax rate difference between United States and Switzerland13,948 1.7 %\n\nForeign derived intangible income(4,192)(0.5)%\n\nState tax expense, net of federal benefit4,189 0.5 %\n\nTax credits(6,022)(0.7)%\n\nNon-deductible executive compensation4,314 0.5 %\n\nOther, net346 — %\n\nChina:\n\nStatutory tax rate difference between China and Switzerland8,931 1.1 %\n\nOther, net118 — %\n\nHong Kong - Tax exempt dividends(7,402)(0.9)%\n\nOther foreign jurisdictions45,138 5.5 %\n\nChanges in unrecognized tax benefits(24,673)(3.0)%\n\nEffective Tax Rate$115,332 14.0 %\n\nThe effective income tax rate in 2026 includes the tax effect of the expiration of statutes of limitation of uncertain tax positions and non-taxable dividend distributions, offset by foreign earnings taxed at different rates than the statutory rate.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 86\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nThe difference between the provision for income taxes and the expected tax provision at the Swiss statutory income tax rate of 8.5% is reconciled for prior periods as previously disclosed prior to the adoption of ASU 2023-09 (in thousands):\n\n \nYears Ended March 31,\n\n 20252024\n\nExpected tax provision at statutory income tax rates$60,084 $52,836 \n\nIncome taxes at different rates68,212 47,595 \n\nResearch and development tax credits(6,797)(9,738)\n\nSwiss Tax Benefits\n— (50,051)\n\nExecutive compensation980 407 \n\nStock-based compensation(2,162)4,019 \n\nDeferred tax effects from TRAF— (33,926)\n\nValuation allowance1,000 4,780 \n\nRestructuring credits\n(817)— \n\nUnrecognized tax benefits/ Audit resolution and statute lapse\n(43,333)11,535 \n\nFDII deduction(1,424)(18,675)\n\nOther, net(400)671 \n\nProvision for income taxes$75,343 $9,453 \n\nThe 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.\n\nOn 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.\n\nThe 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.\n\nOn 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.\n\nThe 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.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 87\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nOn 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.\n\nFor 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.\n\nOn 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.\n\nDeferred income tax assets and liabilities consist of the following (in thousands):\n\n March 31,\n\n 20262025\n\nDeferred tax assets:  \n\nTax attributes carryforward$42,408 $43,536 \n\nFuture tax deduction from Swiss Tax Benefits50,630 48,267 \n\nAccruals67,963 72,114 \n\nTax step-up of goodwill from TRAF73,512 86,519 \n\nShare-based compensation20,228 15,411 \n\nGross deferred tax assets254,741 265,847 \n\nValuation allowance(36,922)(36,537)\n\nDeferred tax assets after valuation allowance$217,819 $229,310 \n\nDeferred tax liabilities:  \n\nAcquired intangible assets and other$(23,975)$(27,788)\n\nDeferred tax liabilities(23,975)(27,788)\n\nDeferred tax assets, net$193,844 $201,522 \n\nManagement 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.\n\nThe 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.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 88\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nAs 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.\n\nFor 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.\n\nThe following table presents income taxes, including withholding taxes, paid, net of refunds received, disaggregated by federal, state, and foreign jurisdictions (in thousands):\n\nYear Ended March 31,\n\n2026\n\nSwitzerland - Federal$19,028 \n\nSwitzerland - Cantonal:\n\nVaud$21,851 \n\nZurich116 \n\nTotal Cantonal$21,967 \n\nForeign:\n\nUnited States$6,502 \n\nChina9,466 \n\nJapan5,283 \n\nBrazil5,059 \n\nSweden4,551 \n\nOther14,497 \n\nTotal Foreign$45,358 \n\nTotal$86,353 \n\nFor 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.\n\nThe 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.\n\nThe 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.\n\nAs 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.\n\nAs 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.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 89\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nThe aggregate changes in gross unrecognized tax benefits in fiscal years 2026, 2025 and 2024 were as follows (in thousands):\n\nMarch 31, 2023$191,000 \n\nLapse of statute of limitations(3,863)\n\nSettlements with taxing authorities\n41 \n\nIncreases in balances related to tax positions taken during prior years705 \n\nIncreases in balances related to tax positions taken during the year22,332 \n\nMarch 31, 2024$210,215 \n\nLapse of statute of limitations(25,075)\n\nSettlements with taxing authorities(32,314)\n\nIncreases (decreases) in balances related to tax positions taken during prior years\n(3,055)\n\nIncreases in balances related to tax positions taken during the year2,213 \n\nMarch 31, 2025$151,984 \n\nLapse of statute of limitations(23,176)\n\nIncreases (decreases) in balances related to tax positions taken during prior years\n(1,120)\n\nIncreases in balances related to tax positions taken during the year3,673 \n\nMarch 31, 2026$131,361 \n\nThe 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.\n\nThe 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.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 90\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nNote 8—Balance Sheet Components\n\nThe following table presents the components of certain balance sheet asset amounts as of March 31, 2026 and 2025 (in thousands):\n\n March 31,\n\n 20262025\n\nAccounts receivable, net: \n\nAccounts receivable$792,466 $708,693 \n\nAllowance for cooperative marketing arrangements(49,964)(44,457)\n\nAllowance for customer incentive programs(73,999)(66,564)\n\nAllowance for pricing programs(144,800)(105,876)\n\nOther allowances(17,836)(37,250)\n\n$505,867 $454,546 \n\nInventories:  \n\nRaw materials$62,484 $48,699 \n\nFinished goods427,464 455,048 \n\n$489,948 $503,747 \n\nOther current assets:  \n\nValue-added tax (\"VAT\") receivables$58,600 $46,332 \n\nPrepaid expenses and other assets119,295 84,879 \n\n$177,895 $131,211 \n\nProperty, plant and equipment, net:  \n\nPlant, buildings and improvements$93,023 $88,041 \n\nEquipment and tooling350,869 324,007 \n\nComputer equipment28,108 26,881 \n\nSoftware103,961 95,829 \n\n575,961 534,758 \n\nLess: accumulated depreciation and amortization(470,964)(429,889)\n\n104,997 104,869 \n\nConstruction-in-process8,750 6,337 \n\nLand2,707 2,652 \n\n$116,454 $113,858 \n\nOther assets:  \n\nDeferred tax assets$192,083 $202,180 \n\nRight-of-use assets71,531 75,239 \n\nInvestments for deferred compensation plan30,495 29,006 \n\nInvestments in privately held companies28,871 27,980 \n\nOther assets16,095 9,672 \n\n$339,075 $344,077 \n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 91\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nThe following table presents the components of certain balance sheet liability amounts as of March 31, 2026 and 2025 (in thousands):\n\n March 31,\n\n 20262025\n\nAccrued and other current liabilities:  \n\nAccrued customer marketing, pricing and incentive programs$211,915 $173,401 \n\nAccrued personnel expenses165,404 180,763 \n\nDeferred revenue (1)\n38,652 25,798 \n\nIncome taxes payable 37,843 26,841 \n\nVAT payable36,292 29,648 \n\nWarranty liabilities35,488 34,428 \n\nAccrued sales return liability27,635 27,913 \n\nAccrued loss for inventory purchase commitments18,167 19,614 \n\nOperating lease liabilities17,044 15,780 \n\nOther current liabilities193,550 152,317 \n\n$781,990 $686,503 \n\nOther non-current liabilities:  \n\nOperating lease liabilities$71,111 $76,622 \n\nEmployee benefit plan obligations61,066 57,338 \n\nDeferred revenue (1)\n53,624 38,216 \n\nObligation for deferred compensation plan30,495 29,006 \n\nWarranty liabilities14,754 14,756 \n\nOther non-current liabilities6,849 5,574 \n\n$237,899 $221,512 \n\n(1) Includes deferred revenue for post-contract customer support and other services.\n\nNote 9—Fair Value Measurements\n\nFair Value Measurements\n\nThe 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:\n\n•Level 1—Quoted prices in active markets for identical assets or liabilities.\n\n•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.\n\n•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.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 92\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nThe 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):\n\n March 31, 2026March 31, 2025\n\n Level 1Level 2Level 3Level 1Level 2Level 3\n\nAssets:    \n\nCash equivalents$863,120 $— $— $852,467 $— $— \n\nInvestments for deferred compensation plan included in other assets:    \n\nCash $60 $— $— $90 $— $— \n\nCommon stock902 — — 540 — — \n\nMoney market funds4,553 — — 7,359 — — \n\nMutual funds24,980 — — 21,017 — — \n\nTotal investments for deferred compensation plan$30,495 $— $— $29,006 $— $— \n\nCurrency derivative assets$— $5,486 $— $— $90 $— \n\nLiabilities:\n\nCurrency derivative liabilities$— $94 $— $— $2,849 $— \n\nInvestments for Deferred Compensation Plan\n\nThe 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.\n\nEquity Method Investments\n\nThe 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 and 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.\n\nAssets Measured at Fair Value on a Nonrecurring Basis\n\nFinancial 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.\n\nDuring 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.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 93\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nNon-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 assets. There was no impairment of non-financial assets during fiscal years 2026 and 2025.\n\nNote 10—Derivative Financial Instruments\n\n 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.\n\nCash Flow Hedges\n\nThe 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.\n\nThe notional amounts of foreign currency exchange contracts outstanding related to forecasted inventory purchases were $447.9 million and $74.6 million as of March 31, 2026 and 2025, respectively. The Company had $1.9 million of net gain related to its cash flow hedges included in accumulated other comprehensive loss as of March 31, 2026, which will be reclassified into earnings within the next twelve months.\n\nThe following table presents the amounts of gain (loss) on the Company's derivative instruments designated as hedging instruments for fiscal years 2026, 2025 and 2024 and their locations on its consolidated statements of operations and consolidated statements of comprehensive income (in thousands):\n\n Amount of\nGain (Loss) Deferred as\na Component of\nAccumulated Other\nComprehensive Loss Amount of Loss (Gain)\nReclassified from\nAccumulated Other\nComprehensive Loss\nto Cost of Goods Sold\n\n 202620252024202620252024\n\nCash flow hedges$(8,214)$(703)$1,109 $13,321 $(3,461)$3,964 \n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 94\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nOther Derivatives\n\nThe 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.\n\nThe 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.\n\nNote 11—Goodwill and Other Intangible Assets\n\nThe 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 been no triggering events identified affecting the valuation of goodwill subsequent to the annual impairment test.\n\nThe following table summarizes the activities in the Company's goodwill balance (in thousands):\n\n Years Ended March 31,\n\n 20262025\n\nBeginning of the period$463,230 $461,978 \n\nEffects of foreign currency translation2,187 1,252 \n\nEnd of the period$465,417 $463,230 \n\nThe Company's acquired intangible assets were as follows (in thousands):\n\n March 31,\n\n 20262025\n\n Gross Carrying AmountAccumulated\nAmortizationNet Carrying AmountGross Carrying AmountAccumulated\nAmortizationNet Carrying Amount\n\nTrademarks and trade names$32,390 $(30,569)$1,821 $32,390 $(28,675)$3,715 \n\nDeveloped technology107,550 (103,307)4,243 107,421 (96,464)10,957 \n\nCustomer contracts/relationships69,087 (63,021)6,066 69,087 (58,646)10,441 \n\nEffects of foreign currency translation1,218 (962)256 (620)137 (483)\n\nTotal$210,245 $(197,859)$12,386 $208,278 $(183,648)$24,630 \n\nFor 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.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 95\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nNote 12—Financing Arrangements\n\nOn 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.\n\nThe 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.\n\nIn 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 credit 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.\n\nNote 13—Commitments and Contingencies\n\nProduct Warranties\n\nChanges in the Company's warranty liabilities for fiscal years 2026 and 2025 were as follows (in thousands):\n\n Years Ended March 31,\n\n 20262025\n\nBeginning of the period$49,184 $44,654 \n\nProvision37,617 44,876 \n\nSettlements(37,411)(40,316)\n\nEffects of foreign currency translation852 (30)\n\nEnd of the period$50,242 $49,184 \n\nIndemnifications\n\nThe 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.\n\nThe 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.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 96\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nLegal Proceedings\n\nFrom 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.\n\nNote 14—Shareholders' Equity\n\nShare Capital\n\nAs 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.\n\nThe 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.\n\nIn 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.\n\nShare Cancellation\n\nIn 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.\n\nIn 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.\n\nDividends\n\nPursuant 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.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 97\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nIn 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).\n\nIn 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.\n\nAny future dividends will be subject to the approval of the Company's shareholders.\n\nLegal Reserves\n\nUnder 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).\n\nShare Repurchases\n\n2020 Share Repurchase Program\n\nIn 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.\n\n2023 Share Repurchase Program\n\nIn 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.\n\n2026 Share Repurchase Program\n\nIn 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.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 98\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nThe following table summarizes the Company's share repurchase activities for fiscal years 2026, 2025 and 2024 (in thousands):\n\nYears Ended March 31,\n\n202620252024\n\n2023 Share Repurchase Program:\n\n  Number of shares repurchased (1)\n6,1676,6794,459\n\n  Aggregate cost of shares repurchased (1) (2)\n$557,043 $588,028 $364,639 \n\n2020 Share Repurchase Program:\n\n  Number of shares repurchased (3)\n——2,641\n\n  Aggregate cost of shares repurchased\n$— $— $159,112 \n\n(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.\n\n(2) Includes an aggregate cost of $40.8 million, $18.7 million, and $19.5 million, respectively, that was not yet paid as of March 31, 2026, 2025 and 2024.\n\n(3) Shares were repurchased to support equity incentive plans.\n\nSwiss law limits a company’s ability to hold or repurchase its own shares. The aggregate par value of all shares held in treasury by the Company and its subsidiaries may not exceed 10% of the share capital of the Company, which for the Company corresponds to approximately 16.1 million registered shares as of March 31, 2026. This limitation does not apply to shares repurchased for cancellation, due to the Board of Directors’ authority under the Company’s capital band set forth in the Company’s Articles of Incorporation. As of March 31, 2026, the Company had a total of 17.3 million shares held in treasury stock, which includes 4.7 million shares that have been repurchased for cancellation and 12.6 million shares that have been purchased to support equity incentive plans or potential acquisitions.\n\nTo the extent that the shares are repurchased to support equity incentive plans or potential acquisitions, the shares are repurchased on the ordinary trading line of the SIX Swiss Exchange and/or the Nasdaq Global Select Market. Shares repurchased for cancellation purposes are repurchased on a second trading line on the SIX Swiss Exchange. Shares may be repurchased from time to time on the open market or in privately negotiated transactions, including under plans complying with the provisions of Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended. Purchases may be started or stopped at any time without prior notice depending on market conditions and other factors and the program does not require the purchase of any minimum number of shares.\n\nAccumulated Other Comprehensive Loss\n\nThe components of accumulated other comprehensive loss were as follows (in thousands):\n\n \n\n Currency Translation\nAdjustmentDefined\nBenefit\nPlansDeferred\nHedging\nGains (Losses)Total\n\nMarch 31, 2025$(118,652)$(25,276)$(3,024)$(146,952)\n\nOther comprehensive income (loss)24,496 3,532 5,107 33,135 \n\nMarch 31, 2026$(94,156)$(21,744)$2,083 $(113,817)\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 99\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nNote 15—Segment Information\n\nThe 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.\n\nThe following table presents segment revenue, gross profit, and net income for the periods presented:\n\nYears Ended March 31,\n\n202620252024\n\nNet sales\n$4,840,761 $4,554,900 $4,298,467 \n\nLess: Significant segment expenses\n\nCost of goods sold (1)\n2,731,776 2,572,724 2,501,414 \n\nMarketing and selling (1)\n774,098 774,036 694,530 \n\nResearch and development (1)\n293,317 288,828 269,407 \n\nGeneral and administrative (1)\n130,809 144,680 133,787 \n\nLess: other segment items\n\n  Share-based compensation expense112,392 89,913 82,889 \n\n  Amortization of intangible assets and acquisition-related costs13,315 20,249 21,962 \n\n  Interest income\n(48,246)(54,997)(50,636)\n\n  Other (2)\n6,781 12,595 23,518 \n\n  Provision for income taxes\n115,332 75,343 9,453 \n\nNet income\n$711,187 $631,529 $612,143 \n\n(1) The difference between the amounts included in the table above and the amounts included in the consolidated\n\nstatements of operations is related to share-based compensation expense (see Note 4).\n\n(2) Includes restructuring charges, net, impairment of intangible assets, change in fair value of contingent\n\nconsideration for business acquisition, and other income (expense), net, as applicable.\n\nSales by product category for fiscal years 2026, 2025 and 2024 were as follows (in thousands):\n\n Years Ended March 31,\n\n 202620252024\n\nGaming (1)\n$1,414,206 $1,338,467 $1,231,063 \n\nKeyboards & Combos937,551 882,643 821,441 \n\nPointing Devices858,904 788,784 742,987 \n\nVideo Collaboration689,040 626,000 609,361 \n\nWebcams326,172 315,520 325,225 \n\nTablet Accessories336,189 299,540 254,060 \n\nHeadsets179,825 179,710 168,478 \n\nOther (2)\n98,874 124,236 145,852 \n\nTotal Sales$4,840,761 $4,554,900 $4,298,467 \n\n(1) Gaming includes streaming services revenue generated by Streamlabs.\n\n(2) Other primarily consists of mobile speakers and PC speakers.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 100\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nSales by geographic region (based on the customers' locations) for fiscal years 2026, 2025 and 2024 were as follows (in thousands):\n\n Years Ended March 31,\n\n 202620252024\n\nAmericas$1,955,191 $1,973,374 $1,896,258 \n\nEMEA1,539,065 1,413,855 1,301,515 \n\nAsia Pacific1,346,505 1,167,671 1,100,694 \n\nTotal Sales$4,840,761 $4,554,900 $4,298,467 \n\nRevenue 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 sales for fiscal year 2026, 2025 and 2024, respectively.\n\nProperty, plant and equipment, net (excluding software) and right-of-use assets by geographic region were as follows (in thousands):\n\n March 31,\n\n 20262025\n\nAmericas$59,103 $61,521 \n\nEMEA48,119 47,874 \n\nAsia Pacific65,089 60,710 \n\nTotal $172,311 $170,105 \n\nProperty, 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.\n\nNote 16—Restructuring\n\nDuring 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.\n\nDuring 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 benefits. The Company has substantially completed these restructuring activities as of March 31, 2026.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 101\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nThe following table summarizes restructuring-related activities during fiscal years 2026, 2025 and 2024 (in thousands):\n\n Termination\nBenefitsContract Termination and Other Total\n\nAccrued restructuring liability at March 31, 2023 (1)\n$14,177 $5,357 $19,534 \n\nCharges, net6,011 (2,145)3,866 \n\nCash payments(18,375)(1,757)(20,132)\n\nAccrued restructuring liability at March 31, 2024 (1)\n$1,813 $1,455 $3,268 \n\nCharges, net9,846 (231)9,615 \n\nCash payments(2,562)(241)(2,803)\n\nAccrued restructuring liability at March 31, 2025 (1)\n$9,097 $983 $10,080 \n\nCharges, net7,584 2,276 9,860 \n\nCash payments(13,558)(2,299)(15,857)\n\nAccrued restructuring liability at March 31, 2026 (1)\n$3,123 $960 $4,083 \n\n(1) The accrual balances are included in accrued and other current liabilities on the Company’s consolidated balance sheets.\n\nNote 17 — Leases\n\nThe Company is a lessee in various non-cancelable operating leases, primarily real estate facilities for office space. As of March 31, 2026, the 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.\n\nThe 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.\n\nSupplemental cash flow information related to operating leases (in thousands):\n\nYears Ended March 31,\n\n202620252024\n\nCash paid for amounts included in the measurement of operating lease liabilities$18,056 $16,847 $13,489 \n\nROU assets obtained in exchange for operating lease liabilities$6,902 $26,767 $8,593 \n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 102\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nFuture 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):\n\nYears Ending March 31,\n\n2027$18,222 \n\n202814,786 \n\n202914,242 \n\n203012,261 \n\n203110,496 \n\nThereafter29,549 \n\nTotal lease payments$99,556 \n\nLess: imputed interest (11,401)\n\nPresent value of lease liabilities$88,155 \n\nWeighted-average lease terms and discount rates were as follows:\n\nYears Ended March 31,\n\n20262025\n\nWeighted-average remaining lease terms (in years)6.97.6\n\nWeighted-average discount rate3.6 %3.6 %\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 103\n\n[Ta](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[b](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[le](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[of](#ia8474fdb71f5495ead5de6bb79ad17f7_7)[Contents](#ia8474fdb71f5495ead5de6bb79ad17f7_7)\n\nSchedule II\n\nLOGITECH INTERNATIONAL S.A.\n\nVALUATION AND QUALIFYING ACCOUNTS\n\nFor the Fiscal Years Ended March 31, 2026, 2025 and 2024 (in thousands)\n\nThe 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.\n\nBalance at\nBeginning of\nYear\nCharged\n\n(Credited) to\n\nStatement of\n\nOperations (1)\n\nClaims and\n\nAdjustments\n\nApplied Against\n\nAllowances (1)\nBalance at\nEnd of\nYear\n\nAllowance for cooperative marketing arrangements:    \n\n2026$44,457 $305,257 $(299,750)$49,964 \n\n2025$41,634 $257,940 $(255,117)$44,457 \n\n2024$40,495 $232,837 $(231,698)$41,634 \n\nAllowance for customer incentive programs:    \n\n2026$66,564 $368,668 $(361,233)$73,999 \n\n2025$60,027 $337,039 $(330,502)$66,564 \n\n2024$71,645 $299,351 $(310,969)$60,027 \n\nAllowance for pricing programs:    \n\n2026$105,876 $931,144 $(892,220)$144,800 \n\n2025$91,280 $760,024 $(745,428)$105,876 \n\n2024$98,822 $707,954 $(715,496)$91,280 \n\nOther allowances:\n\n2026$37,250 $148,558 $(167,972)$17,836 \n\n2025$10,180 $170,495 $(143,425)$37,250 \n\n2024$10,232 $141,909 $(141,961)$10,180 \n\nTax valuation allowance:    \n\n2026$36,537 $385 $— $36,922 \n\n2025$35,536 $1,000 $— $36,537 \n\n2024$30,766 $4,770 $— $35,536 \n\n(1) The amounts for fiscal year 2024 include immaterial impacts from the business acquisitions during the year.\n\nLogitech International S.A. | Fiscal 2026 Form 10-K | 104"}