As of March 31, 2020, the Company offers the 2006 Employee Share Purchase Plan, as amended and restated (Non-U.S.) (2006 ESPP), the 1996 Employee Share Purchase Plan (U.S.), as amended and restated (1996 ESPP), the 2006 Stock Incentive Plan (2006 Plan) as amended and restated and the 2012 Stock Inducement Equity Plan (2012 Plan). Shares issued to employees as a result of purchases or exercises under these plans are generally issued from shares held in treasury stock.



	Years Ended March 31,
	2020			2019			2018
Cost of goods sold	$	4,852		$	3,812		$	3,733
Marketing and selling	26,835			20,630			17,765
Research and development	9,273			7,368			6,381
General and administrative	13,910			18,455			16,259
Total share-based compensation expense	54,870			50,265			44,138
Income tax benefit	(14,109		)	(17,091		)	(15,998		)
Total share-based compensation expense, net of income tax benefit	$	40,761		$	33,174		$	28,140

The income tax benefit in the respective period primarily consists of tax benefit 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 upon the adoption of ASU 2016-09 on April 1, 2017. The income tax benefit for the year ended March 31, 2018 was reduced by the income tax provision resulting from the

The following table summarizes total unamortized share-based compensation expense and the remaining period over which such expense is expected to be recognized, on a weighted-average basis by type of grant (in thousands, except number of months):



	March 31, 2020
	Unamortized Expense		Remaining Months
ESPP	$	1,442	4
Stock Options	4,369		24
Time-based RSUs	71,545		26
Market-based and performance-based RSUs	13,180		21
Total unamortized share-based compensation expense	$	90,536

Under the 1996 ESPP and 2006 ESPP plans, eligible employees may purchase shares at the lower of 85% of the fair market value at the beginning or the end of each offering period, which is generally six months. Subject to continued participation in these plans, purchase agreements are automatically executed at the end of each offering period. An aggregate of 29.0 million shares was reserved for issuance under the 1996 and 2006 ESPP plans. As of March 31, 2020, a total of 4.9 million shares was available for new awards under these plans.

The 2006 Plan provides for the grant to eligible employees and non-employee directors of stock options, stock appreciation rights, restricted stock and RSUs. Awards under the 2006 Plan may be conditioned on continued employment, the passage of time or the satisfaction of performance and market vesting criteria. The 2006 Plan, as amended, has no expiration date. All stock options under this plan have terms not exceeding ten years and are issued at exercise prices not less than the fair market value on the date of grant. An aggregate of 30.6 million shares was reserved for issuance under the 2006 Plan. As of March 31, 2020, a total of 8.6 million shares were available for new awards under this plan.

Time-based RSUs granted to employees under the 2006 Plan generally vest in four equal annual installments on the grant date anniversary. Time-based RSUs granted to non-executive board members under the 2006 Plan vest on the grant date anniversary, or if earlier and only if the non-executive board member is not re-elected as a director at such annual general meeting, the date of the next annual general meeting following the grant date.

In fiscal years 2020, 2019 and 2018, the Company granted RSUs with both performance and market conditions, which vest at the end of the three-year performance period upon meeting predetermined financial metrics over three years, with the number of shares to be received upon vesting determined based on weighted average constant currency revenue growth rate and the Company's TSR relative to the performance of companies in the NASDAQ-100 Index over the same three years period. The Company presents shares granted and vested at 100 percent of the target of the number of stock units that may potentially vest.

Under the 2012 Plan, stock options and RSUs may be granted to eligible employees to serve as an inducement to enter into employment with the Company. Awards under the 2012 Plan may be conditioned on continued employment, the passage of time or the satisfaction of market stock performance criteria, based on individually written employment offer letter. The 2012 Plan has an expiration date of March 28, 2022. An aggregate of 1.8 million shares was reserved for issuance under the 2012 Plan. As of March 31, 2020, no shares were available for new awards under this plan.

The estimates of share-based compensation expense require a number of complex and subjective assumptions including stock price volatility, employee exercise patterns, probability of achievement of the set performance condition, dividend yield, related tax effects and the selection of an appropriate fair value model.



	Stock Options				Employee Stock Purchase Plans
	Years Ended March 31,				Years Ended March 31,
	2020	2019		2018	2020			2019			2018
Dividend yield	*	1.72	%	*	1.74		%	1.73		%	1.67		%
Risk-free interest rate	*	2.45	%	*	1.81		%	2.35		%	1.37		%
Expected volatility	*	33	%	*	24		%	31		%	27		%
Expected life (years)	*	6.2		*	0.5			0.5			0.5
Weighted average grant date fair value per share	*	$11.55		*	$	9.35		$	9.33		$	8.69



RSUs with Market Conditions	Years Ended March 31,
	2020		2019		2018
Dividend yield	1.76	%	1.59	%	1.75	%
Risk-free interest rate	2.11	%	2.51	%	1.40	%
Expected volatility	30	%	30	%	31	%
Expected life (years)	3.0		3.0		3.0

The dividend yield assumption is based on the Company's history and future expectations of dividend payouts. The unvested RSUs or unexercised options are not eligible for these dividends. The expected life is based on the purchase offerings periods expected to remain outstanding for employee stock purchase plan, or the performance period for RSUs with market conditions. The expected life for stock options is based on historical settlement rates, which the Company believes are most representative of future exercise and post-vesting termination behaviors. Expected volatility is based on historical volatility using the Company's daily closing prices, or including the volatility of components of the NASDAQ 100 index for market-based RSUs, over the expected life. The Company considers the historical price volatility of its shares as most representative of future volatility. The risk-free interest rate assumptions are based upon the implied yield of U.S. Treasury zero-coupon issues appropriate for the expected life of the Company's share-based awards.

For RSUs with performance conditions, the Company estimates the probability and timing of the achievement of the set performance condition at the time of the grant based on the historical financial performance and the financial forecast in the remaining performance period and reassesses the probability in subsequent periods when actual results or new information become available.



	Number of Shares		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term	Aggregate Intrinsic Value
	(In thousands)				(Years)	(In thousands)
Outstanding, March 31, 2017	3,050
Granted	—
Exercised	(994	)				$	8,347
Canceled or expired	(16	)
Outstanding, March 31, 2018	2,040
Granted	649
Exercised	(82	)				$	1,707
Canceled or expired	—
Outstanding, March 31, 2019	2,607		$	20
Granted	—
Exercised	(573	)	$	9		$	19,339
Canceled or expired	(65	)	$	39
Outstanding, March 31, 2020	1,969		$	22	4.2	$	40,549
Vested and exercisable, March 31, 2020	1,530		$	18	2.8	$	38,733



	Number of Shares		Weighted-Average Grant Date Fair Value		Weighted-Average Remaining Vesting Period	Aggregate Fair Value
	(In thousands)				(Years)	(In thousands)
Outstanding, March 31, 2017	6,181		$	14
Granted—time-based	1,212		$	33
Granted—market and performance-based	409		$	33
Vested	(2,248	)				$	81,582
Canceled or expired	(333	)
Outstanding, March 31, 2018	5,221		$	20
Granted—time-based	1,290		$	40
Granted—market and performance-based	381		$	39
Vested	(2,148	)				$	89,159
Canceled or expired	(323	)
Outstanding, March 31, 2019	4,421		$	29
Granted—time-based	1,431		$	38
Granted—market and performance-based	365		$	40
Vested	(1,705	)	$	22		$	76,389
Canceled or expired	(561	)	$	32
Outstanding, March 31, 2020	3,951		$	36	1.3	$	167,298

Certain of the Company's subsidiaries have defined contribution employee benefit plans covering all or a portion of their employees. Contributions to these plans are discretionary for certain plans and are based on specified or statutory requirements for others. The charges to expense for these plans for fiscal years 2020, 2019 and 2018, were $8.6 million, $8.7 million and $7.6 million, respectively.

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 Company recognizes the overfunded or underfunded status of defined benefit pension plans and non-retirement post-employment benefit obligations as an asset or liability in its consolidated balance sheets and recognizes changes in the funded status of defined benefit pension plans in the year in which the changes occur through accumulated other comprehensive income (loss), which is a component of shareholders' equity. Each plan's assets and benefit obligations are remeasured as of March 31 each year.



	Years Ended March 31,
	2020			2019			2018
Service costs	$	11,008		$	10,564		$	9,715
Interest costs	1,055			1,301			1,126
Expected return on plan assets	(2,616		)	(2,167		)	(1,792		)
Amortization:
Net prior service credit recognized	(435		)	(443		)	(51		)
Net actuarial loss recognized	1,386			450			242
Settlement	(97		)	(97		)	—
Total net periodic benefit cost	$	10,301		$	9,608		$	9,240



	Years Ended March 31,
	2020			2019
Projected benefit obligations, beginning of the year	$	143,662		$	128,915
Service costs	11,008			10,564
Interest costs	1,055			1,301
Plan participant contributions	3,733			3,666
Actuarial gains	2,246			9,506
Benefits paid	(3,507		)	(3,793		)
Plan amendment related to statutory change	—			(705		)
Settlement	(941		)	(335		)
Administrative expense paid	(141		)	(142		)
Currency exchange rate changes and other	3,799			(5,315		)
Projected benefit obligations, end of the year	$	160,914		$	143,662



	Years Ended March 31,
	2020			2019
Fair value of plan assets, beginning of the year	$	90,365		$	84,718
Actual return on plan assets	(830		)	3,350
Employer contributions	6,531			6,383
Plan participant contributions	3,733			3,666
Benefits paid	(3,507		)	(3,793		)
Settlement	(941		)	(335		)
Administrative expenses paid	(141		)	(142		)
Currency exchange rate changes	2,800			(3,482		)
Fair value of plan assets, end of the year	$	98,010		$	90,365

The Company's investment objectives are to ensure that the assets of its defined benefit plans are invested to provide an optimal rate of investment return on the total investment portfolio, consistent with the assumption of a reasonable risk level, and to ensure that pension funds are available to meet the plans' benefit obligations as they become due. The Company believes that a well-diversified investment portfolio will result in the highest attainable investment return with an acceptable level of overall risk. Investment strategies and allocation decisions are also governed by applicable governmental regulatory agencies. The Company's investment strategy with respect to its largest defined benefit plan, which is available only to Swiss employees, is to invest per the following allocation: 33% in equities, 34% in bonds, 28% in real estate, 2% in cash and cash equivalents and the remaining in other investments. The Company also can invest in real estate funds, commodity funds, and hedge funds depending upon economic conditions.



	March 31,
	2020						2019
	Level 1		Level 2		Total		Level 1		Level 2		Total
Cash and cash equivalents	$	14,213	$	—	$	14,213	$	10,737	$	—	$	10,737
Equity securities	28,329		—		28,329		27,559		—		27,559
Debt securities	26,605		—		26,605		26,823		—		26,823
Swiss real estate funds	16,476		8,168		24,644		21,659		—		21,659
Hedge funds	—		1,882		1,882		—		912		912
Other	2,084		253		2,337		2,377		298		2,675
Total fair value of plan assets	$	87,707	$	10,303	$	98,010	$	89,155	$	1,210	$	90,365



	March 31,
	2020			2019			2018
Net prior service credits	$	3,647		$	3,965		$	3,843
Net actuarial loss	(22,722		)	(17,630		)	(9,821		)
Accumulated other comprehensive loss	(19,075		)	(13,665		)	(5,978		)
Deferred tax	(941		)	(267		)	(420		)
Accumulated other comprehensive loss, net of tax	$	(20,016	)	$	(13,932	)	$	(6,398	)

The following table presents the amounts included in accumulated other comprehensive loss as of March 31, 2020, which are expected to be recognized as a component of net periodic benefit cost in fiscal year 2021 (in thousands):



	Year Ended March 31, 2020
Amortization of net prior service credits	$	(447	)
Amortization of net actuarial loss	1,124
Total	$	677



	Years Ended March 31,
	2020	2019
Benefit Obligations:
Discount rate	0.50% - 6.75%	0.55%-7.25%
Estimated rate of compensation increase	2.25% - 10.00%	2.50%-10.00%
Periodic Costs:
Discount rate	0.55% - 7.25%	0.75%-7.50%
Estimated rate of compensation increase	2.50% - 10.00%	2.50%-10.00%
Expected average rate of return on plan assets	0.89% - 3.00%	0.75% - 2.75%

The discount rate is estimated based on corporate bond yields or securities of similar quality in the respective country, with a duration approximating the period over which the benefit obligations are expected to be paid. The Company bases the compensation increase assumptions on historical experience and future expectations. The expected average rate of return for the Company's defined benefit pension plans represents the average rate of return expected to be earned on plan assets over the period that the benefit obligations are expected to be paid, based on government bond notes in the respective country, adjusted for corporate risk premiums as appropriate.

One of the Company's subsidiaries offers a deferred compensation plan that permits eligible employees to make 100% vested salary and incentive compensation deferrals within established limits. The Company does not make contributions to the plan.

The deferred compensation plan's assets consist of marketable securities and are included in other assets on the consolidated balance sheets. The marketable securities are classified as trading investments and were recorded at a fair value of $20.1 million and $20.4 million as of March 31, 2020 and 2019, respectively, based on quoted market prices. The Company also had $20.1 million and $20.4 million in deferred compensation liability as of March 31, 2020 and 2019, respectively. Earnings, gains and losses on trading investments are included in other income (expense), net and corresponding changes in deferred compensation liability are included in operating expenses and cost of goods sold.