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The Company and Summary of Significant Accounting Policies and Estimates | 9 Months Ended
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Dec. 31, 2023
Accounting Policies [Abstract] |
The Company and Summary of Significant Accounting Policies and Estimates | 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 nine months ended December 31, 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. As a result of these changes, certain prior-period amounts for the three and nine months ended December 31, 2022 have been reclassified to conform to the current period presentation as follows (in thousands):
|  | Three months ended December 31, 2022
|  | As previously reported |  | Reclassifications |  | As adjusted
Gaming |  | $ | 391,975 |  |  | $ | 19,952 |  | (1) | $ | 411,927 |
Keyboards & Combos |  | 220,059 |  |  | — |  |  | 220,059 |
Pointing Devices |  | 199,106 |  |  | — |  |  | 199,106 |
Video Collaboration |  | 226,374 |  |  | (52,858) |  | (2) (3) | 173,516 |
Webcams (3) |  | 58,481 |  |  | 35,771 |  | (3) | 94,252 |
Tablet Accessories |  | 65,157 |  |  | — |  |  | 65,157 |
Headsets |  | — |  |  | 46,736 |  | (2) | 46,736 |
Other |  | 1,348 |  |  | 57,824 |  | (4) (5) | 59,172 |
Mobile Speakers |  | 38,321 |  |  | (38,321) |  | (4) | — |
Audio & Wearables |  | 69,104 |  |  | (69,104) |  | (1) (2) (5) | — |
Total Sales |  | $ | 1,269,925 |  |  | $ | — |  |  | $ | 1,269,925 |
|  | Nine months ended December 31, 2022
|  | As previously reported |  | Reclassifications |  | As adjusted
Gaming |  | $ | 972,457 |  |  | $ | 59,419 |  | (1) | $ | 1,031,876 |
Keyboards & Combos |  | 648,632 |  |  | — |  |  | 648,632 |
Pointing Devices |  | 567,589 |  |  | — |  |  | 567,589 |
Video Collaboration |  | 708,796 |  |  | (174,449) |  | (2) (3) | 534,347 |
Webcams (3) |  | 178,033 |  |  | 127,499 |  | (3) | 305,532 |
Tablet Accessories |  | 185,945 |  |  | — |  |  | 185,945 |
Headsets |  | — |  |  | 137,429 |  | (2) | 137,429 |
Other |  | 5,642 |  |  | 161,749 |  | (4) (5) | 167,391 |
Mobile Speakers |  | 99,826 |  |  | (99,826) |  | (4) | — |
Audio & Wearables |  | 211,821 |  |  | (211,821) |  | (1) (2) (5) | — |
Total Sales |  | $ | 3,578,741 |  |  | $ | — |  |  | $ | 3,578,741 |
(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 bee n no material changes in the Company’s significant accounting policies during the three and nine months ended December 31, 2023 compared with the significant accounting policies described in its Annual Report on Form 10-K for the fiscal year ended March 31, 2023. 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 affected demand for the Company's products. In addition, these conditions, including recent transportation issues in the Red Sea, 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 the Company's products, product availability and the Company's results of operations. Recent Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker. In addition, ASU 2023-07 requires that all existing annual disclosures about segment profit or loss must be provided on an interim basis and clarifies that single reportable segment entities are subject to the disclosure requirement under Topic 280 in its entirety. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within those fiscal years beginning after December 15, 2024. A public entity should apply ASU 2023-07 retrospectively to all prior periods presented in the financial statements. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires additional disclosures related to rate reconciliation, income taxes paid, and other disclosures. Under ASU 2023-09, for each annual periods presented, public entities are required to (1) disclose specific categories in the tabular rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. In addition, ASU 2023-09 requires all reporting entities to disclose on an annual basis the amount of income taxes paid disaggregated by federal, state, and foreign taxes as well as the amount of income taxes paid by individual jurisdiction. ASU 2023-09 is effective for public business entities for annual periods beginning after December 15, 2024 and can be applied on a prospective basis with an option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements and related disclosures.

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- Definition The entire disclosure for the basis of presentation and significant accounting policies concepts. Basis of presentation describes the underlying basis used to prepare the financial statements (for example, US Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS). Accounting policies describe all significant accounting policies of the reporting entity. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 235 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//235/tableOfContent + Details
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