Share-Based Compensation

Compensation cost related to share-based transactions is recognized in the consolidated financial statements based on fair value. The total amount of share-based compensation expense, which is recorded on a straight line basis, is as follows:


	Three Months Ended
	June 28, 2025		June 29, 2024

	(Dollars in Thousands)
Selling, general and administrative expenses	$	8,034	$	6,413
Research and development	674		827
Cost of goods sold	604		388
	$	9,312	$	7,628

Options are granted to purchase common stock at prices as determined by the Committee, but in no event shall such exercise price be less than the fair market value of the common stock at the time of the grant. Options generally vest in equal installments over a four year period for employees. Options expire not more than 7 years from the date of the grant. The grant-date fair value of options, adjusted for estimated forfeitures, is recognized as expense on a straight line basis over the requisite service period, which is generally the vesting period. Forfeitures are estimated based on historical experience.

A summary of stock option activity for the three months ended June 28, 2025 is as follows:


	Options Outstanding	Weighted Average Exercise Price per Share		Weighted Average Remaining Life (years)	Aggregate Intrinsic Value

	(Dollars in Thousands, Except Share and Per Share Data)
Outstanding at March 29, 2025	993,587	$	81.75	3.5	$	2,249
Granted	221,999	$	70.29
Exercised	(13,323)	$	57.10
Forfeited/Canceled	(93,535)	$	92.30
Outstanding at June 28, 2025	1,108,728	$	78.87	4.2	$	6,580
Exercisable at June 28, 2025	651,653	$	79.67	2.9	$	4,924
Vested or expected to vest at June 28, 2025	982,146	$	79.04	3.5	$	6,180

As of June 28, 2025, there was $15.4 million of total unrecognized compensation cost related to non-vested stock options. This cost is expected to be recognized over a weighted average period of 3.0 years.

Restricted Stock Units

Restricted Stock Units (“RSUs”) generally vest in equal installments over a three or four period for employees and one year from grant for non-employee directors. The grant-date fair value of RSUs, adjusted for estimated forfeitures, is recognized as expense on a straight-line basis over the requisite service period, which is generally the vesting period. The fair market value of RSUs is determined based on the market value of the Company’s shares on the date of grant.

A summary of RSU activity for the three months ended June 28, 2025 is as follows:


	Shares	Weighted Average Grant Date Fair Value
Unvested at March 29, 2025	303,003	$	81.27
Granted	198,297	$	70.32
Vested	(137,422)	$	76.87
Forfeited	(7,802)	$	84.04
Unvested at June 28, 2025	356,076	$	76.81

As of June 28, 2025, there was $24.5 million of total unrecognized compensation cost related to non-vested restricted stock units. This cost is expected to be recognized over a weighted average period of 2.2 years.

Performance Share Units

The grant date fair value of Performance Share Units (“PSUs”), adjusted for estimated forfeitures, is recognized as expense on a straight-line basis from the grant date through the end of the performance period. The value of these PSUs is generally based on (i) relative total shareholder return (“rTSR”), which equals the total shareholder return for the Company as compared with the total shareholder return of a PSU comparison group and; (ii) the average annual organic revenue growth rate (“AAGR”) of the Company, both of which are measured over a three-year performance period. For outstanding rTSR-based PSUs, the comparison group for awards granted prior to fiscal 2026 consists of the components of the Standard and Poor’s (“S&P”) MidCap 400 Index and for awards granted in fiscal 2026 consists of the components of the S&P Health Care Equipment Select Industry Index. Depending on the Company’s performance under the above-mentioned PSU awards during the performance period, a recipient of the award is entitled to receive a number of ordinary shares equal to a percentage, ranging from 0% to 200%, of the award granted. If the Company’s total shareholder return for the performance period is negative, then any share payout for rTSR-based PSU awards will be capped at 100% of the target award, regardless of the Company’s performance relative to the comparison group. As a result, the Company may issue up to 763,062 shares related to outstanding performance-based awards.

A summary of PSU activity for the three months ended June 28, 2025 is as follows:


	Shares	Weighted Average Grant Date Fair Value
Unvested at March 29, 2025	335,843	$	112.10
Granted(1)	219,106	$	88.04
Vested(2)	(162,066)	$	84.96
Forfeited	(11,352)	$	128.54
Unvested at June 28, 2025	381,531	$	109.04

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(1) Includes 35,443 shares issued for awards vested during fiscal 2026 based on achievement of performance metrics.

(2) Includes the vesting of 162,066 shares that were earned for rTSR-based PSU awards granted in fiscal 2023 for performance periods ending during fiscal 2026, based on actual rTSR of 128%.

As of June 28, 2025, there was $30.0 million of total unrecognized compensation cost related to non-vested performance share units. This cost is expected to be recognized over a weighted average period of 2.3 years.