UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

Or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from                to                

Commission File Number: 0-29174

LOGITECH INTERNATIONAL S.A.

(Exact name of registrant as specified in its charter)

Canton of Vaud,	Switzerland	None
(State or other jurisdiction   of incorporation or organization)		(I.R.S. Employer Identification No.)

Logitech International S.A.

EPFL - Quartier de l'Innovation

Daniel Borel Innovation Center

1015 Lausanne, Switzerland

c/o Logitech Inc.

3930 North First Street

San Jose, California 95134

(Address of principal executive offices and zip code)

(510) 795-8500

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Registered Shares	LOGN	SIX Swiss Exchange
Registered Shares	LOGI	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes  ý  No  o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data file required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  ý  No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	ý	Smaller reporting company	☐
Accelerated filer	☐	Emerging Growth Company	☐
Non-accelerated filer	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes ☐   No  ý

As of October 12, 2023, there were 156,783,020 shares of the Registrant’s share capital outstanding.

TABLE OF CONTENTS

		Page
Part I	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Statements of Operations for the Three and Six Months Ended September 30, 2023 and 2022	3
	Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended September 30, 2023 and 2022	4
	Condensed Consolidated Balance Sheets as of September 30, 2023 and March 31, 2023	5
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2023 and 2022	6
	Condensed Consolidated Statements of Changes in Shareholders' Equity for the Three and Six Months Ended September 30, 2023 and 2022	7
	Notes to the Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	36
Item 4.	Controls and Procedures	37
Part II	OTHER INFORMATION
Item 1.	Legal Proceedings	38
Item 1A.	Risk Factors	38
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	38
Item 3.	Defaults Upon Senior Securities	39
Item 4.	Mine Safety Disclosures	39
Item 5.	Other Information	39
Item 6.	Exhibit Index	40
Signatures

In this document, unless otherwise indicated, references to the “Company,” “Logitech,” "we," "our," and "us" are to Logitech International S.A. and its consolidated subsidiaries. Unless otherwise specified, all references to U.S. Dollar, Dollar or $ are to the United States Dollar, the legal currency of the United States of America. All references to CHF are to the Swiss Franc, the legal currency of Switzerland.

Logitech, the Logitech logo, and the Logitech products referred to herein are either the trademarks or the registered trademarks of Logitech. All other trademarks are the property of their respective owners.

Our fiscal year ends on March 31. Interim quarters are generally thirteen-week periods, each ending on a Friday of each quarter. The second quarter of fiscal year 2024 ended on September 29, 2023. The same quarter in the prior fiscal year ended on September 30, 2022. For purposes of presentation, we have indicated our quarterly periods end on the last day of the calendar quarter.

The term “sales” means net sales, except as otherwise specified.

We make available, free of charge on our website, access to our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as soon as reasonably practicable after we file or furnish them electronically with the Securities and Exchange Commission ("SEC").

1

Recordings of our earnings videoconferences and certain events we participate in or host, with members of the investment community are posted on our investor relations website at https://ir.logitech.com. Additionally, we provide notifications of news or announcements regarding our operations and financial performance, including SEC filings, investor events, and press and earnings releases as part of our investor relations website. We intend to use our investor relations website as means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD. Our corporate governance information also is available on our investor relations website.

All references to our websites are intended to be inactive textual references only, and the contents of such websites do not constitute a part of and are not intended to be incorporated into this Quarterly Report on Form 10-Q.

2

PART I — FINANCIAL INFORMATION 

ITEM 1.   FINANCIAL STATEMENTS (UNAUDITED) 

LOGITECH INTERNATIONAL S.A.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(unaudited)

	Three months ended September 30,				Six months ended September 30,
	2023		2022		2023		2022
Net sales	$	1,057,008	$	1,148,951	$	2,031,507	$	2,308,816
Cost of goods sold	615,403		707,026		1,211,115		1,404,246
Amortization of intangible assets	2,983		3,145		6,128		6,187
Gross profit	438,622		438,780		814,264		898,383
Operating expenses:
Marketing and selling	176,356		202,091		355,541		431,469
Research and development	68,559		69,009		139,118		144,526
General and administrative	35,538		26,589		76,835		62,449
Amortization of intangible assets and acquisition-related costs	3,318		2,873		6,003		6,242
Restructuring charges (credits), net	(1,788)		10,817		1,723		10,817
Total operating expenses	281,983		311,379		579,220		655,503
Operating income	156,639		127,401		235,044		242,880
Interest income	11,856		3,459		21,682		4,908
Other income (expense), net	(1,044)		(25,397)		(14,016)		(19,773)
Income before income taxes	167,451		105,463		242,710		228,015
Provision for income taxes	30,334		23,372		42,866		45,088
Net income	$	137,117	$	82,091	$	199,844	$	182,927
Net income per share:
Basic	$	0.87	$	0.50	$	1.26	$	1.12
Diluted	$	0.86	$	0.50	$	1.25	$	1.11
Weighted average shares used to compute net income per share:
Basic	157,911		163,186		158,385		163,937
Diluted	158,934		164,328		159,545		165,371

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

3

LOGITECH INTERNATIONAL S.A.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(unaudited)

	Three months ended September 30,				Six months ended September 30,
	2023		2022		2023		2022
Net income	$	137,117	$	82,091	$	199,844	$	182,927
Other comprehensive income (loss):
Currency translation loss:
Currency translation loss, net of taxes	(10,622)		(18,063)		(12,151)		(39,283)
Defined benefit plans:
Net gain and prior service costs, net of taxes	—		28		—		112
Reclassification of amortization included in other income (expense), net	(244)		(113)		(248)		(226)
Hedging gain (loss):
Deferred hedging gain, net of taxes	2,078		4,935		1,374		11,564
Reclassification of hedging loss (gain) included in cost of goods sold	1,370		(4,947)		4,356		(7,038)
Total other comprehensive loss	(7,418)		(18,160)		(6,669)		(34,871)
Total comprehensive income	$	129,699	$	63,931	$	193,175	$	148,056

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

4

LOGITECH INTERNATIONAL S.A.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

(unaudited)

	September 30, 2023		March 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	1,163,904	$	1,149,023
Accounts receivable, net	656,895		630,382
Inventories	532,943		682,893
Other current assets	138,482		142,876
Total current assets	2,492,224		2,605,174
Non-current assets:
Property, plant and equipment, net	122,027		121,503
Goodwill	461,401		454,610
Other intangible assets, net	58,081		63,173
Other assets	291,297		316,293
Total assets	$	3,425,030	$	3,560,753
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	492,905	$	406,968
Accrued and other current liabilities	594,042		643,139
Total current liabilities	1,086,947		1,050,107
Non-current liabilities:
Income taxes payable	114,235		106,391
Other non-current liabilities	146,583		146,695
Total liabilities	1,347,765		1,303,193
Commitments and contingencies (Note 10)
Shareholders’ equity:
Registered shares, CHF 0.25 par value:	30,148		30,148
Issued shares — 173,106 at September 30, 2023 and March 31, 2023
Additional shares that may be issued out of conditional capital — 50,000 at September 30, 2023 and March 31, 2023
Additional shares that may be issued out of authorized capital — 17,311 at September 30, 2023 and March 31, 2023
Additional paid-in capital	47,311		127,380
Shares in treasury, at cost — 16,029 at September 30, 2023 and 13,763 at March 31, 2023	(1,083,468)		(977,266)
Retained earnings	3,190,220		3,177,575
Accumulated other comprehensive loss	(106,946)		(100,277)
Total shareholders’ equity	2,077,265		2,257,560
Total liabilities and shareholders’ equity	$	3,425,030	$	3,560,753

 

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

5

LOGITECH INTERNATIONAL S.A.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(unaudited)

	Six months ended September 30,
	2023		2022
Cash flows from operating activities:
Net income	$	199,844	$	182,927
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	34,135		37,288
Amortization of intangible assets	11,509		12,244
Loss on investments	11,609		11,577
Share-based compensation expense	43,579		35,935
Deferred income taxes	11,108		3,040
Other	100		118
Changes in assets and liabilities, net of acquisitions:
Accounts receivable, net	(35,362)		(121,909)
Inventories	146,369		21,790
Other assets	11,999		4,757
Accounts payable	88,022		(78,354)
Accrued and other liabilities	(59,853)		(72,157)
Net cash provided by operating activities	463,059		37,256
Cash flows from investing activities:
Purchases of property, plant and equipment	(34,731)		(45,384)
Investment in privately held companies	(356)		(2,275)
Acquisitions, net of cash acquired	(14,138)		(5,839)
Purchases of deferred compensation investments	(2,548)		(2,499)
Proceeds from sales of deferred compensation investments	2,622		2,436
Net cash used in investing activities	(49,151)		(53,561)
Cash flows from financing activities:
Payment of cash dividends	(182,305)		(158,680)
Payment of contingent consideration for business acquisition	(5,002)		(5,954)
Purchases of registered shares	(188,941)		(237,561)
Proceeds from exercises of stock options and purchase rights	15,319		12,850
Tax withholdings related to net share settlements of restricted stock units	(26,224)		(26,742)
Other financing activities	(1,116)		—
Net cash used in financing activities	(388,269)		(416,087)
Effect of exchange rate changes on cash and cash equivalents	(10,758)		(27,823)
Net increase (decrease) in cash and cash equivalents	14,881		(460,215)
Cash and cash equivalents, beginning of the period	1,149,023		1,328,716
Cash and cash equivalents, end of the period	$	1,163,904	$	868,501
Supplementary Cash Flow Disclosures:
Non-cash investing and financing activities:
Property, plant and equipment purchased during the period and included in period end liability accounts	$	9,218	$	9,436
Right-of-use assets obtained in exchange for operating lease liabilities	$	2,574	$	47,408
Supplemental cash flow information:
Income taxes paid, net	$	17,408	$	44,864

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

6

LOGITECH INTERNATIONAL S.A.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(In thousands, except per share amounts)

(unaudited)

Three Months Ended September 30, 2023

				Additional Paid-in Capital							Accumulated Other Comprehensive Loss		Total Shareholders’ Equity
	Registered Shares					Treasury Shares			Retained Earnings
	Shares	Amount				Shares	Amount
June 30, 2023	173,106	$	30,148	$	49,734	14,484	$	(994,581)	$	3,240,302	$	(99,528)	$	2,226,075
Total comprehensive income	—	—		—		—	—		137,117		(7,418)		129,699
Purchases of registered shares	—	—		—		1,895	(124,096)		—		—		(124,096)
Sales of shares upon exercise of stock options and purchase rights	—	—		(13,888)		(267)	27,094		—		—		13,206
Issuance of shares upon vesting of restricted stock units	—	—		(10,143)		(83)	8,115		—		—		(2,028)
Share-based compensation	—	—		21,608		—	—		—		—		21,608
Cash dividends ($1.19 per share)	—	—		—		—	—		(187,199)		—		(187,199)
September 30, 2023	173,106	$	30,148	$	47,311	16,029	$	(1,083,468)	$	3,190,220	$	(106,946)	$	2,077,265
Six Months Ended September 30, 2023
				Additional Paid-in Capital							Accumulated Other Comprehensive Loss		Total Shareholders’ Equity
	Registered Shares					Treasury Shares			Retained Earnings
	Shares	Amount				Shares	Amount
March 31, 2023	173,106	$	30,148	$	127,380	13,763	$	(977,266)	$	3,177,575	$	(100,277)	$	2,257,560
Total comprehensive income	—	—		—		—	—		199,844		(6,669)		193,175
Purchases of registered shares	—	—		—		3,502	(219,172)		—		—		(219,172)
Sales of shares upon exercise of stock options and purchase rights	—	—		(15,755)		(315)	31,074		—		—		15,319
Issuance of shares upon vesting of restricted stock units	—	—		(108,120)		(921)	81,896		—		—		(26,224)
Share-based compensation	—	—		43,806		—	—		—		—		43,806
Cash dividends ($1.19 per share)	—	—		—		—	—		(187,199)		—		(187,199)
September 30, 2023	173,106	$	30,148	$	47,311	16,029	$	(1,083,468)	$	3,190,220	$	(106,946)	$	2,077,265

7

Three Months Ended September 30, 2022

				Additional Paid-in Capital							Accumulated Other Comprehensive Loss		Total Shareholders’ Equity
	Registered Shares					Treasury Shares			Retained Earnings
	Shares	Amount				Shares	Amount
June 30, 2022	173,106	$	30,148	$	98,800	9,051	$	(722,273)	$	3,076,517	$	(120,834)	$	2,362,358
Total comprehensive income	—	—		—		—	—		82,091		(18,160)		63,931
Purchases of registered shares	—	—		—		2,241	(116,942)		—		—		(116,942)
Sales of shares upon exercise of stock options and purchase rights	—	—		1,652		(268)	11,198		—		—		12,850
Issuance of shares upon vesting of restricted stock units	—	—		(5,965)		(81)	3,367		—		—		(2,598)
Share-based compensation	—	—		11,643		—	—		—		—		11,643
Cash dividends ($1.00 per share)	—	—		—		—	—		(162,681)		—		(162,681)
September 30, 2022	173,106	$	30,148	$	106,130	10,943	$	(824,650)	$	2,995,927	$	(138,994)	$	2,168,561
Six Months Ended September 30, 2022
				Additional Paid-in Capital							Accumulated Other Comprehensive Loss		Total Shareholders’ Equity
	Registered Shares					Treasury Shares			Retained Earnings
	Shares	Amount				Shares	Amount
March 31, 2022	173,106	$	30,148	$	129,925	7,855	$	(632,893)	$	2,975,681	$	(104,123)	$	2,398,738
Total comprehensive income	—	—		—		—	—		182,927		(34,871)		148,056
Purchases of registered shares	—	—		—		4,221	(237,561)		—		—		(237,561)
Sales of shares upon exercise of stock options and purchase rights	—	—		1,652		(268)	11,198		—		—		12,850
Issuance of shares upon vesting of restricted stock units	—	—		(61,348)		(865)	34,606		—		—		(26,742)
Share-based compensation	—	—		35,901		—	—		—		—		35,901
Cash dividends ($1.00 per share)	—	—		—		—	—		(162,681)		—		(162,681)
September 30, 2022	173,106	$	30,148	$	106,130	10,943	$	(824,650)	$	2,995,927	$	(138,994)	$	2,168,561

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

8

LOGITECH INTERNATIONAL S.A.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 1 — The Company and Summary of Significant Accounting Policies and Estimates

The Company

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

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

Logitech was founded in Switzerland in 1981 and Logitech International S.A. has been the parent holding company of Logitech since 1988. Logitech International S.A. is a Swiss holding company with its registered office in Hautemorges, Switzerland, and headquarters in Lausanne, Switzerland, which conducts its business through subsidiaries in the Americas, Europe, Middle East and Africa ("EMEA") and Asia Pacific. Shares of Logitech International S.A. are listed on both the SIX Swiss Exchange under the trading symbol LOGN and the Nasdaq Global Select Market under the trading symbol LOGI.

Basis of Presentation

The condensed consolidated financial statements include the accounts of Logitech and its subsidiaries. All intercompany balances and transactions have been eliminated. The condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information and therefore do not include all the information required by U.S. GAAP for complete financial statements. The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year ended March 31, 2023, included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on May 17, 2023.

In the opinion of management, these condensed consolidated financial statements include all adjustments, consisting of only normal and recurring adjustments, necessary and in all material aspects, for a fair statement of the results of operations, comprehensive income, financial position, cash flows and changes in shareholders' equity for the periods presented. Operating results for the three and six months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2024, or any future periods.

Change in Presentation of Sales by Product Category

During the first quarter of fiscal year 2024, the Company changed its presentation of Sales by Product Category, included in Note 12, to provide a simpler and clearer view of the Company's business. The change in presentation did not have an impact on previously reported total sales. These changes included reclassifications of sales between certain product categories resulting in the following:

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

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

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

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

9

As a result of these changes, certain prior-period amounts for the three and six months ended September 30, 2022 have been reclassified to conform to the current period presentation as follows (in thousands):

	Three months ended September 30, 2022
	As previously reported		Reclassifications			As adjusted
Gaming	$	297,676	$	24,352	(1)	$	322,028
Keyboards & Combos	200,853		—			200,853
Pointing Devices	185,200		—			185,200
Video Collaboration	236,180		(56,981)		(2) (3)	179,199
Webcams (3)	60,166		41,852		(3)	102,018
Tablet Accessories	54,203		—			54,203
Headsets	—		44,750		(2)	44,750
Other	2,207		58,493		(4) (5)	60,700
Mobile Speakers	39,195		(39,195)		(4)	—
Audio & Wearables	73,271		(73,271)		(1) (2) (5)	—
Total Sales	$	1,148,951	$	—		$	1,148,951

	Six months ended September 30, 2022
	As previously reported		Reclassifications			As adjusted
Gaming	$	580,482	$	39,467	(1)	$	619,949
Keyboards & Combos	428,573		—			428,573
Pointing Devices	368,483		—			368,483
Video Collaboration	482,422		(121,591)		(2) (3)	360,831
Webcams (3)	119,552		91,728		(3)	211,280
Tablet Accessories	120,788		—			120,788
Headsets	—		90,693		(2)	90,693
Other	4,294		103,925		(4) (5)	108,219
Mobile Speakers	61,505		(61,505)		(4)	—
Audio & Wearables	142,717		(142,717)		(1) (2) (5)	—
Total Sales	$	2,308,816	$	—		$	2,308,816

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

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

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

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

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

Changes in Significant Accounting Policies

There have been no material changes in the Company’s significant accounting policies during the three and six months ended September 30, 2023 compared with the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended March 31, 2023.

10

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Significant estimates and assumptions made by management involve the fair value of goodwill and intangible assets acquired from business acquisitions, contingent consideration for a business acquisition and periodic reassessment of its fair value, valuation of investment in privately held companies classified under Level 3 fair value hierarchy, pension obligations, accruals for customer incentives, cooperative marketing, and pricing programs and related breakage when appropriate, inventory valuation, share-based compensation expense, uncertain tax positions, and valuation allowances for deferred tax assets. Although these estimates are based on management’s best knowledge of current events and actions that may impact the Company in the future, actual results could differ materially from those estimates.

Risks and Uncertainties

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

The Company's business has been impacted by adverse macroeconomic and geopolitical conditions. These conditions include inflation, interest rate and foreign currency fluctuations, slowdown of economic activity around the world, and lower consumer and enterprise spending.

The global and regional economic and political conditions adversely affect demand for the Company's products. These conditions also had an impact on the Company's suppliers, contract manufacturers, logistics providers, and distributors, causing volatility in cost of materials and shipping and transportation rates, and as a result, impacting the pricing of the Company's products.

Note 2 — Net Income Per Share

The following table summarizes the computations of basic and diluted net income per share for the three and six months ended September 30, 2023 and 2022 (in thousands, except per share amounts):

	Three months ended September 30,				Six months ended September 30,
	2023		2022		2023		2022
Net income	$	137,117	$	82,091	$	199,844	$	182,927
Shares used in net income per share computation:
Weighted average shares outstanding - basic	157,911		163,186		158,385		163,937
Effect of potentially dilutive equivalent shares	1,023		1,142		1,160		1,434
Weighted average shares outstanding - diluted	158,934		164,328		159,545		165,371
Net income per share:
Basic	$	0.87	$	0.50	$	1.26	$	1.12
Diluted	$	0.86	$	0.50	$	1.25	$	1.11

Share equivalents attributable to outstanding stock options, restricted stock units and employee share purchase plans totaling 1.1 million and 1.7 million for the three months ended September 30, 2023 and 2022, respectively, and 1.6 million and 2.6 million for the six months ended September 30, 2023 and 2022, respectively, were excluded from the calculation of diluted net income per share because their effect would have been anti-dilutive. A small number of performance-based restricted stock units were not included in the dilutive net income per share calculation because all necessary conditions had not been satisfied by the end of the respective period, and those shares were not issuable if the end of the reporting period were the end of the performance contingency period.

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Note 3 — Employee Benefit Plans

Employee Share Purchase Plans and Stock Incentive Plans

As of September 30, 2023, the Company offers the 2006 Employee Share Purchase Plan (Non-U.S.), as amended and restated ("2006 ESPP"), the 1996 Employee Share Purchase Plan (U.S.), as amended and restated ("1996 ESPP"), and the 2006 Stock Incentive Plan ("2006 Plan") as amended and restated. Shares issued to employees as a result of purchases or exercises under these plans are generally issued from shares held in treasury stock.

The following table summarizes the share-based compensation expense and total income tax benefit recognized for share-based awards for the three and six months ended September 30, 2023 and 2022 (in thousands):

	Three months ended September 30,				Six months ended September 30,
	2023		2022		2023		2022
Cost of goods sold	$	2,462	$	1,443	$	3,877	$	2,904
Marketing and selling	9,262		7,429		19,745		17,226
Research and development	4,694		3,280		9,147		8,812
General and administrative	5,650		93		10,810		6,993
Total share-based compensation expense	22,068		12,245		43,579		35,935
Income tax expense (benefit)	(2,548)		102		(7,866)		(4,220)
Total share-based compensation expense, net of income tax expense (benefit)	$	19,520	$	12,347	$	35,713	$	31,715

The income tax benefit in the respective periods primarily consisted of tax benefits related to the share-based compensation expense for the period and direct tax benefit realized, including net excess tax benefits recognized from share-based awards vested or exercised during the period.

Share-based compensation costs capitalized as part of inventory were $1.5 million and $1.3 million for the three months ended September 30, 2023 and 2022, respectively, and $3.4 million and $3.1 million for the six months ended September 30, 2023 and 2022, respectively.

Defined Benefit Plans

Certain of the Company’s subsidiaries sponsor defined benefit pension plans or non-retirement post-employment benefits covering substantially all of their employees. Benefits are provided based on employees’ years of service and earnings, or in accordance with applicable employee benefit regulations. The Company’s practice is to fund amounts sufficient to meet the requirements set forth in the applicable employee benefit and tax regulations. The costs of $1.9 million and $2.8 million recorded for the three months ended September 30, 2023 and 2022, respectively, and $3.8 million and $5.6 million recorded for the six months ended September 30, 2023 and 2022, respectively, were primarily related to service costs.

Note 4 — Income Taxes

The Company is incorporated in Switzerland but operates in various countries with differing tax laws and rates. Further, a portion of the Company’s income before taxes and the provision for (benefit from) income taxes are generated outside of Switzerland.

The income tax provision for the three and six months ended September 30, 2023 was $30.3 million and $42.9 million based on an effective income tax rate of 18.1% and 17.7% of pre-tax income, respectively. The income tax provision for the same periods ended September 30, 2022 was $23.4 million and $45.1 million based on effective income tax rate of 22.2% and 19.8% of pre-tax income, respectively.

The change in the effective income tax rate for the three and six months ended September 30, 2023, compared with the same periods ended September 30, 2022 was primarily due to the mix of income and losses in the various tax jurisdictions in which the Company operates and the tax impact from share-based compensation.

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Although the Company has adequately provided for uncertain tax positions, the provisions related to these positions may change as revised estimates are made or the underlying matters are settled or otherwise resolved. During fiscal year 2024, the Company continues to review its tax positions and to provide for or reverse unrecognized tax benefits as they arise. During the next twelve months, while it is reasonably possible that the amount of unrecognized tax benefits could increase or decrease significantly, it is not possible to provide a range of potential changes.

On August 16, 2022, the “Inflation Reduction Act” (H.R. 5376) ("IRA") was signed into law in the United States. The IRA establishes a new corporate alternative minimum tax based on financial statement income adjusted for certain items. The new minimum tax is effective for tax years beginning after December 31, 2022. The IRA is not expected to have a material impact to the Company's financial statements for the tax year ending March 31, 2024.

Note 5 — Balance Sheet Components

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

	September 30, 2023		March 31, 2023
Accounts receivable, net:
Accounts receivable	$	882,607	$	851,576
Allowance for doubtful accounts	(16)		(86)
Allowance for sales returns	(10,898)		(10,146)
Allowance for cooperative marketing arrangements	(37,781)		(40,495)
Allowance for customer incentive programs	(63,082)		(71,645)
Allowance for pricing programs	(113,935)		(98,822)
	$	656,895	$	630,382
Inventories:
Raw materials	$	92,083	$	171,790
Finished goods	440,860		511,103
	$	532,943	$	682,893
Other current assets:
Value-added tax ("VAT") receivables	$	51,651	$	60,343
Prepaid expenses and other assets	86,831		82,533
	$	138,482	$	142,876
Property, plant and equipment, net:
Property, plant and equipment	$	510,881	$	518,358
Less: accumulated depreciation and amortization	(388,854)		(396,855)
	$	122,027	$	121,503
Other assets:
Deferred tax assets	$	163,053	$	171,989
Right-of-use assets	61,823		67,330
Investments in privately held companies	31,544		33,323
Investments for deferred compensation plan	28,546		28,213
Other assets	6,331		15,438
	$	291,297	$	316,293

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

	September 30, 2023		March 31, 2023
Accrued and other current liabilities:
Accrued customer marketing, pricing and incentive programs	$	187,559	$	206,546
Accrued personnel expenses	95,279		103,592
Accrued loss for inventory purchase commitments	33,157		46,608
Accrued sales return liability	33,906		49,462
Warranty liabilities	28,085		28,861
VAT payable	22,480		33,328
Income taxes payable	26,354		18,788
Operating lease liabilities	14,099		12,655
Contingent consideration	1,700		6,629
Other current liabilities	151,423		136,670
	$	594,042	$	643,139
Other non-current liabilities:
Operating lease liabilities	$	59,673	$	58,361
Employee benefit plan obligations	30,241		32,421
Obligation for deferred compensation plan	28,546		28,213
Warranty liabilities	12,180		12,025
Deferred tax liabilities	2,528		2,803
Other non-current liabilities	13,415		12,872
	$	146,583	$	146,695

Note 6 — Fair Value Measurements

Fair Value Measurements

The Company considers fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Company utilizes the following three-level fair value hierarchy to establish the priorities of the inputs used to measure fair value:

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

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

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

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

	September 30, 2023						March 31, 2023
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	712,451	$	—	$	—	$	661,884	$	—	$	—
Investments for deferred compensation plan included in other assets:
Cash	$	82	$	—	$	—	$	41	$	—	$	—
Common stock	1,139		—		—		988		—		—
Money market funds	10,544		—		—		9,606		—		—
Mutual funds	16,781		—		—		17,578		—		—
Total investments for deferred compensation plan	$	28,546	$	—	$	—	$	28,213	$	—	$	—
Currency derivative assets included in other current assets	$	—	$	2,446	$	—	$	—	$	107	$	—
Liabilities:
Contingent consideration included in accrued and other current liabilities	$	—	$	—	$	1,700	$	—	$	—	$	6,629
Currency derivative liabilities included in accrued and other current liabilities	$	—	$	86	$	—	$	—	$	2,187	$	—

Contingent Consideration for Business Acquisitions

The following table summarizes the change in the Company's contingent consideration balance during the six months ended September 30, 2023 and 2022 (in thousands):

	Six months ended September 30,
	2023		2022
Beginning of the period	$	6,629	$	12,259
Fair value of contingent consideration upon acquisition	—		1,142
Payments of contingent consideration	(5,002)		(5,954)
Effect of foreign currency exchange rate changes	73		(2,119)
End of the period	$	1,700	$	5,328

    

The contingent consideration arising from a technology acquisition on May 19, 2021, represented the future potential earn-out payments of up to $10.0 million payable in cash upon the achievement of three technical development milestones to be completed as of December 31, 2021, June 30, 2022, and June 30, 2023. The fair value of the contingent consideration was $10.0 million at the acquisition date, which was determined using a probability-weighted expected payment model and discounted at the estimated cost of debt. During fiscal year 2022, the Company paid $0.9 million for the contingent consideration related to the first technical development milestone. During fiscal year 2023, the Company paid $4.0 million for the contingent consideration related to the second technical development milestone. During the six months ended September 30, 2023, the Company paid $3.3 million for the contingent consideration related to the third technical development milestone.

The contingent consideration arising from a technology acquisition on January 4, 2021, represented the future potential earn-out payments of up to $3.0 million payable in cash upon the achievement of two technical development milestones to be completed as of December 31, 2021 and March 31, 2022. The fair value of the contingent consideration was determined using a probability-weighted expected payment model and discounted at the estimated cost of debt. During fiscal year 2023, the Company paid $2.0 million for the contingent consideration related to the first technical development milestone. During the six months ended September 30, 2023, the Company paid $1.0 million for the contingent consideration related to the second technical development milestone.

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Investments for Deferred Compensation Plan

The marketable securities for the Company's deferred compensation plan were recorded at a fair value of $28.5 million and $28.2 million, as of September 30, 2023 and March 31, 2023, respectively, based on quoted market prices. Quoted market prices are observable inputs that are classified as Level 1 within the fair value hierarchy. Unrealized gains (losses) related to marketable securities for the three and six months ended September 30, 2023 and 2022 were not material and were included in other income (expense), net, and corresponding changes in the deferred compensation liability were included in operating expenses and cost of goods sold, in the Company's condensed consolidated statements of operations.

Equity Method Investments

The Company has certain non-marketable investments included in other assets that are accounted for as equity method investments, with a carrying value of $18.5 million and $20.5 million as of September 30, 2023 and March 31, 2023, respectively. Gains (losses) related to equity method investments for the three and six months ended September 30, 2023 and 2022 were not material and are included in other income (expense), net, in the Company's condensed consolidated statements of operations.

During the three months ended September 30, 2022, the Company recorded an impairment charge, before tax, of $21.4 million for one of its equity method investments as it was determined that the carrying value of the investment was not recoverable. The impairment charge is included in other income (expense), net, in the Company's condensed consolidated statements of operations for the three and six months ended September 30, 2022. There was no impairment of equity method investments during the three and six months ended September 30, 2023.

Assets Measured at Fair Value on a Nonrecurring Basis

Financial Assets 

The Company has certain equity investments without readily determinable fair values due to the absence of quoted market prices, the inherent lack of liquidity, and the fact that inputs used to measure fair value are unobservable and require management's judgment. When certain events or circumstances indicate that impairment may exist, the Company revalues the investments using various assumptions, including the financial metrics and ratios of comparable public companies. The carrying value is also adjusted for observable price changes with the same or similar security from the same issuer. The amount of these equity investments without readily determinable fair values included in other assets was $12.6 million as of September 30, 2023 and March 31, 2023. During the six months ended September 30, 2022, the Company recorded an unrealized gain, before tax, of $6.9 million for its investment in a private company as a result of observable price changes for similar securities issued by this company (level 2 fair value measurement). There was no impairment of these financial assets during the three and six months ended September 30, 2023 and 2022, other than an immaterial impairment charge related to one of the Company's investments without readily determinable fair value recorded during the three months ended September 30, 2022.

During the six months ended September 30, 2023, the Company recorded an impairment loss, before tax, of $9.6 million as a result of the write-off of a note receivable which has been deemed no longer recoverable. This note receivable was previously obtained in conjunction with an exchange transaction related to the Company's investment in a privately held company. The impairment loss is included in other income (expense), net, in the Company's condensed consolidated statement of operations for the six months ended September 30, 2023.

Non-Financial Assets

Goodwill, intangible assets, and property, plant and equipment, are not required to be measured at fair value on a recurring basis. However, if the Company is required to evaluate these non-financial assets for impairment, whether due to certain triggering events or because of the required annual impairment test, and a resulting impairment is recorded to reduce the carrying value to the fair value, the non-financial assets are measured at fair value during such period. There was no impairment of non-financial assets during the three and six months ended September 30, 2023 and 2022.

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Note 7 — Derivative Financial Instruments

Under certain agreements with the respective counterparties to the Company’s derivative contracts, subject to applicable requirements, the Company is allowed to net settle transactions of the same type with a single net amount payable by one party to the other. However, the Company presents its derivative assets and derivative liabilities on a gross basis in other current assets and accrued and other current liabilities, respectively, on the condensed consolidated balance sheets as of September 30, 2023 and March 31, 2023. See Note 6 for the fair values of the Company’s derivative instruments as of September 30, 2023 and March 31, 2023.

Cash Flow Hedges

The Company enters into cash flow hedge contracts to protect against exchange rate exposure of forecasted inventory purchases. These hedging contracts mature within approximately four months. Gains and losses in the fair value of the effective portion of the hedges are deferred as a component of accumulated other comprehensive loss until the hedged inventory purchases are sold, at which time the gains or losses are reclassified to cost of goods sold. Cash flows from such hedges are classified as operating activities in the condensed consolidated statements of cash flows. Hedging relationships are discontinued when the hedging contract is no longer eligible for hedge accounting, or is sold, terminated or exercised, or when the Company removes hedge designation for the contract. Gains and losses in the fair value of the effective portion of the discontinued hedges continue to be reported in accumulated other comprehensive loss until the hedged inventory purchases are sold, unless it is probable that the forecasted inventory purchases will not occur by the end of the originally specified time period or within an additional two-month period of time thereafter.

The notional amounts of foreign currency exchange forward contracts outstanding related to forecasted inventory purchases were $119.2 million and $72.6 million as of September 30, 2023 and March 31, 2023, respectively. The Company had $1.8 million of net gains related to its cash flow hedges included in accumulated other comprehensive loss as of September 30, 2023, which will be reclassified into earnings within the next twelve months.

 The following table presents the amounts of gain (loss) on the Company’s derivative instruments designated as hedging instruments for the three and six months ended September 30, 2023 and 2022 and their locations on its condensed consolidated statements of operations and condensed consolidated statements of comprehensive income (in thousands):

	Three months ended September 30,
	Amount of Gain Deferred as a Component of Accumulated Other Comprehensive Loss				Amount of Loss (Gain) Reclassified from Accumulated Other Comprehensive Loss to Costs of Goods Sold
	2023		2022		2023		2022
Cash flow hedges	$	2,078	$	4,935	$	1,370	$	(4,947)
	Six months ended September 30,
	Amount of Gain Deferred as a Component of Accumulated Other Comprehensive Loss				Amount of Loss (Gain) Reclassified from Accumulated Other Comprehensive Loss to Costs of Goods Sold
	2023		2022		2023		2022
Cash flow hedges	$	1,374	$	11,564	$	4,356	$	(7,038)

The Company presents the earnings impact from forward points in the same line item that is used to present the earnings impact of the hedged item, i.e. cost of goods sold, for hedging forecasted inventory purchases and such amount is not material for all periods presented.

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Other Derivatives

The Company also enters into foreign currency exchange forward and swap contracts to reduce the short-term effects of currency exchange rate fluctuations on certain receivables or payables denominated in currencies other than the functional currencies of its subsidiaries. These contracts generally mature within approximately one month. The primary risk managed by using forward and swap contracts is the currency exchange rate risk. The gains or losses on these contracts are not material and included in other income (expense), net, in the condensed consolidated statements of operations based on the changes in fair value. The notional amounts of these contracts outstanding as of September 30, 2023 and March 31, 2023 were $121.6 million and $111.2 million, respectively. Foreign currency exchange forward and swap contracts outstanding as of September 30, 2023 primarily consisted of contracts in Canadian Dollar, Brazilian Real, and Australian Dollar to be settled at future dates at predetermined exchange rates.

The fair value of all foreign currency exchange forward and swap contracts is determined based on observable market transactions of spot currency rates and forward rates. Cash flows from these contracts are classified as operating activities in the condensed consolidated statements of cash flows.

Note 8 — Goodwill and Other Intangible Assets

The Company conducts its impairment analysis of goodwill annually at December 31 or more frequently if changes in facts and circumstances indicate that it is more likely than not that the fair value of the Company’s reporting unit may be less than its carrying amount. There have been no triggering events identified affecting the valuation of goodwill and intangible assets during the three and six months ended September 30, 2023 and 2022.

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

As of March 31, 2023	$	454,610
Acquisition	8,117
Effects of foreign currency translation	(1,326)
As of September 30, 2023	$	461,401

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

	September 30, 2023						March 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trademarks and trade names	$	35,290	$	(27,172)	$	8,118	$	36,790	$	(26,774)	$	10,016
Developed technology	115,221		(89,742)		25,479		121,730		(94,792)		26,938
Customer contracts/relationships	71,587		(49,768)		21,819		71,110		(47,688)		23,422
In-process R&D	3,526		—		3,526		3,526		—		3,526
Effects of foreign currency translation	(1,273)		412		(861)		(1,021)		292		(729)
Total	$	224,351	$	(166,270)	$	58,081	$	232,135	$	(168,962)	$	63,173

Note 9 — Financing Arrangements

The Company had several uncommitted, unsecured bank lines of credit and letters of credit aggregating $171.5 million and $181.3 million as of September 30, 2023 and March 31, 2023, respectively. There are no financial covenants under the lines of credit with which the Company must comply. There was no borrowing outstanding under the lines of credit as of September 30, 2023 or March 31, 2023. As of September 30, 2023 and March 31, 2023, the Company had outstanding bank guarantees of $12.2 million and $13.6 million, respectively.

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Note 10 — Commitments and Contingencies

Product Warranties

Changes in the Company’s warranty liabilities for the three and six months ended September 30, 2023 and 2022 were as follows (in thousands): 

	Three months ended September 30,				Six months ended September 30,
	2023		2022		2023		2022
Beginning of the period	$	39,885	$	43,841	$	40,886	$	46,219
Provision	10,393		7,897		19,485		14,520
Settlements	(9,838)		(9,098)		(19,756)		(17,379)
Effects of foreign currency translation	(175)		(680)		(350)		(1,400)
End of the period	$	40,265	$	41,960	$	40,265	$	41,960

Indemnifications

The Company indemnifies certain of its suppliers and customers for losses arising from matters such as intellectual property disputes and product safety defects, subject to certain restrictions. The scope of these indemnities varies, but in some instances, includes indemnification for damages and expenses, including reasonable attorneys’ fees. As of September 30, 2023, no material amounts have been accrued for these indemnification provisions. The Company does not believe, based on historical experience and information currently available, that it is probable that any material amounts will be required to be paid under its indemnification arrangements.

The Company also indemnifies its current and former directors and certain of its current and former officers. Certain costs incurred for providing such indemnification may be recoverable under various insurance policies. The Company is unable to reasonably estimate the maximum amount that could be payable under these arrangements because these exposures are not limited, the obligations are conditional in nature and the facts and circumstances involved in any situation that might arise are variable.

Legal Proceedings

From time to time the Company is involved in claims and legal proceedings that arise in the ordinary course of its business. The Company is currently subject to several such claims and legal proceedings. The Company intends to vigorously defend against them. Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available. The Company follows ASC ("Accounting Standards Codification") 450 in determining the accounting and disclosure for these contingencies. Based on currently available information, the Company does not believe that resolution of pending matters will have a material adverse effect on its financial condition, cash flows and results of operations. However, litigation is subject to inherent uncertainties, and there can be no assurances that the Company's defenses will be successful or that any such lawsuit or claim would not have a material adverse impact on the Company's business, financial condition, cash flows and results of operations in a particular period. Any claims or proceedings against the Company can have an adverse impact because of defense costs, diversion of management and operational resources, negative publicity and other factors. Any failure to obtain a necessary license or other rights, or litigation arising out of intellectual property claims, could adversely affect the Company's business.

Note 11 — Shareholders’ Equity

Share Repurchases

2020 Share Repurchase Program

In May 2020, the Company's Board of Directors approved the 2020 share repurchase program, which authorized the Company to use up to $250.0 million to purchase Logitech shares to support equity incentive plans or potential acquisitions. Shares may be repurchased from time to time on the open market, through block trades or otherwise. Purchases may be started or stopped at any time without prior notice depending on market conditions and other factors. In April 2021, the Company's Board of Directors approved an increase of $750.0 million to the

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2020 share repurchase program, to an aggregate amount of $1.0 billion. The Swiss Takeover Board approved this increase and it became effective on May 21, 2021. In July 2022, the Company’s Board of Directors approved an increase of $500 million to the 2020 share repurchase program, to an aggregate amount of up to $1.5 billion. The Swiss Takeover Board approved this increase and it became effective on August 19, 2022. The 2020 share repurchase program expired on July 27, 2023. The Company repurchased 16.7 million shares for an aggregate cost of $1.2 billion under the 2020 share repurchase program, of which 2.6 million shares for an aggregate cost of $159.1 million were repurchased during the six months ended September 30, 2023.

2023 Share Repurchase Program

In June 2023, the Company's Board of Directors approved a new, three-year share repurchase program, which allows the Company to use up to $1.0 billion to repurchase its shares. The 2023 share repurchase program enables the Company to repurchase shares for cancellation, as well as to support equity incentive plans or potential acquisitions. The Swiss Takeover Board approved the 2023 share repurchase program in July 2023 and the program became effective on July 28, 2023. During the six months ended September 30, 2023, the Company repurchased 0.9 million shares for an aggregate cost of $60.1 million under the 2023 share repurchase program for cancellation, of which $30.2 million of the aggregate cost was not paid yet as of September 30, 2023. As of September 30, 2023, $940.0 million was available for repurchase under the 2023 share repurchase program.

Swiss law limits a company’s ability to hold or repurchase its own shares. The aggregate par value of all shares held in treasury by the Company and its subsidiaries may not exceed 10% of the share capital of the Company, which for the Company corresponds to approximately 17.3 million registered shares. This limitation does not apply to shares repurchased for cancellation, due to the Board of Directors’ authority under the Company’s capital band set forth in the Company’s Articles of Incorporation to cancel shares up to a limit of 10% of the Company's current share capital. As of September 30, 2023, the Company had a total of 16.0 million shares held in treasury stock, which includes 0.9 million shares that have been repurchased for cancellation.

To the extent that the shares are repurchased to support equity incentive plans or potential acquisitions, the shares are repurchased on the ordinary trading line of SIX Swiss Exchange (“SIX”) and/or The Nasdaq Global Select Market (“Nasdaq”). Shares repurchased for cancellation purposes are repurchased on a second trading line on SIX. Shares may be repurchased from time to time on the open market or in privately negotiated transactions, including under plans complying with the provisions of Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended. Purchases may be started or stopped at any time without prior notice depending on market conditions and other factors and the program does not require the purchase of any minimum number of shares.

Dividends

During the three and six months ended September 30, 2023, the Company declared and paid cash dividends of CHF 1.06 (USD equivalent of $1.19 based on the exchange rate on the date of declaration) per share, totaling $187.2 million on the Company's outstanding shares. During the three and six months ended September 30, 2022, the Company declared and paid cash dividends of CHF 0.96 (USD equivalent of $1.00 based on the exchange rate on the date of declaration) per share, totaling $162.7 million on the Company's outstanding shares.

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

Accumulated Other Comprehensive Income (Loss)

The accumulated other comprehensive income (loss) was as follows (in thousands):

	Cumulative Translation Adjustment		Defined Benefit Plans		Deferred Hedging Gains (Losses)		Total
March 31, 2023	$	(100,869)	$	4,525	$	(3,933)	$	(100,277)
Other comprehensive income (loss)	(12,151)		(248)		5,730		(6,669)
September 30, 2023	$	(113,020)	$	4,277	$	1,797	$	(106,946)

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Note 12 — Segment Information

The Company operates in a single operating segment that encompasses the design, manufacturing and marketing of peripherals for gaming, PCs, tablets, video conferencing, and other digital platforms. Operating performance measures are provided directly to the Company's CEO, who is considered to be the Company’s Chief Operating Decision Maker. The CEO periodically reviews information such as sales and adjusted operating income (loss) to make business decisions. These operating performance measures do not include restructuring charges (credits), net, share-based compensation expense, amortization and impairment of intangible assets, acquisition-related costs, and change in fair value of contingent consideration from business acquisitions.

During the first quarter of fiscal year 2024, the Company changed its presentation of Sales by Product Category to provide a simpler and clearer view of the Company's business. The change in presentation did not have an impact on previously reported total sales. As a result of these changes, certain prior-period amounts for the three and six months ended September 30, 2022 have been reclassified to conform to the current period presentation. See Note 1 for further information on the change in presentation.

Sales by product category in the current presentation for the three and six months ended September 30, 2023 and 2022 were as follows (in thousands):

	Three months ended September 30,				Six months ended September 30,
	2023		2022		2023		2022
Gaming (1)	$	282,104	$	322,028	$	548,533	$	619,949
Keyboards & Combos	194,914		200,853		375,769		428,573
Pointing Devices	191,676		185,200		366,130		368,483
Video Collaboration	152,389		179,199		291,735		360,831
Webcams	88,222