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Employee Benefit Plans | 12 Months Ended
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Mar. 31, 2024
Compensation Related Costs [Abstract] |
Employee Benefit Plans | Employee Benefit Plans 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 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 generally remeasured as of March 31 each year. The net periodic benefit cost of the defined benefit pension plans and the non-retirement post-employment benefit obligations for fiscal years 2024, 2023 and 2022 was as follows (in thousands):
|  | Years Ended March 31,
|  | 2024 |  | 2023 |  | 2022
Service costs |  | $ | 11,479 |  |  | $ | 13,195 |  |  | $ | 14,693 |
Interest costs |  | 3,844 |  |  | 2,408 |  |  | 920 |
Expected return on plan assets |  | (6,950) |  |  | (3,754) |  |  | (2,930) |
Amortization: |  |  |  |  |  |
Net prior service credit recognized |  | (500) |  |  | (458) |  |  | (465) |
Net actuarial gain recognized |  | (179) |  |  | (3,047) |  |  | (2,158) |
Curtailment gain |  | — |  |  | (4,225) |  |  | — |
Settlement loss (gain) |  | 922 |  |  | (339) |  |  | — |
Total net periodic benefit cost |  | $ | 8,616 |  |  | $ | 3,780 |  |  | $ | 10,060 |
The components of net periodic benefit cost other than the service costs component are included in other income (expense), net in the consolidated statements of operations. The changes in projected benefit obligations for fiscal years 2024 and 2023 were as follows (in thousands):
|  | Years Ended March 31,
|  | 2024 |  | 2023
Projected benefit obligations, beginning of the year |  | $ | 195,336 |  |  | $ | 207,551 |
Service costs |  | 11,479 |  |  | 13,195 |
Interest costs |  | 3,844 |  |  | 2,408 |
Plan participant contributions |  | 6,731 |  |  | 6,870 |
Actuarial loss (gain) |  | 13,737 |  |  | (22,965) |
Benefits paid |  | (2,405) |  |  | (2,646) |
Transfer of prior vested benefits |  | 6,775 |  |  | 11,579 |
Plan amendments |  | 380 |  |  | — |
Settlement |  | (22,522) |  |  | (15,348) |
Curtailment |  | — |  |  | (3,923) |
Administrative expense paid |  | (158) |  |  | (147) |
Currency exchange rate changes |  | 280 |  |  | (1,238) |
Projected benefit obligations, end of the year |  | $ | 213,477 |  |  | $ | 195,336 |
The accumulated benefit obligation for all defined benefit pension plans as of March 31, 2024 and 2023 was $184.8 million and $170.3 million, respectively. Actuarial loss (gain) related to the change in the benefit obligation for the Company's pension plans for fiscal years 2024 and 2023 w ere primarily due to changes in discount rate. The changes in the fair value of plan assets for fiscal years 2024 and 2023 were as follows (in thousands):
|  | Years Ended March 31,
|  | 2024 |  | 2023
Fair value of plan assets, beginning of the year |  | $ | 162,599 |  |  | $ | 156,118 |
Actual return on plan assets |  | 7,558 |  |  | (6,008) |
Employer contributions |  | 10,888 |  |  | 11,645 |
Plan participant contributions |  | 6,731 |  |  | 6,870 |
Benefits paid |  | (2,405) |  |  | (2,646) |
Transfer of prior vested benefits |  | 6,775 |  |  | 11,579 |
Settlement |  | (22,522) |  |  | (15,348) |
Administrative expenses paid |  | (158) |  |  | (147) |
Currency exchange rate changes |  | 1,174 |  |  | 536 |
Fair value of plan assets, end of the year |  | $ | 170,640 |  |  | $ | 162,599 |
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, 28% in bonds, 28% in real estate, 4% in cash and cash equivalents and the remaining in other investments. The Company can invest in real estate funds, commodity funds, and hedge funds depending upon economic conditions. The following tables present the fair value of the defined benefit pension plan assets by major categories and by levels within the fair value hierarchy as of March 31, 2024 and 2023 (in thousands):
|  | March 31,
|  | 2024 |  | 2023
|  | Level 1 |  | Level 2 |  |  |  | Total |  | Level 1 |  | Level 2 |  |  |  | Total
Cash and cash equivalents |  | $ | 14,375 |  |  | $ | — |  |  |  |  | $ | 14,375 |  |  | $ | 7,071 |  |  | $ | — |  |  |  |  | $ | 7,071 |
Equity securities |  | 54,534 |  |  | — |  |  |  |  | 54,534 |  |  | 51,963 |  |  | — |  |  |  |  | 51,963 |
Debt securities |  | 42,153 |  |  | — |  |  |  |  | 42,153 |  |  | 43,493 |  |  | — |  |  |  |  | 43,493 |
Real estate funds |  | 32,286 |  |  | 10,141 |  |  |  |  | 42,427 |  |  | 21,197 |  |  | 23,710 |  |  |  |  | 44,907 |
Hedge funds |  | — |  |  | 10,400 |  |  |  |  | 10,400 |  |  | 606 |  |  | 7,907 |  |  |  |  | 8,513 |
Other |  | 6,335 |  |  | 416 |  |  |  |  | 6,751 |  |  | 6,248 |  |  | 404 |  |  |  |  | 6,652 |
Total fair value of plan assets |  | $ | 149,683 |  |  | $ | 20,957 |  |  |  |  | $ | 170,640 |  |  | $ | 130,578 |  |  | $ | 32,021 |  |  |  |  | $ | 162,599 |
The funded status of the plans was as follows (in thousands):
|  | Years Ended March 31,
|  | 2024 |  | 2023
Fair value of plan assets |  | $ | 170,640 |  |  | $ | 162,599 |
Less: projected benefit obligations |  | 213,477 |  |  | 195,336 |
Underfunded status |  | $ | (42,837) |  |  | $ | (32,737) |
Amounts recognized on the balance sheets for the plans were as follows (in thousands):
|  | March 31,
|  | 2024 |  | 2023
Current liabilities |  | $ | 1,391 |  |  | $ | 1,407 |
Non-current liabilities |  | 41,446 |  |  | 31,330 |
Total liabilities |  | $ | 42,837 |  |  | $ | 32,737 |
Amounts recognized in accumulated other comprehensive income (loss) related to defined benefit pension plans were as follows (in thousands):
|  | March 31,
|  | 2024 |  | 2023 |  |
Net prior service credits |  | $ | 1,385 |  |  | $ | 2,201 |  |  |
Net actuarial gain (loss) |  | (6,445) |  |  | 5,690 |  |  |
Accumulated other comprehensive income (loss) |  | (5,060) |  |  | 7,891 |  |  |
Deferred taxes |  | (3,335) |  |  | (3,366) |  |  |
Accumulated other comprehensive income (loss), net of tax |  | $ | (8,395) |  |  | $ | 4,525 |  |  |
The actuarial assumptions for the defined benefit plans were as follows:
|  | Years Ended March 31,
|  | 2024 |  | 2023
Benefit Obligations: |  |  |  |
Discount rate |  | 1.50%- 7.00% |  | 1.00% - 7.25%
Estimated rate of compensation increase |  | 2.25% - 10.00% |  | 2.25% - 10.00%
Cash balance interest credit rate |  | 0.50% - 1.75% |  | 0.00% - 1.75%
|  | Years Ended March 31,
|  | 2024 |  | 2023 |  | 2022
Net Periodic Costs: |  |  |  |  |  |
Discount rate |  | 1.50% - 7.25% |  | 0.50% - 6.75% |  | 0.25% - 6.00%
Estimated rate of compensation increase |  | 2.25% - 10.00% |  | 2.00% - 10.00% |  | 2.00% - 10.00%
Expected average rate of return on plan assets |  | 0.50% - 4.50% |  | 1.00% - 2.50% |  | 1.00% - 2.25%
Cash balance interest credit rate |  | 0.50% - 1.75% |  | 0.00% - 1.75% |  | 0.00% - 1.75%
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. The following table reflects the benefit payments that the Company expects the plans to pay in the periods noted (in thousands):
Years Ending March 31, |  |
2025 |  | $ | 13,068 |
2026 |  | 12,113 |
2027 |  | 14,465 |
2028 |  | 13,055 |
2029 |  | 12,959 |
Next five fiscal years |  | 68,520 |
Total expected benefit payments by the plan |  | $ | 134,180 |
The Company expects to contribute $8.5 million to its defined benefit pension plans during fiscal year 2025. Defined Contribution Plans 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 2024, 2023 and 2022, were $14.4 million, $14.4 million and $13.9 million, respectively. Deferred Compensation Plan 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 were recorded at a fair value of $29.2 million and $28.2 million as of March 31, 2024 and 2023, respectively, based on quoted market prices (see Note 9). The Company also had deferred compensation liability of $29.2 million and $28.2 million, which are included in other non-current liabilities on the consolidated balance sheets as of March 31, 2024 and 2023, respectively. Earnings, gains and losses on deferred compensation investments are included in other income (expense), net (see Note 6) and corresponding changes in deferred compensation liability are included in operating expenses and cost of goods sold in the consolidated statements of operations.

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- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 710 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//710/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 712 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//712/tableOfContent Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 715 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//715/tableOfContent Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//718/tableOfContent + Details
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