Equity Incentive Plans (Notes)

3 Months Ended

Sep. 30, 2011

Notes to Financial Statements [Abstract]

Equity incentive plans

Equity Incentive Plans

Share-Based Compensation Expense

The following table presents the details of the Company's share-based compensation expense (amounts in thousands):

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Cost of sales	$	1,608	(1)	$	1,743	(1)	$	3,007	(1)	$	3,708	(1)
Research and development	3,556			3,025			6,969			6,192
Selling, general and administrative	4,320			4,157			8,532			8,476
Pre-tax effect of share-based compensation	9,484			8,925			18,508			18,376
Income tax benefit	1,226			1,114			2,394			2,276
Net income effect of share-based compensation	$	8,258		$	7,811		$	16,114		$	16,100

(1) During the three and six months ended September 30, 2011, $1.7 million and $3.3 million, respectively, of share-based compensation expense was capitalized to inventory and $1.6 million and $3.0 million, respectively, of previously capitalized share-based compensation expenses in inventory was sold.  During the three and six months ended September 30, 2010, $1.7 million and $3.7 million, respectively, of share-based compensation expense was capitalized to inventory and $1.7 million and $3.7 million, respectively, of previously capitalized share-based compensation expense in inventory was sold.

The amount of unearned share-based compensation currently estimated to be expensed in the remainder of fiscal 2012 through fiscal 2016 related to unvested share-based payment awards at September 30, 2011 is $72.1 million.  The weighted average period over which the unearned share-based compensation is expected to be recognized is approximately 2.07 years.

Combined Incentive Plan Information

The total intrinsic value of restricted stock units (RSUs) which vested during the three and six months ended September 30, 2011 was $7.8 million and $18.5 million, respectively.  The aggregate intrinsic value of RSUs outstanding at September 30, 2011 was $172.1 million, calculated based on the closing price of the Company's common stock of $31.11 per share on September 30, 2011.  At September 30, 2011, the weighted average remaining expense recognition period was 2.12 years.

The weighted average fair value per share of the RSUs awarded is calculated based on the fair market value of the Company's common stock on the respective grant dates discounted for the Company's expected dividend yield.  The weighted average fair value per share of RSUs awarded in the three and six-month periods endedSeptember 30, 2011was $31.61 and $32.27, respectively. The weighted average fair value per share of RSUs awarded in the three and six-month periods endedSeptember 30, 2010 was $23.45 and $23.49, respectively.

The total intrinsic value of options exercised during the three and six months ended September 30, 2011 was $1.1 million and $13.1 million, respectively.  This intrinsic value represents the difference between the fair market value of the Company's common stock on the date of exercise and the exercise price of each equity award.

The aggregate intrinsic value of options outstanding and options exercisable at September 30, 2011 was $27.6 million.  The aggregate intrinsic values were calculated based on the closing price of the Company's common stock of $31.11 per share on September 30, 2011.

As of September 30, 2011 and 2010, the number of option shares exercisable was 4,566,785 and 7,493,700, respectively, and the weighted average exercise price per share was $25.17 and $24.74, respectively.

There were no stock options granted in either of the three and six months ended September 30, 2011 and 2010.