LOGI

• Approximately 52% of Q1 FY2027 sales were in non-U.S. currencies, with the Euro alone at 21%, while costs are more USD-weighted, so a stronger dollar hurts operating results.
• A hypothetical 10% adverse FX move on monetary assets/liabilities would reduce pre-tax income by ~$19.3M as of June 30, 2026, net of ~$11.4M in offsetting forward/swap contracts.
• The company uses currency forwards and swaps (generally ≤1 month) to hedge receivables/payables, recognizing fair value changes in earnings.
• Cash flow hedges (forwards and options) now cover forecasted inventory purchases up to 16 months, with gains/losses deferred in AOCI until the inventory is sold.
• A 10% weakening of the USD would lower the pre-tax AOCI balance on FX contracts by ~$37.2M, expected to offset a corresponding change in future cost of goods sold.
• No material interest rate, commodity, or equity price risk is disclosed; translation exposure from non-USD functional subsidiaries is recorded in AOCI.

From time to time, the Company is involved in claims and legal proceedings that arise in the ordinary course of its business. The Company is currently subject to several such claims and legal proceedings. The Company intends to vigorously defend against them. Management periodically assesses the Company’s liabilities and contingencies in connection with these matters based upon the latest information available. The Company follows ASC ("Accounting Standards Codification") 450, Contingencies, in determining the accounting and disclosure for these contingencies. Based on currently available information, the Company does not believe that resolution of pending matters will have a material adverse effect on its financial condition, cash flows, and results of operations. However, litigation is subject to inherent uncertainties, and there can be no assurances that the Company's defenses will be successful or that any such lawsuit or claim would not have a material adverse impact on the Company's business, financial condition, cash flows and results of operations in a particular period. Any claims or proceedings against the Company, whether meritorious or not, 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. As a result of Regulation S-K disclosure requirements related to environmental proceedings to which the government is a party and such proceedings involve potential monetary sanctions, the Company selected the quantitative threshold of $1.0 million.

The Company’s business, reputation, results of operations, financial condition and stock price can be affected by a number of factors, whether currently known or unknown, including those described in Part I, Item 1A of the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2026, under the heading “Risk Factors.” When any one or more of these risks materialize from time to time, the Company’s business, reputation, results of operations, financial condition and stock price can be materially and adversely affected. In the first quarter of fiscal year 2027, there have been no material changes to the risk factors disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2026.