v3.26.1
Employee Benefit Plans
 12 Months Ended
Mar. 31, 2026
Compensation Related Costs [Abstract]  
Employee Benefit Plans Employee Benefit Plans
Defined Benefit Plans
Certain subsidiaries of the Company 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 2026, 2025 and 2024 was as follows (in thousands):
 Years Ended March 31,
 202620252024
Service costs$13,708 $11,875 $11,479 
Interest costs3,564 3,298 3,844 
Expected return on plan assets(9,674)(7,671)(6,950)
Amortization:
Net prior service cost (credit) recognized(658)309 (500)
Net actuarial loss (gain) recognized919 450 (179)
Settlement loss
1,881 — 922 
Total net periodic benefit cost$9,740 $8,261 $8,616 
The components of net periodic benefit cost other than the service cost component are included in other income (expense), net, in the consolidated statements of operations.
The changes in projected benefit obligations for fiscal years 2026 and 2025 were as follows (in thousands):
 Years Ended March 31,
 20262025
Projected benefit obligations, beginning of the year$259,141 $213,477 
Service costs13,708 11,875 
Interest costs3,564 3,298 
Plan participant contributions7,088 6,676 
Actuarial loss
2,216 13,691 
Benefits paid (3,475)(10,578)
Transfer of prior vested benefits7,416 15,301 
Plan amendments— 909 
Settlement(18,255)— 
Administrative expense paid(174)(157)
Currency exchange rate changes24,415 4,649 
Projected benefit obligations, end of the year$295,644 $259,141 
The accumulated benefit obligation for all defined benefit pension plans as of March 31, 2026 and 2025 was $262.6 million and $227.7 million, respectively.     
Actuarial loss for fiscal year 2025, related to changes in the Company’s pension benefit obligation, was primarily driven by fluctuations in the discount rate. In fiscal year 2026, actuarial loss was not material.
The changes in the fair value of plan assets for fiscal years 2026 and 2025 were as follows (in thousands):
 Years Ended March 31,
 20262025
Fair value of plan assets, beginning of the year$201,459 $170,640 
Actual return on plan assets9,386 5,076 
Employer contributions10,544 10,351 
Plan participant contributions7,088 6,676 
Benefits paid
(3,475)(10,578)
Transfer of prior vested benefits7,416 15,301 
Settlement(18,255)— 
Administrative expenses paid(174)(157)
Currency exchange rate changes19,842 4,150 
Fair value of plan assets, end of the year$233,831 $201,459 
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, 2026 and 2025 (in thousands):
 March 31,
 20262025
 Level 1Level 2TotalLevel 1Level 2Total
Cash and cash equivalents$26,588 $— $26,588 $21,202 $— $21,202 
Equity securities80,223 — 80,223 60,867 — 60,867 
Debt securities52,819 — 52,819 50,178 — 50,178 
Real estate funds31,979 19,443 51,422 44,906 6,833 51,739 
Hedge funds— 13,556 13,556 — 8,994 8,994 
Other8,721 502 9,223 8,005 474 8,479 
  Total fair value of plan assets$200,330 $33,501 $233,831 $185,158 $16,301 $201,459 
The funded status of the plans was as follows (in thousands):
 Years Ended March 31,
 20262025
Fair value of plan assets$233,831 $201,459 
Less: projected benefit obligations295,644 259,141 
Underfunded status $(61,813)$(57,682)
Amounts recognized on the balance sheets for the plans were as follows (in thousands):
 March 31,
 20262025
Current liabilities$2,036 $1,728 
Non-current liabilities59,777 55,954 
  Total liabilities$61,813 $57,682 
Amounts recognized in accumulated other comprehensive income (loss) related to defined benefit pension plans were as follows (in thousands):
 March 31,
 20262025
Net prior service credits$218 $820 
Net actuarial loss(22,709)(22,696)
  Accumulated other comprehensive loss(22,491)(21,876)
Deferred taxes747 (3,400)
  Accumulated other comprehensive loss, net of tax$(21,744)$(25,276)
The actuarial assumptions for the defined benefit plans were as follows:
 Years Ended March 31,
 20262025
Benefit Obligations:
Discount rate
1.10%- 6.75%
1.20% - 6.50%
Estimated rate of compensation increase
2.00% - 10.00%
2.00% - 10.00%
Cash balance interest credit rate
0.75% - 1.75%
0.75% - 1.75%
Years Ended March 31,
202620252024
Net Periodic Costs:
Discount rate
1.20% - 6.50%
1.50% - 7.00%
1.50% - 7.25%
Estimated rate of compensation increase
2.00% - 10.00%
2.25% - 10.00%
2.25% - 10.00%
Expected average rate of return on plan assets
1.00% - 4.50%
1.00% - 5.25%
0.50% - 4.50%
Cash balance interest credit rate
0.75% - 1.75%
0.50% - 1.75%
0.50% - 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,
2027$20,309 
2028$17,109 
2029$16,841 
2030$17,194 
2031$16,247 
2032-2036$89,012 
The Company expects to contribute $8.4 million to its defined benefit pension plans during fiscal year 2027.
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 2026, 2025 and 2024, were $15.7 million, $13.7 million and $14.4 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 $30.5 million and $29.0 million as of March 31, 2026 and 2025, respectively, based on quoted market prices (see Note 9). The Company also had deferred compensation liability of $30.5 million and $29.0 million, which are included in other non-current liabilities on the consolidated balance sheets as of March 31, 2026 and 2025, 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.