As of March 31, 2025, 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.

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 were reserved for issuance under the 1996 and 2006 ESPP plans. As of March 31, 2025, a total of 2.8 million shares were 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, and restricted stock units. 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. On June 29, 2022, the Board authorized 3.3 million additional shares for issuance under the 2006 Plan. An aggregate of 33.8 million shares were reserved for issuance under the 2006 Plan. As of March 31, 2025, a total of 7.2 million shares were available for new awards under this plan.

Stock options granted to employees under the 2006 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.

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

Restricted stock units with certain market- and performance-based conditions ("PSUs") granted to employees under the 2006 Plan generally 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 constant currency revenue growth rate, adjusted operating income (loss) and the Company's total shareholder return ("TSR") relative to the performance of companies in the Russell 3000 Index over the same three years period.


	Years Ended March 31,
	2025		2024		2023
Cost of goods sold	$	10,021	$	8,004	$	5,635
Marketing and selling	40,378		35,780		34,707
Research and development	20,180		17,836		15,292
General and administrative	19,334		21,269		15,148
Total share-based compensation expense	89,913		82,889		70,782

Income tax benefit	(20,148)		(15,305)		(9,750)
Total share-based compensation expense, net of income tax benefit	$	69,765	$	67,584	$	61,032

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 $7.6 million, $6.3 million, and $5.6 million for the fiscal year ended March 31, 2025, 2024 and 2023, respectively.

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.

The grant date fair value of the ESPP using the Black-Scholes-Merton option-pricing valuation model and the grant date fair value of the PSUs using the Monte-Carlo simulation method are determined with the following assumptions:


	Employee Stock Purchase Plans
	Years Ended March 31,
	2025	2024	2023
Expected dividend rate	1.35%	1.61%	1.78%
Risk-free interest rate	4.71%	5.36%	3.86%
Expected volatility	29%	33%	46%
Expected term (years)	0.5	0.5	0.5
Weighted average grant date fair value per share	$21.74	$19.02	$16.32


PSUs	Years Ended March 31,
	2025	2024	2023
Expected dividend rate	1.41%	1.90%	1.46%
Risk-free interest rate	4.55%	3.83%	2.78%
Expected volatility	38%	41%	39%
Expected term (years)	3.0	3.0	3.0

The expected dividend rate assumption is based on the Company's history and future expectations of dividend payouts. Unvested PSUs are not eligible for these dividends. The expected term is based on the purchase offerings periods expected to remain outstanding for employee stock purchase plan or the performance period for PSUs. Expected volatility is based on historical volatility using the Company's daily closing prices, or including the volatility of components of the Russell 3000 Index for PSUs, over the expected term. 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 or Switzerland government bonds appropriate for the expected term of the Company's share-based awards.

For PSUs, 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, 2022	1,393
Exercised	(155)				$	6,482
Forfeited	(118)

Outstanding, March 31, 2023	1,120

Exercised	(181)				$	6,160
Forfeited	(176)
Outstanding, March 31, 2024	763	$	68	7.0	$	16,243
Exercised	(111)	$	80		$	1,483
Forfeited	(65)	$	80
Outstanding, March 31, 2025	587	$	64	5.3	$	11,768
Vested and exercisable, March 31, 2025	587	$	64	5.3	$	11,768


	Number of Shares	Weighted-Average Grant Date Fair Value		Aggregate Fair Value
	(In thousands)			(In thousands)
Outstanding, March 31, 2022	3,046	$	68
Granted—RSUs	1,584	$	53
Granted—PSUs	407	$	69
Vested	(1,143)			$	85,152
Forfeited	(438)
Outstanding, March 31, 2023	3,456	$	66
Granted—RSUs	1,396	$	59
Granted—PSUs	457	$	67
Vested	(1,200)			$	92,340
Forfeited	(631)
Outstanding, March 31, 2024	3,478	$	65
Granted—RSUs	931	$	93
Granted—PSUs	281	$	91
Vested	(1,172)	$	65	$	113,553
Forfeited	(462)	$	85
Outstanding, March 31, 2025	3,056	$	73