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What changed in LOGITECH INTERNATIONAL S.A.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of LOGITECH INTERNATIONAL S.A.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+335 added−330 removedSource: 10-K (2025-05-23) vs 10-K (2024-05-16)

Top changes in LOGITECH INTERNATIONAL S.A.'s 2025 10-K

335 paragraphs added · 330 removed · 279 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

66 edited+17 added−15 removed41 unchanged
Biggest changeOur key products in this category include: • Logitech Rally Bar, an all-in-one video bar purpose-built for midsize rooms, featuring brilliant video, room-filling audio, and the flexibility to deploy in PC or appliance mode. • Logitech Rally, which offers best-in-class video conferencing with Ultra HD 4K video and professional audio that easily turns medium- to large-sized conference rooms into video-enabled collaboration rooms. • Logitech MeetUp, which is Logitech’s premier ConferenceCam designed for huddle rooms, with a room-capturing 120° field of view ("FOV"), 4K optics and exceptional audio performance. • Logitech Tap touch-screen controller, which connects to any computer through USB and serves as an ideal controller for video conferencing room solutions from Google®, Microsoft®, and Zoom. • The recently launched Logitech Sight, a tabletop companion camera with intelligent multi-participant framing through front and center views.
Biggest changeLogitech MeetUp is designed for huddle rooms and features a room-capturing 120° field of view ("FOV"), 4K optics and exceptional audio performance. • The Logitech Tap touch-screen controller, which connects to any computer through USB and serves as an ideal controller for video conferencing room solutions from Google®, Microsoft®, and Zoom. • The Logitech Sight, a tabletop companion camera with intelligent multi-participant framing through front and center views. • The recently launched Logitech Rally Board 65, an all-in-one video conferencing solution that combines crystal clear video, powerful audio, and AI-driven features, all integrated into a single 65-inch touchscreen. • Along with these key products this category also includes a full portfolio of accessories such as microphones and cables to enable easy to deploy and customizable configurations.
She joined Unilever as a member of its Executive Committee in January 2018, serving as President Unilever Europe. Prior to Unilever, Ms. Faber was a member of the Executive Committee from 2013 to 2017, serving first as Chief Commercial Officer and then as Chief E-Commerce and Innovation Officer of Ahold Delhaize N.V., a global food retailer. Ms.
She joined Unilever as a member of its Executive Committee in January 2018, serving as President Unilever Europe. Prior to Unilever, Ms. Faber was a member of the Executive Committee of Ahold Delhaize N.V., a global food retailer, from 2013 to 2017, serving first as Chief Commercial Officer and then as Chief E-Commerce and Innovation Officer. Ms.
ITEM 1. BUSINESS Company Overview Founded in 1981, and headquartered in Lausanne, Switzerland, Logitech International is a Swiss public company listed on the SIX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI). Logitech’s website address is www.logitech.com. Logitech designs software-enabled hardware solutions that help businesses thrive and bring people together when working, creating, gaming and streaming.
ITEM 1. BUSINESS Company Overview Founded in 1981, and headquartered in Lausanne, Switzerland, Logitech International is a Swiss public company listed on the SIX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI). Logitech’s website address is www.logitech.com. Logitech designs software-enabled hardware solutions that help businesses thrive and bring people together when working, creating and gaming.
These products are mostly for iPads but are also for select Samsung and other Android tablets. Some of our key products in this category include : • The Combo Touch line-up for various iPad models is our flagship design offering a backlit keyboard, any-angle kickstand for flexible viewing angles, and a trackpad for gestures, clicks, and navigation.
These products are mostly for iPads but are also for select Samsung and other Android tablets. Some of our key products in this category include : • The Combo Touch line-up for various iPad Pro models is our flagship design offering a backlit keyboard, any-angle kickstand for flexible viewing angles, and a trackpad for gestures, clicks, and navigation.
Dodd-Frank Wall Street Reform and Consumer Protection Act. While we incur increasing costs to comply with such other government regulations, we do not believe that our compliance with such requirements will have a material effect on our capital expenditures, competitive position, consolidated results of operations, earnings, or cash flows.
Dodd-Frank Wall Street Reform and Consumer Protection Act. While we incur increasing costs to comply with such government regulations, we do not believe that our compliance with such requirements will have a material effect on our capital expenditures, competitive position, consolidated results of operations, earnings, or cash flows.
We also experience competition and pricing pressure for corded and cordless keyboards and combos from less-established brands, including house brands and local competitors in Asian markets, such as Shenzhen Rapoo Technology Co., Ltd. ("Shenzhen Rapoo"), IKBC, and Xiaomi Corporation ("Xiaomi"). Pointing Devices Apple, Microsoft, Lenovo, Dell, and HP are our main competitors worldwide for pointing devices.
We also experience competition and pricing pressure for corded and cordless keyboards and combos from less-established brands, including house brands and local competitors in Asian markets, such as Shenzhen Rapoo Technology Co., Ltd. ("Shenzhen Rapoo"), IKBC, and Xiaomi Corporation ("Xiaomi"). Pointing Devices Apple, Microsoft, Lenovo, Dell, HP, and Cherry are our main competitors worldwide for pointing devices.
Environmental Sustainability Logitech considers the environmental and social impacts of our products, operations, and value chain from the sourcing of raw materials through to the end-of-life of our products. We design for sustainability by striving to use innovative materials, technologies and processes that reduce carbon emissions and elevate circular solutions.
Environmental Sustainability Logitech considers the environmental impacts of our products, operations, and value chain from the sourcing of raw materials through to the end-of-life of our products. We design for sustainability by striving to use innovative materials, technologies and processes that reduce carbon emissions and elevate circular solutions.
Webcams Our Webcams category includes PC-based webcams that are targeted primarily at consumers, including streaming cameras, and VC webcams that turn any desktop into an instant collaboration space. Our webcams are targeted primarily at video conferencing users purchasing for individual use.
Webcams Our Webcams category includes PC-based webcams including streaming cameras, and VC webcams that turn any desktop into an instant collaboration space. Our webcams are targeted primarily at video conferencing users purchasing for individual use.
Our diverse portfolio includes: Gaming, Keyboards & Combos, Pointing Devices, Video Collaboration, Webcams, Tablet Accessories, and Headsets. These products are all classified under a single operating segment: Peripherals (see Note 15 to our consolidated financial statements). They also are compatible with many cloud or cloud-based services: video conferencing platforms (e.g. Zoom, Microsoft Teams, Google Meet); esports or video games (e.g.
Our diverse, innovative portfolio includes: Gaming, Keyboards & Combos, Pointing Devices, Video Collaboration, Webcams, Tablet Accessories, and Headsets. These products are all classified under a single operating segment: Peripherals (see Note 15 to our consolidated financial statements). They are compatible with many cloud or cloud-based services: video conferencing platforms (e.g. Zoom, Microsoft Teams, Google Meet); esports or video games (e.g.
Incorporating innovative design and advanced technologies, some of the key products and solutions in this category include: • The Logitech G PRO X Superlight 2 Wireless Gaming Mouse that was designed in collaboration with the world's top esports professionals, featuring our LIGHTSPEED TM professional grade wireless technology, and weighing in at less than 63 grams. • The Logitech Pro Racing Wheel that features our exclusive TRUEFORCE feedback system that connects directly to in-game physics, and our new Direct Drive motor. • The Logitech Pro X 2 Lightspeed Wireless Headset that features pro-grade sound, LIGHTSPEED wireless, and an emphasis on comfort. • The recently launched ASTRO 50X Wireless Headset, which is compatible with PC, Xbox Series X|S, PlayStation5, Nintendo Switch, and mobile, and portable gaming devices and features our unique PLAYSYNC technology that enables gamers to seamlessly switch between multiple consoles. • Streamlabs services, which provide streaming and monetization tools for content creators to manage their audience and broadcast.
Incorporating innovative design and advanced technologies, some of the key products and solutions in this category include: • The Logitech G Pro X Superlight 2 Wireless Gaming Mouse that was designed in collaboration with the world's top esports professionals, featuring our LIGHTSPEED TM professional grade wireless technology, and weighing in at less than 63 grams. • The Logitech Pro Racing Wheel that features our exclusive TRUEFORCE feedback system that connects directly to in-game physics, and our new Direct Drive motor. • The Logitech Pro X 2 Lightspeed Wireless Headset that features pro-grade sound, LIGHTSPEED TM wireless, and an emphasis on comfort. • The ASTRO 50X Wireless Headset which is compatible with PC, Xbox Series X|S, PlayStation5, and Nintendo Switch, as well as mobile and portable gaming devices, and features our unique PLAYSYNC technology that enables gamers to seamlessly switch between multiple consoles. • Streamlabs services which provide streaming and monetization tools for content creators to manage their audience and broadcast.
Further, we operate an audit and verification program to verify compliance with the RBA code. We believe health and well-being are critical to our employee’s personal and professional success and provide, in addition to healthcare benefits, wellness tools, resources and programs designed to help employees achieve good physical, financial, emotional, intellectual and social well-being.
Further, we operate an audit and verification program to verify compliance with the RBA code. We believe health and well-being are critical to our employees' personal and professional success and provide, in addition to healthcare benefits, wellness tools, resources and programs designed to help employees achieve good physical, financial, emotional, intellectual and social well-being.
Our talent development program includes a dedicated training center at our production facility, a number of workshop-based, leadership development, mentorship, coaching career development and team building programs that remain available remotely. Logitech International S.A. | Fiscal 2024 Form 10-K | 11 Table of Contents Information About Our Executive Officers.
Our talent development program includes a dedicated training center at our production facility, a number of workshop-based, leadership development, mentorship, coaching career development and team building programs that remain available remotely. Logitech International S.A. | Fiscal 2025 Form 10-K | 11 Table of Contents Information About Our Executive Officers.
Made for Education version is available. • The Logitech Slim Folio Keyboard for iPad 9th and 10th generations, offers a Bluetooth backlit keyboard with a folio design for optimal working and viewing angle, light front and back protection and a digital pen holder. • The Logitech Crayon is a pixel-precise digital pen for all iPad models from 2018.
A version made for the Education sector is also available. • The Logitech Slim Folio Keyboard for iPad 9th and 10th generations, offers a Bluetooth backlit keyboard with a folio design for optimal working and viewing angle, light front and back protection and a digital pen holder. • The Logitech Crayon is a pixel-precise digital pen for all iPad models from 2018.
As we have increased our investments in the B2B channel in recent years, we have expanded our enterprise sales coverage through our sales force as well as various channel partners. Expansions into new channels enables more cross-selling opportunities across our broad product portfolio.
As we have increased our investments in the B2B channel in recent years, we have expanded our enterprise sales coverage through our sales force as well as various channel partners. Expansion into new channels enables more cross-selling opportunities across our broad product portfolio.
We have started to transition our manufacturing and supply chain to renewable energy and we aim to eliminate waste and extend the life of products. Logitech also actively supports the use of recycled materials and component recovery for reuse, as well as product repair and recycling, in order to address the need for conservation of natural resources.
We continue to transition our manufacturing and supply chain to renewable energy and we aim to eliminate waste and extend the life of products. Logitech also actively supports the use of recycled materials and component recovery for reuse, as well as product repair and recycling, in order to address the need for conservation of natural resources.
Headsets For headsets, our main competitors include Poly and Jabra, among others. In-ear headphones competitors include Beats, Bose, Apple, Sony Corporation, JBL and Sennheiser, among others. Logitech International S.A. | Fiscal 2024 Form 10-K | 9 Table of Contents Other Our competitors for Bluetooth wireless speakers include Bose Corporation ("Bose") and Harman International Industries, Inc ("Harman"), among others.
Logitech International S.A. | Fiscal 2025 Form 10-K | 9 Table of Contents Headsets For headsets, our main competitors include Poly, Jabra, and EPOS, among others. In-ear headphones competitors include Beats, Bose, Apple, Sony Corporation, JBL and Sennheiser, among others. Other Our competitors for Bluetooth wireless speakers include Bose Corporation ("Bose") and Harman International Industries, Inc ("Harman"), among others.
Logitech products are also carried by B2B direct market resellers. In fiscal years 2024, 2023 and 2022, Amazon Inc. and its affiliated entities together accounted for 18% , 19% and 17% of our gross sales, respectively.
Logitech products are also carried by B2B direct market resellers. In fiscal years 2025, 2024 and 2023, Amazon Inc. and its affiliated entities together accounted for 19% , 18% and 19% of our gross sales, respectively.
Arunkundrum held several management positions at i2 Technologies, a supply chain management company acquired by JDA Software, from March 2007 to February 2010. Early in his career, he held product management positions at supply chain startups and i2 Technologies. Mr.
Prior to his management consulting roles, Mr. Arunkundrum held several management positions at i2 Technologies, a supply chain management company acquired by JDA Software, from March 2007 to February 2010. Early in his career, he held product management positions at supply chain startups and i2 Technologies. Mr.
In addition, because of the continuing convergence of the markets for computing devices and consumer electronics, we expect greater competition in the future from well-established consumer electronics companies in our developing categories, as well as future categories we might enter. Many of these companies have greater financial, technical, sales, marketing, and other resources than we have.
In addition, because of the continuing convergence of the markets for computing devices and consumer electronics, there may be greater competition in the future from well-established consumer electronics companies in our developing categories, as well as future categories we might enter. Many of these companies may have greater financial, technical, sales, marketing, and other resources than we have.
("Cisco"), Poly (owned by HP), Jabra (owned by GN), AVer Information Inc., Neat, and Yealink (Xiamen) Network Technology Co.Ltd, among others. Webcams Our primary competitors for webcams are Microsoft, HP, Dell, Lenovo and Cisco and other manufacturers taking smaller market share such as Razer and HIKVision.
("Cisco"), Poly (owned by HP), Jabra (owned by GN), AVer Information Inc., Neat, Yealink (Xiamen) Network Technology Co.Ltd, and Owl Labs, among others. Webcams Our primary competitors for webcams are HP, Dell, Lenovo and other manufacturers taking smaller market share such as Razer, HIKVision and Insta360.
In fiscal years 2024, 2023 and 2022, Ingram Micro Inc. and its affiliated entities together accounted for 13% , 13% and 15% of our gross sales, respectively. TD Synnex and its affiliated entities together accounted for 14% , 15%, and 14% of our gross sales in fiscal years 2024, 2023, and 2022, respectively.
In fiscal years 2025, 2024 and 2023, Ingram Micro Inc. and its affiliated entities together accounted for 14% , 13% and 13% of our gross sales, respectively. TD Synnex and its affiliated entities together accounted for 12% , 14%, and 15% of our gross sales in fiscal years 2025, 2024, and 2023, respectively.
Our key design centers are in Switzerland, Ireland, the United States, and Taiwan, where we have an internal team of designers who work in close collaboration with our engineering and manufacturing teams at the beginning of our innovation process. This capability has driven the transformation of our portfolio over the years.
Our key design centers are in Switzerland, Ireland, the United States, and Taiwan, where we have internal teams of designers who work in close collaboration with our engineering, product and manufacturing teams throughout our innovation process. This capability has driven the transformation of our portfolio over the years.
Logitech International S.A. | Fiscal 2024 Form 10-K | 13 Table of Contents
Logitech International S.A. | Fiscal 2025 Form 10-K | 13 Table of Contents
The reports that we file with the Securities and Exchange Commission on Forms 3, 4 and 5, along with our other SEC filings, may be accessed on our website or on the Securities and Exchange Commission's website at http://www.sec.gov, and the reports we file that are published by the SIX Swiss Exchange may be accessed at http://www.six-exchange-regulation.com/obligations/management_transactions_en.html.
The reports that we file with the Securities and Exchange Commission on Forms 3, 4 and 5, along with our other SEC filings, may be accessed on our website or on the Securities and Exchange Commission's website at http://www.sec.gov, and the reports we file that are published by the SIX Swiss Exchange may be accessed at https://www.ser-ag.com/en/resources/notifications-market-participants/management-transactions.html.
He also served as Director, Management Consulting at PricewaterhouseCoopers, a multinational professional services network of firms, from September 2011 to July 2014 and Principal at PRTM Management Consultants LLC, a management consulting firm acquired by PricewaterhouseCoopers, from March 2010 to September 2011. Prior to his management consulting roles, Mr.
Kearney, a global management consulting firm, from July 2014 to August 2015. He also served as Director, Management Consulting at PricewaterhouseCoopers, a multinational professional services network of firms, from September 2011 to July 2014 and Principal at PRTM Management Consultants LLC, a management consulting firm acquired by PricewaterhouseCoopers, from March 2010 to September 2011.
Some of our key products in this category include the H390 USB Computer Headset, the Zone Wireless II, and the Zone Vibe Wireless. Zone Vibe Wireless is fairly unique as a B2B Headset, providing a circumaural fit at a low price point. Other Our Other category primarily consists of mobile speakers and PC speakers.
Some of our key products in this category include the H390 USB Computer Headset, Zone 300, and the Zone Vibe Wireless. Zone Vibe Wireless is fairly unique as a B2B Headset, providing a circumaural fit at a low price point.
Tablet Accessories Competitors in the tablet accessories market are Apple, Zagg Inc., Kensington Computer Products Group, Belkin International, Inc., Targus Corporation and other less-established brands. Although we are one of the leaders in the tablet keyboard market and continue to bring innovative offerings to the market, we expect the competition may increase.
Tablet Accessories Competitors in the tablet accessories market are Apple, Zagg Inc. and other less-established brands. Although we are one of the leaders in the tablet keyboard market and continue to bring innovative offerings to the market, we expect the competition may increase.
Products Logitech designs, manufactures and sells products that help businesses thrive and bring people together when working, creating, gaming and streaming, for use by consumers and enterprise customers. Logitech International S.A. | Fiscal 2024 Form 10-K | 4 Table of Contents Gaming Logitech G provides products for gamers and streamers, including mice, racing wheels, headsets, keyboards, microphones and streaming services.
Logitech International S.A. | Fiscal 2025 Form 10-K | 4 Table of Contents Products Logitech designs, manufactures and sells products that help businesses thrive and bring people together when working, creating, and gaming. Gaming Logitech G provides products for gamers and streamers, including gaming mice, steering wheels, headsets and keyboards, as well as microphones and streaming services.
For more information about such regulations and how they may impact us, see "Risks Related to Global Nature of our Operations and Regulatory Environment" in Item 1A "Risk Factors" and Note 7 Income Taxes in our Notes to consolidated financial statements below.
Logitech International S.A. | Fiscal 2025 Form 10-K | 10 Table of Contents For more information about such regulations and how they may impact us, see "Risks Related to Global Nature of our Operations and Regulatory Environment" in Item 1A "Risk Factors" and Note 7 Income Taxes in our Notes to consolidated financial statements below.
Harnett served in various positions at ZipRealty, Inc., a real estate technology and online brokerage company, including most recently as General Counsel and Senior Vice President of Business Development from October 2009 to November 2015. She also served as an associate at Wilson Sonsini Goodrich and Rosati, P.C. Ms.
Harnett served in various positions at ZipRealty, Inc., a real estate technology and Logitech International S.A. | Fiscal 2025 Form 10-K | 12 Table of Contents online brokerage company, including as General Counsel and Senior Vice President of Business Development from October 2009 to November 2015. She also served as an associate at Wilson Sonsini Goodrich and Rosati, P.C. Ms.
("Apple"), Microsoft Corporation ("Microsoft"), Dell Technologies ("Dell"), HP, Lenovo Group Ltd. ("Lenovo") and regional computer peripheral computer brands are the main competitors in our keyboard and combo product lines.
("Apple"), Dell Technologies ("Dell"), HP, Lenovo Group Ltd. ("Lenovo"), Elgato, Eweadn, Mchose, Keychron, Cherry and regional computer peripheral computer brands are the main competitors in our keyboard and combo product lines.
For revenue by geographic region, see Note 15 to our consolidated financial statements. Logitech has an extensive global go-to-market network that is leveraged to optimize the value of our existing products and product categories as well as to introduce new products and enter new product categories. We sell our products primarily to a network of distributors, retailers and e-tailers.
Logitech has an extensive global go-to-market network that is leveraged to optimize the value of our existing products and product categories as well as to introduce new products and enter new product categories. We sell our products primarily to a variety of distributors, retailers and e-tailers.
We implement training and communication programs across the business each year to ensure employee awareness of the importance of health and safety management and our key programs and provisions.
Safety, Health and Well-being We look to safeguard the safety, health and well-being of all members of the Logitech team. We implement training and communication programs across the business each year to ensure employee awareness of the importance of health and safety management and our key programs and provisions.
As a point of connection between people and the digital world, our mission is to extend human potential in work and play, in a way that is good for people and the planet. We sell these products through a number of brands, including Logitech, Logitech G and others.
As the point of connection between people and the digital world, our mission is to extend human potential in work and play, in a way that is good for people and the planet. We sell the vast majority of our products under the Logitech and Logitech G brand names.
Enabled with Logitech Flow cross-computer control software and Logi Bolt cross-operating system connectivity, these products represent the new paradigm for precise, fast, comfortable cross-computer digital navigation and digital creativity. • The Logitech Signature M650 Wireless Mouse, which introduced Smartwheel for precise and fast scrolling, and clicks silently due to our SilentTouch technology, has an 18-month battery life, dual connectivity with Bluetooth and Logi Bolt, compatible with nearly all operating systems, side-buttons and comfortable design, and is available in Large, Medium and left-handed versions. • The Logitech Wireless Mouse M185, a reliable wireless mouse with comfortable shape and compact design. • The Logitech Wireless Mouse M220 Silent is an upgraded version of the M185 with silent clicking due to our SilentTouch technology. • The Logitech Pebble Mouse, a slim and minimalist wireless mouse, comes with new and exciting colors, with Bluetooth connectivity compatible with Logi Bolt technology. • The Logitech Lift, a vertical mouse with Logi Bolt wireless technology and the new smart wheel available in right and left-handed version, • Pop Mouse, for younger generations that offers more style at the desk.
Some of our key products in this category include: • The Logitech MX Master 3S and MX Anywhere 3S wireless mice, our flagship wireless mouse products, enabled with Logitech Flow cross-computer control software and Logi Bolt cross-operating system connectivity, these products represent the new paradigm for precise, fast, comfortable cross-computer digital navigation and digital creativity. • The Logitech Signature M650 Wireless Mouse, which introduced Smartwheel for precise and fast scrolling, and clicks silently due to our SilentTouch technology, has an 18-month battery life, dual connectivity with Bluetooth and Logi Bolt, compatible with nearly all operating systems, side-buttons and comfortable design, and is available in Large, Medium and left-handed versions. • The Logitech Lift, a vertical mouse with Logi Bolt wireless technology and the new smart wheel available in right and left-handed version. • The Logitech Wireless Mouse M185, a reliable wireless mouse with comfortable shape and compact design.
Operations Logitech’s operations capability consists of a hybrid model of in-house manufacturing (including a wholly-owned facility in Suzhou, China) and third-party contract manufacturers and original design manufacturers (principally in Asia), which allows us to effectively respond to rapidly changing demand and leverage economies of scale.
Operations Logitech’s operations capability consists of a diversified manufacturing footprint across six countries that includes an in-house manufacturing facility in Suzhou, China and third-party contract manufacturers and original design manufacturers (principally in Asia), which allows us to effectively respond to rapidly changing demand and leverage economies of scale.
He was previously Logitech's Head of Global Operations & Sustainability, a role he held from May 2018. He joined Logitech in 2015 and held operations positions as Vice President New Product Introductions & Strategic Initiatives from August 2015 to July 2016 and Vice President Global Sourcing and New Product Introductions from July 2016 to May 2018.
He joined Logitech in 2015 and held operations positions as Vice President New Product Introductions & Strategic Initiatives from August 2015 to July 2016 and Vice President Global Sourcing and New Product Introductions from July 2016 to May 2018. Prior to joining Logitech, Mr. Arunkundrum was a Principal at A.T.
These engineering capabilities combined with our award-winning design team form the basis of Logitech's key innovation engine. Customer Service and Technical Support Our customer service organization provides user technical support, support related to product inquiry, and order support. We support these customer service functions with outsourced operations as well as in-house support teams located in countries across the world.
Customer Service and Technical Support Our customer service organization provides user technical support, support related to product inquiry, and order support. We support these customer service functions with outsourced operations as well as in-house support teams located in countries across the world.
Logitech International S.A. | Fiscal 2024 Form 10-K | 10 Table of Contents Human Capital Resources Employees Our human capital resources include persons employed directly by us or indirectly through contingent workforce arrangements. As of March 31, 2024, we employed approximately 7,300 persons, of which approximately 2,700 were employed in our Suzhou manufacturing operations.
Human Capital Resources Employees Our human capital resources include persons employed directly by us or indirectly through contingent workforce arrangements. As of March 31, 2025, we employed approximately 7,300 persons, of which approximately 2,300 were employed in our Suzhou manufacturing operations. This includes people employed directly by us, or indirectly through contingent workforce arrangements.
Harnett served in various legal and management roles at Eventbrite, Inc., a global Logitech International S.A. | Fiscal 2024 Form 10-K | 12 Table of Contents self-service ticketing and experience technology platform, most recently as Chief Legal and Operations Officer from October 2019 to June 2020.
Harnett served in various legal and management roles at Eventbrite, Inc., a global self-service ticketing and experience technology platform, including as Chief Legal and Operations Officer from October 2019 to June 2020.
Logitech International S.A. | Fiscal 2024 Form 10-K | 5 Table of Contents Video Collaboration The Video Collaboration category includes Logitech’s conference room cameras (“ConferenceCams”), which combine enterprise-quality audio and high definition ("HD") 4K video with affordability to bring video conferencing to a variety of room sizes.
Video Collaboration The Video Collaboration category includes Logitech’s conference room cameras (“ConferenceCams”), which combine affordable enterprise-quality audio and high definition ("HD") 4K video to bring video conferencing to a variety of room sizes.
Cash flow is correspondingly lower in the first half of our fiscal year as we typically build inventories in advance for the third quarter and we pay an annual dividend following our Annual General Meeting, which is typically in September.
Cash flow is correspondingly lower in the first half of our fiscal year as we typically build inventories in advance of our third fiscal quarter and we also pay an annual dividend following our Annual General Meeting typically held in September. Materials We purchase certain products and key components used in our products from a limited number of sources.
The following sets forth certain information regarding our executive officers as of May 16, 2024: Name Age Nationality Position Johanna (Hanneke) Faber 55 Netherlands Chief Executive Officer Charles Boynton 56 U.S. Chief Financial Officer Prakash Arunkundrum 49 U.S. Chief Operating Officer Samantha Harnett 48 U.S.
The following sets forth certain information regarding our executive officers as of May 23, 2025: Name Age Nationality Position Johanna (Hanneke) Faber 56 Netherlands Chief Executive Officer Matteo Anversa 54 Italy, U.S. Chief Financial Officer Prakash Arunkundrum 50 U.S. President of Logitech for Business Samantha Harnett 49 U.S.
This includes direct sales to retailers, e-tailers, and end consumers through our e-commerce platform, and indirect sales to end customers through distributors. From time to time, we may seek to partner with or acquire, when appropriate, companies that have products, personnel, and technologies that complement our strategic direction.
From time to time, we may seek to partner with or acquire, when appropriate, companies that have products, personnel, and technologies that complement our strategic direction.
This includes people employed directly by us, or indirectly through contingent workforce arrangements. None of Logitech's U.S. direct employees are represented by a labor union or are subject to a collective bargaining agreement. Certain other countries, such as China, provide by law for employee rights, which include requirements similar to collective bargaining agreements.
None of Logitech's U.S. direct employees are represented by a labor union or are subject to a collective bargaining agreement. Certain other countries, such as China, provide by law for employee rights, which include requirements similar to collective bargaining agreements. We believe that our employee relations are good. We rely on different programs and initiatives to support our goals.
Business Strategy Logitech's strategy includes the following core priorities: • Work and Play: We plan to expand innovation and growth within Work and Play by selling our current product categories into broader sectors of Work including Retail, Education, and Health Care, and expand into other areas of Play beyond Gaming; • Design-led, software-enabled hardware: We plan to focus on design-led hardware, combined with software and services, that incorporates sustainability; • Business-to-Consumer ("B2C") and Business-to-Business ("B2B"): We plan to maintain focus on performance of our B2C business while accelerating our investment in B2B capabilities, including across product design, services, marketing and sales; • Geographic opportunities: We plan to leverage geographic opportunities and expand our presence; and • Iconic brand: We plan to continue building an iconic Logitech brand.
We have an opportunity to sell our current product categories into broader sectors of Work including Education, Healthcare, and the Public Sector, while also exploring opportunities to expand into other areas of Play beyond Gaming; • Design-led, software-enabled hardware: We focus on design-led, software-enabled hardware, and the services that come with it; • Business-to-Consumer ("B2C") and Business-to-Business ("B2B"): We plan to continue to invest in growth of our B2C business while increasing our focus on our B2B business, including sales coverage, product design, and services; • Geographic opportunities: We plan to leverage geographic opportunities and expand our presence; and • Iconic brand: We plan to continue building an iconic Logitech brand.
The Logitech HD Pro Webcam C920, C922 and Brio 4K Pro Webcam are key products in this category and we have recently launched our new flagship MX Brio Ultra HD 4K Collaboration and Streaming Webcam. Tablet Accessories Our Tablet Accessories category primarily includes keyboards for tablets.
The Brio 100, Logitech HD Pro Webcam C920, C922 and Brio 4K Pro Webcam and our flagship MX Brio Ultra HD 4K Webcam are the key products in this category that are designed to meet the various needs of our audiences. Tablet Accessories Our Tablet Accessories category primarily includes tablet keyboards.
To improve our customers' experience and operate efficiently, we use technology to facilitate chatbot interactions, enable self-help and apply AI to optimize support searches. Logitech provides warranties on our branded products that range from one to three years. For our Video Collaboration category, we also work with channel partners to offer bundled support services with Logitech Video Collaboration solutions.
To improve our customers' experience and operate efficiently, we use technology to facilitate chatbot interactions, enable self-help and apply AI to optimize support searches. Logitech International S.A. | Fiscal 2025 Form 10-K | 8 Table of Contents Logitech provides warranties on our branded products that range from one to three years.
Logitech International S.A. | Fiscal 2024 Form 10-K | 6 Table of Contents Sales and Distribution Our sales and marketing activities are organized into three geographic regions: the Americas (North and South America), EMEA (Europe, Middle East, Africa) and Asia Pacific (China, Australia, Japan, India, Korea, Taiwan and other countries).
Sales and Distribution Our sales and marketing activities are organized into three geographic regions: the Americas (North and South America), EMEA (Europe, Middle East, Africa) and Asia Pacific (China, Australia, Japan, India, Korea, Taiwan and other countries). For revenue by geographic region, see Note 15 to our consolidated financial statements.
We believe our supply chain’s extensive global reach, key distribution channels, adoption of factory automation and strategic business relationships combined with extensive analytic modeling expertise, optimization tools and global processes are key competitive advantages. Marketing Across Logitech’s multiple product categories, we focus on enhancing our marketing capabilities around brand strategy and execution, digital marketing, and marketing technology.
We believe our diversified manufacturing footprint across six countries, our supply chain’s extensive global reach, our key distribution channels and strategic business relationships combined with our factory automation, extensive analytic modeling expertise, optimization tools and global processes are key competitive advantages.
Faber holds a Bachelor of Arts in Journalism and a Master of Business Administration from the University of Houston (Texas, USA). Charles Boynton joined Logitech as Chief Financial Officer in February 2023. Prior to joining Logitech, Mr. Boynton served as the Executive Vice President, Chief Financial Officer of Plantronics, Inc.
Faber holds a Bachelor of Arts in Journalism and a Master of Business Administration from the University of Houston (Texas, USA). Matteo Anversa joined Logitech as Chief Financial Officer in September 2024. Mr. Anversa served as Executive Vice President of Finance, Chief Financial Officer and Treasurer of Gentherm Incorporated, a thermal management technology company, from January 2019 to August 2024.
As part of the survey, employees provided weighted feedback on their experience at Logitech, on measures such as happiness, retention and their perspective on our current state of workplace inclusivity at Logitech. Safety, Health and Well-being We look to safeguard the safety, health and well-being of all members of the Logitech team.
Most recently, we conducted a survey in October 2024, in which 82% of our global office employees participated. As part of the survey, employees provided weighted feedback on their experience at Logitech, on measures such as happiness, retention and their perspective on our current state of workplace inclusivity at Logitech.
In the U.S., underrepresented minorities (defined as Black or African American, Asian, Hispanic or Latino, American Indian or Alaska Native, and Native Hawaiian or Other Pacific Islander) represented 48% of our employees. To foster a more inclusive environment, we offer training sessions to emphasize awareness of self, bias and privilege, and inclusion.
In the U.S., underrepresented minorities (defined as Black or African American, Asian, Hispanic or Latino, American Indian or Alaska Native, and Native Hawaiian or Other Pacific Islander) represented 47% of our employees. To measure our employees’ satisfaction at Logitech, we distribute a bi-annual employee engagement survey.
Engineering Our decades-long expertise in key engineering disciplines such as sensors, acoustics, optics, wireless, and power management is a core competitive advantage of Logitech.
Our design capabilities have consistently been recognized by iF, Red Dot and Good Design with broad based award wins across work, play and education products. Engineering Our decades-long expertise in key engineering disciplines such as sensors, acoustics, optics, wireless, and power management is a core competitive advantage of Logitech.
No other customer individually accounted for more than 10% of our gross sales in fiscal years 2024, 2023 or 2022. Seasonality Our product sales are typically seasonal. Sales are generally highest during our third fiscal quarter (October to December) primarily due to the increased consumer demand for our products during the year-end holiday buying season and year-end spending by enterprises.
Sales are generally highest during our third fiscal quarter (October to December) primarily due to increased consumer demand during the holiday season and increased spending by enterprises in the months nearing the calendar year-end.
The worldwide operations group also supports the business units and marketing and sales organizations through the management of distribution centers and the supply chain and logistics networks.
The worldwide operations group provides support throughout the product lifecycle from product development and sales and marketing to the management of distribution centers and the supply chain and logistics networks.
Further, by outsourcing the manufacturing of certain products, we seek to reduce volatility in production volumes as well as improve time to market. Logitech International S.A. | Fiscal 2024 Form 10-K | 7 Table of Contents Both our in-house and outsourced manufacturing operations are managed by our worldwide operations group.
In addition, by combining in-house and outsourced manufacturing capabilities, we can reduce volatility in production volumes as well as improve time to market. Both our in-house and outsourced manufacturing operations are managed by our worldwide operations group.
Furthermore, we continue to extend our engineering capabilities into more advanced technologies such as software, generative AI, cloud services, data analytics, machine learning, and some core building blocks of navigation and tracking for spatial computing and augmented/virtual reality environments. Our engineering team has expertise in bringing together these many technologies, across hardware and software to develop an innovative portfolio.
Furthermore, we continue to extend our engineering capabilities into advanced technologies in software including AI, machine learning, cloud services, and mobile apps. Our engineering team has expertise in bringing together these many technologies, across hardware and software to develop an innovative portfolio. These engineering capabilities combined with our award-winning design team form the basis of Logitech's renowned innovation engine.
Logitech International S.A. | Fiscal 2024 Form 10-K | 8 Table of Contents Competition Our product categories are characterized by large, well-financed competitors, short product life cycles, continual performance enhancements, and rapid adoption of technological and product advancements by competitors in our retail markets.
For our Video Collaboration category, we also offer bundled support services with Logitech Video Collaboration solutions that are sold through channel partners. Competition Our product categories are characterized by large, well-financed competitors, short product life cycles, continual performance enhancements, and rapid adoption of technological and product advancements by competitors in our retail markets.
Our direct employees are located across Americas, EMEA and Asia-Pacific and bring a range of perspectives and skills to Logitech. As of March 31, 2024, 47% of our office employees were located in Asia-Pacific, 29% in the Americas, and 24% in EMEA. As of March 31, 2024, females represented 38% of our global office employees.
As of March 31, 2025, 49% of our office employees were located in Asia-Pacific, 28% in the Americas, and 23% in EMEA. As of March 31, 2025, females represented 39% of our global office employees.
League of Legends, Call of Duty, Valorant); music streaming platforms (e.g. Spotify, Apple Music); content streaming platforms (e.g. Twitch, YouTube); and creativity and productivity platforms (e.g. Google Workplace, Adobe Creative Cloud). We sell our products to a broad network of international customers, in the Americas, Europe, the Middle East, and Africa ("EMEA") and Asia Pacific.
League of Legends, Call of Duty, Valorant); music streaming platforms (e.g. Spotify, Apple Music); content streaming platforms (e.g. Twitch, YouTube); and creativity and productivity platforms (e.g. Google Workplace, Adobe Creative Cloud). Our products are also enhanced through software, including machine learning and artificial intelligence (AI).
Keyboards & Combos Logitech offers a variety of corded and cordless keyboards and combos (keyboard-and-mouse combinations). Some of our key products in this category include: • The Logitech Wireless Combo MK270, a reliable entry level full-size keyboard and mouse combination with a tiny plug and play USB receiver.
Keyboards & Combos Logitech offers a variety of corded and cordless keyboards and combos (keyboard-and-mouse combinations). Some of our key products in this category include: • The Logitech MX Keys Wireless keyboard, a premium backlit keyboard with customizable keys to directly access menus and shortcuts within leading creativity and productivity apps.
With our products and design as a foundation, our marketing demonstrates the relevancy of our products in the lives of our customers, focusing on specific and diverse audiences. We continue to increase our presence when and where our products and messages are most relevant, which enables us to drive brand value.
Marketing Across Logitech’s multiple product categories, we focus on enhancing our marketing capabilities around brand strategy and execution, digital marketing, and marketing technology. With our products and design as a foundation, our marketing demonstrates the relevancy of our products in the lives of our customers, focusing on specific and diverse audiences.
Research and Development We recognize that continued investment in product research and development is critical to facilitate innovation of new and improved products, technologies and experiences. Our research and development expenses for fiscal years 2024, 2023 and 2022 were $287.2 million, $280.8 million and $291.8 million, respectively.
We continue to increase our presence when and where our products and messages are most relevant, which enables us to drive brand value. Research and Development We recognize that continued investment in product research and development is critical to facilitate innovation of new and improved products, technologies and experiences.
In addition, we design for sustainability to reduce the environmental impact of our products, operations, and value chain. Our design capabilities have been recognized through various awards in fiscal year 2024 including the prestigious Red Dot Design Team of the Year award.
We focus on designing products that bring delight to our users because they are innovative, intuitive, easy-to-use and deliver value. In addition, we design for sustainability to reduce the environmental impact of our products, operations, and value chain.
The Logitech Wireless Combo MK295 Silent is an upgraded version with silent typing and clicking due to our SilentTouch technology. • The Logitech MX Keys Wireless keyboard, a premium backlit keyboard with customizable keys to directly access menus and shortcuts within leading creativity and productivity apps.
The Logitech Wireless Combo MK295 Silent is an upgraded version with silent typing and clicking due to our SilentTouch technology. • In fiscal year 2025, we launched a new product, MX Creative console, which is a versatile tool designed for creative professionals such as graphic designers, video editors, and photographers.
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We recently added the MX Keys mini wireless keyboard ideal for smaller spaces and creators and Logitech MX mechanical wireless keyboard. • The recently launched Logitech Pebble Keys 2 wireless minimalist keyboard with Easy-Switch functionality that allows users to connect up to three devices (computers, tablets, or mobile phones), even with different operating systems, and switch between them.
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We sell our products to a broad range of international customers, in the Americas, Europe, the Middle East, and Africa ("EMEA") and Asia Pacific. This includes direct sales to retailers, e-tailers, businesses large and small and end consumers through our e-commerce platform, and indirect sales to end customers through distributors.
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Pointing Devices Logitech offers a variety of pointing devices. Some of our key products in this category include: • The Logitech MX Master 3 and MX Anywhere 3 wireless mice, our flagship wireless mouse products.
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Business Strategy Logitech's strategy includes the following core priorities: • Work and Play: We plan to continue to innovate and grow in the core markets in which we compete today while also expanding into other macro spaces of Work and Play.
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Our mobile speakers is a portfolio of portable wireless Bluetooth speakers for music on the go. The top revenue-generating product in our mobile speakers during fiscal year 2024 was our ruggedized portable Bluetooth wireless speaker. During fiscal year 2024, our collection of portable Bluetooth speakers included WONDERBOOM3, BOOM3, MEGABOOM3, HYPERBOOM, and our recently launched speaker, EPICBOOM.
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We also have the MX Keys mini wireless keyboard which is ideal for smaller spaces and for creators and the Logitech MX mechanical wireless keyboard. • The Logitech Wireless Combo MK270, a reliable entry level full-size keyboard and mouse combination with a tiny plug and play USB receiver.
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Due to the timing of our new product introductions, which could occur at any point during the fiscal year, we believe that year-over-year comparisons are more indicative of variability in our results of operations than the current quarter to prior quarter comparisons. Materials We purchase certain products and key components used in our products from a limited number of sources.
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It features a customizable keypad with LCD keys and a tactile dialpad for precise control, allowing users to streamline their workflow by automating tasks and accessing essential tools quickly. The console integrates seamlessly with popular Adobe applications such as Photoshop, Lightroom, Premiere Pro, and more.
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Our Suzhou operation, which currently handles approximately 40% of our total production of products, provides for increased production capacity, manufacturing know-how, intellectual property protection and greater flexibility in responding to product demand. We focus on ensuring the efficiency of the Suzhou facilities through the implementation of quality management, automation, process improvements, and employee involvement programs.
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With the Logi Options+ software, users can personalize controls and set up profiles for different applications, positioning it as an appealing tool for creatives seeking intuitive and fast-paced editing solutions. Pointing Devices Logitech offers a variety of pointing devices.
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We believe that our employee relations are good. We rely on different programs and initiatives to support our goals. Some of our key human capital management programs are summarized below.
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Logitech International S.A. | Fiscal 2025 Form 10-K | 5 Table of Contents • The Logitech Wireless Mouse M220 Silent is an upgraded version of the M185 with silent clicking due to our SilentTouch technology.
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Diversity and Inclusion We believe that reflecting the diverse world in which we live - through our people and by fostering an inclusive culture - provides us with the foundation needed to create experiences that enable all people to pursue their passions, which is our corporate purpose.
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Our key products in this category include: • The Logitech Rally Bar family of ConferenceCams, consisting of Rally Bar, Rally Bar Huddle, and Rally Bar Mini, which is our premier family of video bars with built-in computing capabilities for small, midsize and large rooms, providing brilliant video, room-filling audio, and the flexibility to deploy in PC or appliance mode. • The Logitech Rally and Logitech MeetUp ConferenceCams that can plug and play with any computing device including PC, Mac and Chromebook.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThere are risks inherent in doing business in international markets, including: • Difficulties in staffing and managing international operations; • Compliance with increasing amounts of laws and regulations, including environmental, tax, import/export and anti-corruption laws, which vary from country to country, and the European Union legislation, and over time, increasing the costs of compliance and potential risks of non-compliance; • Varying laws, regulations and other legal protections, uncertain and varying enforcement of those laws and regulations, dependence on local authorities, and the importance of local networks and relationships; • Varying accounting, auditing and financial reporting standards, accountability and protections, including risks related to the lack of access by the Public Company Accounting Oversight Board (United States) ("PCAOB") to inspect PCAOB-registered accounting firms in emerging market countries such as China; • Exposure to political, economic and financial instability, including due to the uncertainty associated with the ongoing sovereign debt issues in certain Euro zone countries, which may lead to reduced sales, currency exchange losses and collection difficulties or other losses; • Import or export restrictions or licensing requirements that could affect some of our products, including those with encryption technology; • Trade protection measures, custom duties, tariffs, import or export duties, and other trade barriers, restrictions and regulations, including recent and ongoing United States - China tariffs and trade restrictions, including China's 2021 Anti-Foreign Sanctions Law; • Lack of adequate infrastructure or services necessary or appropriate to support our long-term business strategy, digital transformation and operational efficiency; • Exposure to fluctuations in the value of local currencies; • Difficulties and increased costs in establishing sales and distribution channels in unfamiliar markets, with their own market characteristics and competition, including entrenched local competition; • Weak protection of our intellectual property rights; • Higher credit risks; • Current and future international regulation of AI; • Variations in VAT (value-added tax) or VAT reimbursement; • Imposition of currency exchange controls; Logitech International S.A. | Fiscal 2024 Form 10-K | 24 Table of Contents • Delays from customs brokers or government agencies; and • A broad range of customs, consumer trends, and more.
Biggest changeThere are risks inherent in doing business in international markets, including: • Changes in economic, political or business conditions resulting in changes in trade protection measures, tariffs, and other trade barriers, restrictions and regulations, and any successor measures, restrictions, laws and regulations; • Compliance with current and future laws and regulations, including AI, environmental, tax, import/export and anti-corruption laws, which vary from country to country, and the European Union legislation, and over time, increasing the costs of compliance and potential risks of non-compliance, uncertain and varying enforcement of those laws and regulations, dependence on local authorities, and the importance of local networks and relationships; • Varying accounting, auditing and financial reporting standards, accountability and protections, including risks related to the lack of access by the Public Company Accounting Oversight Board (United States) ("PCAOB") to inspect PCAOB-registered accounting firms in emerging market countries such as China; • Exposure to political, economic and financial instability, including due to the uncertainty associated with the ongoing sovereign debt issues in certain Euro zone countries, which may lead to reduced sales, higher credit risks, currency exchange losses, exposure to fluctuations in the value of local currencies, impositions of currency exchange controls and collection difficulties or other losses; • Import or export restrictions or licensing requirements that could affect some of our products, including those with encryption technology; • Lack of adequate infrastructure or services necessary or appropriate to support our long-term business strategy, digital transformation and operational efficiency, including delays from customs brokers or government agencies and difficulties in staffing and managing international operations; • Difficulties and increased costs in establishing sales and distribution channels in unfamiliar markets, with their own market characteristics and competition, including entrenched local competition; • Weak protection of our intellectual property rights; and • A broad range of customs, consumer trends, and more.
In addition, we rely on our go-to-market capability to leverage on those growth opportunities, market our products and compete effectively with a goal of strengthening our sales.
In addition, we rely on our go-to-market capability to leverage those growth opportunities, market our products and compete effectively with a goal of strengthening our sales.
In addition, market demand remains less predictable and more volatile than before the COVID-19 pandemic.
In addition, the market demand remains less predictable and more volatile than before the COVID-19 pandemic.
Acquisitions could result in difficulties integrating acquired operations, products, technology, internal controls, personnel and management teams and result in the diversion of capital and management’s attention away from other business issues and opportunities. If we fail to successfully integrate acquisitions, our business could be harmed.
Acquisitions could result in difficulties in integrating acquired operations, products, technology, internal controls, personnel and management teams and result in the diversion of capital and management’s attention away from other business issues and opportunities. If we fail to successfully integrate acquisitions, our business could be harmed.
We also are subject to the SEC disclosure requirements regarding the use of certain minerals, known as conflict minerals, which are mined from the Democratic Republic of Congo and adjoining countries, as well as procedures regarding a manufacturer’s efforts to identify and prevent the sourcing of such minerals and metals produced from those minerals.
We are also subject to the SEC disclosure requirements regarding the use of certain minerals, known as conflict minerals, which are mined from the Democratic Republic of Congo and adjoining countries, as well as procedures regarding a manufacturer’s efforts to identify and prevent the sourcing of such minerals and metals produced from those minerals.
Risks Related to Global Nature of our Operations and Regulatory Environment • Adverse global and regional economic and geopolitical conditions can materially adversely affect our business, results of operations and financial condition. • We conduct operations in a number of countries and have invested significantly in growing our sales and marketing activities in China, and the effect of business, legal and political risks associated with international operations could adversely affect us. • Changes in trade policy and regulations in the United States and other countries, including changes in trade agreements and the imposition of tariffs and the resulting consequences, may have adverse impacts on our business, results of operations and financial condition. • Our financial performance is subject to risks associated with fluctuations in currency exchange rates. • We are subject to risks related to our environmental, social and governance ("ESG") activities and disclosures. • As a company operating in many markets and jurisdictions, expanding into new growth categories, and engaging in acquisitions, and as a Swiss, dual-listed company, we are subject to risks associated with new, existing and potential future laws and regulations. • As a result of changes in tax laws, treaties, rulings, regulations or agreements, or their interpretation, of Switzerland or any other country in which we operate, the loss of a major tax dispute or a successful challenge to our operating structure, intercompany pricing policies or the taxable presence of our key subsidiaries in certain countries, or other factors, our effective income tax rates may increase, which could adversely affect our net income and cash flows. • We maintain cash and cash equivalents at financial institutions and are exposed to credit risk in the event of default by such financial institutions.
Risks Related to Global Nature of our Operations and Regulatory Environment • Adverse global and regional economic and geopolitical conditions can materially adversely affect our business, results of operations and financial condition. • We conduct operations and have invested significantly in growing our sales and marketing activities in a number of countries, and the effect of business, legal and political risks associated with international operations could adversely affect us. • Changes in trade policy and regulations in the United States and other countries, including changes in trade agreements and the imposition of tariffs and the resulting consequences, may have adverse impacts on our business, results of operations and financial condition. • Our financial performance is subject to risks associated with fluctuations in currency exchange rates. • We are subject to risks related to our environmental, social and governance ("ESG") activities and disclosures. • As a company operating in many markets and jurisdictions, expanding into new growth categories, and engaging in acquisitions, and as a Swiss, dual-listed company, we are subject to risks associated with new, existing and potential future laws and regulations. • As a result of changes in tax laws, treaties, rulings, regulations or agreements, or their interpretation, of Switzerland or any other country in which we operate, the loss of a major tax dispute or a successful challenge to our operating structure, intercompany pricing policies or the taxable presence of our key subsidiaries in certain countries, or other factors, our effective income tax rates may increase, which could adversely affect our net income and cash flows. • We maintain cash and cash equivalents at financial institutions and are exposed to credit risk in the event of default by such financial institutions.
In addition, Microsoft, Apple, Google, Amazon or other competitors may be able to control distribution channels or offer pricing advantages on bundled hardware and software products that we may not be able to offer, and may be financially positioned to exert significant downward pressure on product prices and upward pressure on promotional incentives in order to gain market share.
In addition, Microsoft, Apple, Google, Amazon or other competitors may be able to control distribution channels or offer pricing advantages on bundled hardware and software products that we may not be able to offer, and may be financially positioned to exert significant downward pressure on product prices and upward pressure on promotional incentives to gain market share.
As we introduce new or enhanced products, integrate new technology into new or existing products, or reduce the overall number of products offered, we face risks including, among other things, disruption in customers’ ordering patterns, excessive levels of new and existing product inventories, revenue deterioration in our existing product lines, insufficient supplies of new products to meet customers’ demand, possible product and technology Logitech International S.A. | Fiscal 2024 Form 10-K | 16 Table of Contents defects, and a potentially different sales and support environment.
As we introduce new or enhanced products, integrate new technology into new or existing products, or reduce the overall number of products offered, we face risks including, among other things, disruption in customers’ Logitech International S.A. | Fiscal 2025 Form 10-K | 16 Table of Contents ordering patterns, excessive levels of new and existing product inventories, revenue deterioration in our existing product lines, insufficient supplies of new products to meet customers’ demand, possible product and technology defects, and a potentially different sales and support environment.
If we expand the number of platforms and software applications with which our products are compatible, we may not be successful in launching Logitech International S.A. | Fiscal 2024 Form 10-K | 21 Table of Contents products for those platforms or software applications, we may not be successful in establishing strong relationships with the new platform or software owners, or we may negatively impact our ability to develop and produce high-quality products on a timely basis for those platforms and software applications or we may otherwise adversely affect our relationships with existing platform or software owners.
If we expand the number of platforms and software applications with which our products are compatible, we may not be successful in launching Logitech International S.A. | Fiscal 2025 Form 10-K | 21 Table of Contents products for those platforms or software applications, we may not be successful in establishing strong relationships with the new platform or software owners, or we may negatively impact our ability to develop and produce high-quality products on a timely basis for those platforms and software applications or we may otherwise adversely affect our relationships with existing platform or software owners.
The effectiveness of our marketing and sales efforts is uncertain and it is difficult to predict whether our marketing and sales efforts will result in increased sales. • We engage in acquisitions and divestitures, and such activity varies from period to period.
The effectiveness of our marketing and sales efforts is uncertain and it is difficult to predict whether our marketing and sales efforts will result in increased sales. • We may engage in acquisitions and divestitures, and such activity varies from period to period.
Our failure to predict low demand for a product can result in excess inventory, lower cash flows and lower margins if we are required to reduce product prices in order to reduce inventories.
Our failure to predict low demand for a product can result in excess inventory, lower cash flows and lower margins if we are required to reduce product prices to reduce inventories.
Our effective income tax rate may be affected by changes in or interpretations of tax laws, treaties, rulings, regulations or agreements in any given jurisdiction, or changes in international tax reform by the Organization for Economic Co-operation and Development (the "OECD") and similar organizations, utilization of net operating loss and tax credit carryforwards, changes in geographical allocation of income and expense, and changes in management’s assessment of matters such as the realizability of deferred tax assets.
Our effective income tax rate may be affected by changes in or interpretations of tax laws, treaties, rulings, regulations or agreements in any given jurisdiction, or changes in international tax reform by the Organization for Economic Co-operation and Development (the "OECD") and similar organizations, utilization of net operating losses and tax credit carryforwards, changes in geographical allocation of income and expense, and changes in management’s assessment of matters such as the realizability of deferred tax assets.
Acquisitions could also result in the assumption of known and unknown liabilities, product, regulatory and other compliance issues, dilutive issuances of our equity securities, the incurrence of debt, disputes over earn-outs or other litigation, and adverse effects on relationships with our and our target’s Logitech International S.A. | Fiscal 2024 Form 10-K | 22 Table of Contents employees, customers and suppliers.
Acquisitions could also result in the assumption of known and unknown liabilities, product, regulatory and other compliance issues, dilutive issuances of our equity securities, the incurrence of debt, disputes over earn-outs or other litigation, and adverse effects on relationships with our and our target’s Logitech International S.A. | Fiscal 2025 Form 10-K | 22 Table of Contents employees, customers and suppliers.
In fiscal year 2024, we were impacted by adverse macroeconomic and geopolitical conditions including Logitech International S.A. | Fiscal 2024 Form 10-K | 23 Table of Contents but not limited to inflation, foreign currency fluctuations, and slowdown of economic activity around the world, in part due to changes in interest rates, and lower consumer and enterprise spending.
In fiscal year 2025, we were impacted by adverse macroeconomic and geopolitical conditions including Logitech International S.A. | Fiscal 2025 Form 10-K | 23 Table of Contents but not limited to inflation, foreign currency fluctuations, and slowdown of economic activity around the world, in part due to changes in interest rates, and lower consumer and enterprise spending.
If the supply of these products or key components were to be delayed or constrained, impacted by global shortages of semiconductor chips, or if one or more of our single-source suppliers experience disruptions or go out of business as a result of adverse global economic conditions, adverse global or regional geopolitical conditions, natural disasters or regional or global pandemics, such as COVID-19, we might be unable to find a new supplier on acceptable terms, or at all, and our product shipments to our customers could be delayed, which could adversely affect our business, financial condition and operating results.
If the supply of these products or key components were to be delayed or constrained, impacted by global shortages of semiconductor chips, or if one or more of our single-source suppliers experience disruptions or go out of business as a result of adverse global economic conditions, adverse global or regional geopolitical conditions, natural disasters or regional or global pandemics, we might be unable to find a new supplier on acceptable terms, or at all, and our product shipments to our customers could be delayed, which could adversely affect our business, financial condition and operating results.
Nevertheless, our websites and information technology systems have been and could continue to be subject to or threatened with, and are susceptible to damage, disruptions or shutdowns due to power outages, hardware failures, structural or operational failures, computer viruses, ransomware and other malware, attacks by computer hackers and other third parties, employee error or malfeasance, phishing and other means of social engineering, other data security issues, telecommunication failures, user error, employee or contractor negligence or malfeasance, catastrophes, downtime due to system or software upgrades, integration or migration, or other foreseeable and unforeseen events.
Nevertheless, our websites and information technology systems have been and could continue to be subject to or threatened with, and are susceptible to damage, disruptions or shutdowns due to power outages, hardware failures, structural or operational failures, computer viruses, ransomware and other malware, attacks by computer hackers and other third parties, including state-sponsored attacks, employee error or malfeasance, phishing and other means of social engineering, other data security issues, telecommunication failures, user error, employee or contractor negligence or malfeasance, catastrophes, downtime due to system or software upgrades, integration or migration, or other foreseeable and unforeseen events.
As a result, companies are required to develop an expanded set of metrics and measures, as well as data collection, controls, and reporting processes in order to meet regulatory requirements and stakeholder expectations. Failure by us to promptly and accurately meet these expectations and requirements may expose us to reputational and brand damage, regulatory penalties and litigation among other things.
As a result, companies are required to develop an expanded set of metrics and measures, as well as data collection, controls, and reporting processes to meet regulatory requirements and stakeholder expectations. Failure by us to promptly and accurately meet these expectations and requirements may expose us to reputational and brand damage, regulatory penalties and litigation among other things.
Logitech International S.A. | Fiscal 2024 Form 10-K | 15 Table of Contents • Claims by others that we infringe their proprietary technology could adversely affect our business. • We may be unable to protect our proprietary rights. Unauthorized use of our technology may result in the development of products that compete with our products.
Logitech International S.A. | Fiscal 2025 Form 10-K | 15 Table of Contents • Claims by others that we infringe their proprietary technology could adversely affect our business. • We may be unable to protect our proprietary rights. Unauthorized use of our technology may result in the development of products that compete with our products.
Our product categories are characterized by short product life cycles, intense competition, frequent new product introductions, rapidly changing technology, dynamic consumer demand and evolving industry standards. As a result, we must continually innovate in our new and existing product categories, introduce new products and technologies, and enhance existing products in order to remain competitive.
Our product categories are characterized by short product life cycles, intense competition, frequent new product and feature introductions, rapidly changing technology, dynamic consumer demand and evolving industry standards. As a result, we must continually innovate in our new and existing product categories, introduce new products and technologies, and enhance existing products to remain competitive.
Our principal manufacturing operations and third-party contract manufacturers are located in China and Southeast Asia, which exposes us to risks associated with doing business in that geographic area as well as potential tariffs, adverse trade regulations, adverse tax consequences and pressure to move or diversify our manufacturing locations.
Our principal manufacturing operations and third-party contract manufacturers are located in China and Southeast Asia, which exposes us to risks associated with doing business in that geographic area as well as changes in tariffs, adverse trade regulations, adverse tax consequences and pressure to move or diversify our manufacturing locations.
There is no guarantee that any contractual or other protections we seek to implement will be sufficient to protect us from risks presented by these solutions. The rapid evolution of AI and its regulatory and policy landscape also present numerous risks.
There is no guarantee that any contractual or other protections we seek to implement will be sufficient to protect us from risks presented by these solutions. The rapid evolution of AI and its regulatory and policy landscapes also present numerous risks.
While our overall distribution relationships are diffuse, in fiscal years 2024 and 2023 ou r gross sales were concentrated with three customers - Amazon, Ingram Micro and TD Synnex - and their affiliated entities. We do not have long-term commitments with those customers.
While our overall distribution relationships are diffuse, in fiscal years 2025 and 2024 ou r gross sales were concentrated with three customers - Amazon, Ingram Micro and TD Synnex - and their affiliated entities. We do not have long-term commitments with those customers.
Logitech International S.A. | Fiscal 2024 Form 10-K | 14 Table of Contents • Our success largely depends on our ability to manage, hire, retain, integrate and motivate sufficient numbers of qualified personnel, including senior leadership.
Logitech International S.A. | Fiscal 2025 Form 10-K | 14 Table of Contents • Our success largely depends on our ability to manage, hire, retain, integrate and motivate sufficient numbers of qualified personnel, including senior leadership.
Share repurchases may also increase the volatility of the trading price of our shares. We similarly cannot ensure that we will continue to increase our dividend payments or to pay dividends at all. Share repurchases and dividends diminish our cash reserves.
Share repurchases may also increase the volatility of our share price. We similarly cannot ensure that we will continue to increase our dividend payments or to pay dividends at all. Share repurchases and dividends diminish our cash reserves.
We primarily sell our products to a network of distributors, retailers, e-tailers and enterprise customers (together with our direct sales channel partners). We are dependent on those direct sales channel partners to distribute and sell our products to indirect sales channel partners and ultimately to consumers.
We primarily sell our products to a variety of distributors, retailers, e-tailers and enterprise customers (together with our direct sales channel partners). We are dependent on those direct sales channel partners to distribute and sell our products to indirect sales channel partners and ultimately to consumers.
Competitive conditions in the markets in which we operate may also limit our ability to increase prices in the event of fluctuations in currency exchange rates. Conversely, strengthening of currency rates may also increase our product component costs and other expenses denominated in those currencies, adversely affecting operating results.
Dollar-denominated sales and earnings. Competitive conditions in the markets in which we operate may also limit our ability to increase prices in the event of fluctuations in currency exchange rates. Conversely, strengthening of currency rates may also increase our product component costs and other expenses denominated in those currencies, adversely affecting operating results.
Summary of Risk Factors Risks Related to our Business • If we fail to innovate and develop new products in a timely and cost-effective manner for our new and existing product categories, our business and operating results could be adversely affected. • We use artificial intelligence ("AI") in our business, and challenges relating to the development and use of AI, including generative AI, could result in competitive harm, reputational harm, and legal liability, and adversely affect our results of operations. • If we do not successfully execute on our growth opportunities, or if our growth opportunities are more limited than we expect, our operating results and future growth could be adversely affected. • We purchase key components and products from a limited number of sources, and our business and operating results could be adversely affected if supply were delayed or constrained or if there were shortages of required components. • Our principal manufacturing operations and third-party contract manufacturers are located in China and Southeast Asia, which exposes us to risks associated with doing business in that geographic area as well as potential tariffs, adverse trade regulations, adverse tax consequences and pressure to move or diversify our manufacturing locations. • If we do not successfully coordinate the worldwide manufacturing and distribution of our products, we could lose sales and our business and operating results could be adversely affected. • If we are not able to maintain and enhance our brands, or if our brands or reputation are damaged, our reputation, business and operating results could be adversely affected. • If we do not compete effectively, demand for our products could decline and our business and operating results could be adversely affected. • We rely on third parties to sell and distribute our products, and we rely on their information to manage our business.
Summary of Risk Factors Risks Related to our Business • If we fail to innovate and develop new products in a timely and cost-effective manner for our new and existing product categories, our business and operating results could be adversely affected. • If we do not successfully execute on our growth opportunities, or if our growth opportunities are more limited than we expect, our operating results and future growth could be adversely affected. • Our principal manufacturing operations and third-party contract manufacturers are located in China and Southeast Asia, which exposes us to risks associated with doing business in that geographic area as well as changes in tariffs, adverse trade regulations, adverse tax consequences and pressure to move or diversify our manufacturing locations. • If we do not successfully coordinate the worldwide manufacturing and distribution of our products, we could lose sales and our business and operating results could be adversely affected. • We use artificial intelligence ("AI") in our business, and challenges relating to the development and use of AI, including generative AI, could result in competitive harm, reputational harm, and legal liability, and adversely affect our results of operations. • We purchase key components and products from a limited number of sources, and our business and operating results could be adversely affected if supply were delayed or constrained or if there were shortages of required components. • We rely on third parties to sell and distribute our products, and we rely on their information to manage our business.
A significant portion of our business is conducted in currencies other than the U.S. Dollar. Therefore, we face exposure to movements in currency exchange rates. Our primary exposure to movements in currency exchange rates relates to non-U.S. Dollar-denominated sales and operating expenses worldwide. For fiscal year 2024, approximately 50% of our revenue was in non-U.S. denominated currencies.
A significant portion of our business is conducted in currencies other than the U.S. Dollar. Therefore, we face exposure to movements in currency exchange rates. Our primary exposure to movements in currency exchange rates relates to non-U.S. Dollar-denominated sales and operating expenses worldwide. For fiscal year 2025, approximately 49% of our revenue was in non-U.S. denominated currencies.
We conduct operations in a number of countries and have invested significantly in growing our personnel and sales and marketing activities in China and, to a lesser extent, other emerging markets. We may also increase our investments to grow sales in other emerging markets, such as Latin America, Eastern Europe, the Middle East and Africa.
We conduct operations and have invested significantly in growing our personnel and sales and marketing activities in a number of countries. We may also increase our investments to grow sales in emerging markets, such as Latin America, Eastern Europe, the Middle East and Africa.
However, over short periods of time, during periods of weakness in consumer spending or given high levels of competition in many product categories, our ability to change local currency prices to offset the impact of currency fluctuations is limited.
We attempt to adjust product prices over time to offset the impact of currency movements. However, over short periods of time, during periods of weakness in consumer spending or given high levels of competition in many product categories, our ability to change local currency prices to offset the impact of currency fluctuations is limited.
Disruption of our relationship with these channel partners, changes in or issues with their business practices, their failure to provide timely and accurate information, changes in distribution partners, practices or models, conflicts among our channels of distribution, or failure to build and scale our own sales force for certain product categories and enterprise channel partners could adversely affect our business, results of operations, operating cash flows and financial condition. • If we do not accurately forecast market demand for our products, our business and operating results could be adversely affected. • Our business depends in part on access to third-party platforms or technologies, and if access thereto is withdrawn, denied, or is not available on terms acceptable to us, or if the platforms or technologies change without notice to us, our business and operating results could be adversely affected.
Disruption of our relationship with these channel partners, changes in or issues with their business practices, their failure to provide timely and accurate information, changes in distribution partners, practices or models, conflicts among our channels of distribution, or failure to build and scale our own sales force for certain product categories and enterprise channel partners could adversely affect our business, results of operations, operating cash flows and financial condition. • If we are not able to maintain and enhance our brands, or if our brands or reputation are damaged, our reputation, business and operating results could be adversely affected. • If we do not compete effectively, demand for our products could decline and our business and operating results could be adversely affected. • If we do not accurately forecast market demand for our products, our business and operating results could be adversely affected. • Our business depends in part on access to third-party platforms or technologies, and if access thereto is withdrawn, denied, or is not available on terms acceptable to us, or if the platforms or technologies change without notice to us, our business and operating results could be adversely affected.
We produce approximately 40% of our products at the facilities we own in China. The majority of our other production is performed by third-party contract manufacturers, including original design manufacturers in China, Taiwan, Hong Kong, Malaysia, Thailand, Mexico, and Vietnam.
We produce approximately 35% of our products at the facilities we own in China. The majority of our other production is performed by third-party contract manufacturers, including original design manufacturers in China, Vietnam, Thailand, Mexico, Malaysia, and Taiwan.
In particular, if we are not able to introduce new products in a timely manner at the product cost we expect, or if consumer demand for our products is less than we anticipate, or if there are product pricing, marketing and other initiatives by our competitors to which we need to react or that are initiated by us to drive sales that lower our margins, then our overall gross margin will be less than we project.
In particular, if changes in trade policy result in a significant increase in tariffs for our products, if we are not able to introduce new products in a timely manner at the product cost we expect, or if consumer demand for our products is less than we anticipate, or if there are product pricing, marketing and other initiatives by our competitors to which we need to react or that are initiated by us to drive sales that lower our margins, then our overall gross margin will be less than we project.
Risks Related to our Financial Results • Our operating results are difficult to predict and fluctuations in results may cause volatility in the price of our shares. • Our gross margins can vary significantly depending on multiple factors, which can result in unanticipated fluctuations in our operating results. • We cannot ensure that our share repurchase programs will be fully utilized or that it will enhance long-term shareholder value.
Risks Related to our Financial Results • Our operating results are difficult to predict and fluctuations in results may cause volatility in the price of our shares. • Our gross margins can vary significantly depending on multiple factors, which can result in unanticipated fluctuations in our operating results. • There are risks associated with any outstanding and future indebtedness. • We cannot ensure that our share repurchase programs will be fully utilized or that it will enhance long-term shareholder value.
Logitech International S.A. | Fiscal 2024 Form 10-K | 28 Table of Contents In addition, while we carry cyber insurance, we cannot be certain that our insurance will be sufficient to cover losses and liabilities resulting from cyberattacks, security breaches and incidents, or other interruptions, that insurance will continue to be available to us on economically reasonable terms, or at all, or that any insurer will not deny coverage as to any future claim, any of which could have a material adverse effect on our business, including our financial condition, results of operations and reputation.
In addition, while we carry cyber insurance, we cannot be certain that our insurance will be sufficient to cover losses and liabilities resulting from cyberattacks, security breaches and incidents, or other interruptions, that insurance will continue to be available to us on economically reasonable terms, or at all, or that any insurer will not deny coverage as to any future claim, any of which could have a material adverse effect on our business, including our financial condition, results of operations and reputation.
Dollar-denominated countries could be adversely affected by currency exchange rate fluctuations. In some circumstances, for competitive or other reasons, we may decide not to raise local prices to fully offset the U.S. Dollar’s strengthening, which would adversely affect the U.S. Dollar value of our non-U.S. Dollar-denominated sales and earnings.
Dollar-denominated countries and on sales of products that include components obtained from suppliers in non-U.S. Dollar-denominated countries could be adversely affected by currency exchange rate fluctuations. In some circumstances, for competitive or other reasons, we may decide not to raise local prices to fully offset the U.S. Dollar’s strengthening, which would adversely affect the U.S. Dollar value of our non-U.S.
Our manufacturing operations in China have been in the past and could in the future be adversely affected by the COVID-19 pandemic, changes in the interpretation and enforcement of legal standards, strains on China’s available labor pool, changes in labor costs and other employment dynamics, high turnover among Chinese employees, infrastructure issues, import-export issues, cross-border intellectual property and technology restrictions, currency transfer restrictions, natural disasters, regional or global pandemics, conflicts or disagreements between China and Taiwan or China and the United States, labor unrest, and other trade customs and practices that are dissimilar to those in the United States and Europe.
Our manufacturing operations in China have been in the past and could in the future be adversely affected by global pandemics, changes in the interpretation and enforcement of legal standards, strains on China’s available labor pool, changes in labor costs and other employment dynamics, high turnover among Chinese employees, infrastructure issues, import-export issues, cross-border intellectual property and technology restrictions, currency transfer restrictions, natural disasters, regional or global pandemics, conflicts or disagreements between China and Taiwan or China and the United States, labor unrest, and other trade customs and practices that are dissimilar to Logitech International S.A. | Fiscal 2025 Form 10-K | 17 Table of Contents those in the United States and Europe.
We also experience aggressive price competition and other promotional activities from our primary competitors and from less-established brands, including brands owned by retail customers known as house brands.
We have experienced aggressive price competition and other promotional activities from our primary competitors and less-established brands, including brands owned by some retail customers known as house brands.
Our gross margins can vary due to consumer demand, competition, product pricing, product lifecycle, product mix, new product introductions, unit volumes, acquisitions and divestitures, commodity, supply chain and logistics costs, capacity utilization, geographic sales mix, currency exchange rates, trade policy and tariffs, and the complexity and functionality of new product innovations and other factors.
Our gross margins can vary due to consumer demand, trade policy and tariffs, competition, product mix, product pricing, new product and feature introductions, unit volumes, cost of raw materials, supply chain and logistics costs, capacity utilization, foreign currency fluctuations, acquisitions and divestitures, geographic sales mix, product lifecycle, the complexity and functionality of new product innovations and other factors.
Any loss of a major partner or distribution channel or other channel disruption could make us more dependent on alternate channels, increase pricing and promotional pressures from other partners and distribution channels, increase our marketing costs, or adversely impact buying and inventory patterns, payment terms or other contractual terms, sell-through or delivery of our products to consumers, our reputation and brand equity, or our market share.
Any loss of a major partner or distribution channel or other channel disruption could make us more dependent on alternate channels, increase pricing and promotional Logitech International S.A. | Fiscal 2025 Form 10-K | 19 Table of Contents pressures from other partners and distribution channels, increase our marketing costs, or adversely impact buying and inventory patterns, payment terms or other contractual terms, sell-through or delivery of our products to consumers, our reputation and brand equity, or our market share.
The CPRA significantly modifies the CCPA and has made compliance more uncertain and complex. Additionally, other U.S. states continue to propose, and in certain cases adopt, privacy-focused legislation. Other laws and regulations may follow, at state and federal levels.
The CPRA significantly modifies the CCPA and makes compliance more uncertain and complex. Additionally, other U.S. states continue to propose, and in certain cases adopt, privacy-focused legislation. Other laws and regulations may follow, at state and federal levels. Other regions also have robust data protection and privacy legislation.
As discussed in this Annual Report on Form 10-K, we have invested significantly in manufacturing facilities in China and Southeast Asia. Given our manufacturing principally in those countries, policy or regulations changes in the United States or other countries present particular risks for us. We are constantly evaluating our manufacturing footprint globally including beyond Asia.
We have invested significantly in manufacturing facilities in China and Southeast Asia. Given our manufacturing is principally in those countries, policy or regulations changes in the United States or other countries present particular risks for us. We are constantly evaluating our manufacturing footprint globally including beyond Asia.
The use of such hedging activities may not offset any, or more than a portion, of the adverse financial effects of unfavorable movements in currency exchange rates over the limited time the hedges are in place and do not protect us from long term shifts in currency exchange rates.
The use of such hedging activities may not offset any, or more than a portion, of the adverse financial effects of unfavorable Logitech International S.A. | Fiscal 2025 Form 10-K | 25 Table of Contents movements in currency exchange rates over the limited time the hedges are in place and do not protect us from long term shifts in currency exchange rates.
Some of these growth categories and opportunities are also characterized by short product cycles, frequent new product Logitech International S.A. | Fiscal 2024 Form 10-K | 17 Table of Contents introductions and enhancements and rapidly changing and evolving consumer preferences with respect to design and features that require calculated risk-taking and fast responsiveness and result in short opportunities to establish a market presence.
Some of these growth categories and opportunities are also characterized by short product cycles, frequent new product and feature introductions and enhancements and rapidly changing and evolving consumer preferences with respect to design and features that require calculated risk-taking and fast responsiveness and result in short opportunities to establish a market presence.
Such laws and regulations are typically intended to protect the privacy and security of personal information and its collection, storage, transmission, use, disclosure and other processing.
In the United States, several states have adopted broad privacy laws. Such laws and regulations are typically intended to protect the privacy and security of personal information and its collection, storage, transmission, use, disclosure and other processing.
Any claims or proceedings against us, whether meritorious or not, could be time consuming, result in costly litigation or the diversion of significant operational resources, or require us to enter into Logitech International S.A. | Fiscal 2024 Form 10-K | 29 Table of Contents royalty or licensing agreements, any of which could materially and adversely affect our business and results of operations.
Any claims or proceedings against us, whether meritorious or not, could be time consuming, result in costly litigation or the diversion of significant operational resources, or require us to enter into royalty or licensing agreements, any of which could materially and adversely affect our business and results of operations.
In addition to the extra costs and regulatory burdens of our dual regulatory obligations, the two regulatory regimes may Logitech International S.A. | Fiscal 2024 Form 10-K | 26 Table of Contents not always be compatible and may impose disclosure obligations, operating restrictions or tax effects on our business to which our competitors and other companies are not subject.
In addition to the extra costs and regulatory burdens of our dual regulatory obligations, the two regulatory regimes may not always be compatible and may impose disclosure obligations, operating restrictions or tax effects on our business to which our competitors and other companies are not subject.
Logitech International S.A. | Fiscal 2024 Form 10-K | 18 Table of Contents Our manufacturing operations at third-party contractors could be adversely affected by contractual disagreements, by labor unrest, by natural disasters, by regional or global pandemics, such as the COVID-19 pandemic, by wars and armed conflicts, by strains on local communications, trade, and other infrastructures, by competition for the available labor pool or manufacturing capacity, by increasing labor and other costs, and by other trade customs and practices that are dissimilar to those in the United States and Europe.
Our manufacturing operations at third-party contractors could be adversely affected by contractual disagreements, by labor unrest, by natural disasters, by regional or global pandemics, by wars and armed conflicts, by strains on local communications, trade, and other infrastructures, by competition for the available labor pool or manufacturing capacity, by increasing labor and other costs, and by other trade customs and practices that are dissimilar to those in the United States and Europe.
We may be unable to protect our proprietary rights. Unauthorized use of our technology may result in the development of products that compete with our products. Our future success depends in part on our proprietary technology, technical know-how and other intellectual property.
Logitech International S.A. | Fiscal 2025 Form 10-K | 29 Table of Contents We may be unable to protect our proprietary rights. Unauthorized use of our technology may result in the development of products that compete with our products. Our future success depends in part on our proprietary technology, technical know-how and other intellectual property.
Our share repurchase program does not obligate us to repurchase all or any of the dollar value of shares authorized for repurchase. The program could also increase the volatility of the trading price of our shares.
Our share repurchase program does not obligate us to repurchase all or any of the dollar value of shares authorized for repurchase. The program could also increase the volatility of our share price. Similarly, we are not obligated to pay dividends on our registered shares.
In addition, our competitors may offer customers terms Logitech International S.A. | Fiscal 2024 Form 10-K | 19 Table of Contents and conditions that may be more favorable than our terms and conditions and may require us to take actions to maintain or increase our customer incentive programs, which could impact our revenues and operating margins.
In addition, our competitors may offer customers terms and conditions that may be more favorable than our terms and conditions and may require us to take actions to maintain or increase our customer incentive programs, which could impact our revenues and operating margins.
If we raise international pricing to compensate, it could potentially reduce demand for our products, adversely affecting our sales and potentially having an adverse impact on our market share. Margins on sales of our products in non-U.S. Dollar-denominated countries and on sales of products that include components obtained from suppliers in non-U.S.
The weakening of currencies relative to the U.S. Dollar adversely affects the U.S. Dollar value of our non-U.S. Dollar-denominated sales and earnings. If we raise international pricing to compensate, it could potentially reduce demand for our products, adversely affecting our sales and potentially having an adverse impact on our market share. Margins on sales of our products in non-U.S.
Potential future initiatives relating to corporate governance or executive compensation, and Swiss voter sentiment in favor of such regulations may increase our non-operating costs and adversely affect our ability to attract and retain executive management and members of our Board of Directors. We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the U.S. ("U.S.
Potential future initiatives relating to corporate governance or executive compensation, and Swiss voter sentiment in favor of such regulations may increase our non-operating costs and adversely affect our ability to attract and retain executive management and members of our Board of Directors.
Changes in trade policy and regulations in the United States and other countries, including changes in trade agreements and the imposition of tariffs and the resulting consequences, may have adverse impacts on our business, results of operations and financial condition.
Logitech International S.A. | Fiscal 2025 Form 10-K | 24 Table of Contents Changes in trade policy and regulations in the United States and other countries, including changes in trade agreements and the imposition of tariffs and the resulting consequences, may have adverse impacts on our business, results of operations and financial condition.
Risks Related to Confidential Information, Cybersecurity, Privacy, and Intellectual Property Losses or unauthorized access to or releases of confidential information could adversely affect our business and result in significant reputational, financial and legal consequences.
Logitech International S.A. | Fiscal 2025 Form 10-K | 27 Table of Contents Risks Related to Confidential Information, Cybersecurity, Privacy and Intellectual Property Losses or unauthorized access to or releases of confidential information could adversely affect our business and result in significant reputational, financial and legal consequences.
New or increased tariffs could adversely affect more or all of our products. There also are risks associated with retaliatory tariffs and resulting trade wars. We cannot predict future trade policy and regulations in the United States and other countries, the terms of any renegotiated trade agreements or treaties, or tariffs and their impact on our business.
There also are risks associated with retaliatory policies and resulting trade wars. We cannot predict future trade policy and regulations in the United States and other countries, the terms of any renegotiated trade agreements or treaties, or tariffs and their impact on our business. A trade war could have a significant adverse effect on world trade and the world economy.
Logitech International S.A. | Fiscal 2024 Form 10-K | 20 Table of Contents As we expand into new product categories and markets in pursuit of growth, we will have to build relationships with new channel partners and adapt to new distribution and marketing models.
As we expand into new product categories and markets in pursuit of growth, we will have to build relationships with new channel partners and adapt to new distribution and marketing models.
We conduct operations in a number of countries and have invested significantly in growing our sales and marketing activities in China, and the effect of business, legal and political risks associated with international operations could adversely affect us.
Price increases may not successfully offset cost increases or may cause us to lose market share and in turn adversely impact our operations. We conduct operations and have invested significantly in growing our sales and marketing activities in a number of countries, and the effect of business, legal and political risks associated with international operations could adversely affect us.
For example, policy changes in Switzerland, the United States or China predicated on our presence in those countries could adversely affect where we recognize profit and our effective income tax rate. A material assessment by a governing tax authority could adversely affect our profitability.
For example, policy changes in Switzerland, the United States or China predicated on our presence in those countries could adversely affect where we recognize profit and our effective income tax rate. If our effective income tax rate increases in future periods, our net income and cash flows could be adversely affected.
We may not achieve the cost savings or other anticipated benefits from these efforts, and the success or failure of such efforts may cause our operating results to fluctuate and to be difficult to predict. • Fluctuations in currency exchange rates can impact our revenues, expenses and profitability because we report our financial statements in U.S.
We may not achieve the cost savings or other anticipated benefits from these efforts, and the success or failure of such efforts may cause our operating results to fluctuate and to be difficult to predict.
As many countries have proposed or enacted Pillar Two legislation in jurisdictions in which we operate, we continue to monitor the relevant developments. We file Swiss and foreign tax returns. We are frequently subject to tax audits, examinations and assessments in various jurisdictions.
As many countries have proposed or enacted Pillar Two legislation in jurisdictions in which we operate, we continue to monitor the relevant developments.
In addition, changes in relations between China and the United States could lead to further policy changes that in turn could prevent or limit us from procuring, developing, building, and/or selling our products in China. Sales growth in key markets, including China, is an important part of our expectations for our business.
In addition, changes in relations between China and the United States are currently expected to continue to lead to further policy changes that in turn are expected to prevent or limit us from procuring, developing, building, and/or selling our products in China.
We cannot ensure that our share repurchase programs will be fully utilized or that it will enhance long-term shareholder value. Share repurchases may also increase the volatility of the trading price of our shares. We similarly cannot ensure that we will continue to increase our dividend payments or to pay dividends at all.
Share repurchases may also increase the volatility of our share price. We similarly cannot ensure that we will continue to increase our dividend payments or to pay dividends at all. Share repurchases and dividends diminish our cash reserves.
Most of our product categories are characterized by large, well-financed competitors with strong brand names and highly effective research and development, marketing and sales capabilities, short product life cycles, continual performance enhancements, and rapid adoption of technological and product advancements by competitors in our product markets.
Our product categories are dynamic, highly competitive and characterized by large, well-financed competitors with strong brand names and highly effective research and development, marketing and sales capabilities, short product life cycles, constantly evolving industry standards and perpetual new demands for features and performance, continual performance enhancements, and Logitech International S.A. | Fiscal 2025 Form 10-K | 20 Table of Contents rapid adoption of technological and product advancements by competitors in our retail markets.
Our revenues and profitability are difficult to predict due to the nature of the markets in which we compete, fluctuating user demand, the uncertainty of current and future global economic conditions, and for many other reasons, including the following: • Our operating results are highly dependent on the volume and timing of orders received during the quarter, which are difficult to forecast.
Our revenues and profitability are difficult to predict due to the nature of the markets in which we compete, fluctuating user demand, the uncertainty of current and future global economic conditions, and for many other reasons, including the following: • Our sales are impacted by current and future global economic and political conditions, including trade restrictions and tariffs, inflation, interest rate and foreign currency fluctuations, uncertainty in consumer and enterprise demand, low economic growth in certain regions, changes in fiscal policies and geopolitical conflicts, and can, therefore, fluctuate abruptly and significantly during periods of uncertain economic conditions or geographic distress. • Our operating results are highly dependent on the volume and timing of orders received during the quarter, which are difficult to forecast.
Privacy Shield and we are now required to put in place additional privacy protective measures for transfer of data of people in the European Union to certain countries outside of the European Economic Area. In the United States, several states have adopted broad privacy laws.
Compliance with the GDPR's international transfer rules has been made more difficult by the invalidation of the European Union-U.S. Privacy Shield and we are now required to put in place additional privacy protective measures for transfer of data of people in the European Union to certain countries outside of the European Economic Area.
While we have worked to take a responsible approach to the development and use of AI, we anticipate that it will require significant resources going forward. We could be required to modify our approach to AI, including our development practices, user consent methods, other policies or practices, or third-party AI solutions we may offer within our solutions.
We could be required to modify our approach to AI, including our development practices, user consent methods, other policies or practices, or third-party AI solutions we may offer within our solutions.
Logitech International S.A. | Fiscal 2024 Form 10-K | 30 Table of Contents • We are continuously attempting to simplify our organization, to control operating costs through expense and global workforce management, to reduce the complexity of our product portfolio, and to better align costs with our current business.
Such variance may affect our growth, our previous outlook and expectations, and comparisons of our operating results and financial statements between periods. • We are continuously attempting to simplify our organization, to control operating costs through expense and global workforce management, to reduce the complexity of our product portfolio, and to better align costs with our current business.
GAAP") which are subject to interpretation or changes by the Financial Accounting Standard Board ("FASB"), the SEC and other various bodies formed to promulgate and interpret appropriate accounting principles.
Logitech International S.A. | Fiscal 2025 Form 10-K | 26 Table of Contents We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP") which are subject to interpretation or changes by the Financial Accounting Standard Board ("FASB"), the SEC and other various bodies formed to promulgate and interpret appropriate accounting principles.
For example, the General Data Protection Regulation ("GDPR"), which is applicable to us and to all companies processing data of people in the European Union, imposes significant fines and sanctions for violation of the Regulation. Compliance with the GDPR's international transfer rules has been made more difficult by the invalidation of the European Union-U.S.
Such fragmentation requires more complex and costly compliance structures, while heightened enforcement increases the cost and reputational risk associated with even minor compliance errors. For example, the General Data Protection Regulation ("GDPR"), which is applicable to us and to all companies processing data of people in the European Union, imposes significant fines and sanctions for violation of the Regulation.
Several jurisdictions around the world have introduced or enacted legislation relating to AI, and regulators have issued policy statements relating to the use and development of AI. New laws and regulations, or existing laws and regulations, may be interpreted in ways that conflict with or otherwise impact our approach to AI and use of AI solutions.
New laws and regulations, or existing laws and regulations, may be interpreted in ways that conflict with or otherwise impact our approach to AI and use of AI solutions. While we have worked to take a responsible approach to the development and use of AI, we anticipate that it will require significant resources going forward.
Changes in trade policy, including tariffs and the tariffs focused on China in particular, and currency exchange rates also have adverse impacts on our gross margins. The impact of these factors on gross margins can create unanticipated fluctuations in our operating results, which may cause volatility in the price of our shares.
The impact of these factors on gross margins can create unanticipated fluctuations in our operating results, which may cause volatility in the price of our shares. There are risks associated with any outstanding and future indebtedness.
The processing of this information is increasingly subject to legislation, regulations and enforcement in numerous jurisdictions around the world. Global data privacy regulation is increasingly fragmented, with increasing enforcement efforts and penalties. Such fragmentation requires more complex and costly compliance structures, while heightened enforcement increases the cost and reputational risk associated with even minor compliance errors.
The processing of this information is increasingly subject to legislation, regulations and enforcement in Logitech International S.A. | Fiscal 2025 Form 10-K | 28 Table of Contents numerous jurisdictions around the world. Global data privacy regulation is increasingly fragmented, with increasing enforcement efforts and penalties.
As a result, our revenues in any quarter depend primarily on orders booked and shipped in that quarter. • A significant portion of our quarterly retail sales typically occurs in the last weeks of each quarter, further increasing the difficulty in predicting quarterly revenues and profitability. • Our sales are impacted by consumer demand and current and future global economic and political conditions, including inflation, interest rate and foreign currency fluctuations, slowdown of economic activity around the world, and lower consumer and enterprise spending, trade restrictions and tariffs, and can, therefore, fluctuate abruptly and significantly during periods of uncertain economic conditions or geographic distress, as well as from shifts in distributor inventory practices and consumer buying patterns. • We must incur a large portion of our costs in advance of sales orders because we must plan research and production, order components, buy tooling equipment, and enter into development, sales and marketing, and other operating commitments prior to obtaining firm commitments from our customers.
As a result, our revenues in any quarter depend primarily on orders booked and shipped in that quarter. • We must incur a large portion of our costs in advance of sales orders because we must plan research and production, order components, buy tooling equipment, and enter into development, sales and marketing, and other operating commitments prior to obtaining firm commitments from our customers.
If our effective income tax rate increases in future periods, our net income and cash flows could be adversely affected. Logitech International S.A. | Fiscal 2024 Form 10-K | 27 Table of Contents We maintain cash and cash equivalents at financial institutions and are exposed to credit risk in the event of default by such financial institutions.
We maintain cash and cash equivalents at financial institutions and are exposed to credit risk in the event of default by such financial institutions.
Dollars, whereas a significant portion of our revenues and expenses are in other currencies. We attempt to adjust product prices over time to offset the impact of currency movements.
Logitech International S.A. | Fiscal 2025 Form 10-K | 30 Table of Contents • Fluctuations in currency exchange rates can impact our revenues, expenses and profitability because we report our financial statements in U.S. Dollars, whereas a significant portion of our revenues and expenses are in other currencies.
Removed
In addition, because of the continuing convergence of the markets for computing devices and consumer electronics, we expect greater competition in the future from well-established consumer electronics companies in our developing categories as well as in future categories we might enter.
Added
Several jurisdictions around the world have introduced or enacted legislation relating to AI, and regulators have issued policy Logitech International S.A. | Fiscal 2025 Form 10-K | 18 Table of Contents statements relating to the use and development of AI.
Removed
Price increases may not successfully offset cost increases or may cause us to lose market share and in turn adversely impact our operations.
Added
Our business has been and continues to be impacted by the expansion of tariffs on goods imported from other countries. While the full extent of tariff changes remains uncertain, the risk of significant trade policy shifts could materially impact our operations, costs, and financial results. New or increased tariffs could adversely affect more or all of our products.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe Audit Committee is responsible for the oversight of risks from cybersecurity threats. Members of the Audit Committee receive updates on a semi-annual basis from our Chief Information Security Officer (“CISO”) regarding matters of cybersecurity. The Technology and Innovation Committee periodically reviews the Company’s cybersecurity, information security and other technology risks, controls and procedures, including product security and related threats.
Biggest changeThe Board of Directors is assisted in its role by each of the Audit Committee and the Technology and Innovation Committee. The Audit Committee is responsible for the oversight of risks from cybersecurity threats. Members of the Audit Committee receive updates on a semi-annual basis from our Chief Information Security Officer (“CISO”) regarding matters of cybersecurity.
Logitech and its infrastructure have been certified for compliance with ISO 27001, an international standard for information security management. As part of our risk management program, we continuously assess risks from third parties, including vendors, suppliers, and other business partners associated with our use of third-party service providers.
Logitech and its infrastructure have been certified for compliance with ISO 27001, an international standard for information security management. Identifying and assessing cybersecurity risks is integrated into our enterprise risk management. As part of our risk management program, we continuously assess risks from third parties, including vendors, suppliers, and other business partners associated with our use of third-party service providers.
Risk Management and Strategy We have established a Security Governance Framework that defines roles and responsibilities, so that security is taken into account at all levels and in every department or function of the Company. Identifying and assessing cybersecurity risk is integrated into our enterprise risk management.
Risk Management and Strategy We have established a Security Governance Framework that defines roles and responsibilities, so that security is taken into account at all levels and in every department or function of the Company. Our framework provides guidance for the organization, governance and implementation of security across the company.
Logitech International S.A. | Fiscal 2024 Form 10-K | 32 Table of Contents Management’s Role in Assessing and Managing Material Risks from Cybersecurity Threats Our Cybersecurity Team is tasked, among other things, with evaluating, reporting and advising about cybersecurity risks, defining and leading the enterprise cybersecurity program to protect Logitech business against cybersecurity threats, maintaining and updating the cybersecurity framework, monitoring the level of compliance with the cybersecurity framework across Logitech digital assets and services, providing enterprise-wide cybersecurity services, defining cybersecurity standards and advising on secure architectures, performing assessments and due diligence checks internally and with business partners, providing cybersecurity guidance for digital projects, creating and deploying cybersecurity training programs, managing cybersecurity incidents and breaches, and monitoring cybersecurity threats.
Management’s Role in Assessing and Managing Material Risks from Cybersecurity Threats Our Security Team is responsible for evaluating, reporting and advising about security threats and risks, defining and leading the enterprise security program to protect Logitech business against security threats, maintaining and updating the security framework, monitoring the level of compliance with the security framework across Logitech digital assets, products and services, providing enterprise-wide security services, defining security policies, standards and guidelines, advising on secure architectures, performing assessments and due diligence checks internally and with business partners, providing security guidance for digital projects, creating and deploying security training programs, managing security incidents and breaches, and conducting threat intelligence and managing vulnerabilities.
We also conduct tabletop exercises to, among other things, align activities and expectations in connection with our incident response processes, discuss strategic questions, and review third party recommendations. Our security framework provides guidance for the organization, governance and implementation of security across the company.
We also conduct tabletop exercises to, among other things, align activities and expectations in connection with our incident response processes, discuss strategic questions, and review third party recommendations.
Our cybersecurity is managed based on industry-leading standards such as ISO 27001, National Institute of Standards and Technology (NIST) and Center for Internet Security (CIS).
Our security is managed based on industry-leading standards such as ISO 27001, National Institute of Standards and Technology (NIST), Center for Internet Security (CIS), Open Worldwide Application Security Project (OWASP) Application Security Verification Standard (ASVS) and the Software Assurance Maturity Model (SAMM).
The Head of Product Security, who reports to our Head of Software, is accountable for the release or deployment approval of a product based upon the review of internal and external validation (functionality, performance, security) reports. Our Head of Software has more than 20 years of experience leading software teams, including over a decade in the cybersecurity industry.
Our Security Team also monitors security through the entire software and product development lifecycle. The Head of Application and Product Security is accountable for the release or deployment approval of a product based upon the review of internal and external validation (functionality, performance, security) reports.
Finally, the Board has formed a Cyber Crisis Subcommittee tasked with overseeing any future significant cybersecurity crisis.
The Technology and Innovation Committee periodically reviews the Company’s cybersecurity, information security and other technology risks, controls and procedures, including product security and related threats. Finally, the Board has formed a Cyber Crisis Subcommittee tasked with overseeing any future significant cybersecurity crisis.
Governance Board of Directors and Board Committees Oversight of Risks from Cybersecurity Threats Logitech’s Board of Directors oversees risk management and reviews Logitech security risks, controls and procedures. The Board of Directors is assisted in its role by each of the Audit Committee and the Technology and Innovation Committee.
Logitech International S.A. | Fiscal 2025 Form 10-K | 32 Table of Contents Governance Board of Directors and Board Committees Oversight of Risks from Cybersecurity Threats Logitech’s Board of Directors oversees risk management and reviews Logitech security risks, controls and procedures.
We assess our product security programs against the Open Worldwide Application Security Project (OWASP) Application Security Verification Standard (ASVS) and the Software Assurance Maturity Model (SAMM). Our CISO and the Head of Software regularly report on cybersecurity and product security matters, respectively, to the Audit Committee and/or the Technology and Innovation Committee and the Board of Directors.
Our CISO and the Head of Digital Office regularly report on cybersecurity to the Audit Committee and/or the Technology and Innovation Committee and the Board of Directors.
The Cybersecurity Team, which is part of the IT organization, is led by the CISO, who has 20 years of cybersecurity experience across different industries. The Cybersecurity Team leads the enterprise cybersecurity strategy and roadmap, which applies to all information and digital assets, used at Logitech to conduct business.
The Security Team, which is part of the Digital Office organization, is led by the CISO, who has 20 years of security experience across different industries. The CISO reports to our Head of Digital Office, who has more than 20 years of experience leading software and infrastructure teams, including over a decade in the cybersecurity industry.
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Our security capability includes: (i) cybersecurity, which protects information and digital assets used at Logitech to conduct business and (ii) product security, which protects Logitech products and services provided to our customers.
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Our Product Security Team is responsible for the development of product security policies and standards for the Company, including supporting product security threat identification, supporting product security risk assessment, building and maintaining security policies, standards and guidelines, performing internal audits against the product security policies and standards, performing product security architecture analysis and reviews, raising product security awareness across the Company, monitoring product security through the product development lifecycle, and managing vulnerabilities (pre- and post-production).

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeWe believe that our manufacturing and distribution facilities are adequate for our ongoing needs and we continue to evaluate the need for facilities to meet current and anticipated future requirements.
Biggest changeWe believe that our manufacturing and distribution facilities are adequate for our ongoing needs and we continue to evaluate the need for facilities to meet current and anticipated future requirements. Logitech International S.A. | Fiscal 2025 Form 10-K | 33 Table of Contents
Our principal corporate and administrative offices, which includes our headquarters in Lausanne, Switzerland, and corporate offices in San Jose, California, and corporate offices in Hsinchu, Taiwan, together make up approximately 250,000 square feet of leased space.
Our principal corporate and administrative offices, which include our headquarters in Lausanne, Switzerland, and corporate offices in San Jose, California, and corporate offices in Hsinchu, Taiwan, together make up approximately 250,000 square feet of leased space.
ITEM 2. PROPERTIES Our headquarters is located in Lausanne, Switzerland, where we occupy approximately 50,500 square feet under a lease that expires in July 2025.
ITEM 2. PROPERTIES Our headquarters is located in Lausanne, Switzerland, where we occupy approximately 50,500 square feet under a lease that expires in July 2035.
We maintain marketing and channel support offices in approximately 80 locations and over 40 countries, with lease expiration dates from 2024 to 2033. As of March 31, 2024, the majority of our properties are leased; however, we also own some of the manufacturing units and employee dormitories in Suzhou, China, from which we occupy approximately 720,000 square feet.
We maintain marketing and channel support offices in approximately 90 locations and over 40 countries, with lease expiration dates from 2025 to 2035. As of March 31, 2025, the majority of our properties are leased; however, we also own some of the manufacturing units and employee dormitories in Suzhou, China, which we occupy approximately 720,000 square feet.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeHowever, litigation is subject to inherent uncertainties, and there can be no assurances that our defenses will be successful or that any such lawsuit or claim would not have a material adverse impact on our Logitech International S.A. | Fiscal 2024 Form 10-K | 33 Table of Contents business, financial condition, cash flows and results of operations in a particular period.
Biggest changeHowever, litigation is subject to inherent uncertainties, and there can be no assurances that our defenses will be successful or that any such lawsuit or claim would not have a material adverse impact on our business, financial condition, cash flows and results of operations in a particular period.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeLogitech International S.A. | Fiscal 2024 Form 10-K | 36 Table of Contents Total Number of Shares Repurchased Weighted Average Price Paid Per Share Remaining Amount that May Yet Be Repurchased under the Program During the three months ended March 31, 2024 CHF (LOGN) USD (LOGI) Month 1 December 30, 2023 to January 26, 2024 SIX 430 (1) 79.71 N/A $ 727,751 Nasdaq — N/A — 727,751 Month 2 January 27, 2024 to February 23, 2024 SIX 465 (2) 75.13 N/A 687,750 Nasdaq — N/A — 687,750 Month 3 February 24, 2024 to March 31, 2024 SIX 577 (2) 80.00 N/A 635,750 Nasdaq — N/A — 635,750 1,472 78.38 N/A $ 635,750 (1) Includes 346,000 shares repurchased on the ordinary trading line to support equity incentive plans and 84,000 shares repurchased on the second trading line for cancellation under the 2023 share repurchase program.
Biggest changeLogitech International S.A. | Fiscal 2025 Form 10-K | 36 Table of Contents Total Number of Shares Repurchased (1) Weighted Average Price Paid Per Share Remaining Amount that May Yet Be Repurchased under the Program (2) During the three months ended March 31, 2025 CHF (LOGN) USD (LOGI) Month 1 December 28, 2024 to January 24, 2025 SIX 397 79.08 N/A $ 140,310 Nasdaq — N/A — 140,310 Month 2 January 25, 2025 to February 21, 2025 SIX 401 90.49 N/A 100,310 Nasdaq — N/A — 100,310 Month 3 February 22, 2025 to March 31, 2025 SIX 553 83.40 N/A 48,310 Nasdaq — N/A — 48,310 1,351 84.24 N/A $ 48,310 (1) Shares repurchased on the second line on SIX Swiss Exchange for cancellation under the 2023 share repurchase program.
In May 2024, the Board of Directors recommended that the Company increase the cash dividend per share for fiscal year 2024 by approximately CHF 0.10 per share to CHF 1.16 per share (approximately $1.28 per share based on the exchange rate on March 31, 2024).
In May 2025, the Board of Directors recommended that the Company increase the cash dividend per share for fiscal year 2025 by approximately CHF 0.10 per share to CHF 1.26 per share (approximately $1.43 per share based on the exchange rate on March 31, 2025).
The following tables present certain information related to purchases made by Logitech of its equity securities under its publicly announced share repurchase programs (in thousands, except per share amounts): Weighted Average Price Per Share Remaining Amount that May Yet Be Repurchased under the Program During Fiscal Year Ended Shares Repurchased (1) CHF (LOGN) USD (LOGI) March 31, 2022 4,607 82.15 89.36 $ 423,696 March 31, 2023 7,562 52.94 55.25 $ 505,844 March 31, 2024 7,100 65.46 73.63 $ 635,750 (1) In fiscal years 2022, 2023 and 2024, the number of shares repurchased on the SIX was 3.9 million, 7.4 million, a nd 6.9 million, respectively, and the number of shares repurchased on NASDAQ was 0.7 million, 0.2 million, and 0.2 million , respectively.
The following tables present certain information related to purchases made by Logitech of its equity securities under its publicly announced share repurchase programs (in thousands, except per share amounts): Weighted Average Price Per Share Remaining Amount that May Yet Be Repurchased under the Programs (2) During Fiscal Year Ended Shares Repurchased (1) CHF (LOGN) USD (LOGI) March 31, 2023 7,562 52.94 55.25 $ 505,844 March 31, 2024 7,100 65.46 73.63 $ 635,750 March 31, 2025 6,679 77.89 87.95 $ 48,310 (1) In fiscal years 2023, 2024 and 2025, the number of shares repurchased on the SIX was 7.4 million, 6.9 million, a nd 6.7 million, respectively.
Shares were repurchased in fiscal year 2022 and fiscal year 2023 to support equity incentive plans. In fiscal year 2024, 4.1 million shares were repurchased for cancellation and the remaining shares were repurchased to support equity incentive plans.
The remaining shares were repurchased on NASDAQ in fiscal years 2023 and 2024. Shares were repurchased in fiscal year 2023 to support equity incentive plans. In fiscal year 2024, 4.1 million shares were repurchased for cancellation and the remaining shares were repurchased to support equity incentive plans. Shares were repurchased in fiscal year 2025 for cancellation.
This amount may vary based on the number of shares outstanding, net of treasury shares, as of the record date for the dividend, but will not exceed approximately CHF 200.8 million (based on our shares currently issued or 173,106,620 shares). This recommendation will be voted on by our shareholders at the Company’s 2024 Annual General Meeting.
This amount may vary based on the number of shares outstanding, net of treasury shares, as of the record date for the dividend, but will not exceed approximately CHF 212.9 million (based on our shares currently issued or 168,994,142 shares). This recommendation will be voted on by our shareholders at the Company’s 2025 Annual General Meeting.
On September 13, 2023, Logitech's shareholders approved a cash dividend payment of CHF 1.06 per share out of retained earnings to Logitech's shareholders who owned shares on September 26, 2023. Eligible shareholders were paid CHF 1.06 per share ($1.16 per share in U.S. Dollars based on the exchange rate on the date of payment), totaling $182.3 million in U.S.
On September 4, 2024, Logitech's shareholders approved a cash dividend payment of CHF 1.16 per share out of retained earnings to Logitech's shareholders who owned shares on September 24, 2024. Eligible shareholders were paid CHF 1.16 per share ($1.37 per share in U.S. Dollars based on the exchange rate on the date of payment), totaling $207.9 million in U.S.
Dollars on September 27, 2023. On September 14, 2022, Logitech's shareholders approved a cash dividend payment of CHF 0.96 per share out of retained earnings to Logitech's shareholders who owned shares on September 27, 2022. Eligible shareholders were paid CHF 0.96 per share ($0.98 per share in U.S.
Dollars on September 25, 2024. On September 13, 2023, Logitech's shareholders approved a cash dividend payment of CHF 1.06 per share out of retained earnings to Logitech's shareholders who owned shares on September 26, 2023. Eligible shareholders were paid CHF 1.06 per share ($1.16 per share in U.S.
Logitech International S.A. | Fiscal 2024 Form 10-K | 35 Table of Contents Share Repurchases In fiscal year 2024 , the following approved share repurchase programs were in place (in thousands): Share Repurchase Program Approved Shares Approved Amounts (1) May 2020 (1) 17,311 $ 1,500,000 July 2023 (2) 17,311 $ 1,000,000 (1) The 2020 share repurchase program expired on July 27, 2023.
Logitech International S.A. | Fiscal 2025 Form 10-K | 35 Table of Contents Share Repurchases In fiscal year 2025 , the following approved share repurchase program was in place (in thousands): Share Repurchase Program Approved Shares Approved Amounts (2) July 2023 (1) 17,311 $ 1,000,000 (1) In June 2023, our Board of Directors approved a three-year share repurchase program.
Dollars based on the exchange rate on the date of payment), totaling $158.7 million in U.S. Dollars on September 28, 2022.
Dollars based on the exchange rate on the date of payment), totaling $182.3 million in U.S. Dollars on September 27, 2023.
The graph assumes that $100 was invested in our LOGI shares, the Nasdaq Composite Index and the S&P 500 Information and Technology Index on March 31, 2019 and calculates the annual return through March 31, 2024. The stock price performance on the following graph is not necessarily indicative of future stock price performance.
The following graph compares the cumulative total stockholder return on our shares, the Nasdaq Composite Index, and the S&P 500 Information and Technology Index. The graph assumes that $100 was invested in our LOGI shares, the Nasdaq Composite Index and the S&P 500 Information and Technology Index on March 31, 2020 and calculates the annual return through March 31, 2025.
Based on our shares outstanding, net of treasury shares, as of March 31, 2024 (153,863,262 shares), this would result in an aggregate gross dividend of approximately CHF 178.5 million (approximately $197.2 million based on the exchange rate on March 31, 2024).
Based on our shares outstanding, net of treasury shares, as of March 31, 2025 (148,509,018 shares), this would result in an aggregate gross dividend of approximately CHF 187.1 million (approximately $212.4 million based on the exchange rate on March 31, 2025).
As of May 2, 2024, there were 173,106,620 shares issued (including 19,662,686 shares held as treasury stock) held by 36,974 holders of record, and the closing price of our shares was CHF 74.58 ($81.09 based on exchange rates on such date) per share on the SIX Swiss Exchange and $81.77 per share as reported by the Nasdaq Global Select Market.
As of May 8, 2025, there were 168,994,142 shares issued (including 21,073,413 shares held as treasury stock) held by 33,883 holders of record, and the closing price of our shares was CHF 65.64 ($79.34 based on exchange rates on such date) per share on the SIX Swiss Exchange and $81.18 per share as reported by the Nasdaq Global Select Market.
See Note 14 to the consolidated financial statements for further information. (2) In June 2023, our Board of Directors approved a new, three-year share repurchase program. The Swiss Takeover Board approved the 2023 share repurchase program in July 2023 and the program became effective on July 28, 2023. See Note 14 to the consolidated financial statements for further information.
Shares repurchased after July 27, 2023 were made under the 2023 share repurchase program. Shares repurchased prior to July 27, 2023 were made under the previous share repurchase program that was initially approved by our Board of Directors in May 2020 and expired on July 27, 2023. See Note 14 to the consolidated financial statements for further information.
Logitech International S.A. | Fiscal 2024 Form 10-K | 37 Table of Contents The following graph compares the cumulative total stockholder return on our shares, the Nasdaq Composite Index, and the S&P 500 Information and Technology Index.
Logitech International S.A. | Fiscal 2025 Form 10-K | 37 Table of Contents March 31, 2020 2021 2022 2023 2024 2025 Logitech $ 100 $ 245 $ 176 $ 142 $ 217 $ 209 Nasdaq Composite Index $ 100 $ 172 $ 185 $ 159 $ 213 $ 225 S&P 500 Information and Technology Index $ 100 $ 165 $ 198 $ 187 $ 270 $ 284
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(2) Shares repurchased on the second line for cancellation under the 2023 share repurchase program.
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The Swiss Takeover Board approved the 2023 share repurchase program in July 2023 and the program became effective on July 28, 2023. (2) In March 2025, our Board of Directors approved an increase of $600.0 million to the 2023 share repurchase program, to an aggregate amount of $1.6 billion.
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March 31, 2019 2020 2021 2022 2023 2024 Logitech $ 100 $ 111 $ 274 $ 195 $ 157 $ 246 Nasdaq Composite Index $ 100 $ 101 $ 175 $ 189 $ 164 $ 222 S&P 500 Information and Technology Index $ 100 $ 110 $ 184 $ 222 $ 212 $ 310
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The Swiss Takeover Board approved this increase in April 2025 and it became effective on April 2, 2025.
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(2) The remaining amount as of March 31, 2025 does not reflect the increase of $600.0 million to the 2023 share repurchase program that became effective on April 2, 2025.
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(2) The remaining amount as of March 31, 2025 does not reflect the increase of $600.0 million to the 2023 share repurchase program that became effective on April 2, 2025.
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The stock price performance on the following graph is not necessarily indicative of future stock price performance.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeProvision for Income Taxes The provision for income taxes and effective income tax rates for fiscal years 2024 and 2023 were as follows (Dollars in thousands): Years Ended March 31, 2024 2023 Provision for income taxes $ 9,453 $ 98,947 Effective income tax rate 1.5 % 21.3 % The change in the effective income tax rate between fiscal years 2024 and 2023 was primarily due to the mix of income and losses in the various tax jurisdictions in which we operate as well as the favorable tax impacts from share-based compensation, an agreement to remeasure the tax basis of goodwill under the Swiss Federal Act on Tax Reform and AHV Financing (“TRAF”) with the canton of Vaud, remeasurement of our Swiss deferred tax assets due to a change in tax rate, a Swiss Tax Ruling that provides future tax benefits as discussed below, and Foreign-Derived Intangible Income ("FDII") incentive in the U.S.
Biggest changeProvision for Income Taxes The provision for income taxes and effective income tax rates for fiscal years 2025 and 2024 were as follows (Dollars in thousands): Years Ended March 31, 2025 2024 Provision for income taxes $ 75,343 $ 9,453 Effective income tax rate 10.7 % 1.5 % The change in the effective income tax rate between fiscal years 2025 and 2024 was primarily due to the tax effect of audit resolutions and the expiration of statutes of limitation of uncertain tax positions in fiscal year 2025 compared with 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, FDII incentive provided by the Tax Cuts and Jobs Act and remeasurement of our Swiss deferred tax assets due to a change in tax rate.
Company Overview Logitech designs software-enabled hardware solutions that help businesses thrive and bring people together when working, creating, gaming and streaming. As a point of connection between people and the digital world, our mission is to extend human potential in work and play, in a way that is good for people and the planet.
Company Overview Logitech 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, our mission is to extend human potential in work and play, in a way that is good for people and the planet.
Such adjustments may have a material impact on our income tax provision and our results of operations. For additional information about our Critical Accounting Estimates, see Note 2—Summary of Significant Accounting Policies in our Notes to our consolidated financial statements below.
Such adjustments may have a material impact on our income tax provision and our results of operations. For additional information about our Critical Accounting Estimates, see Note 2—Summary of Significant Accounting Policies in our Notes to our consolidated financial statements.
For additional information, see Item 1A " Risk Factors ," including under the captions " Adverse global and regional economic and geopolitical conditions can materially adversely affect our business, results of operations and financial condition , " “We purchase key components and products from a limited number of sources, and our business and operating results could be adversely affected if supply were delayed or constrained or if there were shortages of required components,” “Our principal manufacturing operations and third-party contract manufacturers are located in China and Southeast Asia, which exposes us to risks associated with doing business in that geographic area as well as potential tariffs, adverse trade regulations, adverse tax consequences and pressure to move or diversify our manufacturing locations,” “If we do not accurately forecast market demand for our products, our business and operating results could be adversely affected,” and "If we do not successfully coordinate the worldwide manufacturing and distribution of our products, we could lose sales and our business and operating results could be adversely affected.” Trends and Uncertainties Several long-term secular-trends offer long-term structural growth opportunities across Logitech’s product portfolio.
For additional information, see Part I, Item 1A " Risk Factors ," including under the captions " Adverse global and regional economic and geopolitical conditions can materially adversely affect our business, results of operations and financial condition , " “We purchase key components and products from a limited number of sources, and our business and operating results could be adversely affected if supply were delayed or constrained or if there were shortages of required components,” “Our principal manufacturing operations and third-party contract manufacturers are located in China and Southeast Asia, which exposes us to risks associated with doing business in that geographic area as well as changes in tariffs, adverse trade regulations, adverse tax consequences and pressure to move or diversify our manufacturing locations,” “If we do not accurately forecast market demand for our products, our business and operating results could be adversely affected,” and "If we do not successfully coordinate the worldwide manufacturing and distribution of our products, we could lose sales and our business and operating results could be adversely affected.” Trends and Uncertainties Several long-term secular-trends offer long-term structural growth opportunities across Logitech’s product portfolio.
Indemnifications We indemnify certain 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, 2024, no material a mounts have been accrued for indemnification provisions.
Indemnifications We indemnify certain 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, 2025, no material a mounts have been accrued for indemnification provisions.
New Accounting Pronouncements Refer to Note 2 to the consolidated financial statements included in this Annual Report on Form 10-K for recent accounting pronouncements to be adopted.
New Accounting Pronouncements Refer to Note 2 to the consolidated financial statements included in this Annual Report on Form 10-K for recent accounting pronouncements adopted and to be adopted.
Although open purchase commitments are considered enforceable and legally binding, the terms generally allow us to reschedule or adjust our requirements based on business needs prior to delivery of goods or performance of services. Operating Leases Obligation We lease facilities under operating leases, certain of which require us to pay property taxes, insurance and maintenance costs.
Although open purchase commitments are considered enforceable and legally binding, the terms generally allow us to reschedule or adjust our requirements based on business needs prior to delivery of goods or performance of services. Operating Leases Obligations We lease facilities under operating leases, certain of which require us to pay property taxes, insurance and maintenance costs.
Operating leases for facilities are generally renewable at our option and usually include escalation clauses linked to inflation . The remaining terms of our non-cancelable operating leases expire in various years thr ough 2033. See Note 17 - Leases in our Notes to the consolidated financial statements included in this report for more information on leases.
Operating leases for facilities are generally renewable at our option and usually include escalation clauses linked to inflation . The remaining terms of our non-cancelable operating leases expire in various years thr ough 2035. See Note 17 - Leases in our Notes to the consolidated financial statements included in this report for more information on leases.
The loss on investments, net, for fiscal year 2024 was primarily due to an impairment loss, as a result of the write-off of a note receivable which has been deemed no longer recoverable. This note receivable was previously obtained in conjunction with an exchange transaction related to our investment in a privately held company.
The loss on investments, net, for fiscal year 2024 was primarily due to an impairment loss, 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 our investment in a privately held company.
Logitech International S.A. | Fiscal 2024 Form 10-K | 46 Table of Contents Amortization of Intangible Assets and Acquisition-Related Costs Amortization of intangible assets consists of amortization of acquired intangible assets, including customer relationships and trademarks and trade names. Acquisition-related costs include legal expenses, due diligence costs, and other professional costs incurred for business acquisitions.
Logitech International S.A. | Fiscal 2025 Form 10-K | 46 Table of Contents Amortization of Intangible Assets and Acquisition-Related Costs Amortization of intangible assets consists of amortization of acquired intangible assets, including customer relationships and trademarks and trade names. Acquisition-related costs include legal expenses, due diligence costs, and other professional costs incurred for business acquisitions.
Logitech International S.A. | Fiscal 2024 Form 10-K | 41 Table of Contents We regularly evaluate the adequacy of our accruals for Customer Programs and product returns. Future market conditions and product transitions may require us to take action to increase such programs.
Logitech International S.A. | Fiscal 2025 Form 10-K | 41 Table of Contents We regularly evaluate the adequacy of our accruals for Customer Programs and product returns. Future market conditions and product transitions may require us to take action to increase such programs.
References to Sales The term “sales” means net sales, except as otherwise specified and the sales growth discussion and sales growth rate percentages are in U.S. Dollars, except as otherwise specified. Results of Operations In this section, we discuss the results of our operations for the year ended March 31, 2024 compared to the year ended March 31, 2023.
References to Sales The term “sales” means net sales, except as otherwise specified and the sales growth discussion and sales growth rate percentages are in U.S. Dollars, except as otherwise specified. Results of Operations In this section, we discuss the results of our operations for the year ended March 31, 2025 compared to the year ended March 31, 2024.
During the fiscal year ended March 31, 2024, we analyzed the applicability of FDII and determined that this tax incentive applies in fiscal 2021 to 2023 tax years. As a result, we realized a tax benefit of $18.7 million related to FDII.
During the fiscal year ended March 31, 2024, we analyzed the applicability of FDII and determined that this tax incentive applies to fiscal years 2021, 2022 and 2023. As a result, we realized a tax benefit of $18.7 million related to FDII.
Logitech International S.A. | Fiscal 2024 Form 10-K | 42 Table of Contents Constant Currency We refer to our net sales growth rates excluding the impact of currency exchange rate fluctuations as "constant currency" sales growth rates.
Logitech International S.A. | Fiscal 2025 Form 10-K | 42 Table of Contents Constant Currency We refer to our net sales growth rates excluding the impact of currency exchange rate fluctuations as "constant currency" sales growth rates.
For additional information, see Part I, Item 1A “ Risk Factors .” Business Seasonality and Product Introductions We have historically experienced higher sales in our third fiscal quarter ending December 31, compared to other fiscal quarters in our fiscal year, primarily due to the increased consumer demand for our products during the year-end holiday buying season and year-end spending by enterprises.
For additional information, see Part I, Item 1A “ Risk Factors .” Business Seasonality and Product Introductions We have historically experienced higher sales in our third fiscal quarter ending December 31, compared to other fiscal quarters in our fiscal year, primarily due to increased consumer demand during the holiday season and increased spending by enterprises in the months nearing the calendar year-end.
We have firm purchase commitments of $13.4 million for capital expenditures primarily related to commitments for tooling and equipment for new and existing products. We expect to continue making capital expenditures in the future to support product development activities and ongoing and expanded operations.
We have firm purchase commitments of $19.1 million for capital expenditures primarily related to commitments for tooling and equipment for new and existing products. We expect to continue making capital expenditures in the future to support product development activities and ongoing and expanded operations.
Furthermore, cash flow is correspondingly lower in the first half of our fiscal year as we typically build inventories in advance for the third quarter and we pay an annual dividend following our Annual General Meeting, which is typically in September.
Furthermore, cash flow is correspondingly lower in the first half of our fiscal year as we typically build inventories in advance of our third fiscal quarter and we also pay an annual dividend following our Annual General Meeting typically held in September.
Opportunistic purchases may be started or stopped at any time without prior notice depending on market conditions and other factors. For over ten years, we have generated positive cash flows from our operating activities, including cash from operations of $1,145.1 million and $534.0 million during fiscal years 2024 and 2023, respectively.
Opportunistic purchases may be started or stopped at any time without prior notice depending on market conditions and other factors. For over ten years, we have generated positive cash flows from our operating activities, including cash from operations of $842.6 million and $1,145.1 million during fiscal years 2025 and 2024, respectively.
Income Taxes Payable As of March 31, 2024, we had $112.6 million in non-current income taxes payable, including interest and penalties, related to our income tax liability for uncertain tax positions. At this time, we are unable to make a reasonably reliable estimate of the timing of payments in individual years in connection with these tax liabilities.
Income Taxes Payable As of March 31, 2025, we had $88.5 million in non-current income taxes payable, including interest and penalties, related to our income tax liability for uncertain tax positions. At this time, we are unable to make a reasonably reliable estimate of the timing of payments in individual years in connection with these tax liabilities.
We sell our products to a broad network of international customers, in the Americas, Europe, the Middle East and Africa (“EMEA”) and Asia Pacific. This includes direct sales to retailers, e-tailers, and end consumers through our e-commerce platform, and indirect sales to end customers through distributors.
We sell our products to a broad range of international customers, in the Americas, Europe, the Middle East and Africa (“EMEA”) and Asia Pacific. This includes direct sales to retailers, e-tailers, businesses large and small and end consumers through our e-commerce platform, and indirect sales to end customers through distributors.
We recorded a liability for firm, non-cancelable, and unhedged inventory purchase commitments in excess of anticipated demand or net realizable value consistent with our valuation of excess and obsolete inventory. As of March 31, 2024, the liability for these purchase commitments was $29.3 million and is recorded in accrued and other current liabilities in the consolidated balance sheet.
We recorded a liability for firm, non-cancelable, and unhedged inventory purchase commitments in excess of anticipated demand or net realizable value consistent with our valuation of excess and obsolete inventory. As of March 31, 2025, the liability for these purchase commitments was $19.6 million and is recorded in accrued and other current liabilities in the consolidated balance sheet.
Contractual Obligations and Commitments Purchase Commitments As of March 31, 2024, we had non-cancelable purchase commitments of $396.8 million for inventory purchases made in the normal course of business from original design manufacturers, contract manufacturers and other suppliers, the majority of which are expected to be fulfilled within the next 12 months.
Contractual Obligations and Commitments Purchase Commitments As of March 31, 2025, we had non-cancelable purchase commitments of $358.7 million for inventory purchases made in the normal course of business from original design manufacturers, contract manufacturers and other suppliers, the majority of which are expected to be fulfilled within the next 12 months.
Interest Income Interest income for fiscal years 2024 and 2023 was as follows (in thousands): Years Ended March 31, 2024 2023 Interest income $ 50,636 $ 18,331 We invest in highly liquid instruments with an original maturity of three months or less at the date of purchase, which are classified as cash equivalents.
Interest Income Interest income for fiscal years 2025 and 2024 was as follows (in thousands): Years Ended March 31, 2025 2024 Interest income $ 54,997 $ 50,636 We invest in highly liquid instruments with an original maturity of three months or less at the date of purchase, which are classified as cash equivalents.
If the examinations are resolved unfavorably, there is a possibility that they may have a material negative impact on our results of operations. Liquidity and Capital Resources Cash Balances, Available Borrowings, and Capital Resources As of March 31, 2024, we had cash and cash equivalents of $1,520.8 million, compared with $1,149.0 million as of March 31, 2023.
If the examinations are resolved unfavorably, there is a possibility that they may have a negative impact on our results of operations. Liquidity and Capital Resources Cash Balances, Available Borrowings, and Capital Resources As of March 31, 2025, we had cash and cash equivalents of $1,503.2 million, compared with $1,520.8 million as of March 31, 2024.
During the fiscal year ended March 31, 2024, we reached an agreement to remeasure the tax basis of goodwill under TRAF with the canton of Vaud, which resulted in an income tax benefit of $25.1 million, net of assessment for uncertain tax positions. The remeasurement of the step-up will be amortized over the remaining ten-year amortization period.
During the fiscal year ended March 31, 2024, we 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.
As of March 31, 2024 and 2023, the total amount of unrecognized tax benefits due to uncertain tax positions was $192.7 million and $186.8 million, respectively, all of which would affect the effective income tax rate if recognized.
As of March 31, 2025 and 2024, the total amount of unrecognized tax benefits due to uncertain tax positions was $152.0 million and $192.7 million, respectively, all of which would affect the effective income tax rate if recognized.
For a discussion of the year ended March 31, 2023 compared to the year ended March 31, 2022, please refer to Part II, I tem 7, "Management's Discussi on and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K filed with the SEC on May 17, 2023.
For a discussion of the year ended March 31, 2024 compared to the year ended March 31, 2023, please refer to Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K filed with the SEC on May 16, 2024.
The increase in investment gain for fiscal year 2024, compared to fiscal year 2023, primarily relates to the change in market performance of the underlying securities.
The decrease in investment gain for fiscal year 2025, compared to fiscal year 2024, primarily relates to the change in market performance of the underlying securities.
In May 2024, the B oard of Directors recommended that we pay cash dividends for fiscal year 2024 of CHF 1.16 per share (approximately $1.28 per share based on the exchange rate on March 31, 2024).
In May 2025, the B oard of Directors recommended that we pay cash dividends for fiscal year 2025 of CHF 1.26 per share (approximately $1.43 per share based on the exchange rate on March 31, 2025).
Logitech International S.A. | Fiscal 2024 Form 10-K | 51 Table of Contents Although we enter into trading plans for systematic repurchases (e.g., 10b5-1 trading plans) from time to time, our 2023 share repurchase program provides us with the opportunity to make opportunistic repurchases during periods of favorable market conditions and is expected to remain in effect for a period of three years through July 27, 2026.
Although we enter into trading plans for systematic repurchases (e.g., 10b5-1 trading plans) from time to time, our 2023 share repurchase program provides us with the opportunity to make opportunistic repurchases during periods of favorable market conditions and is expected to remain in effect for a period of three years through July 27, 2026.
DSO as of March 31, 2024 decreased by 11 days to 48 days, compared to 59 days as of March 31, 2023, primarily due to the timing of sales within the fourth quarter of the fiscal years 2024 and 2023.
DSO as of March 31, 2025 decreased by 8 days to 40 days, compared to 48 days as of March 31, 2024, primarily due to the timing of sales within the fourth quarter of the fiscal years 2025 and 2024.
On December 29, 2023, a change to the cantonal tax legislation was published. According to the law approved by the Vaud parliament, a progressive scale will be applicable for cantonal tax purposes resulting in an increase from the current tax rate of 13.61% to 14.28% effective fiscal year 2025.
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.
Logitech International S.A. | Fiscal 2024 Form 10-K | 49 Table of Contents The following table presents selected financial information and statistics as of March 31, 2024 and 2023 (Dollars in thousands): March 31, 2024 2023 Accounts receivable, net $ 541,715 $ 630,382 Accounts payable $ 448,627 $ 406,968 Inventories $ 422,513 $ 682,893 Days sales in accounts receivable (DSO)(Days) (1) 48 59 Days accounts payable outstanding (DPO) (Days) (2) 70 59 Inventory turnover (ITO)(x) (3) 5.4 3.6 (1) DSO is determined using ending accounts receivable, net, as of the most recent quarter-end and sales for the most recent quarter.
Logitech International S.A. | Fiscal 2025 Form 10-K | 49 Table of Contents The following table presents selected financial information and statistics as of March 31, 2025 and 2024 (Dollars in thousands): March 31, 2025 2024 Accounts receivable, net $ 454,546 $ 541,715 Accounts payable $ 414,586 $ 448,627 Inventories $ 503,747 $ 422,513 Days sales in accounts receivable (DSO)(Days) (1) 40 48 Days accounts payable outstanding (DPO) (Days) (2) 65 70 Inventory turnover (ITO)(x) (3) 4.6 5.4 (1) DSO is determined using ending accounts receivable, net, as of the most recent quarter-end and sales for the most recent quarter.
We sell these products through a number of brands, including Logitech, Logitech G and others. Our diverse portfolio includes: Gaming, Keyboards & Combos, Pointing Devices, Video Collaboration, Webcams, Tablet Accessories, and Headsets. These products are all classified under a single operating segment: Peripherals (see Note 15 to our consolidated financial statements).
We sell the vast majority of our products under Logitech and Logitech G brand names. Our diverse, innovative portfolio includes: Gaming, Keyboards & Combos, Pointing Devices, Video Collaboration, Webcams, Tablet Accessories, and Headsets. These products are all classified under a single operating segment: Peripherals (see Note 15 to our consolidated financial statements).
Gross Profit Gross profit for fiscal years 2024 and 2023 was as follows (Dollars in thousands): Years Ended March 31, 2024 2023 Change Net sales $ 4,298,467 $ 4,538,818 (5.3) % Gross profit $ 1,778,021 $ 1,719,515 3.4 % Gross margin 41.4 % 37.9 % Gross profit consists of sales, less cost of goods sold (which includes materials, direct labor and related overhead costs, costs of manufacturing facilities, royalties, costs of purchasing components from outside suppliers, distribution costs, warranty costs, customer support costs, shipping and handling costs, outside processing costs and write-down of inventories), and amortization of intangible assets.
Gross Profit Gross profit for fiscal years 2025 and 2024 was as follows (Dollars in thousands): Years Ended March 31, 2025 2024 Change Net sales $ 4,554,900 $ 4,298,467 6.0 % Gross profit $ 1,962,601 $ 1,778,021 10.4 % Gross margin 43.1 % 41.4 % Gross profit consists of sales, less cost of goods sold (which includes materials, direct labor and related overhead costs, costs of manufacturing facilities, royalties, costs of purchasing components from outside suppliers, distribution costs, warranty costs, customer support costs, shipping and handling costs, outside processing costs and write-down of inventories), and amortization of intangible assets.
We had several uncommitted, unsecured bank lines of credit and letters of credit aggregating $172.5 million as of March 31, 2024. There are no financial covenants under the lines of credit with which we must comply. There was no borrowing outstanding under the lines of credit as of March 31, 2024 .
In addition, we had several uncommitted, unsecured bank lines of credit and letters of credit aggregating to $172.2 million as of March 31, 2025. There are no financial covenants under these lines of credit with which we must comply. There was no borrowing outstanding under these lines of credit as of March 31, 2025 .
Other Income (Expense), Net Other income (expense), net for fiscal years 2024 and 2023 was as follows (in thousands): Years Ended March 31, 2024 2023 Investment gain (loss) related to the deferred compensation plan $ 4,320 $ (1,961) Currency exchange loss, net (8,770) (7,337) Loss on investments, net (14,674) (14,073) Non-service cost net pension income and other 2,748 10,093 Total $ (16,376) $ (13,278) Investment gain (loss) related to the deferred compensation plan for fiscal years 2024 and 2023 represents earnings, gains, and losses on marketable securities related to a deferred compensation plan offered by one of our subsidiaries.
Other Income (Expense), Net Other income (expense), net for fiscal years 2025 and 2024 was as follows (in thousands): Years Ended March 31, 2025 2024 Investment gain related to the deferred compensation plan $ 2,131 $ 4,320 Currency exchange loss, net (6,401) (8,770) Loss on investments, net (2,029) (14,674) Non-service cost net pension income and other 3,319 2,748 Total $ (2,980) $ (16,376) Investment gain (loss) related to the deferred compensation plan for fiscal years 2025 and 2024 represents earnings, gains, and losses on marketable securities related to a deferred compensation plan offered by one of our subsidiaries.
The increase in interest income for fiscal year 2024, compared to fiscal year 2023 , was primarily driven by an increase in interest rates and increased cash equivalents balance.
The increase in interest income for fiscal year 2025, compared to fiscal year 2024 , was primarily driven by an increase in the average cash equivalents balance.
This limitation does not apply to shares repurchased for cancellation, due to the Board of Directors' authority under the capital band set forth in the Company's Articles of Incorporation to cancel shares up to a limit of 10% of our current share capital.
This limitation does not apply to shares repurchased for cancellation, due to the Board of Directors' authority under the capital band set forth in the Company's Articles of Incorporation.
The aggregate par value of all shares held in treasury by us and our subsidiaries may not exceed 10% of our share capital, which corresponds to approximately 17.3 million registered shares.
The aggregate par value of all shares held in treasury by us and our subsidiaries may not exceed 10% of our issued share capital, which corresponds to approximately 16.9 million registered shares as of March 31, 2025.
Logitech International S.A. | Fiscal 2024 Form 10-K | 50 Table of Contents For fiscal year 2024, net cash used in financing activities was $690.2 million , primarily resulting from repurchases of our registered shares of $504.2 million , payments of cash dividends of $182.3 million , and tax withholdings related to net share settlements of restricted stock units of $29.7 million , partially offset by proceeds from exercise of stock options and purchase rights of $32.2 million .
For fiscal year 2025, net cash used in financing activities was $797.4 million , primarily resulting from repurchases of our registered shares of $588.8 million , payments of cash dividends of $207.9 million , and tax Logitech International S.A. | Fiscal 2025 Form 10-K | 50 Table of Contents withholdings related to net share settlements of restricted stock units of $32.5 million , partially offset by proceeds from exercise of stock options and purchase rights of $36.4 million .
(2) Other primarily consists of mobile speakers and PC speakers. Gaming Our Gaming category includes gaming mice, steering wheels, headsets, keyboards, console gaming headsets, studio-quality Blue Microphones and Streamlabs services. During fiscal year 2024, Gaming sales decreased 4%, compared to fiscal year 2023, primarily driven by decreases in sales of gaming keyboards, Blue Microphones, and Streamlabs services.
(2) Other primarily consists of mobile speakers and PC speakers. Gaming Our Gaming category includes gaming mice, steering wheels, headsets, keyboards, console gaming headsets, microphones and Streamlabs services. During fiscal year 2025, Gaming sales increased 9%, compared to fiscal year 2024, primarily driven by increases in sales of gaming mice and gaming steering wheels.
As of March 31, 2024 and 2023, we had $112.6 million and $106.4 million, respectively, in non-current income taxes payable, including interest and penalties, related to our income tax liability for uncertain tax positions. As of March 31, 2024 and 2023, we had $7.8 million and $6.1 million, respectively, of accrued interest and penalties related to uncertain tax positions.
As of March 31, 2025 and 2024, we had $88.5 million and $112.6 million, respectively, in non-current income taxes payable, including interest and penalties, related to our income tax liability for uncertain tax positions.
Dollar amount of $182.3 million based on the exchange rate on the date of payment) out of fiscal year 2023 retained earnings. In fiscal year 2023, we paid a cash dividen d of CHF 0.96 per share, or CHF 156.1 million (U.S.
Dollar amount of $207.9 million based on the exchange rate on the date of payment) out of fiscal year 2024 retained earnings. In fiscal year 2024, we paid a cash dividen d of CHF 1.06 per share, or CHF 169.1 million (U.S.
We file Swiss and foreign tax returns. We received final tax assessments in Switzerland through fiscal year 2019. For other material foreign jurisdictions such as the United States and China, we are generally not subject to tax examinations for years prior to fiscal year 2020 and calendar year 2020, respectively.
For other material foreign jurisdictions such as the United States and China, we are generally not subject to tax examinations for years prior to fiscal year 2020 and calendar year 2020, respectively.
We continually review our product offerings and our strategic direction in light of our profitability targets, competitive conditions, changing consumer trends and the evolving nature of the interface between the consumer and the digital world. Impacts of Macroeconomic and Geopolitical Conditions on our Business Our business has been impacted by adverse macroeconomic and geopolitical conditions.
We continually review our product offerings and our strategic direction in light of our profitability targets, competitive conditions, changing consumer trends and the evolving nature of the interface between the consumer and the digital world.
Net income for fiscal year 2024 wa s $612.1 million , compared to $364.6 million for fiscal year 2023, reflecting higher gross margin as well as lower operating expenses and income tax provision. Critical Accounting Estimates The preparation of financial statements and related disclosures in conformity with U.S.
Net income for fiscal year 2025 wa s $631.5 million , compared to $612.1 million for fiscal year 2024, reflecting higher gross margin, partially offset by an increase in operating expenses and income tax provision. Critical Accounting Estimates The preparation of financial statements and related disclosures in conformity with U.S.
Non-cash adjustments were primarily related to depreciation and amortization, share-based compensation expense , and deferred income taxes. The decrease in accounts receivable, net, was primarily driven by the timing of sales within the fourth quarter of fiscal years 2024 and 2023. The decrease in inventories was primarily driven by our effort to manage inventory level to align with softened demand.
Non-cash adjustments were primarily related to share-based compensation expense , depreciation and amortization, and deferred income taxes. The increase in inventories was primarily due to higher inventory purchases to align with demand. The decrease in accounts receivable, net, was primarily driven by the timing of sales within the quarter.
We are unable to reasonably estimate the maximum amount that could be payable under these arrangements because these Logitech International S.A. | Fiscal 2024 Form 10-K | 52 Table of Contents exposures are not capped, the obligations are conditional in nature, and the facts and circumstances involved in any situation that might arise are variable.
We are unable to reasonably estimate the maximum amount that could be payable under these arrangements because these exposures are not capped, the obligations are conditional in nature, and the facts and circumstances involved in any situation that might arise are variable.
As of Ma rch 31, 2024, our working capital was $1,545.5 million, compared to $1,555.1 million as of March 31, 2023. The decrease was primarily driven by decreases in inventories and accounts receivable, net, and an increase in accounts payable, partially offset by an increase in cash and cash equivalents.
As of Ma rch 31, 2025, our working capital was $1,491.6 million, compared to $1,545.5 million as of March 31, 2024. The decrease was primarily driven by a decrease in accounts receivable, net, and an increase in accrued and other liabilities, partially offset by an increase in inventories.
During fiscal year 2024, Other sales decreased 26% compared to 2023 , primarily driven by a decline in sales of mobile speakers.
During fiscal year 2025, Other sales decreased 15% c ompared to 2024 , primarily driven by a decline in sales of mobile speakers.
Logitech International S.A. | Fiscal 2024 Form 10-K | 43 Table of Contents Asia Pacific: The decrease in sales in the Asia Pacific region for fiscal year 2024, compared to fiscal year 2023, was primarily driven by decreases in sales of Gaming, Keyboards & Combos and Video Collaboration.
Logitech International S.A. | Fiscal 2025 Form 10-K | 43 Table of Contents Asia Pacific: The increase in sales in the Asia Pacific region for fiscal year 2025, compared to fiscal year 2024, was primarily driven by an increase in sales of Gaming and Tablet Accessories.
Logitech International S.A. | Fiscal 2024 Form 10-K | 45 Table of Contents Operating Expenses Operating expenses for fiscal years 2024 and 2023 were as follows (Dollars in thousands): Years Ended March 31, 2024 2023 Marketing and selling $ 730,310 $ 809,182 % of sales 17.0 % 17.8 % Research and development 287,243 280,796 % of sales 6.7 % 6.2 % General and administrative 155,056 124,652 % of sales 3.6 % 2.7 % Amortization of intangible assets and acquisition-related costs 10,934 11,843 % of sales 0.2 % 0.3 % Impairment of intangible assets 3,526 — % of sales 0.1 % N/A Change in fair value of contingent consideration for business acquisition (250) — % of sales — % N/A Restructuring charges, net 3,866 34,573 % of sales 0.1 % 0.8 % Total operating expenses $ 1,190,685 $ 1,261,046 % of sales 27.7 % 27.8 % The decrease in total operating expenses during fiscal year 2024, compared to fiscal year 2023, was primarily due to decreases in marketing and selling expenses and restructuring charges, net, partially offset by an increase in general and administrative expenses.
Logitech International S.A. | Fiscal 2025 Form 10-K | 45 Table of Contents Operating Expenses Operating expenses for fiscal years 2025 and 2024 were as follows (Dollars in thousands): Years Ended March 31, 2025 2024 Marketing and selling $ 814,414 $ 730,310 % of sales 17.9 % 17.0 % Research and development 309,008 287,243 % of sales 6.8 % 6.7 % General and administrative 164,014 155,056 % of sales 3.6 % 3.6 % Amortization of intangible assets and acquisition-related costs 10,695 10,934 % of sales 0.2 % 0.2 % Impairment of intangible assets — 3,526 % of sales — % 0.1 % Change in fair value of contingent consideration for business acquisition — (250) % of sales — % — % Restructuring charges, net 9,615 3,866 % of sales 0.2 % 0.1 % Total operating expenses $ 1,307,746 $ 1,190,685 % of sales 28.7 % 27.7 % The increase in total operating expenses during fiscal year 2025, compared to fiscal year 2024, was primarily due to increases in marketing and selling expenses.
The Swiss Tax Ruling resulted in an income tax benefit of $50.1 million, which will be utilized over a ten-year period. The Tax Cuts and Jobs Act enacted Section 250, which provides for a deduction with respect to Global Intangible Low-Taxed Income ("GILTI") and FDII in the US. The application of this tax incentive is inherently complex.
The Tax Cuts and Jobs Act enacted Section 250, which provides for a deduction with respect to Global Intangible Low-Taxed Income ("GILTI") and FDII in the US. The application of this tax incentive is inherently complex.
The loss for fiscal year 2024 was related to the exchange rate fluctuations of the Chinese Renminbi, Australian Dollar, Brazilian Real, and Japanese Yen versus the U.S. Logitech International S.A. | Fiscal 2024 Form 10-K | 47 Table of Contents Dollar.
The loss for fiscal year 2025 was related to the exchange rate fluctuations of the Chinese Renminbi and Mexican Peso versus the U.S. Dollar. The loss for fiscal year 2024 was related to the exchange rate fluctuations of the Chinese Renminbi, Australian Dollar, Brazilian Real, and Japanese Yen versus the U.S. Dollar.
In March 2020, we reached an agreement with the Vaud Tax Administration that would allow for an increase in the tax basis of goodwill, as a transition measure under TRAF, to be amortized over ten years beginning on January 1, 2020.
In March 2020, we increased the tax basis of goodwill, as a transition measure under TRAF, to be amortized over ten years beginning on January 1, 2020.
In addition, these conditions have caused and may continue to cause volatility in the cost of materials and logistics, and transportation delays, and as a result may impact the pricing of our products, product availability and our results of operations.
The global and regional economic and political conditions, as well as changes in trade policies, have caused and may continue to cause volatility in demand for our products as well as cost of tariffs, materials and logistics, and transportation delays, and as a result have impacted and may continue to impact the pricing of our products, product availability and our results of operations.
Our cash and cash equivalents consist of bank demand deposits, short-term time deposits, and U.S. Treasury securities, of w hich 71% was held in Switzerland and 11% was held in China (including Hong Kong).
Our cash and cash equivalents consist of bank demand deposits, short-term time deposits, and U.S. Treasury securities, of w hich 53% was held in Switzerland and 27% was held in the United States.
Based on our shares outstanding, net of treasury shares, as of March 31, 2024 (153,863,262 shares), this would result in an aggregate gross dividend of approximately CHF 178.5 million (approximately $197.2 million based on the exchange rate on March 31, 2024). In fiscal year 2024, we paid a cash dividend of CHF 1.06 per share, or CHF 169.1 million (U.S.
Based on our shares outstanding, net of treasury shares, as of March 31, 2025 (148,509,018 shares), this would result in an aggregate gross dividend of approximately CHF 187.1 million (approximately $212.4 million based on the exchange rate on March 31, 2025). In fiscal year 2025, we paid a cash dividend of CHF 1.16 per share, or CHF 176.3 million (U.S.
These challenges include (i) the current macroeconomic environment, including interest rate fluctuations, inflation, foreign exchange movements, changes in fiscal policies and low economic growth in certain regions, (ii) the uncertainty with overall consumer and enterprise demand, (iii) the uncertainty with enterprise strategy for office space utilization and related timing of enterprise investments in infrastructure and technology, and (iv) the timing of further development of our B2B go-to-market capabilities.
These challenges include (i) uncertainty in tariffs on goods imported into the U.S. and responsive policies enacted by other countries, (ii) the macroeconomic environment, including inflation, interest rate and foreign currency fluctuations, changes in fiscal policies and low economic growth in certain regions, (iii) the uncertainty of overall consumer and enterprise demand, (iv) the uncertainty of timing of enterprise investments in infrastructure and technology, and (v) the timing of further development of our B2B go-to-market capabilities.
Pointing Devices Our Pointing Devices category includes PC- and Mac-related mice including trackballs and presentation tools. During fiscal year 2024, Pointing Devices sales increased 2% , compared to fiscal year 2023, primarily driven by increases in sales of cordless mice and presentation tools.
Keyboards & Combos Our Keyboards & Combos category includes PC keyboards and keyboard/mice combo products. During fiscal year 2025, Keyboards & Combos sales increased 7%, comp ared to fiscal year 2024, primarily driven by an increase in sales of our cordless combos. Pointing Devices Our Pointing Devices category includes PC- and Mac-related mice including trackballs and presentation tools.
The increase in tax rate resulted in a tax benefit of $5.1 million due to a remeasurement of our Swiss deferred tax assets in the fiscal year ended March 31, 2024. On March 28, 2024, we executed a Swiss Tax Ruling with the canton of Vaud that provides future tax benefit for ten years.
The increase in tax rate resulted in a tax benefit of $5.1 million due to a remeasurement of our Swiss deferred tax assets in the fiscal year ended March 31, 2024.
During fiscal year 2024, amortization of intangible assets and acquisition-related costs decreased $0.9 million, compared to fiscal year 2023, primarily due to certain acquired intangible assets becoming fully amortized. Impairment of Intangible Assets During fiscal year 2024, we recognized a pre-tax impairment charge of $3.5 million, related to our in-process Research and Development intangible asset.
During fiscal year 2025, amortization of intangible assets and acquisition-related cos ts remained flat, compared to fiscal year 2024 . Impairment of Intangible Assets During fiscal year 2024, we recognized a pre-tax impairment charge of $3.5 million, related to our in-process Research and Development intangible asset.
As of March 31, 2024, we had outstanding bank guarantees of $14.3 million .
As of March 31, 2025, we had outstanding bank guarantees of $12.1 million .
We have taken steps to mitigate the impact of these challenges, including but not limited to: (i) reduction in our operating expenses in order to maintain margins and size the business for the current market, (ii) reduction in inventories to more appropriately align with demand, (iii) continued investment in our B2B capabilities, and (iv) release of new products to increase the value proposition of our portfolio.
We have taken steps to mitigate the impact of these challenges, including but not limited to: (i) continued diversification of our manufacturing footprint and supplier ecosystem, (ii) maintaining discipline in our operating expenses, (iii) managing inventory levels to align with demand, (iv) continued investment in our B2B capabilities, and (v) continued release of new products to increase the value proposition of our portfolio.
We have also concluded that any GILTI tax since the enactment of Tax Cuts and Jobs Act is immaterial.
We have also concluded that any GILTI tax since the enactment of Tax Cuts and Jobs Act is immaterial. On December 29, 2023, a change to the cantonal tax legislation was published.
Operating expenses for fiscal year 2024 were $1,190.7 million , or 27.7% of sales, compared to $1,261.0 million, or 27.8% of sales, for fiscal year 2023. The decrease in operating expenses was primarily driven by a reduction in marketing spend.
Operating expenses for fiscal year 2025 were $1,307.7 million , or 28.7% of sales, compared to $1,190.7 million, or 27.7% of sales, for fiscal year 2024. The increase in operating expenses was primarily driven by an increase in marketing and selling expenses.
Our video collaboration products are compatible with a variety of video conference platforms, including Zoom, Microsoft Teams and Google Meet Logitech International S.A. | Fiscal 2024 Form 10-K | 39 Table of Contents • Gaming: The ongoing growth and evolution of gaming creates an opportunity for us to provide more tools to a wider community of gamers.
Our video collaboration products are compatible with a variety of video conference platforms, including Zoom, Microsoft Teams and Google Meet. • Gaming growth: The ongoing growth and evolution of gaming creates an opportunity for us to provide more tools to a wider community of gamers. In particular, social gaming continues to gain popularity through online gaming, multi-platform experiences and esports.
The following table summarizes our consolidated statement of cash flows for the year ended March 31, 2024 (in thousands): Year ended March 31, 2024 Net cash provided by operating activities $ 1,145,116 Net cash used in investing activities (70,335) Net cash used in financing activities (690,173) Effect of exchange rate changes on cash and cash equivalents (12,789) Net increase in cash and cash equivalents $ 371,819 For fiscal year 2024, net cash provided by operating activities was $1,145.1 million resulting from net income of $612.1 million, a favorable impact from adding back non-cash adjustments totaling $143.5 million, and a favorable net change in operating assets and liabilities of $389.4 million.
The following table summarizes our consolidated statement of cash flows for the year ended March 31, 2025 (in thousands): Year ended March 31, 2025 Net cash provided by operating activities $ 842,557 Net cash used in investing activities (57,268) Net cash used in financing activities (797,360) Effect of exchange rate changes on cash and cash equivalents (5,566) Net decrease in cash and cash equivalents $ (17,637) For fiscal year 2025, net cash provided by operating activities was $842.6 million resulting from net income of $631.5 million, a favorable impact from adding back non-cash adjustments totaling $228.4 million, and an unfavorable net change in operating assets and liabilities of $17.3 million.
Sales can also be affected when consumers and distributors anticipate a product introduction or changes in business circumstances. However, neither historical seasonal patterns nor historical patterns of product introductions should be considered reliable indicators of our future pattern of product introductions, future sales or financial performance.
However, neither historical seasonal patterns nor historical patterns of product introductions should be considered reliable indicators of our future pattern of product introductions, future sales or financial performance.
During the fiscal year ended March 31, 2024, we repurchased 4.5 million shares for an aggregate cost of $364.7 million, under the 2023 share repurchase program, of which $19.5 million of the aggregate cost was not paid yet as of March 31, 2024. 4.1 million shares for an aggregate cost of $332.1 million were repurchased for cancellation and the remaining shares were repurchased to support equity incentive plans.
During the fiscal year ended March 31, 2025, we repurchased 6.7 million shares for an aggregate cost of $588.0 million, under the 2023 share repurchase program for cancellation, of which $18.7 million of the aggregate cost was not paid yet as of March 31, 2025.
General and Administrative General and administrative expenses primarily consist of personnel and related overhead, information technology, and facilities costs for the infrastructure functions such as finance, information systems, executives, human resources and legal. During fiscal year 2024, general and administrative expenses increased $30.4 million , compared to fiscal year 2023, primarily driven by higher performance-based compensation expense .
General and Administrative General and administrative expenses primarily consist of personnel and related overhead, information technology, and facilities costs for the infrastructure functions such as finance, information systems, executives, human resources and legal.
Sales Denominated in Other Currencies Although our financial results are reported in U.S. Dollars, a portion of our sales was generated in currencies other than the U.S. Dollar, such as th e Euro, Chinese Renminbi, Japanese Yen, Australian Dollar, Canadian Dollar, Pound Sterling and New Taiwan Dollar.
Dollar, such as th e Euro, Chinese Renminbi, Japanese Yen, Australian Dollar, Canadian Dollar, Pound Sterling and New Taiwan Dollar. For the years ended March 31, 2025 and 2024, approximately 49% and 50%, respectively, of our sales were denominated in currencies other than the U.S. Dollar.
Gross margin increased by 350 basis points to 41.4% during fiscal year 2024, compared to 37.9% during fiscal year 2023. The increase in gross margin was primarily due to lower material and logistics costs as well as lower promotional spend, partially offset by unfavorable product mix.
Gross margin increased by 170 basis points to 43.1% during fiscal year 2025, compared to 41.4% during fiscal year 2024. The increase in gross margin was primarily driven by lower product costs, partially offset by higher promotional spending.
Video Collaboration Our Video Collaboration category includes Logitech’s conference room cameras, which combine affordable enterprise-quality audio and high definition 4K video to bring video conferencing to a variety of room sizes.
During fiscal year 2025, Pointing Devices sale s increased 6%, compared to fiscal year 2024, primarily driven by an increase in sales of cordless mice. Video Collaboration Our Video Collaboration category includes Logitech’s conference room cameras, which combine affordable enterprise-quality audio and high definition 4K video to bring video conferencing to a variety of room sizes.
Sales by product category in the current presentation for fiscal years 2024 and 2023 were as follows (Dollars in thousands): Years Ended March 31, Change 2024 2023 2024 vs. 2023 Gaming (1) $ 1,231,063 $ 1,288,313 (4) % Keyboards & Combos 821,441 836,432 (2) Pointing Devices 742,987 728,357 2 Video Collaboration 609,361 677,923 (10) Webcams 325,225 378,688 (14) Tablet Accessories 254,060 254,374 — Headsets 168,478 176,576 (5) Other (2) 145,852 198,155 (26) Total Sales 4,298,467 4,538,818 (5) % (1) Gaming includes streaming services revenue generated by Streamlabs.
Sales by Product Category Sales by product category for fiscal years 2025 and 2024 were as follows (Dollars in thousands): Years Ended March 31, Change 2025 2024 2025 vs. 2024 Gaming (1) $ 1,338,467 $ 1,231,063 9 % Keyboards & Combos 882,643 821,441 7 Pointing Devices 788,784 742,987 6 Video Collaboration 626,000 609,361 3 Webcams 315,520 325,225 (3) Tablet Accessories 299,540 254,060 18 Headsets 179,710 168,478 7 Other (2) 124,236 145,852 (15) Total Sales $ 4,554,900 $ 4,298,467 6 % (1) Gaming includes streaming services revenue generated by Streamlabs.
The BEPS Project undertaken by the OECD recommended changes to numerous long-standing tax principles, including a proposal to reallocate profits among tax jurisdictions in which companies do business (“Pillar One”) and Logitech International S.A. | Fiscal 2024 Form 10-K | 48 Table of Contents establishing a minimum tax on global income (“Pillar Two”).
The Base Erosion and Profit Shifting Project (the “BEPS Project”) undertaken by the Organization for Economic Co-operation and Development (the “OECD”) recommended changes to numerous long-standing tax principles, including a proposal to reallocate profits among tax jurisdictions in which companies do business (“Pillar One”) and establishing a minimum tax on global income (“Pillar Two”).
Sales by Region The following table presents the change in sales by region for fiscal year 2024 compared with fiscal year 2023: 2024 vs. 2023 Sales Growth Rate Sales Growth Rate in Constant Currency Americas (2) % (2) % EMEA — (4) Asia Pacific (16) (13) Americas: The decrease in sales in the Americas region for fiscal year 2024, compared to fiscal year 2023, was primarily driven by decreases in sales for mobile speakers and PC speakers in our Other category.
Sales by Region The following table presents the change in sales by region for fiscal year 2025 compared with fiscal year 2024: 2025 vs. 2024 Sales Growth Rate Sales Growth Rate in Constant Currency Americas 4 % 5 % EMEA 9 9 Asia Pacific 6 7 Americas: The increase in sales in the Americas region for fiscal year 2025, compared to fiscal year 2024, was primarily driven by an increase in sales of Gaming, Tablet Accessories, and Video Collaboration.
These restructuring activities were substantially completed during fiscal year 2024 . See Note 16 to our consolidated financial statements for additional information.
The restructuring charges, net, for the fiscal year 2024 were related to costs incurred as a result of our restructuring plan initiated during fiscal year 2023 and substantially completed during fiscal year 2024. See Note 16 to our consolidated financial statements for additional information.
The loss for fiscal year 2023 was primarily related to the weakening of the Brazilian Real and Australian Dollar against U.S. Dollar. Loss on investments, net, includes unrealized gain (loss) from the change in fair value of investments, gain (loss) on equity-method investments and impairment of investments during the periods presented, as applicable.
Loss on investments, net, 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. Logitech International S.A. | Fiscal 2025 Form 10-K | 47 Table of Contents The loss on investments, net, for fiscal year 2025 was not material.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThese exposures may change over time as business practices evolve and could have a material adverse impact on our financial results. Currency Exchange Rates We report our results in U.S. Dollars. Changes in currency exchange rates compared to the U.S.
Biggest changeThese exposures may change over time as business practices evolve and could have a material adverse impact on our financial results. Logitech International S.A. | Fiscal 2025 Form 10-K | 52 Table of Contents Currency Exchange Rates We report our results in U.S. Dollars. Changes in currency exchange rates compared to the U.S.
If an adverse 10% foreign currency exchange rate change had been applied to total monetary assets and liabilities denominated in currencies other than the functional currencies at the balance sheet dates, it would have resulted in an adverse effect on income before income taxes of approximately $19.1 million and $17.0 million as of March 31, 2024 and 2023, respectively.
If an adverse 10% foreign currency exchange rate change had been applied to total monetary assets and liabilities denominated in currencies other than the functional currencies at the balance sheet dates, it would have resulted in an adverse effect on income before income taxes of approximately $17.2 million and $19.1 million as of March 31, 2025 and 2024, respectively.
We transact business in approximately 30 currencies worldwide, of which the most significant to operations are the Euro, Chinese Renminbi, Japanese Yen, Australian Dollar, Canadian Dollar, Pound Sterling and New Taiwan Dollar. For the year ended March 31, 2024, approximately 50% of our sales were in non-U.S. denominated currencies, with 24% of our sales denominated in Euro.
We transact business in approximately 30 currencies worldwide, of which the most significant to operations are the Euro, Chinese Renminbi, Japanese Yen, Australian Dollar, Canadian Dollar, Pound Sterling and New Taiwan Dollar. For the year ended March 31, 2025, approximately 49% of our sales were in non-U.S. denominated currencies, with 24% of our sales denominated in Euro.
If the U.S. dollar had weakened by 10%, the amount recorded in AOCI related to our foreign exchange contracts before tax effect as of March 31, 2024 and 2023 would have been approximately $9.0 million and $7.3 million lower, respectively.
If the U.S. dollar had weakened by 10%, the amount recorded in AOCI related to our foreign exchange contracts before tax effect as of March 31, 2025 and 2024 would have been approximately $7.5 million and $9.0 million lower, respectively.
The adverse effect as of March 31, 2024 and 2023 is after consideration of the offsetting effect of approximately $6.9 million and $8.1 million, respectively, from foreign exchange contracts in place as of such dates. We enter into cash flow hedge contracts to protect against exchange rate exposure of forecasted inventory purchases. These hedging contracts mature within approximately four months.
The adverse effect as of March 31, 2025 and 2024 is after consideration of the offsetting effect of approximately $12.4 million and $6.9 million, respectively, from foreign exchange contracts in place as of such dates. We enter into cash flow hedge contracts to protect against exchange rate exposure of forecasted inventory purchases. These hedging contracts mature within approximately four months.

Other LOGI 10-K year-over-year comparisons