Share-based compensation

3 Months Ended

Mar. 31, 2015

Share-based compensation

Share-based compensation

Note 7 — Share-based compensation

Restricted share awards are issued to employees that are subject to specified restrictions and a risk of forfeiture. The restrictions typically lapse over one to five years. Restricted share awards are participating securities which entitle holders to both dividends and voting rights. Other types of share-based compensation include performance share awards, performance share units, and restricted share units (collectively with restricted share awards, “restricted shares”), as well as options to purchase common stock. Share-based compensation expense was recognized in the following line items in the Consolidated Statements of Operations for the periods indicated:

	Three months ended March 31,
	2015		2014
	(in thousands)
Cost of sales	$	601	$	560
Selling, general, and administrative	2,798		3,101
Research and development	599		1,061
Total share-based compensation expense	$	3,998	$	4,722

Equity activity related to restricted shares consists of:

			Weighted Average
			Grant Date
	Number of Shares		Fair Value
	(in thousands)
Restricted shares outstanding - December 31, 2014	1,237		$	34.27
Granted	39		31.56
Vested	(4	)	32.88
Forfeited	(53	)	35.99
Restricted shares outstanding - March 31, 2015	1,219		$	34.11

Equity activity related to stock options consists of:

			Weighted Average
	Number of Shares		Exercise Price
	(in thousands)
Stock options outstanding - December 31, 2014	2,391		$	31.65
Granted	10		30.49
Exercised	(10	)	28.77
Expired or forfeited	(62	)	36.03
Stock options outstanding - March 31, 2015	2,329		$	31.54