The Company grants stock options and restricted stock awards to employees and others. All outstanding stock options of the Company as of March 31, 2021 were granted with an exercise price equal to the fair market value on the date of grant. Outstanding stock options, if not exercised, expire 10 years from the date of grant.

The Company’s 2015 Amended and Restated Omnibus Incentive Plan (the “2015 Plan”) authorizes the grant of a variety of equity awards to the Company’s officers, directors, employees, consultants and advisers, including awards of unrestricted and restricted stock, restricted stock units, incentive and nonqualified stock options to purchase shares of common stock, performance share awards and stock appreciation rights. The 2015 Plan provides that options may only be granted at the current market value on the date of grant. Each share of stock issued pursuant to a stock option or stock appreciation right counts as one share against the maximum number of shares issuable under the 2015 Plan, while each share of stock issued pursuant to any other type of award counts as 1.8 shares against the maximum number of shares issuable under the 2015 Plan. The Company’s policy for issuing shares upon exercise of stock options or the vesting of its restricted stock awards and restricted stock units is to issue shares of common stock at the time of exercise or conversion. As of March 31, 2021, a total of approximately 3,334,890 shares were available for future issuance under the 2015 Plan.

The following table summarizes stock-based compensation expense by financial statement line item in the Company’s consolidated statements of operations:

	Fiscal Years Ended March 31,
		2021		2020		2019
	(in $000's)
Cost of revenue	$	3,760	$	2,641	$	2,643
Research and development		6,941		5,534		9,312
Selling, general and administrative		36,305		31,606		42,539
	$	47,006	$	39,781	$	54,494

	Fiscal Years Ended March 31,
		2021		2020		2019
	(in $000's)
Restricted stock units	$	36,347	$	28,895	$	45,998
Stock options		8,982		9,006		7,445
Employee stock purchase plan		1,677		1,880		1,051
	$	47,006	$	39,781	$	54,494

The following table summarizes stock option activity for the fiscal year ended March 31, 2021:

						Weighted
				Weighted		Average		Aggregate
				Average		Remaining		Intrinsic
	Options			Exercise		Contractual		Value
	(in thousands)			Price		Term (years)		(in thousands)
Outstanding at beginning of period		869		$	112.03		5.30
Granted		70			225.60
Exercised		(215	)		42.16
Cancelled and expired		(13	)		248.42
Outstanding at end of period		711		$	141.87		5.46	$	129,912
Exercisable at end of period		537		$	104.55		4.51	$	117,880
Options vested and expected to vest at end of period		711		$	141.87		5.46	$	129,912

Stock options generally vest and become exercisable annually over three years. The remaining unrecognized stock-based compensation expense for unvested stock option awards as of March 31, 2021 was approximately $8.9 million and the weighted-average period over which this cost will expected to be recognized is 1.6 years.

The aggregate intrinsic value of options exercised for fiscal years 2021, 2020 and 2019 was $54.9 million, $15.0 million and $174.0 million, respectively. The total cash received as a result of employee stock option exercises during the fiscal years ended March 31, 2021, 2020 and 2019 was approximately $9.1 million, $3.7 million and $12.9 million, respectively.

The Company estimates the fair value of each stock option granted at the grant date using the Black-Scholes option valuation model. The weighted average grant-date fair values and weighted average assumptions used in the calculation of fair value of options granted were as follows:

	Fiscal Years Ended March 31,
		2021			2020			2019
Valuation assumptions:
Weighted average grant-date fair value	$	77.82		$	93.05		$	141.47
Risk-free interest rate		0.32	%		1.97	%		2.91	%
Expected option life (years)		4.22			4.14			4.04
Expected volatility		42.9	%		42.3	%		42.8	%

The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for a term consistent with the expected life of the stock options. Volatility assumptions are calculated based on the historical volatility of the Company’s stock. The Company estimates the expected term of options based on historical exercise experience and estimates of future exercises of unexercised options. An expected dividend yield of zero is used in the option valuation model because the Company does not pay cash dividends and does not expect to pay any cash dividends in the foreseeable future. Forfeitures are recorded as they occur instead of estimating forfeitures that are expected to occur.

The following table summarizes restricted stock unit activity for the fiscal year ended March 31, 2021:

	Number of Shares			Weighted Average Grant Date Fair Value
	(in thousands)			(per share)
Restricted stock units at beginning of period		320		$	263.92
Granted		230			254.78
Vested		(139	)		227.32
Forfeited		(109	)		266.57
Restricted stock units at end of period		301		$	273.57

Restricted stock units generally vest annually over three years. The remaining unrecognized compensation expense for outstanding restricted stock units, including performance-based awards, as of March 31, 2021 was $51.9 million and the weighted-average period over which this cost will expected to be recognized is 1.8 years.

The weighted average grant-date fair value for restricted stock units granted during the fiscal years ended March 31, 2021, 2020 and 2019 was $254.78, $258.59 and $376.95 per share, respectively. The total fair value of restricted stock units vested in fiscal years 2021, 2020 and 2019 was $27.9 million, $99.3 million and $171.3 million, respectively.

Restricted stock units include certain awards that vest subject to certain performance. The remaining unrecognized compensation expense for outstanding performance restricted stock units as of March 31, 2021 was $24.2 million and the weighted-average period over which this cost will be recognized is 1.8 years.

In November 2020, performance-based awards of restricted stock units for the potential issuance of up to 66,000 shares of common stock were issued to certain executive officers, which vest upon achievement of prescribed service milestones by the award recipients and the achievement of prescribed performance milestones by the Company.

In May 2020, performance-based awards of restricted stock units for the potential issuance of up to 62,000 shares of common stock were issued to certain executive officers and employees, which vest upon achievement of prescribed service milestones by the award recipients and the achievement of prescribed performance milestones by the Company.

In May 2019, performance-based awards of restricted stock units for the potential issuance of up to 196,580 shares of common stock were issued to certain executive officers and employees, which vest upon achievement of prescribed service milestones by the award recipients and the achievement of prescribed performance milestones by the Company. The Company did not meet the prescribed performance milestones in fiscal year 2020 and therefore no shares vested for these performance-based awards and the Company reversed all previously recorded stock stock-based compensation expense related to this award in the three months ended March 31, 2020.

In May 2018, performance-based awards of restricted stock units for the potential issuance of 114,000 shares of common stock were issued to certain executive officers and employees, which vest upon achievement of prescribed service milestones by the award recipients and performance milestones by the Company. The Company met the prescribed performance milestones in fiscal year 2019 such that the remaining outstanding 22,000 shares of common stock as of March 31, 2021 will vest subject to service requirements for vesting for these employees and stock-based compensation expense is being recognized accordingly over the employee’s service term.

In May 2020, the Company awarded certain executive officers and employees a total of up to 61,762 market-based restricted stock units. These restricted stock units will vest and result in the issuance of shares of common stock based on continuing employment and the relative ranking of the total shareholder return (“TSR”) of the Company’s common stock in relation to the TSR of 20 peer companies over a two-year and three-year performance period based on a comparison of average closing stock prices during the 20 trading days prior to the first day of the performance period, reinstated dividends during each performance period and the average closing stock prices during the final 20 trading days of each performance period. The actual number of market-based restricted stock units that may be earned can range from 0% to 200% of the target number of shares. Additionally, the payout percentage is further adjusted based on the Company’s performance relative to the constituents of the S&P 500 Index on the first day

of the performance period that are still actively trading on the last day of each performance period. The restricted stock units will vest following the end of the two-year and three-year performance period, respectively.

The Company used a Monte-Carlo simulation model to estimate the grant-date fair value of the TSR restricted stock units. The fair value related to these awards are recorded as compensation expense over the period from date of grant to May 2022 and May 2023, respectively, regardless of the actual TSR outcome reached.

The table below sets forth the assumptions used to value the awards and the estimated grant-date fair value:

The Company has an employee stock purchase plan, or ESPP. Under the ESPP, eligible employees, including officers and directors, who have completed at least three months of employment with the Company or its subsidiaries who elect to participate in the purchase plan instruct the Company to withhold a specified amount of the employee’s income each payroll period during a six-month payment period (the periods April 1—September 30 and October 1—March 31). On the last business day of each six-month payment period, the amount withheld is used to purchase shares of the Company’s common stock at an exercise price equal to 85% of the lower of its market price on the first business day or the last business day of the payment period.